Culturecom Holdings Ltd revenue returned to growth in FY2016: increased 11.7% vs. 20.3% decline a year earliner
08/06/2016 • About Culturecom Holdings Ltd (
$343) • By InTwits
Culturecom Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Culturecom Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -23.7%
- The company operates at negative EBITDA Margin: -209.4%
- Culturecom Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -373.1% for the sames years0
- Culturecom Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.4%. At the same time it's a lot of higher than industry average of 8.9%.
- CAPEX is quite volatile: 0.51 in FY2016, 1.7 in FY2015, 7.6 in FY2014, 10.4 in FY2013, 3.0 in FY2012
- The company has unprofitable business model: ROIC is at -23.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Culturecom Holdings Ltd ($343) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 29.061 | 26.813 | 31.216 | 24.891 | 27.792 | 11.7% |
| Gross Profit | 12.515 | 12.555 | 7.644 | 2.640 | 11.844 | 348.6% |
| EBITDA | 21.450 | -241.522 | -143.908 | -99.332 | -58.210 | |
| Net Income | -49.107 | -297.629 | -147.229 | -115.684 | -58.078 | |
Balance Sheet
|
|---|
| Cash | 434.531 | 300.461 | 182.802 | 138.818 | 130.501 | -6.0% |
| Short Term Debt | 0.043 | 0.007 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.007 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 2.977 | 10.360 | 7.640 | 1.731 | 0.506 | -70.8% |
Ratios
|
|---|
| Revenue growth | -24.2% | -7.7% | 16.4% | -20.3% | 11.7% | |
| EBITDA growth | -121.3% | -1,226.0% | -40.4% | -31.0% | -41.4% | |
| Gross Margin | 43.1% | 46.8% | 24.5% | 10.6% | 42.6% | 32.0% |
| EBITDA Margin | 73.8% | -900.8% | -461.0% | -399.1% | -209.4% | 189.6% |
| Net Income Margin | -169.0% | -1,110.0% | -471.6% | -464.8% | -209.0% | 255.8% |
| CAPEX, % of revenue | 10.2% | 38.6% | 24.5% | 7.0% | 1.8% | -5.1% |
| ROIC | 0.2% | -39.2% | -35.4% | -34.8% | -23.7% | 11.1% |
| ROE | -6.4% | -47.7% | -35.4% | -36.9% | -21.1% | 15.9% |
| Net Debt/EBITDA | -20.3x | | | | | 0.0x |
Revenue and profitability
Culturecom Holdings Ltd's Revenue jumped on 11.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.6 pp from -14.6% to -22.2% in FY2016.
Gross Margin jumped on 32.0 pp from 10.6% to 42.6% in FY2016.
Net Income marign jumped on 256 pp from -465% to -209% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Culturecom Holdings Ltd's CAPEX/Revenue was 1.8% in FY2016. CAPEX/Revenue dropped on 36.8 pp from 38.6% in FY2013 to 1.8% in FY2016. For the last three years the average CAPEX/Revenue was 11.1%.
Return on investment
The company operates at negative ROIC (-23.72%) and ROE (-21.07%). ROIC surged on 11.1 pp from -34.8% to -23.7% in FY2016. ROE surged on 15.9 pp from -36.9% to -21.1% in FY2016.
Leverage (Debt)
The company has no debt. Cash decreased on 6.0%.
Appendix 1: Peers in Media
Below you can find Culturecom Holdings Ltd benchmarking vs. other companies in Media industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CMMB Vision Holdings Ltd ($471) | | 168.1% | 27.8% | 850.0% | |
| SCMP Group Ltd ($583) | 7.8% | 12.5% | -95.9% | 12.5% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 5.6% | 2.7% | 3.1% | 5.3% | |
| Modern Media Holdings ($72) | 11.8% | -3.7% | -4.3% | -1.3% | |
| Focus Media Network Ltd ($8112) | -10.6% | 34.6% | 5.6% | -5.2% | |
| |
|---|
| Median (18 companies) | 4.4% | -1.8% | -4.3% | -8.8% | -18.6% |
|---|
| Culturecom Holdings Ltd ($343) | | -7.7% | 16.4% | -20.3% | 11.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| I-CABLE Communications Ltd ($1097) | 94.8% | 94.7% | 94.1% | 94.4% | |
| Focus Media Network Ltd ($8112) | 68.0% | 67.2% | 50.8% | 57.6% | |
| Television Broadcasts Ltd ($511) | 62.9% | 60.9% | 59.0% | 54.9% | |
| One Media Group Ltd ($426) | 57.3% | 56.7% | 54.5% | 52.7% | |
| Modern Media Holdings ($72) | 57.5% | 55.8% | 55.6% | 50.8% | |
| |
|---|
| Median (15 companies) | 37.5% | 38.5% | 36.2% | 37.3% | 38.2% |
|---|
| Culturecom Holdings Ltd ($343) | 43.1% | 46.8% | 24.5% | 10.6% | 42.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SCMP Group Ltd ($583) | 23.5% | 20.5% | 218.1% | 193.5% | |
| Media Chinese International Ltd ($685) | 20.0% | 18.3% | 18.1% | 16.5% | 14.3% |
| One Media Group Ltd ($426) | 18.7% | 23.0% | 22.8% | 15.2% | |
| Phoenix Satellite Television Holdings Ltd ($2008) | 30.1% | 31.1% | 24.6% | 14.1% | |
| Oriental Press Group ($18) | 9.5% | 12.8% | 14.6% | 13.9% | |
| |
|---|
| Median (18 companies) | 9.9% | 11.6% | 12.5% | 9.8% | 14.3% |
|---|
| Culturecom Holdings Ltd ($343) | 73.8% | -900.8% | -461.0% | -399.1% | -209.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SCMP Group Ltd ($583) | 7.0% | 5.3% | 52.2% | 85.2% | |
| Evergrande Health Industry Group Ltd ($708) | 14.6% | 2.4% | 2.9% | 13.5% | |
| I-CABLE Communications Ltd ($1097) | 10.1% | 7.6% | 11.3% | 13.0% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 8.4% | 8.5% | 1.3% | 10.0% | |
| Tom Group Ltd ($2383) | 11.9% | 8.4% | 9.4% | 9.5% | |
| |
|---|
| Median (18 companies) | 2.7% | 5.2% | 2.3% | 5.0% | 0.8% |
|---|
| Culturecom Holdings Ltd ($343) | 10.2% | 38.6% | 24.5% | 7.0% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Media Chinese International Ltd ($685) | 18.6% | 17.8% | 18.4% | 15.6% | 11.1% |
| One Media Group Ltd ($426) | 25.6% | 21.8% | 16.0% | 8.9% | |
| Next Media Ltd ($282) | 8.5% | 6.7% | 8.2% | 6.8% | |
| Modern Media Holdings ($72) | 20.6% | 10.4% | 9.3% | 5.5% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 11.5% | -1.5% | 3.2% | 5.2% | |
| |
|---|
| Median (18 companies) | 5.6% | 5.1% | 2.6% | 1.7% | 11.1% |
|---|
| Culturecom Holdings Ltd ($343) | 0.2% | -39.2% | -35.4% | -34.8% | -23.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tom Group Ltd ($2383) | | | 8.1x | 16.7x | |
| I-CABLE Communications Ltd ($1097) | -4.0x | -0.8x | 0.2x | 2.0x | |
| One Media Group Ltd ($426) | -2.3x | -0.6x | -1.1x | 1.5x | |
| Modern Media Holdings ($72) | -0.8x | -0.9x | 0.1x | 1.0x | |
| Media Chinese International Ltd ($685) | -1.4x | 0.8x | 0.6x | 0.2x | -0.5x |
| |
|---|
| Median (12 companies) | -1.4x | -1.3x | -1.3x | -0.2x | -0.5x |
|---|
