Bingo Group Holdings Ltd revenue decreased on 2.8% while EBITDA Margin surged on 40.3 pp from -49.7% to -9.4%
17/06/2016 • About Bingo Group Holdings Ltd (
$8220) • By InTwits
Bingo Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bingo Group Holdings Ltd is a company in decline: FY2016 revenue growth was -2.8%, 5 years revenue CAGR was -33.1%
- The company operates at negative EBITDA Margin: -9.4%
- Bingo Group 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 -17.6% for the sames years0
- Bingo Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: 0.19 in FY2016, 1.6 in FY2015, 2.6 in FY2014, 0.18 in FY2013, 0.40 in FY2012
- The company has unprofitable business model: ROIC is at -13.6%
- It operates with high leverage: Net Debt/EBITDA is -1.0x while industry average is -2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bingo Group Holdings Ltd ($8220) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 280.0 | 89.0 | 80.4 | 77.0 | 74.8 | -2.8% |
| Gross Profit | 6.1 | 63.3 | 44.4 | 44.1 | 43.3 | -1.9% |
| SG&A | | 24.1 | 48.0 | 51.0 | 58.1 | 13.9% |
| EBITDA | -111.8 | 31.4 | 19.6 | -38.3 | -7.0 | |
| Net Income | -124.2 | 13.0 | -59.5 | -65.9 | -49.3 | |
Balance Sheet
|
|---|
| Cash | 39.1 | 108.7 | 106.0 | 129.0 | 131.9 | 2.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 10.9 | 13.6 | 16.4 | 19.3 | 14.9 | -23.0% |
Cash flow
|
|---|
| Capex | 0.4 | 0.2 | 2.6 | 1.6 | 0.2 | -87.7% |
Ratios
|
|---|
| Revenue growth | -49.8% | -68.2% | -9.6% | -4.3% | -2.8% | |
| EBITDA growth | -35.6% | -128.1% | -37.5% | -294.8% | -81.6% | |
| Gross Margin | 2.2% | 71.2% | 55.1% | 57.4% | 57.9% | 0.6% |
| EBITDA Margin | -39.9% | 35.3% | 24.4% | -49.7% | -9.4% | 40.3% |
| Net Income Margin | -44.3% | 14.6% | -73.9% | -85.7% | -66.0% | 19.7% |
| SG&A, % of revenue | | 27.1% | 59.7% | 66.3% | 77.7% | 11.4% |
| CAPEX, % of revenue | 0.1% | 0.2% | 3.2% | 2.0% | 0.3% | -1.8% |
| ROIC | -80.0% | 5.1% | 5.4% | -27.9% | -13.6% | 14.3% |
| ROE | -117.3% | 8.3% | -38.0% | -49.4% | -37.9% | 11.5% |
| Net Debt/EBITDA | | -3.0x | -4.6x | | | 0.0x |
Revenue and profitability
Bingo Group Holdings Ltd's Revenue decreased on 2.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 40.3 pp from -49.7% to -9.4% in FY2016.
Gross Margin increased slightly on 0.57 pp from 57.4% to 57.9% in FY2016. SG&A as a % of Revenue jumped on 11.4 pp from 66.3% to 77.7% in FY2016.
Net Income marign jumped on 19.7 pp from -85.7% to -66.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Bingo Group Holdings Ltd's CAPEX/Revenue was 0.26% in FY2016. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at negative ROIC (-13.60%) and ROE (-37.87%). ROIC surged on 14.3 pp from -27.9% to -13.6% in FY2016. ROE surged on 11.5 pp from -49.4% to -37.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 23.0% while cash increased on 2.3%.
Appendix 1: Peers in Entertainment
Below we provide Bingo Group Holdings Ltd benchmarking against other companies in Entertainment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Neo Telemedia Ltd ($8167) | 268.8% | -60.2% | -13.4% | 5,442.4% | |
| National Arts Entertainment and Culture Group Ltd ($8228) | -57.9% | 181.2% | -20.1% | 162.4% | |
| Alibaba Pictures Group Ltd ($1060) | 169.4% | -45.8% | -63.8% | 108.3% | |
| SMI Holdings Group Ltd ($198) | 16.4% | 65.4% | 16.4% | 77.2% | |
| Universe International Holdings Ltd ($1046) | -42.2% | 4.3% | 159.4% | 46.3% | |
| |
|---|
| Median (26 companies) | 4.5% | 14.1% | 1.2% | -5.8% | 0.9% |
|---|
| Bingo Group Holdings Ltd ($8220) | | -68.2% | -9.6% | -4.3% | -2.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amax International Holdings Ltd ($959) | | 92.1% | 98.6% | 96.6% | |
| China Vanguard Group Ltd ($8156) | 63.8% | 88.2% | 93.8% | 95.2% | |
| Universe International Holdings Ltd ($1046) | 22.1% | 36.7% | 11.4% | 84.8% | |
| Cheung Wo International Holdings Ltd ($9) | -17.5% | 71.4% | 77.7% | 77.8% | |
| REXLot Holdings Ltd ($555) | 70.2% | 73.1% | 73.4% | 67.4% | |
| |
|---|
| Median (22 companies) | 44.9% | 48.7% | 43.5% | 42.7% | |
|---|
| Bingo Group Holdings Ltd ($8220) | 2.2% | 71.2% | 55.1% | 57.4% | 57.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Neptune Group Ltd ($70) | 98.6% | 98.6% | 86.6% | 99.0% | |
| Universe International Holdings Ltd ($1046) | 36.6% | 44.6% | 74.6% | 73.6% | |
| Haichang Holdings Ltd ($2255) | 55.0% | 44.5% | 46.3% | 56.6% | |
| REXLot Holdings Ltd ($555) | 53.7% | 55.1% | 6.1% | 40.5% | |
| SMI Holdings Group Ltd ($198) | 19.2% | 35.4% | 34.5% | 31.2% | |
| |
|---|
| Median (26 companies) | 22.1% | 17.2% | 14.9% | 0.2% | 19.4% |
|---|
| Bingo Group Holdings Ltd ($8220) | -39.9% | 35.3% | 24.4% | -49.7% | -9.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Star Cultural Media Group Ltd ($8172) | 8.9% | 0.0% | 0.0% | 848.3% | |
| National Arts Entertainment and Culture Group Ltd ($8228) | 1,237.1% | 771.1% | 799.0% | 508.9% | |
| Cheung Wo International Holdings Ltd ($9) | 90.3% | 465.2% | 383.2% | 202.4% | |
| Haichang Holdings Ltd ($2255) | 21.4% | 18.5% | 10.3% | 64.2% | |
| Amax International Holdings Ltd ($959) | 10.4% | 2.7% | 17.2% | 59.8% | |
| |
|---|
| Median (26 companies) | 9.7% | 9.0% | 5.0% | 8.5% | 8.1% |
|---|
| Bingo Group Holdings Ltd ($8220) | 0.1% | 0.2% | 3.2% | 2.0% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Universe International Holdings Ltd ($1046) | -6.2% | -0.8% | -3.7% | 43.8% | |
| Neptune Group Ltd ($70) | 22.8% | 23.8% | 21.1% | 18.1% | |
| SMI Holdings Group Ltd ($198) | 1.3% | 8.4% | 9.9% | 10.5% | |
| Dynam Japan Holdings Co Ltd ($6889) | 23.8% | 25.4% | 21.8% | 10.5% | 12.6% |
| Haichang Holdings Ltd ($2255) | 7.1% | 8.1% | 8.6% | 8.9% | |
| |
|---|
| Median (27 companies) | -1.1% | 1.3% | -0.9% | -1.8% | 12.6% |
|---|
| Bingo Group Holdings Ltd ($8220) | -80.0% | 5.1% | 5.4% | -27.9% | -13.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Orange Sky Golden Harvest Entertainment Holdings Ltd ($1132) | 1.1x | 4.2x | 2.7x | 25.8x | |
| Nan Hai Corp Ltd ($680) | 80.8x | 3.5x | 20.8x | 12.6x | |
| Haichang Holdings Ltd ($2255) | 7.0x | 4.7x | 1.7x | 1.7x | |
| SMI Holdings Group Ltd ($198) | 2.0x | 1.6x | 2.1x | 1.6x | |
| REXLot Holdings Ltd ($555) | -0.0x | -0.2x | 7.2x | 1.6x | |
| |
|---|
| Median (13 companies) | -0.1x | -0.5x | -0.0x | -0.4x | -0.2x |
|---|
