Media Asia Group Holdings Ltd EBITDA dropped on 58.7% and Revenue dropped on 26.9%
19/10/2016 • About Media Asia Group Holdings Ltd (
$8075) • By InTwits
Media Asia Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Media Asia Group Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -5.6%
- EBITDA Margin is quite volatile: 14.2% in FY2016, 25.1% in FY2015, 13.4% in FY2014, 18.6% in FY2013, -30.8% in FY2012
- Media Asia Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 5.9%.
- CAPEX is quite volatile: 4.3 in FY2016, 0.67 in FY2015, 10.4 in FY2014, 6.8 in FY2013, 23.4 in FY2012
- The company has unprofitable business model: ROIC is at -5.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Media Asia Group Holdings Ltd ($8075) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 117.5 | 441.2 | 457.0 | 712.4 | 520.4 | -26.9% |
| Gross Profit | 44.5 | 137.0 | 88.8 | 277.8 | 154.9 | -44.2% |
| SG&A | 84.1 | 170.2 | 165.1 | 243.7 | 212.8 | -12.7% |
| EBITDA | -36.1 | 82.2 | 61.3 | 178.7 | 73.9 | -58.7% |
| Net Income | -290.2 | -98.9 | -153.2 | 25.9 | -95.5 | -469.6% |
Balance Sheet
|
|---|
| Cash | 696.9 | 414.4 | 327.0 | 722.0 | 450.0 | -37.7% |
| Short Term Debt | 0.0 | 317.5 | 169.0 | 0.0 | 0.0 | |
| Long Term Debt | 458.9 | 189.3 | 0.0 | 242.8 | 249.8 | 2.9% |
Cash flow
|
|---|
| Capex | 23.4 | 6.8 | 10.4 | 0.7 | 4.3 | 546.3% |
Ratios
|
|---|
| Revenue growth | 1,124.6% | 275.6% | 3.6% | 55.9% | -26.9% | |
| EBITDA growth | -9.6% | -327.5% | -25.5% | 191.7% | -58.7% | |
| Gross Margin | 37.9% | 31.1% | 19.4% | 39.0% | 29.8% | -9.2% |
| EBITDA Margin | -30.8% | 18.6% | 13.4% | 25.1% | 14.2% | -10.9% |
| Net Income Margin | -247.0% | -22.4% | -33.5% | 3.6% | -18.4% | -22.0% |
| SG&A, % of revenue | 71.6% | 38.6% | 36.1% | 34.2% | 40.9% | 6.7% |
| CAPEX, % of revenue | 19.9% | 1.5% | 2.3% | 0.1% | 0.8% | 0.7% |
| ROIC | -7.7% | -3.3% | -5.9% | 4.0% | -5.6% | -9.6% |
| ROE | -102.4% | -20.2% | -30.8% | 3.6% | -11.2% | -14.7% |
| Net Debt/EBITDA | | 1.1x | -2.6x | -2.7x | -2.7x | -0.0x |
Revenue and profitability
The company's Revenue dropped on 26.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from -6.0% to -3.5% in FY2016.
Gross Margin decreased on 9.2 pp from 39.0% to 29.8% in FY2016. SG&A as a % of Revenue increased on 6.7 pp from 34.2% to 40.9% in FY2016.
Net Income marign dropped on 22.0 pp from 3.6% to -18.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Media Asia Group Holdings Ltd's CAPEX/Revenue was 0.83% in FY2016. The company showed small CAPEX/Revenue decline of 0.71 pp from 1.5% in FY2013 to 0.83% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at negative ROIC (-5.62%) and ROE (-11.17%). ROIC decreased on 9.6 pp from 4.0% to -5.6% in FY2016. ROE dropped on 14.7 pp from 3.6% to -11.2% in FY2016.
Leverage (Debt)
Debt level is -2.7x Net Debt / EBITDA and 3.4x Debt / EBITDA. Net Debt / EBITDA decreased on 0.028x from -2.7x to -2.7x in FY2016. Debt increased on 2.9% while cash dropped on 37.7%.
Appendix 1: Peers in Internet
Below you can find Media Asia Group Holdings Ltd benchmarking vs. other companies in Internet 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 |
|---|
| Asian Capital Resources Holdings Ltd ($8025) | -5.6% | | | 1,114.6% | |
| China Public Procurement Ltd ($1094) | 5,077.0% | -67.5% | 1,258.9% | 105.7% | |
| Ourgame International Holdings Ltd ($6899) | 33.7% | 14.8% | 101.3% | 61.8% | |
| Tai Shing International Holdings Ltd ($8103) | | -35.9% | -4.9% | 48.5% | -13.6% |
| GET Holdings Ltd ($8380) | 13.8% | 2,126.4% | 154.4% | 38.6% | |
| |
|---|
| Median (20 companies) | 11.8% | 6.0% | 13.0% | 5.7% | -5.3% |
|---|
| Media Asia Group Holdings Ltd ($8075) | | 275.6% | 3.6% | 55.9% | -26.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino-I Technology Ltd ($250) | 75.3% | 82.7% | 78.8% | 82.8% | |
| ABC Multiactive Ltd ($8131) | 86.7% | 83.5% | 86.2% | 82.1% | |
| China Digital Culture Group Ltd ($8175) | 64.3% | 78.6% | 65.2% | 72.7% | |
| Prosten Technology Holdings Ltd ($8026) | 52.4% | 47.8% | 50.8% | 67.1% | 53.8% |
| SUNeVision Holdings Ltd ($8008) | 53.5% | 60.5% | 64.7% | 65.6% | 63.9% |
| |
|---|
| Median (17 companies) | 68.0% | 70.5% | 61.9% | 50.9% | 45.3% |
|---|
| Media Asia Group Holdings Ltd ($8075) | 37.9% | 31.1% | 19.4% | 39.0% | 29.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SUNeVision Holdings Ltd ($8008) | 64.2% | 71.6% | 71.6% | 72.4% | 68.9% |
| China Digital Culture Group Ltd ($8175) | -66.7% | 22.5% | 40.8% | 46.6% | |
| Tradelink Electronic Commerce Ltd ($536) | 38.6% | 33.8% | 33.1% | 31.1% | |
| GET Holdings Ltd ($8380) | -237.7% | 56.8% | 66.4% | 28.5% | |
| Ourgame International Holdings Ltd ($6899) | 23.3% | 24.8% | 23.3% | 22.7% | |
| |
|---|
| Median (20 companies) | 6.0% | 18.9% | 14.2% | 7.1% | -21.0% |
|---|
| Media Asia Group Holdings Ltd ($8075) | -30.8% | 18.6% | 13.4% | 25.1% | 14.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AcrossAsia Ltd ($8061) | 56.6% | 65.9% | 36.3% | 45.8% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | | 12.2% | 14.0% | |
| SUNeVision Holdings Ltd ($8008) | 7.6% | 10.2% | 62.8% | 12.4% | 41.1% |
| Ourgame International Holdings Ltd ($6899) | 1.8% | 3.1% | 1.7% | 6.4% | |
| Sino-I Technology Ltd ($250) | 9.3% | 12.7% | 4.0% | 6.0% | |
| |
|---|
| Median (20 companies) | 3.1% | 2.8% | 1.7% | 1.3% | 2.0% |
|---|
| Media Asia Group Holdings Ltd ($8075) | 19.9% | 1.5% | 2.3% | 0.1% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Online Ltd ($543) | 37.9% | 36.4% | 28.6% | 21.6% | |
| Tradelink Electronic Commerce Ltd ($536) | 22.4% | 18.2% | 17.4% | 16.7% | |
| SUNeVision Holdings Ltd ($8008) | 10.8% | 13.3% | 14.4% | 15.3% | 15.3% |
| Ourgame International Holdings Ltd ($6899) | 42.8% | 33.3% | 17.5% | 12.7% | |
| China Digital Culture Group Ltd ($8175) | -11.2% | 4.0% | 11.7% | 8.2% | |
| |
|---|
| Median (21 companies) | -2.5% | 4.0% | -1.3% | -0.5% | -32.0% |
|---|
| Media Asia Group Holdings Ltd ($8075) | -7.7% | -3.3% | -5.9% | 4.0% | -5.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tai Shing International Holdings Ltd ($8103) | | | | 82.7x | |
| AcrossAsia Ltd ($8061) | 2.3x | 2.9x | 1.5x | 7.7x | |
| Sino-I Technology Ltd ($250) | | 9.4x | | 4.1x | |
| GET Holdings Ltd ($8380) | | -1.1x | -1.0x | 0.7x | |
| SUNeVision Holdings Ltd ($8008) | -2.2x | -2.0x | -1.5x | -1.2x | -0.7x |
| |
|---|
| Median (13 companies) | -1.6x | -1.3x | -1.5x | -1.7x | -0.7x |
|---|
| Media Asia Group Holdings Ltd ($8075) | | 1.1x | -2.6x | -2.7x | -2.7x |
