I-CABLE Communications Ltd EBITDA surged on 18.0% and EBITDA Margin increased slightly on 1.9 pp from 7.2% to 9.2%
23/02/2017 • About I-CABLE Communications Ltd (
$1097) • By InTwits
I-CABLE Communications Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- I-CABLE Communications Ltd is a company in decline: FY2016 revenue growth was -6.8%, 5 years revenue CAGR was -7.8%
- EBITDA Margin is quite volatile: 9.2% in FY2016, 7.2% in FY2015, 12.5% in FY2014, 11.6% in FY2013, 2.2% in FY2012
- The company has unprofitable business model: ROIC is at -37.5%
- It operates with high leverage: Net Debt/EBITDA is 3.8x while industry average is -0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
I-CABLE Communications Ltd ($1097) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,127 | 1,932 | 1,666 | 1,510 | 1,406 | -6.8% |
| Gross Profit | 2,017 | 1,829 | 1,567 | 1,425 | 1,322 | -7.2% |
| SG&A | 389 | 372 | 334 | 342 | 340 | -0.8% |
| EBITDA | 47 | 225 | 208 | 109 | 129 | 18.0% |
| Net Income | -278 | -93 | -139 | -233 | -313 | |
Balance Sheet
|
|---|
| Cash | 288 | 182 | 62 | 82 | 106 | 28.4% |
| Short Term Debt | 0 | 0 | 100 | 300 | 590 | 96.7% |
| Long Term Debt | 100 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 215 | 147 | 188 | 197 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 0.8% | -9.2% | -13.8% | -9.4% | -6.8% | |
| EBITDA growth | -71.8% | 378.5% | -7.2% | -47.7% | 18.0% | |
| Gross Margin | 94.8% | 94.7% | 94.1% | 94.4% | 94.0% | -0.4% |
| EBITDA Margin | 2.2% | 11.6% | 12.5% | 7.2% | 9.2% | 1.9% |
| Net Income Margin | -13.1% | -4.8% | -8.4% | -15.4% | -22.2% | -6.8% |
| SG&A, % of revenue | 18.3% | 19.2% | 20.0% | 22.7% | 24.2% | 1.5% |
| CAPEX, % of revenue | 10.1% | 7.6% | 11.3% | 13.0% | | -13.0% |
| ROIC | -25.1% | -10.3% | -15.3% | -27.9% | -37.5% | -9.6% |
| ROE | -19.6% | -7.5% | -12.4% | -24.9% | -47.2% | -22.3% |
| Net Debt/EBITDA | -4.0x | -0.8x | 0.2x | 2.0x | 3.8x | 1.8x |
Revenue and profitability
I-CABLE Communications Ltd's Revenue decreased on 6.8%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.9 pp from 7.2% to 9.2% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 1.5 pp from 22.7% to 24.2% in FY2016.
Net Income marign decreased on 6.8 pp from -15.4% to -22.2% in FY2016.
Return on investment
The company operates at negative ROIC (-37.49%) and ROE (-47.24%). ROIC decreased on 9.6 pp from -27.9% to -37.5% in FY2016. ROE dropped on 22.3 pp from -24.9% to -47.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.8x and Debt / EBITDA is 4.6x. Net Debt / EBITDA jumped on 1.8x from 2.0x to 3.8x in FY2016. Debt jumped on 96.7% while cash surged on 28.4%.
Appendix 1: Peers in Media
Below we provide I-CABLE Communications Ltd benchmarking against other companies in Media 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 |
|---|
| 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) | | 2.7% | 3.1% | 5.3% | 4.9% |
| 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) | 4.5% | -1.8% | -3.9% | -8.8% | -14.7% |
|---|
| I-CABLE Communications Ltd ($1097) | | -9.2% | -13.8% | -9.4% | -6.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | 45.6% |
| Modern Media Holdings ($72) | 57.5% | 55.8% | 55.6% | 50.8% | |
| Media Chinese International Ltd ($685) | 39.5% | 39.5% | 39.1% | 38.6% | 38.2% |
| |
|---|
| Median (15 companies) | 37.5% | 38.5% | 36.1% | 35.7% | 38.2% |
|---|
| I-CABLE Communications Ltd ($1097) | 94.8% | 94.7% | 94.1% | 94.4% | 94.0% |
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% | -5.8% |
| 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% | 9.2% |
| |
|---|
| Median (18 companies) | 12.9% | 11.5% | 9.8% | 9.8% | 6.4% |
|---|
| I-CABLE Communications Ltd ($1097) | 2.2% | 11.6% | 12.5% | 7.2% | 9.2% |
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% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 8.4% | 8.5% | 1.3% | 10.0% | 1.5% |
| Tom Group Ltd ($2383) | 11.9% | 8.4% | 9.4% | 9.5% | |
| China 33 Media Group Ltd ($8087) | 1.4% | 0.6% | 1.5% | 8.5% | |
| |
|---|
| Median (18 companies) | 2.7% | 5.2% | 2.3% | 5.0% | 1.3% |
|---|
| I-CABLE Communications Ltd ($1097) | 10.1% | 7.6% | 11.3% | 13.0% | |
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% | -6.5% |
| Next Media Ltd ($282) | 8.5% | 6.7% | 8.2% | 6.8% | -1.5% |
| 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% | 7.0% |
| |
|---|
| Median (18 companies) | 5.6% | 5.1% | 2.6% | 1.7% | -0.0% |
|---|
| I-CABLE Communications Ltd ($1097) | -25.1% | -10.3% | -15.3% | -27.9% | -37.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tom Group Ltd ($2383) | | | 8.1x | 16.7x | |
| 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 |
| Hong Kong Economic Times Holdings Ltd ($423) | -1.3x | -4.6x | -0.7x | -0.1x | -0.7x |
| |
|---|
| Median (11 companies) | -1.4x | -1.5x | -1.5x | -0.3x | -1.3x |
|---|
| I-CABLE Communications Ltd ($1097) | -4.0x | -0.8x | 0.2x | 2.0x | 3.8x |
