MelcoLot Ltd reports 5.5% revenue growth in FY2016 and 32.8 pp EBITDA Margin growth from -74.2% to -41.4%
15/03/2017 • About MelcoLot Ltd (
$8198) • By InTwits
MelcoLot Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- MelcoLot Ltd doesn't have a profitable business model yet: FY2016 ROIC is -5.9%
- The company operates at negative EBITDA Margin: -41.4%
- MelcoLot Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -52.4%0
- The company has unprofitable business model: ROIC is at -5.9%
- It operates with high leverage: Net Debt/EBITDA is 0.5x while industry average is -3.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
MelcoLot Ltd ($8198) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 86.940 | 54.561 | 45.284 | 57.163 | 60.281 | 5.5% |
| Gross Profit | | | 5.675 | 4.623 | 3.945 | -14.7% |
| EBITDA | -25.141 | -10.546 | -56.362 | -42.406 | -24.941 | |
| Net Income | 78.981 | -17.117 | -65.403 | -35.934 | -2.303 | |
Balance Sheet
|
|---|
| Cash | 29.121 | 56.199 | 299.190 | 115.689 | 87.483 | -24.4% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.069 | 0.094 | 0.158 | 0.061 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -10.0% | -37.2% | -17.0% | 26.2% | 5.5% | |
| EBITDA growth | -43.8% | -58.1% | 434.4% | -24.8% | -41.2% | |
| Gross Margin | | | 12.5% | 8.1% | 6.5% | -1.5% |
| EBITDA Margin | -28.9% | -19.3% | -124.5% | -74.2% | -41.4% | 32.8% |
| Net Income Margin | 90.8% | -31.4% | -144.4% | -62.9% | -3.8% | 59.0% |
| CAPEX, % of revenue | 1.2% | 0.2% | 0.3% | 0.1% | | -0.1% |
| ROIC | -161.5% | | -43.7% | -9.8% | -5.9% | 3.9% |
| ROE | | | | -8.8% | -0.6% | 8.2% |
Revenue and profitability
MelcoLot Ltd's Revenue increased on 5.5%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 32.8 pp from -74.2% to -41.4% in FY2016.
Gross Margin decreased slightly on 1.5 pp from 8.1% to 6.5% in FY2016.
Net Income marign jumped on 59.0 pp from -62.9% to -3.8% in FY2016.
Return on investment
The company operates at negative ROIC (-5.93%) and ROE (-0.57%). ROIC increased on 3.9 pp from -9.8% to -5.9% in FY2016. ROE increased on 8.2 pp from -8.8% to -0.57% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 24.4%.
Appendix 1: Peers in Entertainment
Below you can find MelcoLot Ltd benchmarking vs. other companies in Entertainment 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 |
|---|
| 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) | | 4.3% | 159.4% | 46.3% | -97.5% |
| |
|---|
| Median (27 companies) | 12.5% | 11.6% | 1.2% | -4.8% | 0.9% |
|---|
| MelcoLot Ltd ($8198) | | -37.2% | -17.0% | 26.2% | 5.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amax International Holdings Ltd ($959) | | 92.1% | 98.6% | 96.6% | 70.6% |
| China Vanguard Group Ltd ($8156) | 63.8% | 88.2% | 93.8% | 95.2% | 91.0% |
| Universe International Holdings Ltd ($1046) | 22.1% | 36.7% | 11.4% | 84.8% | -635.1% |
| 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 (23 companies) | 42.8% | 48.7% | 44.3% | 44.3% | 36.4% |
|---|
| MelcoLot Ltd ($8198) | | | 12.5% | 8.1% | 6.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Neptune Group Ltd ($70) | 98.6% | 98.6% | 86.6% | 99.0% | 76.3% |
| Universe International Holdings Ltd ($1046) | 36.6% | 44.6% | 74.6% | 73.6% | -1,418.4% |
| 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 (27 companies) | 24.0% | 20.3% | 19.5% | 2.2% | -11.0% |
|---|
| MelcoLot Ltd ($8198) | -28.9% | -19.3% | -124.5% | -74.2% | -41.4% |
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% | 42.5% |
| |
|---|
| Median (27 companies) | 8.9% | 7.8% | 4.8% | 8.4% | 4.3% |
|---|
| MelcoLot Ltd ($8198) | 1.2% | 0.2% | 0.3% | 0.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Universe International Holdings Ltd ($1046) | -6.2% | -0.8% | -3.7% | 43.8% | -17.0% |
| China Animation Characters Co Ltd ($1566) | | 119.2% | 117.8% | 24.1% | 14.0% |
| Neptune Group Ltd ($70) | 22.8% | 23.8% | 21.1% | 18.1% | 0.3% |
| 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% |
| |
|---|
| Median (28 companies) | -1.1% | 3.7% | 0.7% | -1.7% | -8.4% |
|---|
| MelcoLot Ltd ($8198) | -161.5% | | -43.7% | -9.8% | -5.9% |
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 | 4.5x |
| 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 (14 companies) | -0.1x | -0.5x | -0.3x | -0.5x | -0.2x |
|---|
