Phoenix Satellite Television Holdings Ltd reports 109% Net Income growth while 9.6% Revenue decline
17/03/2017 • About Phoenix Satellite Television Holdings Ltd (
$2008) • By InTwits
Phoenix Satellite Television Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 12.7% in FY2016 vs. 14.1% in FY2015 vs. 30.1% in FY2012
- EBITDA Margin is quite volatile: 12.7% in FY2016, 14.1% in FY2015, 24.6% in FY2014, 31.1% in FY2013, 30.1% in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Phoenix Satellite Television Holdings Ltd ($2008) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,336 | 4,806 | 4,618 | 4,201 | 3,798 | -9.6% |
| SG&A | 548 | 621 | 721 | 738 | 864 | 17.1% |
| EBITDA | 1,305 | 1,494 | 1,136 | 593 | 481 | -18.8% |
| Net Income | 833 | 932 | 664 | 110 | 231 | 108.9% |
Balance Sheet
|
|---|
| Cash | 3,114 | 3,663 | 3,702 | 3,005 | 2,679 | -10.9% |
| Short Term Debt | 75 | 537 | 601 | 432 | 632 | 46.5% |
| Long Term Debt | 520 | 70 | 255 | 782 | 349 | -55.3% |
Cash flow
|
|---|
| Capex | 521 | 407 | 529 | 103 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 19.1% | 10.8% | -3.9% | -9.0% | -9.6% | |
| EBITDA growth | 20.1% | 14.5% | -24.0% | -47.8% | -18.8% | |
| EBITDA Margin | 30.1% | 31.1% | 24.6% | 14.1% | 12.7% | -1.4% |
| Net Income Margin | 19.2% | 19.4% | 14.4% | 2.6% | 6.1% | 3.4% |
| SG&A, % of revenue | 12.6% | 12.9% | 15.6% | 17.6% | 22.8% | 5.2% |
| CAPEX, % of revenue | 12.0% | 8.5% | 11.4% | 2.5% | | -2.5% |
| ROIC | 18.5% | 18.4% | 11.7% | 3.9% | 3.0% | -0.9% |
| ROE | 21.4% | 20.3% | 13.0% | 2.2% | 4.6% | 2.4% |
| Net Debt/EBITDA | -1.9x | -2.0x | -2.5x | -3.0x | -3.5x | -0.5x |
Revenue and profitability
The company's Revenue decreased on 9.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 8.8% to 10.0% in FY2016.
SG&A as a % of Revenue increased on 5.2 pp from 17.6% to 22.8% in FY2016.
Net Income marign increased on 3.4 pp from 2.6% to 6.1% in FY2016.
Return on investment
The company operates at low ROIC (2.97%) and ROE (4.59%). ROIC decreased slightly on 0.93 pp from 3.9% to 3.0% in FY2016. ROE increased on 2.4 pp from 2.2% to 4.6% in FY2016.
Leverage (Debt)
Debt level is -3.5x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from -3.0x to -3.5x in FY2016. Debt dropped on 19.1% while cash dropped on 10.9%.
Appendix 1: Peers in Media
Below you can find Phoenix Satellite Television 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) | | 2.7% | 3.1% | 5.3% | 4.9% |
| Modern Media Holdings ($72) | | -3.7% | -4.3% | -1.3% | -12.9% |
| Focus Media Network Ltd ($8112) | -10.6% | 34.6% | 5.6% | -5.2% | |
| |
|---|
| Median (18 companies) | 4.4% | -1.9% | -4.3% | -9.0% | -12.9% |
|---|
| Phoenix Satellite Television Holdings Ltd ($2008) | | 10.8% | -3.9% | -9.0% | -9.6% |
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% | 94.0% |
| 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% | |
| |
|---|
| Median (16 companies) | 38.5% | 39.5% | 36.1% | 36.5% | 38.2% |
|---|
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% |
| Oriental Press Group ($18) | 9.5% | 12.8% | 14.6% | 13.9% | 9.2% |
| Next Media Ltd ($282) | 20.2% | 18.8% | 13.9% | 12.0% | 3.5% |
| |
|---|
| Median (18 companies) | 9.9% | 11.5% | 9.8% | 8.9% | 8.9% |
|---|
| Phoenix Satellite Television Holdings Ltd ($2008) | 30.1% | 31.1% | 24.6% | 14.1% | 12.7% |
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% | 1.5% |
| Tom Group Ltd ($2383) | 11.9% | 8.4% | 9.4% | 9.5% | |
| |
|---|
| Median (18 companies) | 2.7% | 5.2% | 2.3% | 6.5% | 1.3% |
|---|
| Phoenix Satellite Television Holdings Ltd ($2008) | 12.0% | 8.5% | 11.4% | 2.5% | |
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) | 3.7% | 4.3% | 2.6% | 0.3% | -1.6% |
|---|
| Phoenix Satellite Television Holdings Ltd ($2008) | 18.5% | 18.4% | 11.7% | 3.9% | 3.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tom Group Ltd ($2383) | | | 8.1x | 16.7x | 25.4x |
| I-CABLE Communications Ltd ($1097) | -4.0x | -0.8x | 0.2x | 2.0x | 3.8x |
| 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 (11 companies) | -1.4x | -1.1x | -1.1x | -0.1x | -0.6x |
|---|
| Phoenix Satellite Television Holdings Ltd ($2008) | -1.9x | -2.0x | -2.5x | -3.0x | -3.5x |
