Zee Media Corporation Net Income dropped on 346% in 2015 and EBITDA Margin decreased slightly on 1.8 pp from 9.5% to 7.7%
22-05-2015 • About Zee Media Corporation (
$ZEEMEDIA) • By InTwits
Zee Media Corporation reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zee Media Corporation doesn't have a profitable business model yet: FY2015 ROIC is -1.3%
- EBITDA Margin is declining: 7.7% in FY2015 vs. 9.5% in FY2014 vs. 16.6% in FY2011
- EBITDA Margin is quite volatile: 7.7% in FY2015, 9.5% in FY2014, 13.6% in FY2013, 18.6% in FY2012, 16.6% in FY2011
- Zee Media Corporation has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.9%. At the same time it's a lot of higher than industry average of 3.4%.
- CAPEX is quite volatile: 0 in FY2015, 1,057 in FY2014, 176 in FY2013, 104 in FY2012, 105 in FY2011
- The company has unprofitable business model: ROIC is at -1.3%
- It operates with high leverage: Net Debt/EBITDA is 10.1x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zee Media Corporation ($ZEEMEDIA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,768 | 3,061 | 3,008 | 3,348 | 5,443 | 62.6% |
| EBITDA | 461 | 570 | 410 | 319 | 421 | 32.1% |
| Net Income | 164 | 115 | 242 | 189 | -467 | -346.4% |
Balance Sheet
|
|---|
| Cash | 812 | 234 | 58 | 162 | 359 | 121.3% |
| Short Term Debt | 159 | 192 | 180 | 436 | 1,843 | 322.9% |
| Long Term Debt | 363 | 178 | 6 | 679 | 2,760 | 306.5% |
Cash flow
|
|---|
| Capex | 105 | 104 | 176 | 1,057 | 0 | -100.0% |
Ratios
|
|---|
| Revenue growth | -57.5% | 10.6% | -1.7% | 11.3% | 62.6% | |
| EBITDA growth | -51.8% | 23.8% | -28.1% | -22.2% | 32.1% | |
| EBITDA Margin | 16.6% | 18.6% | 13.6% | 9.5% | 7.7% | -1.8% |
| Net Income Margin | 5.9% | 3.8% | 8.0% | 5.7% | -8.6% | -14.2% |
| CAPEX, % of revenue | 3.8% | 3.4% | 5.9% | 31.6% | 0.0% | -31.6% |
| ROIC | 11.9% | 18.8% | 11.9% | 5.2% | -1.3% | -6.4% |
| ROE | 9.6% | 6.3% | 12.0% | 8.5% | -15.8% | -24.3% |
| Net Debt/EBITDA | -0.6x | 0.2x | 0.3x | 3.0x | 10.1x | 7.1x |
Revenue and profitability
The company's Revenue jumped on 62.6% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from 9.5% to 7.7% in FY2015.
Net Income marign dropped on 14.2 pp from 5.7% to -8.6% in FY2015.
Return on investment
The company operates at negative ROIC (-1.28%) and ROE (-15.76%). ROIC decreased on 6.4 pp from 5.2% to -1.3% in FY2015. ROE dropped on 24.3 pp from 8.5% to -15.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 10.1x and Debt / EBITDA is 10.9x. Net Debt / EBITDA surged on 7.1x from 3.0x to 10.1x in FY2015. Debt jumped on 313% in FY2015 while cash surged on 121% in FY2015.
Appendix 1: Peers in Broadcasting & Cable TV
Below you can find Zee Media Corporation benchmarking vs. other companies in Broadcasting & Cable TV 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Balaji Telefilms ($BALAJITELE) | | -2.3% | -1.0% | 119.1% | -15.0% |
| Siti Cable Network ($SITICABLE) | -71.5% | 12.0% | 37.0% | 41.6% | |
| Hinduja Ventures ($HINDUJAVEN) | | 25.6% | 31.8% | 29.6% | 81.8% |
| Den Networks ($DEN) | | 10.0% | -21.7% | 24.8% | 1.2% |
| B.A.G.Films & Media ($BAGFILMS) | -49.9% | 55.3% | 0.5% | 22.9% | |
| |
|---|
| Median (9 companies) | -54.5% | 12.0% | 10.7% | 22.9% | 12.8% |
|---|
| Zee Media Corporation ($ZEEMEDIA) | | 10.6% | -1.7% | 11.3% | 62.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Entertainment Network (India) ($ENIL) | 21.9% | 32.1% | 30.8% | 32.4% | 33.3% |
| Zee Entertainment Enterprises ($ZEEL) | 27.3% | 24.4% | 25.9% | 27.6% | 25.7% |
| Dish Tv India ($DISHTV) | 17.8% | 25.5% | 27.3% | 26.4% | |
| Den Networks ($DEN) | 13.2% | 7.3% | 22.5% | 24.8% | 7.3% |
| Siti Cable Network ($SITICABLE) | 3.7% | 1.6% | 17.5% | 19.9% | |
| |
|---|
| Median (9 companies) | 13.2% | 7.3% | 21.0% | 19.9% | 18.4% |
|---|
| Zee Media Corporation ($ZEEMEDIA) | 16.6% | 18.6% | 13.6% | 9.5% | 7.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Siti Cable Network ($SITICABLE) | 10.2% | 10.6% | 80.9% | 73.0% | |
| Den Networks ($DEN) | 8.4% | 12.6% | 60.4% | 53.2% | 28.5% |
| Hinduja Ventures ($HINDUJAVEN) | 8.8% | 11.6% | 65.8% | 14.2% | 7.1% |
| Dish Tv India ($DISHTV) | 70.0% | 33.5% | 32.2% | 11.9% | |
| Zee Entertainment Enterprises ($ZEEL) | 1.3% | 2.7% | 2.0% | 3.4% | 2.4% |
| |
|---|
| Median (8 companies) | 8.4% | 10.6% | 17.3% | 7.7% | 4.2% |
|---|
| Zee Media Corporation ($ZEEMEDIA) | 3.8% | 3.4% | 5.9% | 31.6% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zee Entertainment Enterprises ($ZEEL) | 21.6% | 21.1% | 24.2% | 25.5% | 22.1% |
| Entertainment Network (India) ($ENIL) | 13.4% | 15.2% | 14.8% | 16.7% | 17.9% |
| Raj Television Network ($RAJTV) | -9.1% | 10.1% | 10.3% | 11.5% | |
| Dish Tv India ($DISHTV) | -14.4% | -2.5% | -4.6% | 8.7% | |
| Den Networks ($DEN) | 9.2% | 2.7% | 8.1% | 5.6% | -4.0% |
| |
|---|
| Median (12 companies) | -1.3% | 0.7% | 3.3% | 4.8% | 11.6% |
|---|
| Zee Media Corporation ($ZEEMEDIA) | 11.9% | 18.8% | 11.9% | 5.2% | -1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 0.8x | 0.7x | 5.9x | 5.6x | 1.1x |
| Siti Cable Network ($SITICABLE) | 23.2x | 56.0x | 9.5x | 5.6x | |
| Dish Tv India ($DISHTV) | 2.1x | 2.1x | 2.6x | 2.0x | |
| Den Networks ($DEN) | -0.8x | -0.5x | 2.4x | 1.7x | 6.0x |
| Raj Television Network ($RAJTV) | | 0.6x | 0.7x | 1.6x | |
| |
|---|
| Median (9 companies) | 0.8x | -0.4x | 2.4x | 1.6x | 0.5x |
|---|
| Zee Media Corporation ($ZEEMEDIA) | -0.6x | 0.2x | 0.3x | 3.0x | 10.1x |
