Zee Media Corporation reports 124% EBITDA growth in 2016 and almost no change in Revenue of 5,429
24-05-2016 • About Zee Media Corporation (
$ZEEMEDIA) • By InTwits
Zee Media Corporation reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 17.4% in FY2016, 7.7% in FY2015, 9.5% in FY2014, 13.6% in FY2013, 18.6% in FY2012
- Zee Media Corporation has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.4%. At the same time it's a lot of higher than industry average of 9.2%.
- CAPEX is quite volatile: ₹619m in FY2016, ₹0m in FY2015, ₹1,057m in FY2014, ₹176m in FY2013, ₹104m in FY2012
- The company has potentially unprofitable business model: ROIC is 5.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.8x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Zee Media Corporation's Revenue showed almost no change in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.6 pp from 7.7% to 17.4% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2015 at 7.7%.
Net Income margin increased on 7.3 pp from -8.6% to -1.3% in FY2016.
Investments (CAPEX, working capital and M&A)
Zee Media Corporation's CAPEX/Revenue was 11.4% in FY2016. Zee Media Corporation's CAPEX/Revenue increased on 5.5 pp from 5.9% in FY2013 to 11.4% in FY2016. Battling declining revenue the company invested a large share of EBITDA (65.6%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (5.3%) and negative ROE (-1.5%). ROIC increased on 6.6 pp from -1.3% to 5.3% in FY2016. ROE surged on 14.2 pp from -15.8% to -1.5% in FY2016. During the last 5 years ROIC bottomed in FY2015 at -1.3%.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 3.7x. Net Debt / EBITDA dropped on 7.2x from 10.1x to 2.8x in FY2016. Debt dropped on 23.6% while cash jumped on 136%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2015 at 10.1x.
Zee Media Corporation has no short term refinancing risk: cash is higher than short term debt (228.4%).
Financial and operational results
Zee Media Corporation ($ZEEMEDIA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,061 | 3,008 | 3,348 | 5,443 | 5,429 | -0.3% |
| EBITDA | 570 | 410 | 319 | 421 | 944 | 123.9% |
| Net Income | 115 | 242 | 189 | -467 | -69 | |
Balance Sheet
|
|---|
| Cash | 234 | 58 | 162 | 359 | 847 | 136.2% |
| Short Term Debt | 192 | 180 | 436 | 1,843 | 371 | -79.9% |
| Long Term Debt | 178 | 6 | 679 | 2,760 | 3,144 | 13.9% |
Cash flow
|
|---|
| Capex | 104 | 176 | 1,057 | 0 | 619 | |
Ratios
|
|---|
| Revenue growth | 10.6% | -1.7% | 11.3% | 62.6% | -0.3% | |
| EBITDA growth | 23.8% | -28.1% | -22.2% | 32.1% | 123.9% | |
|
|---|
| EBITDA Margin | 18.6% | 13.6% | 9.5% | 7.7% | 17.4% | 9.6% |
| Net Income Margin | 3.8% | 8.0% | 5.7% | -8.6% | -1.3% | 7.3% |
| CAPEX, % of revenue | 3.4% | 5.9% | 31.6% | 0.0% | 11.4% | |
|
|---|
| ROIC | 18.8% | 11.9% | 5.2% | -1.3% | 5.3% | 6.6% |
| ROE | 6.3% | 12.0% | 8.5% | -15.8% | -1.5% | 14.2% |
| Net Debt/EBITDA | 0.2x | 0.3x | 3.0x | 10.1x | 2.8x | -7.2x |
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | - | 31.8% | 29.6% | 81.8% | -52.6% |
| Siti Cable Network ($SITICABLE) | 12.0% | 37.0% | 41.6% | 36.2% | - |
| Tv18 Broadcast ($TV18BRDCST) | - | 21.4% | 16.4% | 17.8% | 10.8% |
| Entertainment Network (India) ($ENIL) | - | 9.2% | 13.2% | 14.0% | 12.2% |
| Zee Entertainment Enterprises ($ZEEL) | - | 21.7% | 18.6% | 11.5% | 19.9% |
| |
|---|
| Median (9 companies) | 12.0% | 10.7% | 22.9% | 11.5% | 11.5% |
|---|
| Zee Media Corporation ($ZEEMEDIA) | - | -1.7% | 11.3% | 62.6% | -0.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 27.7% | 21.0% | 18.2% | 54.7% | 17.1% |
| Entertainment Network (India) ($ENIL) | 32.1% | 30.8% | 32.4% | 33.3% | 29.1% |
| Raj Television Network ($RAJTV) | - | - | - | 29.6% | - |
| Dish Tv India ($DISHTV) | 25.5% | 27.3% | 26.4% | 28.1% | 34.5% |
| Zee Entertainment Enterprises ($ZEEL) | 24.4% | 25.9% | 27.6% | 25.7% | 25.8% |
| |
|---|
| Median (11 companies) | 7.3% | 21.0% | 19.9% | 24.1% | 21.5% |
|---|
| Zee Media Corporation ($ZEEMEDIA) | 18.6% | 13.6% | 9.5% | 7.7% | 17.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Siti Cable Network ($SITICABLE) | 10.6% | 80.9% | 73.0% | 32.5% | - |
| Den Networks ($DEN) | 12.6% | 60.4% | 53.2% | 28.5% | - |
| Dish Tv India ($DISHTV) | 33.5% | 32.2% | 11.9% | 26.3% | 29.7% |
| Hinduja Ventures ($HINDUJAVEN) | 11.6% | 65.8% | 14.2% | 7.1% | 65.0% |
| Balaji Telefilms ($BALAJITELE) | 2.4% | 1.3% | 0.6% | 4.3% | 6.0% |
| |
|---|
| Median (9 companies) | 10.6% | 17.3% | 7.7% | 4.3% | 5.8% |
|---|
| Zee Media Corporation ($ZEEMEDIA) | 3.4% | 5.9% | 31.6% | 0.0% | 11.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 8.3% | 4.0% | 1.0% | 39.5% | 1.3% |
| Dish Tv India ($DISHTV) | -2.5% | -4.6% | 8.7% | 24.0% | 50.0% |
| Zee Entertainment Enterprises ($ZEEL) | 21.1% | 24.2% | 25.5% | 22.1% | 23.6% |
| Entertainment Network (India) ($ENIL) | 15.2% | 14.8% | 16.7% | 17.9% | 12.5% |
| Raj Television Network ($RAJTV) | 10.1% | 10.3% | 11.5% | 9.1% | - |
| |
|---|
| Median (12 companies) | 0.7% | 3.3% | 4.8% | 9.1% | 8.8% |
|---|
| Zee Media Corporation ($ZEEMEDIA) | 18.8% | 11.9% | 5.2% | -1.3% | 5.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Siti Cable Network ($SITICABLE) | 56.0x | 9.5x | 5.6x | 6.7x | - |
| Den Networks ($DEN) | -0.5x | 2.4x | 1.7x | 6.0x | - |
| Dish Tv India ($DISHTV) | 2.1x | 2.6x | 2.0x | 1.4x | 0.8x |
| Tv18 Broadcast ($TV18BRDCST) | - | 2.4x | 0.9x | 1.3x | 1.4x |
| Hinduja Ventures ($HINDUJAVEN) | 0.7x | 5.9x | 5.6x | 1.1x | 11.0x |
| |
|---|
| Median (10 companies) | -0.4x | 2.4x | 1.6x | 1.0x | 1.1x |
|---|
| Zee Media Corporation ($ZEEMEDIA) | 0.2x | 0.3x | 3.0x | 10.1x | 2.8x |
