Media Matrix Worldwide revenue surged on 91.9% and EBITDA Margin jumped on 15.5 pp from -4.3% to 11.1%
24-05-2017 • About Media Matrix Worldwide (
$MMWL) • By InTwits
Media Matrix Worldwide reported FY2017 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Media Matrix Worldwide is a fast growth stock: FY2017 revenue growth was 91.9%, 5 year revenue CAGR was 91.3% at FY2017 ROIC 18.3%
- EBITDA Margin is expanding: 11.1% in FY2017 vs. -4.3% in FY2016 vs. -9.2% in FY2013
- Media Matrix Worldwide spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2013-FY2017 is 0.0%. Average EBITDA Margin for the same period was -4.5%
- Media Matrix Worldwide has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.2%. At the same time it's in pair with industry average of 12.1%
- CAPEX is quite volatile: ₹82m in FY2017, ₹45m in FY2016, ₹44m in FY2015, ₹152m in FY2014, ₹272m in FY2013
- The company has highly profitable business model: ROIC is 18.3%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Media Matrix Worldwide's Revenue jumped on 91.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.94 pp from 5.5% to 6.4% in FY2017. During FY2013-FY2017 EBITDA Margin bottomed in FY2014 at -24.2% and was growing since that time.
Net Income margin jumped on 22.2 pp from -18.4% to 3.8% in FY2017. During the last 5 years Net Income margin bottomed in FY2014 at -35.4% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2017 the company had CAPEX/Revenue of 3.1%. Media Matrix Worldwide showed decline in CAPEX/Revenue of 8.2 pp from 11.3% in FY2014 to 3.1% in FY2017. Average CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at high and attractive ROE (37.6%) while ROIC is a bit lower (18.3%). ROIC surged on 42.3 pp from -24.0% to 18.3% in FY2017. ROE surged on 116 pp from -78.7% to 37.6% in FY2017. ROIC grew at 15.9 pp per annum in FY2013-FY2017.
Leverage (Debt)
Debt level is 1.9x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA surged1.9x from to 1.9x in FY2017. Debt showed almost no change in FY2017 while cash surged on 198%.
Media Matrix Worldwide has short term refinancing risk: cash is only 8.8% of short term debt.
Financial and operational results
FY ended 31-03-2017
Media Matrix Worldwide ($MMWL) key annual financial indicators| mln. INR | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 2,505 | 1,347 | 1,615 | 1,375 | 2,638 | 91.9% |
| SG&A | | | | | 103 | |
| EBITDA | -231 | -325 | -105 | -60 | 294 | |
| Net Income | -338 | -477 | -337 | -253 | 101 | |
Balance Sheet
|
|---|
| Cash | 41 | 87 | 60 | 14 | 40 | 197.7% |
| Short Term Debt | 347 | 387 | 279 | 362 | 458 | 26.7% |
| Long Term Debt | 363 | 31 | 251 | 235 | 139 | -41.0% |
Cash flow
|
|---|
| Capex | 272 | 152 | 44 | 45 | 82 | 84.8% |
Ratios
|
|---|
| Revenue growth | 2,333.6% | -46.3% | 19.9% | -14.9% | 91.9% | |
| EBITDA growth | 2,668.1% | 41.0% | -67.7% | -43.3% | -593.4% | |
|
|---|
| EBITDA Margin | -9.2% | -24.2% | -6.5% | -4.3% | 11.1% | 15.5% |
| SG&A, % of revenue | | | | | 3.9% | |
| Net Income Margin | -13.5% | -35.4% | -20.8% | -18.4% | 3.8% | 22.2% |
| CAPEX, % of revenue | 10.8% | 11.3% | 2.7% | 3.2% | 3.1% | -0.1% |
|
|---|
| ROIC | -47.2% | -51.7% | -28.2% | -24.0% | 18.3% | 42.3% |
| ROE | | | -52.8% | -78.7% | 37.6% | 116.3% |
| Net Debt/EBITDA | | | | | 1.9x |
Peers in Movies & Entertainment
Below you can find Media Matrix Worldwide benchmarking vs. other companies in Movies & 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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | 22.2% | 11.9% | -42.6% | 27.3% | - |
| Saregama India ($SAREGAMA) | 16.1% | -4.6% | 5.1% | 18.7% | - |
| Shemaroo Entertainment ($SHEMAROO) | 18.0% | 23.2% | 21.7% | 16.2% | - |
| Dq Entertainment (International) ($DQE) | 1.0% | 4.5% | -40.6% | 15.4% | - |
| Eros International Media ($EROSMEDIA) | 13.1% | 6.2% | 25.3% | 11.4% | - |
| |
|---|
| Median (9 companies) | 16.1% | 8.2% | 5.1% | 11.4% | - |
|---|
| Media Matrix Worldwide ($MMWL) | - | - | - | - | 91.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Dq Entertainment (International) ($DQE) | 48.8% | 40.2% | 50.5% | 67.3% | - |
| Eros International Media ($EROSMEDIA) | 65.7% | 67.6% | 61.2% | 60.8% | - |
| Sri Adhikari Brothers Television Network ($SABTN) | 24.7% | 27.5% | 43.7% | 48.4% | - |
| Shemaroo Entertainment ($SHEMAROO) | 27.3% | 24.8% | 27.1% | 29.4% | - |
| Tips Industries ($TIPSINDLTD) | - | - | 14.8% | 21.9% | - |
| |
|---|
| Median (8 companies) | 25.0% | 26.1% | 27.1% | 25.6% | - |
|---|
| Media Matrix Worldwide ($MMWL) | - | - | - | -4.3% | 11.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Sri Adhikari Brothers Television Network ($SABTN) | 5.1% | 9.4% | 126.7% | 41.9% | - |
| Prime Focus ($PFOCUS) | 19.8% | - | 20.8% | 16.8% | - |
| Dq Entertainment (International) ($DQE) | 2.0% | 0.0% | 0.6% | 4.0% | - |
| Saregama India ($SAREGAMA) | 3.4% | 4.3% | 1.8% | 3.3% | - |
| Shemaroo Entertainment ($SHEMAROO) | 0.9% | 0.7% | 0.7% | 1.3% | - |
| |
|---|
| Median (6 companies) | 2.7% | 0.7% | 0.7% | 3.6% | - |
|---|
| Media Matrix Worldwide ($MMWL) | - | - | - | 3.2% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Shemaroo Entertainment ($SHEMAROO) | 22.9% | 21.0% | 21.8% | 21.3% | - |
| Eros International Media ($EROSMEDIA) | 15.2% | 17.6% | 17.7% | 14.1% | - |
| Sri Adhikari Brothers Television Network ($SABTN) | 7.1% | 10.6% | 4.8% | 9.5% | - |
| Dq Entertainment (International) ($DQE) | 9.3% | 6.2% | 3.4% | 6.9% | - |
| Saregama India ($SAREGAMA) | 1.7% | 8.2% | 3.4% | 5.1% | - |
| |
|---|
| Median (14 companies) | 7.5% | 9.4% | 4.8% | 8.2% | - |
|---|
| Media Matrix Worldwide ($MMWL) | - | - | - | -24.0% | 18.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Prime Focus ($PFOCUS) | 3.5x | - | 3.6x | 4.9x | - |
| Dq Entertainment (International) ($DQE) | 1.9x | 2.8x | 5.0x | 3.9x | - |
| Shemaroo Entertainment ($SHEMAROO) | 1.9x | 2.3x | 1.2x | 1.8x | - |
| Sri Adhikari Brothers Television Network ($SABTN) | 3.5x | 2.5x | 3.0x | 1.4x | - |
| Eros International Media ($EROSMEDIA) | 0.5x | 0.4x | 0.4x | 0.4x | - |
| |
|---|
| Median (11 companies) | 2.3x | 1.3x | 0.8x | 0.0x | - |
|---|
