Media Matrix Worldwide revenue jumped on 146% while EBITDA Margin dropped on 10.9 pp from 11.1% to 0.27%
25-05-2018 • About Media Matrix Worldwide (
$MMWL) • By InTwits
Media Matrix Worldwide reported FY2018 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: FY2018 revenue growth was 146%, 5 year revenue CAGR was 20.9% at FY2018 ROIC -2.4%
- Media Matrix Worldwide motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -1.3% for the sames years
- Media Matrix Worldwide has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: ₹25m in FY2018, ₹82m in FY2017, ₹45m in FY2016, ₹44m in FY2015, ₹152m in FY2014
- The company has unprofitable business model: ROIC is -2.4%
- It operates with high leverage: Net Debt/EBITDA is 55.6x 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
The company's Revenue jumped on 146%. Revenue decline was slowing down on average by 45.5 pp per annum in the last 5 years. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 10.9 pp from 11.1% to 0.27% in FY2018. During the last 5 years EBITDA Margin topped in FY2017 at 11.1%.
SG&A as a % of Revenue decreased on 3.3 pp from 3.9% to 0.63% in FY2018.
Net Income margin decreased on 9.2 pp from 3.8% to -5.4% in FY2018. Net Income margin grew at 8.5 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 0.38%. CAPEX/Revenue decreased on 2.3 pp from 2.7% in FY2015 to 0.38% in FY2018. For the last three years the average CAPEX/Revenue was 2.3%. Media Matrix Worldwide has spent a lot to CAPEX (140% of EBITDA) to secure its growth.
Return on investment
The company operates at negative ROIC (-2.4%) and ROE (-110.9%). ROIC dropped on 20.7 pp from 18.3% to -2.4% in FY2018. ROE dropped on 148 pp from 37.6% to -111% in FY2018. During the last 5 years ROIC topped in FY2017 at 18.3%.
Leverage (Debt)
Debt level is 55.6x Net Debt / EBITDA and 56.7x Debt / EBITDA. Net Debt / EBITDA jumped on 53.7x from 1.9x to 55.6x in FY2018. Debt surged on 68.0% while cash dropped on 51.4%.
Media Matrix Worldwide has short term refinancing risk: cash is only 13.8% of short term debt.
Financial and operational results
FY ended 31-03-2018
Media Matrix Worldwide ($MMWL) key annual financial indicators| mln. INR | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 1,347 | 1,615 | 1,375 | 2,638 | 6,476 | 145.5% |
| SG&A | | | | 103 | 41 | -60.6% |
| EBITDA | -325 | -105 | -60 | 294 | 18 | -94.0% |
| Net Income | -477 | -337 | -253 | 101 | -349 | -445.6% |
Balance Sheet
|
|---|
| Cash | 87 | 60 | 14 | 40 | 20 | -51.4% |
| Short Term Debt | 387 | 279 | 362 | 458 | 142 | -69.0% |
| Long Term Debt | 31 | 251 | 235 | 139 | 861 | 520.8% |
Cash flow
|
|---|
| Capex | 152 | 44 | 45 | 82 | 25 | -70.1% |
Ratios
|
|---|
| Revenue growth | -46.3% | 19.9% | -14.9% | 91.9% | 145.5% | |
| EBITDA growth | 41.0% | -67.7% | -43.3% | -593.4% | -94.0% | |
|
|---|
| EBITDA Margin | -24.2% | -6.5% | -4.3% | 11.1% | 0.3% | -10.9% |
| SG&A, % of revenue | | | | 3.9% | 0.6% | -3.3% |
| Net Income Margin | -35.4% | -20.8% | -18.4% | 3.8% | -5.4% | -9.2% |
| CAPEX, % of revenue | 11.3% | 2.7% | 3.2% | 3.1% | 0.4% | -2.7% |
|
|---|
| ROIC | -51.7% | -28.2% | -24.0% | 18.3% | -2.4% | -20.7% |
| ROE | | -52.8% | -78.7% | 37.6% | -110.9% | -148.5% |
| Net Debt/EBITDA | | | | 1.9x | 55.6x | 53.7x |
Peers in Movies & Entertainment
Below we provide Media Matrix Worldwide benchmarking against other companies in Movies & Entertainment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
