Naspers reports 120% Net Income growth and 6.7% Revenue growth
29 Jun 2015 • About Naspers (
$NPSN) • By InTwits
Naspers reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Naspers doesn't have a profitable business model yet: FY2015 ROIC is 1.6%
- The company has potentially unprofitable business model: ROIC is at 1.6%
- It operates with high leverage: Net Debt/EBITDA is 6.2x while industry average is 2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Naspers ($NPSN) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,609 | 5,331 | 5,874 | 6,154 | 6,569 | 6.7% |
| Gross Profit | 2,130 | 2,514 | 2,614 | 2,679 | 2,745 | 2.5% |
| SG&A | 1,234 | 1,672 | 1,857 | 2,341 | 2,377 | 1.5% |
| EBITDA | 934 | 782 | 821 | | 458 | |
| Net Income | 733 | 391 | 712 | 571 | 1,257 | 120.1% |
Balance Sheet
|
|---|
| Cash | 1,290 | 1,285 | 1,694 | 1,298 | 1,226 | -5.5% |
| Short Term Debt | 420 | 346 | 402 | 353 | 380 | 7.6% |
| Long Term Debt | 1,896 | 2,025 | 2,878 | 3,244 | 3,691 | 13.8% |
Cash flow
|
|---|
| Capex | 232 | 248 | 287 | | 262 | |
Ratios
|
|---|
| Revenue growth | 28.2% | 15.7% | 10.2% | 4.8% | 6.7% | |
| EBITDA growth | 18.2% | -16.3% | 5.0% | | | |
| Gross Margin | 46.2% | 47.2% | 44.5% | 43.5% | 41.8% | -1.7% |
| EBITDA Margin | 20.3% | 14.7% | 14.0% | 0.0% | 7.0% | 7.0% |
| Net Income Margin | 15.9% | 7.3% | 12.1% | 9.3% | 19.1% | 9.9% |
| SG&A, % of revenue | 26.8% | 31.4% | 31.6% | 38.0% | 36.2% | -1.9% |
| CAPEX, % of revenue | 5.0% | 4.7% | 4.9% | | 4.0% | 4.0% |
| ROIC | 8.4% | 5.4% | 5.6% | 2.1% | 1.6% | -0.5% |
| ROE | 14.2% | 6.6% | 11.9% | 9.4% | 19.4% | 10.0% |
| Net Debt/EBITDA | 1.1x | 1.4x | 1.9x | | 6.2x | 6.2x |
Revenue and profitability
The company's Revenue increased on 6.7% in FY2015.
Gross Margin decreased slightly on 1.7 pp from 43.5% to 41.8% in FY2015. SG&A as a % of Revenue decreased slightly on 1.9 pp from 38.0% to 36.2% in FY2015.
Net Income marign increased on 9.9 pp from 9.3% to 19.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Naspers had CAPEX/Revenue of 4.0%. CAPEX/Revenue decreased slightly on 0.66 pp from 4.7% in FY2012 to 4.0% in FY2015.The company maintained rich investment policy and has spent a big chunk of EBITDA (57.2%) to CAPEX.
Return on investment
The company operates at good ROE (19.44%) while ROIC is low (1.63%). ROIC decreased slightly on 0.51 pp from 2.1% to 1.6% in FY2015. ROE jumped on 10.0 pp from 9.4% to 19.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.2x and Debt / EBITDA is 8.9x. Net Debt / EBITDA surged6.2x from to 6.2x in FY2015. Debt jumped on 13.2% in FY2015 while cash decreased on 5.5% in FY2015.
Valuation
Naspers's trades at EV/EBITDA 7.6x and P/E 0.5x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Media
Below we provide Naspers benchmarking against other companies in Media 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.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Porta Communications ($PTCM) | | 970.2% | 10.7% | 150.9% | |
| Grupo Clarin Sa ($GCLA) | 22.2% | 21.4% | 24.6% | 39.8% | |
| Tangent Communications ($TNG) | | -3.0% | 11.8% | 11.3% | -2.9% |
| Haynes Publishing Group ($HYNS) | -1.7% | -8.9% | -7.3% | 6.0% | |
| Dq Entertainment ($DQE) | | 9.7% | 1.3% | 4.5% | -23.7% |
| |
|---|
| Median (18 companies) | -0.9% | -4.1% | -7.3% | 0.0% | -13.3% |
|---|
| Naspers ($NPSN) | | 15.7% | 10.2% | 4.8% | 6.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Porta Communications ($PTCM) | 96.1% | 55.3% | 89.2% | 83.4% | |
| Jaywing ($JWNG) | 80.5% | 79.8% | 76.8% | 81.0% | |
| Brainjuicer Group ($BJU) | 77.6% | 77.2% | 78.0% | 78.8% | |
| Tangent Communications ($TNG) | 49.0% | 54.5% | 57.6% | 60.3% | 58.8% |
| Mood Media Corp ($MM.) | 61.6% | 58.6% | 54.4% | 53.9% | |
| |
|---|
| Median (18 companies) | 42.4% | 40.6% | 41.6% | 43.7% | 50.7% |
|---|
| Naspers ($NPSN) | 46.2% | 47.2% | 44.5% | 43.5% | 41.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dq Entertainment ($DQE) | 36.5% | 42.8% | 49.2% | 62.4% | 59.1% |
| Haynes Publishing Group ($HYNS) | 30.2% | 25.7% | 23.4% | 38.8% | |
| Quarto Group Inc ($QRT) | 19.9% | 20.0% | 25.9% | 27.8% | |
| Grupo Clarin Sa ($GCLA) | 26.5% | 24.5% | 23.7% | 25.7% | |
| Cellcast Group ($CLTV) | 3.0% | 0.5% | -6.3% | 22.6% | |
| |
|---|
| Median (18 companies) | 9.3% | 11.7% | 9.7% | 11.8% | 33.6% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Avesco Group ($AVS) | 14.3% | 22.7% | 13.2% | 18.6% | |
| Grupo Clarin Sa ($GCLA) | 15.9% | 12.2% | 13.2% | 12.8% | |
| Mood Media Corp ($MM.) | 7.0% | 8.6% | 6.4% | 6.9% | |
| Trader Media East ($TME) | 5.0% | 4.6% | 3.1% | 3.8% | |
| Porta Communications ($PTCM) | 10.5% | 2.2% | 2.0% | 2.7% | |
| |
|---|
| Median (18 companies) | 1.3% | 1.4% | 2.0% | 1.8% | 3.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Brainjuicer Group ($BJU) | 47.0% | 24.3% | 49.0% | 60.0% | |
| Grupo Clarin Sa ($GCLA) | 21.7% | 21.6% | 21.8% | 29.8% | |
| Independent News & Media ($INM) | -3.0% | -43.9% | 136.2% | 29.6% | |
| Haynes Publishing Group ($HYNS) | 20.1% | 12.8% | 9.4% | 12.5% | |
| Dq Entertainment ($DQE) | 8.2% | 9.3% | 8.9% | 12.1% | 7.0% |
| |
|---|
| Median (19 companies) | 3.3% | 5.0% | 1.3% | 1.6% | 5.3% |
|---|
| Naspers ($NPSN) | 8.4% | 5.4% | 5.6% | 2.1% | 1.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Johnston Press ($JPR) | | 5.8x | | 11.4x | |
| Mood Media Corp ($MM.) | 6.7x | 5.2x | 8.1x | 8.2x | |
| Porta Communications ($PTCM) | | | | 3.4x | |
| Jaywing ($JWNG) | 0.2x | 0.7x | 0.7x | 3.3x | |
| Independent News & Media ($INM) | | | 0.8x | 2.9x | |
| |
|---|
| Median (15 companies) | 0.2x | 1.0x | 0.8x | 1.2x | 1.0x |
|---|
