Independent News & Media Net Income surged on 1,520% in 2015 and EBITDA Margin increased slightly on 1.6 pp from 10.9% to 12.5%
04 Mar 2016 • About Independent News & Media (
$INM) • By InTwits
Independent News & Media reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 12.5% in 2015, 10.9% in 2014, 40.8% in 2013, -25.6% in 2012, -0.6% in 2011
- Independent News & Media has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has highly profitable business model: ROIC is at 65.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Independent News & Media ($INM) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 558.0 | 345.1 | 322.4 | 318.7 | 321.2 | 0.8% |
| Gross Profit | 249.4 | 50.0 | 104.1 | 115.3 | 117.5 | 1.9% |
| SG&A | 135.0 | 81.2 | -29.4 | 74.9 | 73.4 | -2.0% |
| EBITDA | -3.1 | -88.5 | 131.6 | 34.7 | 40.2 | 15.9% |
| Net Income | -40.6 | -258.4 | 240.1 | 4.5 | 72.9 | 1,520.0% |
Balance Sheet
|
|---|
| Cash | 14.4 | 17.2 | 24.4 | 26.2 | 59.7 | 127.9% |
| Short Term Debt | 40.3 | 63.3 | 11.2 | 15.3 | 0.0 | -100.0% |
| Long Term Debt | 400.9 | 376.3 | 118.5 | 110.2 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 4.1 | 3.7 | 2.5 | 4.5 | 1.9 | -57.8% |
Ratios
|
|---|
| Revenue growth | -10.9% | -38.2% | -6.6% | -1.1% | 0.8% | |
| EBITDA growth | -105.0% | 2,754.8% | -248.7% | -73.6% | 15.9% | |
| Gross Margin | 44.7% | 14.5% | 32.3% | 36.2% | 36.6% | 0.4% |
| EBITDA Margin | -0.6% | -25.6% | 40.8% | 10.9% | 12.5% | 1.6% |
| Net Income Margin | -7.3% | -74.9% | 74.5% | 1.4% | 22.7% | 21.3% |
| SG&A, % of revenue | 24.2% | 23.5% | -9.1% | 23.5% | 22.9% | -0.6% |
| CAPEX, % of revenue | 0.7% | 1.1% | 0.8% | 1.4% | 0.6% | -0.8% |
| ROIC | -3.0% | -43.9% | 136.2% | 29.6% | 65.1% | 35.4% |
| Net Debt/EBITDA | | | 0.8x | 2.9x | -1.5x | -4.3x |
Revenue and profitability
Independent News & Media's Revenue increased slightly on 0.78% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.6 pp from 10.9% to 12.5% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased slightly on 0.65 pp from 23.5% to 22.9% in 2015.
Net Income marign jumped on 21.3 pp from 1.4% to 22.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.59% in 2015. Independent News & Media's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.93%.
Leverage (Debt)
The company paid down all the debt in 2015. Cash surged on 128% in 2015.
Appendix 1: Peers in Media
Below you can find Independent News & Media benchmarking vs. other companies in Media 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 |
|---|
| 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) | | -8.9% | -7.3% | 6.0% | -11.0% |
| Naspers ($NPSN) | | 15.7% | 10.2% | 4.8% | 6.7% |
| |
|---|
| Median (18 companies) | 8.8% | -3.0% | -7.3% | 1.0% | 1.4% |
|---|
| Independent News & Media ($INM) | | -38.2% | -6.6% | -1.1% | 0.8% |
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% | 89.0% |
| 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 ($MM.) | 61.6% | 58.6% | 54.4% | 53.9% | |
| |
|---|
| Median (18 companies) | 42.4% | 42.0% | 42.3% | 43.7% | 41.8% |
|---|
| Independent News & Media ($INM) | 44.7% | 14.5% | 32.3% | 36.2% | 36.6% |
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% | 33.5% |
| 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 ($CLTV) | 3.0% | 0.5% | -6.3% | 22.6% | |
| |
|---|
| Median (17 companies) | 14.6% | 11.7% | 9.7% | 12.7% | 8.2% |
|---|
| Independent News & Media ($INM) | -0.6% | -25.6% | 40.8% | 10.9% | 12.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Avesco Group ($AVS) | 14.3% | 22.7% | 13.2% | 18.6% | 14.4% |
| Grupo Clarin Sa ($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 ($PTCM) | 10.5% | 2.2% | 2.0% | 2.7% | |
| |
|---|
| Median (17 companies) | 1.8% | 2.2% | 2.0% | 1.9% | 1.6% |
|---|
| Independent News & Media ($INM) | 0.7% | 1.1% | 0.8% | 1.4% | 0.6% |
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% | |
| Haynes Publishing Group ($HYNS) | 20.1% | 12.8% | 9.4% | 12.5% | 9.4% |
| Dq Entertainment ($DQE) | 8.2% | 9.3% | 8.9% | 12.1% | 7.0% |
| Quarto Group Inc ($QRT) | 9.2% | 9.7% | 8.9% | 10.2% | |
| |
|---|
| Median (19 companies) | 4.6% | 5.4% | 1.3% | 1.6% | 3.7% |
|---|
| Independent News & Media ($INM) | -3.0% | -43.9% | 136.2% | 29.6% | 65.1% |
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 | 1.9x |
| Dq Entertainment ($DQE) | 0.2x | 1.1x | 1.5x | 1.5x | 2.8x |
| |
|---|
| Median (14 companies) | 0.2x | 1.1x | 1.2x | 1.2x | 1.1x |
|---|
| Independent News & Media ($INM) | | | 0.8x | 2.9x | -1.5x |
