Mbl Group reports 67.1% EBITDA decline and 2.1 pp EBITDA Margin decline from 3.0% to 0.87%
22 Aug 2016 • About Mbl Group (
$MUBL) • By InTwits
Mbl Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mbl Group doesn't have a profitable business model yet: FY2016 ROIC is 0.7%
- Mbl Group spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -0.3%0
- Mbl Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's in pair with industry average of 2.2%.
- CAPEX is quite volatile: 0.13 in FY2016, 0.088 in FY2015, 0.25 in FY2014, 0.30 in FY2013, 0.54 in FY2012
- The company has potentially unprofitable business model: ROIC is at 0.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mbl Group ($MUBL) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 15.052 | 11.303 | 11.755 | 12.973 | 14.767 | 13.8% |
| Gross Profit | 2.153 | 2.742 | 2.620 | 3.196 | 3.688 | 15.4% |
| SG&A | | | 3.127 | 3.629 | 3.667 | 1.0% |
| EBITDA | 0.083 | -0.515 | -0.261 | 0.389 | 0.128 | -67.1% |
| Net Income | -7.065 | -1.506 | -1.246 | -0.986 | 0.075 | -107.6% |
Balance Sheet
|
|---|
| Cash | 4.011 | 3.075 | 2.724 | 1.708 | 1.855 | 8.6% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.537 | 0.298 | 0.246 | 0.088 | 0.125 | 42.0% |
Ratios
|
|---|
| Revenue growth | -24.6% | -24.9% | 4.0% | 10.4% | 13.8% | |
| EBITDA growth | -109.1% | -720.5% | -49.3% | -249.0% | -67.1% | |
| Gross Margin | 14.3% | 24.3% | 22.3% | 24.6% | 25.0% | 0.3% |
| EBITDA Margin | 0.6% | -4.6% | -2.2% | 3.0% | 0.9% | -2.1% |
| Net Income Margin | -46.9% | -13.3% | -10.6% | -7.6% | 0.5% | 8.1% |
| SG&A, % of revenue | | | 26.6% | 28.0% | 24.8% | -3.1% |
| CAPEX, % of revenue | 3.6% | 2.6% | 2.1% | 0.7% | 0.8% | 0.2% |
| ROIC | -7.1% | -13.5% | -9.8% | 5.6% | 0.7% | -4.8% |
| ROE | -70.2% | -26.1% | -28.3% | -30.0% | 2.6% | 32.6% |
| Net Debt/EBITDA | -48.3x | | | -4.4x | -14.5x | -10.1x |
Revenue and profitability
Mbl Group's Revenue surged on 13.8% in FY2016. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from 3.0% to 0.87% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue decreased on 3.1 pp from 28.0% to 24.8% in FY2016.
Net Income marign increased on 8.1 pp from -7.6% to 0.51% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Mbl Group had CAPEX/Revenue of 0.85%. Mbl Group's CAPEX/Revenue decreased slightly on 1.8 pp from 2.6% in FY2013 to 0.85% in FY2016. For the last three years the average CAPEX/Revenue was 1.2%.To fuel this fast growth Mbl Group invested a large share of EBITDA (97.7%) to CAPEX.
Return on investment
The company operates at low ROIC (0.75%) and ROE (2.65%). ROIC decreased on 4.8 pp from 5.6% to 0.75% in FY2016. ROE jumped on 32.6 pp from -30.0% to 2.6% in FY2016.
Leverage (Debt)
The company has no debt. Cash increased on 8.6% in FY2016.
Valuation
The company's trades at EV/EBITDA 8.1x and P/E 38.5x while industy averages are 15.6x and 19.1x. Mbl Group's EV/(EBITDA-CAPEX) is 345.0x with the industry average at 19.0x.
Appendix 1: Peers in Media
Below you can find Mbl Group 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tla Worldwide ($TLA) | 5,338.4% | 25.0% | 6.3% | 130.0% | |
| Porta Communications ($PTCM) | 970.2% | 10.7% | 150.9% | 46.5% | |
| Jaywing ($JWNG) | | -27.9% | -0.7% | 26.6% | 6.5% |
| Marimedia Ltd ($MARI) | 24.4% | 71.1% | 45.7% | 20.1% | |
| Nahl Group ($NAH) | 12.6% | -3.2% | -10.7% | 15.7% | |
| |
|---|
| Median (23 companies) | 0.5% | -0.6% | 1.2% | 0.8% | 6.5% |
|---|
| Mbl Group ($MUBL) | | -24.9% | 4.0% | 10.4% | 13.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jaywing ($JWNG) | 79.8% | 76.8% | 81.0% | 89.0% | 88.4% |
| Brainjuicer Group ($BJU) | 77.2% | 78.0% | 78.8% | 80.4% | |
| Porta Communications ($PTCM) | 55.3% | 89.2% | 83.4% | 79.0% | |
| Tla Worldwide ($TLA) | 96.1% | 96.6% | 99.9% | 78.8% | |
| Haynes Publishing Group ($HYNS) | 59.9% | 59.6% | 52.9% | 60.2% | |
| |
|---|
| Median (24 companies) | 42.0% | 42.3% | 43.8% | 42.2% | 42.8% |
|---|
| Mbl Group ($MUBL) | 14.3% | 24.3% | 22.3% | 24.6% | 25.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dq Entertainment ($DQE) | 42.8% | 49.2% | 62.4% | 59.1% | |
| Haynes Publishing Group ($HYNS) | 25.7% | 23.4% | 38.8% | 33.5% | |
| Nahl Group ($NAH) | 36.6% | 39.6% | 28.8% | 29.5% | |
| Tla Worldwide ($TLA) | 43.5% | 39.1% | 40.6% | 28.5% | |
| Quarto Group Inc ($QRT) | 20.0% | 25.9% | 27.8% | 28.4% | |
| |
|---|
| Median (24 companies) | 15.1% | 15.1% | 14.8% | 11.8% | 9.0% |
|---|
| Mbl Group ($MUBL) | 0.6% | -4.6% | -2.2% | 3.0% | 0.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Avesco Group ($AVS) | 22.7% | 13.2% | 18.6% | 14.4% | |
| Mood Media Corp ($MM.) | 8.6% | 6.4% | 6.9% | 8.2% | |
| Spaceandpeople ($SAL) | 3.2% | 4.1% | 1.6% | 5.0% | |
| Dq Entertainment ($DQE) | 6.8% | 2.0% | 0.0% | 4.6% | |
| Naspers ($NPSN) | 4.7% | 4.9% | | 4.0% | 3.1% |
| |
|---|
| Median (24 companies) | 1.1% | 1.6% | 1.5% | 1.1% | 1.3% |
|---|
| Mbl Group ($MUBL) | 3.6% | 2.6% | 2.1% | 0.7% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Independent News & Media ($INM) | -43.9% | 136.2% | 29.6% | 65.1% | |
| Brainjuicer Group ($BJU) | 24.3% | 49.0% | 60.0% | 58.5% | |
| Uls Technology ($ULS) | | 33.2% | 44.1% | 39.6% | 39.3% |
| Cellcast Group ($CLTV) | -63.1% | | | 28.4% | |
| Nahl Group ($NAH) | 37.1% | 42.3% | 31.5% | 26.0% | |
| |
|---|
| Median (24 companies) | 5.6% | 5.8% | 7.8% | 6.7% | 3.3% |
|---|
| Mbl Group ($MUBL) | -7.1% | -13.5% | -9.8% | 5.6% | 0.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Johnston Press ($JPR) | 5.8x | | 11.4x | 15.6x | |
| Mood Media Corp ($MM.) | 5.2x | 8.1x | 8.2x | 9.8x | |
| Naspers ($NPSN) | 1.4x | 1.9x | | 6.2x | 14.7x |
| Grupo Clarin Sa ($GCLA) | 0.9x | 0.8x | 0.7x | 4.3x | |
| Dq Entertainment ($DQE) | 1.1x | 1.5x | 1.5x | 2.8x | |
| |
|---|
| Median (22 companies) | 1.0x | 0.8x | 0.9x | 0.9x | 1.6x |
|---|
| Mbl Group ($MUBL) | -48.3x | | | -4.4x | -14.5x |
