Monitise reports 210% EBITDA decline and 98.6 pp EBITDA Margin decline from 40.0% to -58.6%
08 Sep 2016 • About Monitise (
$MONI) • By InTwits
Monitise reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Monitise doesn't have a profitable business model yet: FY2016 ROIC is -148.3%
- The company operates at negative EBITDA Margin: -58.6%
- Monitise spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -11.3%0
- Monitise has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 0.89 in FY2016, 4.1 in FY2015, 4.8 in FY2014, 5.1 in FY2013, 3.2 in FY2012
- The company has unprofitable business model: ROIC is at -148.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Monitise ($MONI) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 36.087 | 72.796 | 95.101 | 89.700 | 67.565 | -24.7% |
| Gross Profit | 23.955 | 55.208 | 61.710 | 46.473 | 38.859 | -16.4% |
| EBITDA | -13.243 | -3.706 | -20.088 | 35.896 | -39.583 | -210.3% |
| Net Income | -16.385 | -51.303 | -60.065 | -223.551 | -233.371 | 4.4% |
Balance Sheet
|
|---|
| Cash | 19.566 | 86.770 | 146.828 | 88.801 | 42.089 | -52.6% |
| Short Term Debt | 9.690 | 0.936 | 7.758 | 10.036 | 1.002 | -90.0% |
| Long Term Debt | 0.000 | 0.880 | 7.676 | 0.335 | 0.807 | 140.9% |
Cash flow
|
|---|
| Capex | 3.155 | 5.071 | 4.819 | 4.135 | 0.894 | -78.4% |
Ratios
|
|---|
| Revenue growth | 136.2% | 101.7% | 30.6% | -5.7% | -24.7% | |
| EBITDA growth | -2.5% | -72.0% | 442.0% | -278.7% | -210.3% | |
| Gross Margin | 66.4% | 75.8% | 64.9% | 51.8% | 57.5% | 5.7% |
| EBITDA Margin | -36.7% | -5.1% | -21.1% | 40.0% | -58.6% | -98.6% |
| Net Income Margin | -45.4% | -70.5% | -63.2% | -249.2% | -345.4% | -96.2% |
| CAPEX, % of revenue | 8.7% | 7.0% | 5.1% | 4.6% | 1.3% | -3.3% |
| ROIC | -16.7% | -9.4% | -13.1% | -24.3% | -148.3% | -124.0% |
| ROE | -18.4% | -26.6% | -19.2% | -70.4% | -152.8% | -82.4% |
| Net Debt/EBITDA | | | | -2.2x | | 2.2x |
Revenue and profitability
The company's Revenue dropped on 24.7% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 98.6 pp from 40.0% to -58.6% in FY2016.
Gross Margin increased on 5.7 pp from 51.8% to 57.5% in FY2016.
Net Income marign dropped on 96.2 pp from -249% to -345% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 1.3%. The company showed decline in CAPEX/Revenue of 5.6 pp from 7.0% in FY2013 to 1.3% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.7%.
Return on investment
The company operates at negative ROIC (-148.25%) and ROE (-152.81%). ROIC dropped on 124 pp from -24.3% to -148% in FY2016. ROE dropped on 82.4 pp from -70.4% to -153% in FY2016.
Leverage (Debt)
Debt level is -1.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA jumped on 2.2x from -2.2x to in FY2016. Debt dropped on 82.6% in FY2016 while cash dropped on 52.6% in FY2016.
Appendix 1: Peers in Mobile Telecommunications
Below we provide Monitise benchmarking against other companies in Mobile Telecommunications 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zamano ($ZMNO) | 28.0% | -16.5% | 23.9% | 22.3% | |
| Sistema Jsfc ($SSAA) | 9.7% | -44.6% | 8.7% | 10.6% | |
| Sk Telecom ($SKMD) | 1.3% | 2.9% | 3.4% | -0.2% | |
| Megafon OJSC ($MFON) | 12.3% | 9.1% | 5.9% | -0.4% | |
| Kcell JSC ($KCEL) | 1.8% | 3.1% | -0.0% | -10.2% | |
| |
|---|
| Median (6 companies) | 5.7% | -0.9% | 4.6% | -0.3% | |
|---|
| Monitise ($MONI) | | 101.7% | 30.6% | -5.7% | -24.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sk Telecom ($SKMD) | 92.0% | 92.2% | 90.2% | 88.6% | |
| Global Telecom Hldg Sae ($GLTD) | 57.6% | 82.1% | 83.4% | 81.8% | |
| Megafon OJSC ($MFON) | 75.4% | 74.6% | 73.1% | 73.1% | |
| Sistema Jsfc ($SSAA) | 59.5% | 54.4% | 50.4% | 46.7% | |
| Kcell JSC ($KCEL) | 58.1% | 57.6% | 55.1% | 46.6% | |
| |
|---|
| Median (6 companies) | 58.8% | 66.1% | 64.1% | 59.9% | |
|---|
| Monitise ($MONI) | 66.4% | 75.8% | 64.9% | 51.8% | 57.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kcell JSC ($KCEL) | 55.3% | 55.8% | 55.5% | 45.8% | |
| Global Telecom Hldg Sae ($GLTD) | 50.8% | 12.1% | 42.8% | 43.9% | |
| Megafon OJSC ($MFON) | 42.4% | 44.2% | 43.5% | 41.9% | |
| Sk Telecom ($SKMD) | 26.9% | 29.2% | 27.5% | 27.4% | |
| Sistema Jsfc ($SSAA) | 20.1% | 33.3% | 23.9% | 22.5% | |
| |
|---|
| Median (6 companies) | 34.6% | 31.3% | 35.1% | 34.7% | |
|---|
| Monitise ($MONI) | -36.7% | -5.1% | -21.1% | 40.0% | -58.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Global Telecom Hldg Sae ($GLTD) | 8.6% | 15.7% | 36.5% | 26.2% | |
| Megafon OJSC ($MFON) | 17.1% | 14.5% | 18.5% | 20.1% | |
| Sistema Jsfc ($SSAA) | 11.3% | 13.3% | 14.2% | 15.0% | |
| Sk Telecom ($SKMD) | 21.0% | 17.3% | 17.5% | 14.5% | |
| Kcell JSC ($KCEL) | 12.8% | 9.2% | 9.6% | 9.5% | |
| |
|---|
| Median (6 companies) | 12.0% | 13.9% | 15.9% | 14.8% | |
|---|
| Monitise ($MONI) | 8.7% | 7.0% | 5.1% | 4.6% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kcell JSC ($KCEL) | 63.7% | 66.0% | 62.9% | 40.2% | |
| Zamano ($ZMNO) | 31.4% | 30.9% | 25.5% | 23.3% | |
| Megafon OJSC ($MFON) | 21.0% | 27.7% | 23.7% | 19.6% | |
| Global Telecom Hldg Sae ($GLTD) | 17.8% | -6.9% | 17.4% | 14.7% | |
| Sistema Jsfc ($SSAA) | 11.7% | 12.1% | 8.3% | 7.4% | |
| |
|---|
| Median (6 companies) | 19.4% | 19.9% | 20.5% | 17.2% | |
|---|
| Monitise ($MONI) | -16.7% | -9.4% | -13.1% | -24.3% | -148.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sistema Jsfc ($SSAA) | 2.0x | 1.5x | 2.7x | 3.5x | |
| Global Telecom Hldg Sae ($GLTD) | 1.5x | 5.6x | 2.0x | 1.6x | |
| Megafon OJSC ($MFON) | 1.2x | 1.1x | 1.4x | 1.5x | |
| Sk Telecom ($SKMD) | 1.4x | 1.1x | 1.3x | 1.5x | |
| Kcell JSC ($KCEL) | 0.5x | 0.1x | 0.1x | 0.2x | |
| |
|---|
| Median (6 companies) | 1.3x | 1.1x | 1.3x | 1.5x | |
|---|
| Monitise ($MONI) | | | | -2.2x | |
