Mobile Streams revenue decline decelerated to 46.5% in FY2018 vs. 55.5% a year earliner
09 Nov 2018 • About Mobile Streams (
$MOS) • By InTwits
Mobile Streams reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Mobile Streams is a company in decline: FY2018 revenue growth was -46.5%, 5 years revenue CAGR was -43.7%
- The company operates at negative EBITDA Margin: -38.7%
- Mobile Streams motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -2.3% for the sames years
- Mobile Streams has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has unprofitable business model: ROIC is -117.8%
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 dropped on 46.5%. During the last 5 years Revenue growth bottomed in FY2016 at -56.0% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 10.7 pp from -28.0% to -38.7% in FY2018. EBITDA Margin stuck to a declining trend at -11.0 pp per annum in the last 5 years.
Gross Margin increased on 7.9 pp from 30.8% to 38.7% in FY2018. During the last 5 years Gross Margin bottomed in FY2015 at 26.4% and was growing since that time. SG&A as a % of Revenue jumped on 18.4 pp from 59.1% to 77.5% in FY2018. SG&A as a % of Revenue stuck to a growing trend at 13.2 pp per annum in FY2014-FY2018.
Net Income margin decreased on 3.0 pp from -30.3% to -33.3% in FY2018. Net Income margin declined at -9.6 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Mobile Streams's CAPEX/Revenue was 0.56% in FY2018. The company's CAPEX/Revenue showed almost no change from FY2015 to FY2018. For the last three years the average CAPEX/Revenue was 0.29%. During FY2014-FY2018 CAPEX as a % of Revenue bottomed in FY2016 at 0.063% and was growing since that time.
Return on investment
The company operates at negative ROIC (-117.8%) and ROE (-90.6%). ROIC dropped on 12.1 pp from -106% to -118% in FY2018. ROE surged on 11.0 pp from -102% to -90.6% in FY2018. ROIC followed a declining trend at -38.8 pp per annum in the last 5 years. ROE declined at -26.2 pp per annum in the last 5 years.
Leverage (Debt)
The company has no debt. Cash dropped on 54.0%.
Financial and operational results
FY ended 30 Jun 2018
Mobile Streams ($MOS) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 48.573 | 29.063 | 12.786 | 5.695 | 3.046 | -46.5% |
| Gross Profit | 14.229 | 7.673 | 3.530 | 1.753 | 1.178 | -32.8% |
| SG&A | 14.233 | 6.898 | 4.381 | 3.367 | 2.362 | -29.8% |
| EBITDA | 0.412 | 0.834 | -0.792 | -1.595 | -1.178 | |
| Net Income | -0.546 | 0.337 | -1.306 | -1.727 | -1.015 | |
Balance Sheet
|
|---|
| Cash | 2.964 | 2.098 | 1.367 | 2.260 | 1.039 | -54.0% |
| 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 | 0.118 | 0.049 | 0.008 | 0.015 | 0.017 | 13.3% |
Ratios
|
|---|
| Revenue growth | -9.9% | -40.2% | -56.0% | -55.5% | -46.5% | |
| EBITDA growth | -92.0% | 102.4% | -195.0% | 101.4% | -26.1% | |
|
|---|
| Gross Margin | 29.3% | 26.4% | 27.6% | 30.8% | 38.7% | 7.9% |
| EBITDA Margin | 0.8% | 2.9% | -6.2% | -28.0% | -38.7% | -10.7% |
| SG&A, % of revenue | 29.3% | 23.7% | 34.3% | 59.1% | 77.5% | 18.4% |
| Net Income Margin | -1.1% | 1.2% | -10.2% | -30.3% | -33.3% | -3.0% |
| CAPEX, % of revenue | 0.2% | 0.2% | 0.1% | 0.3% | 0.6% | 0.3% |
|
|---|
| ROIC | 11.3% | 24.0% | -35.3% | -105.7% | -117.8% | -12.1% |
| ROE | -15.4% | 9.6% | -49.3% | -101.6% | -90.6% | 11.0% |
| Net Debt/EBITDA | -7.2x | -2.5x | | | |
Peers in Mobile Telecommunications
Below you can find Mobile Streams benchmarking vs. other companies in Mobile Telecommunications 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Orascom Telecom Media&Tech Hldg Sae ($OTMT) | -89.4% | 12.8% | 84.7% | 190.0% | |
| Megafon OJSC ($MFON) | | -0.4% | 0.9% | 18.0% | |
| Sk Telecom ($SKMD) | 3.4% | -0.2% | -0.3% | 2.5% | |
| Global Telecom Hldg Sae ($GLTD) | | -13.3% | 2.1% | 2.0% | |
| Sistema Jsfc ($SSAA) | | 10.6% | -1.5% | 1.0% | |
| |
|---|
| Median (6 companies) | 3.4% | -0.3% | 0.3% | 2.3% | |
|---|
| Mobile Streams ($MOS) | | -40.2% | -56.0% | -55.5% | -46.5% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Sk Telecom ($SKMD) | 90.2% | 88.6% | 89.2% | 89.2% | |
| Megafon OJSC ($MFON) | 73.1% | 73.1% | 69.9% | 70.7% | |
| Sistema Jsfc ($SSAA) | 50.4% | 46.7% | 49.9% | 52.0% | |
| Orascom Telecom Media&Tech Hldg Sae ($OTMT) | 80.0% | 31.5% | 42.5% | 43.9% | |
| Kcell JSC ($KCEL) | 55.1% | 46.6% | 37.5% | 38.8% | |
| |
|---|
| Median (5 companies) | 69.0% | 49.3% | 53.7% | 52.0% | |
|---|
| Mobile Streams ($MOS) | 29.3% | 26.4% | 27.6% | 30.8% | 38.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Global Telecom Hldg Sae ($GLTD) | 42.8% | 43.9% | 40.3% | 41.2% | |
| Megafon OJSC ($MFON) | 43.5% | 41.9% | 37.0% | 36.1% | |
| Sk Telecom ($SKMD) | 27.5% | 27.4% | 26.9% | 27.3% | |
| Sistema Jsfc ($SSAA) | 23.9% | 22.5% | 25.4% | 26.2% | |
| Orascom Telecom Media&Tech Hldg Sae ($OTMT) | 785.3% | -8.4% | -25.5% | 24.6% | |
| |
|---|
| Median (5 companies) | 35.1% | 33.7% | 26.2% | 27.3% | |
|---|
| Mobile Streams ($MOS) | 0.8% | 2.9% | -6.2% | -28.0% | -38.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Global Telecom Hldg Sae ($GLTD) | 36.5% | 26.2% | 18.3% | 29.5% | |
| Orascom Telecom Media&Tech Hldg Sae ($OTMT) | 82.4% | 56.3% | 53.5% | 19.4% | |
| Megafon OJSC ($MFON) | 18.5% | 20.1% | 18.3% | 16.5% | |
| Sk Telecom ($SKMD) | 17.5% | 14.5% | 14.6% | 15.5% | |
| Kcell JSC ($KCEL) | 9.6% | 9.5% | 10.3% | 15.3% | |
| |
|---|
| Median (6 companies) | 15.9% | 14.8% | 13.7% | 16.0% | |
|---|
| Mobile Streams ($MOS) | 0.2% | 0.2% | 0.1% | 0.3% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Kcell JSC ($KCEL) | 62.9% | 40.2% | 21.8% | 21.2% | |
| Global Telecom Hldg Sae ($GLTD) | 17.4% | 14.7% | 17.9% | 20.7% | |
| Megafon OJSC ($MFON) | 23.7% | 19.6% | 14.8% | 14.2% | |
| Sistema Jsfc ($SSAA) | 8.3% | 7.4% | 8.6% | 11.0% | |
| Sk Telecom ($SKMD) | 8.3% | 7.3% | 6.3% | 5.9% | |
| |
|---|
| Median (7 companies) | 17.3% | 11.0% | 7.4% | 11.0% | |
|---|
| Mobile Streams ($MOS) | 11.3% | 24.0% | -35.3% | -105.7% | -117.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Sistema Jsfc ($SSAA) | 2.7x | 3.5x | 3.0x | 3.2x | |
| Global Telecom Hldg Sae ($GLTD) | 2.0x | 1.6x | 2.0x | 2.2x | |
| Megafon OJSC ($MFON) | 1.4x | 1.5x | 1.7x | 1.7x | |
| Sk Telecom ($SKMD) | 1.3x | 1.5x | 1.3x | 1.3x | |
| Orascom Telecom Media&Tech Hldg Sae ($OTMT) | -0.4x | | | -2.5x | |
| |
|---|
| Median (5 companies) | 1.3x | 1.5x | 1.7x | 1.7x | |
|---|
