1st quarter fy20 results · digital brands •largest pay-tv operator in sea •serving 5.7mn...

1st Quarter FY20 Results

25 June 2019

This document contains certain forward-looking statements with respect to Astro Malaysia Holdings Berhad’s (“Astro”) financial condition,

results of operations and business, and management’s strategy, plans and objectives for Astro. These statements include, without

limitation, those that express forecasts, expectations and projections such as forecasts, expectations and projections in relation to new

products and services, revenue, profit, cash flow, operational metrics etc.

These statements (and all other forward-looking statements contained in this document) are not guarantees of future performance and are

subject to risks, uncertainties and other factors, some of which are beyond Astro’s control, are difficult to predict and could cause actual

results to differ materially from those expressed or implied or forecast in the forward-looking statements. These factors include, but are

not limited to, the fact that Astro operates in a competitive environment that is subject to rapid change, the effects of laws and

government regulation upon Astro’s activities, its reliance on technology which is subject to risk of failure, change and development, the

fact that Astro is reliant on encryption and other technologies to restrict unauthorised access to its services, failure of key suppliers, risks

inherent in the implementation of large-scale capital expenditure projects, and the fact that Astro relies on intellectual property and

proprietary rights which may not be adequately protected under current laws or which may be subject to unauthorised use.

All forward-looking statements in this presentation are based on information known to Astro on the date hereof. Astro undertakes no

obligation publicly to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation has been prepared by Astro. The information in this presentation, including forward-looking statements, has not been

independently verified. Without limiting any of the foregoing in this disclaimer, no representation or warranty, express or implied, is made

as to, and no reliance should be placed on, the fairness, accuracy or completeness of such information. Astro and its subsidiaries,

affiliates, representatives and advisers shall have no liability whatsoever (whether in negligence or otherwise) for any loss, damage, costs

or expenses howsoever arising out of or in connection with this presentation.

Disclaimer

1 | 1QFY20 results

NB:

(1) Normalised PATAMI excludes post-tax impact unrealised forex gain/(loss) 1Q FY20: (RM 8mn), 1Q FY19: (RM 4mn) due to mark-to-market

revaluation of transponder-related finance lease liabilities

1Q FY20 key performance highlights

2 | 1QFY20 results

EBITDA

Norm. PATAMI (1)

RM179mn→ RM184 mn

Norm. PATAMI margin of 15%

FCF of RM252mn

143% of PATAMI

Revenue

Commerce

RM1.31bn → RM1.23bn

RM151mn → RM145mn

Capturing market share across TV,

radio and digital

RM84mn→ RM84mn

Revenue resilient

Key highlights

RM461mn → RM444mn

Healthy EBITDA margin of 36%• Normalised PATAMI up 3%

amid challenging

environment

• Reach across TV, radio and

digital up

• ARPU up 1% to RM100.4

• Strategic OTT partnerships

with HBO GO and iQIYI

• Astro Malay language content

tops Raya season

Adex

NB

(1) TV household data sourced from the Department of

Statistics Malaysia and Media Partners Asia

(2) Household penetration comprises residential Pay-TV

customers and NJOI customers

(3) Viewership share is based on DTAM deployed by Kantar

Media

(4) Audience measurement is provided by GfK

(5) Average monthly unique visitors to Astro’s digital assets in

the last 12 months as sourced from comScore

(6) Connected set-top boxes (STBs) are internet-ready with

recording functionality and have access to Astro’s On

Demand library of content

(7) Normalised PATAMI excludes post-tax impact of unrealised

forex gain/(loss) 1Q FY20: (RM 8mn), 1Q FY19: (RM 4mn)

due to mark-to-market revaluation of transponder-related

finance lease liabilities

(8) Numbers may not add up due to rounding differences

3 | 1QFY20 results

1Q FY20 year to date overview

Scaling reach… YTD FY19 YTD FY20 Growth

Total TV households in Malaysia (000s)(1) 7,355 7,470 2%

TV household penetration(2) 75% 77% 2 p.p.

TV customer base (000s) 5,484 5,711 4%

Pay TV ARPU (RM) 99.6 100.4 1%

Astro TV viewership share(3) 76% 73% -3 p.p.

Radio listenership (mn) (4) 16.5 16.7 1%

Average monthly unique visitors (mn)(5) 6.7 9.3 39%

Connected STBs (000s) (6) 869 1,024 18%

YTD FY19 YTD FY20 Growth

Revenue (RM mn) 1,311 1,234 -6%

Adex (RM mn) 151 145 -4%

EBITDA (RM mn) 461 444 -4%

EBITDA margin 35% 36% 1 p.p.

Normalised PATAMI (RM mn) (7) 179 184 3%

FCF (RM mn) 338 252 -25%

EPS (RM sen) 3.4 3.4 -

…enabling resilient results

Digital Brands

• Largest Pay-TV

operator in SEA

• Serving 5.7mn

households

• 77% household

penetration

• 47% TV adex share

• 1mn connected STBs

• 9.3mn avg monthly

unique viewers across

over 25 digital brands

• Gempak is the No. 1

digital entertainment

portal in Malaysia

• 3% digital adex share

• 24/7 multilanguage

shopping experience

• 1.8mn registered

customers

• 11 radio brands

• # 1 station across 4 key

languages

• 16.7mn weekly

listeners & 13.2mn

monthly digital streams

• 80% radex share

Leading content & consumer companyTV DIGITAL RADIO COMMERCE CONTENT

• #1 premium content

creator & aggregator

• Investing in content

verticals with

regional reach

• Produced 12.6k

hours of content in

FY19

4 | 1QFY20 results NB:

(1) Cumulative count since inception

(2) Connected set-top boxes (STBs) are internet-ready with recording functionality and have access to Astro’s On Demand library of content

134 171

1Q FY19 1Q FY20

784

907

1Q FY19 1Q FY20

27%

73%

TV Viewership Share

3:37 3:202:07 2:14

YTD FY19 YTD FY20

Avg. Time Spent/Day (hrs)

12.8 12.37.0 6.8

YTD FY19 YTD FY20

Avg. Daily Viewers (mn)

Astro FTA

1.7 2.2

YTD FY19 YTD FY20

Avg. Weekly Viewing (mins)Registered Users (1) (mn) Monthly Active Users (4) (’000)

16%

29%28%

NB:

(1) Cumulative count since inception

(2) Connected set-top boxes (STBs) are internet-ready with recording functionality and have access to Astro’s On Demand library of content

(3) Target Audience: Kantar Media, Dynamic TV Audience Measurement (DTAM). All Astro Pay-TV viewers

(4) Source: App Annie as at 30 April

869 1,024

YTD FY19 YTD FY20

Total Connected STBs (1)(2)

(000s)

18%

1116

1Q FY19 1Q FY20

Total Video Downloads (mn)

51%

374482

1Q FY19 1Q FY20

Avg. Weekly Viewing (mins)

29%

TV

On Demand

OTT

4.1%

7.8%

5 | 1QFY20 results

2.9%

Customers watch over 4 hours of Astro daily

Vernacular content underpins viewership share

6 | 1QFY20 results

FTA 27%

Vernacular content

64%

Others36%

Astro 73%

1Q FY20 TV Viewership Share

TV viewership

3.5mn 2.3mn 3.1mn

Sepahtu Reunion

Live

2000 Prime Talk Evening Edition KL to KK

193channels

75Astro-branded

channels

30channels

Pay-TV

NJOI

NB

(1) Number of channels as at 1Q FY20

(2) Target Audience: Kantar Media, Dynamic TV Audience Measurement (DTAM). All Astro Pay-TV viewers

Curi-Curi CintaAnugerah Meletop

Era 2019

(1)

TV viewership

308k 275k 81k

Key non-Malay language IPs

Key Malay language IPs

1,076 1,162 1,107 1,073

1,005

151

161179 196

145

84

9498 99

84

99.60 99.90 99.90 99.90 100.40

20

30

40

50

60

70

80

90

100

110

120

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1Q FY19 2Q FY19 3Q FY19 4Q FY19 1Q FY20

GoShop (0%)

Adex (-4%)

Subscriptions/Others (-7%)

ARPU (+1%)

1,3681,417

1,311

1,384

1,234

(RM mn)Total revenue

NB

(1) Disclosed as Subscription revenue and Other revenue in our financial statements, includes revenue streams such as TV subscription,

licensing income, programme sales, NJOI revenue and theatrical revenue

(2) YTD refers to 3 months ended 30 April 2019


(1)

YTD growth (2)

7 | 1QFY20 results

Growing ARPU amid challenging market

YTD growth

3% 3%

YTD FY19 YTD FY20

NB

(1) Advertising income is net of commissions and discounts

(2) YTD refers to 3 months ended 30 April 2019

(3) Audience measurement is provided by GfK. Share of radex is based on Astro and IPG’s estimates (with Nielsen gross adex as base) since Q3FY19, prior to

which share of radex is based on internal estimates.

(4) Viewership share is based on DTAM deployed by Kantar. Share of TV adex is based on Astro and IPG’s estimates (with Nielsen gross adex as base) since

Q3FY19, prior to which share of TV adex is based on Astro and Group M’s estimates.

(5) Malaysia gross adex figures (covering TV, print, radio, cinema, in store media, outdoor and digital) are based on Nielsen gross adex and IPG’s estimation


44% 47%

YTD FY19 YTD FY20

6.7 9.3

YTD FY19 YTD FY20

80 80100 107

80

63 69

64

73

56

8 12

14

16

9

151 161

178

196

145


TV Radio Digital Total

16.5 16.7

YTD FY19 YTD FY20

Outperforming industry adexAdvertising income (RM mn)

(2)(1)

Total Malaysia

gross ADEX YTD

growth

OVERALL ADEX

-9%

DIGITAL

+8%

RADIO

-20%

TV

-11%

(2)(5)

77%

73%

YTD FY19 YTD FY20

71%

80%

YTD FY19 YTD FY20

Share of radex

Share of TV adex

Radio listeners (mn) (3)

TV viewership share (4)

-4%

Share of digital adex

Avg monthly unique

visitors (mn)

8 | 1QFY20 results

76%

-11%

0%

+13%

352

602418 429 343

665

693

663 737

609

35%

20%

34%

28%

36%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

0

500

1000

1500

2000


EBITDA margin

Content cost/TV

revenue

Other expenses

Content costs

Relentless focus on operational efficienciesTotal cost

NB

(1) Content costs are disclosed as part of cost of sales in our financial statements

(2) Other expenses include marketing and distribution costs, administrative expenses, STB installation and smartcard costs, depreciation and

amortisation, as well as maintenance costs

(3) Higher content cost due to 2018 FIFA World Cup in Q2FY19

(4) Normalised EBITDA margin of 34% excluding one-off employee separation scheme cost in Q4FY19


30% 48% 34% 36%

9 | 1QFY20 results

(RM mn)

1,017

1,295

1,0811,166

(3)

(4)

952

31%

NB

(1) Data presented are for 3 months ended 30 April


Disciplined capex spend

as % of

revenue

(RM mn)

45

22

3%

2%

YTD FY19 YTD FY20

as % of

revenue

Key capex investments in FY20 include:

▪ Technology infrastructure

▪ Customer experience

▪ Product and service upgrading

Cash capex

▪ STBs/ODUs are owned by Astro, and are capitalised

▪ STBs/ODUs are conservatively amortised over 3 years;

note that actual useful life is typically greater than 5

years

▪ Discretionary 36 month bullet payment vendor financing

is available for Astro for STB/ODU purchases

▪ RM571mn (FY19: RM552mn) of vendor financing recorded

in payables, of which RM199mn is current and RM372mn

is non-current

27

35

2%

3%

YTD FY19 YTD FY20

10 | 1QFY20 results

(RM mn)Set-top box (STB) capex

Strong cash generation capabilities

452

358

115

106

338 252

Cash fromoperations

Cash frominvesting

Free cash flow Cash fromoperations

Cash frominvesting

Free cash flow(2) (3) (3)(2)

193% 143%as % of PATAMI

(RM mn)

YTD FY19 YTD FY20

Free cash flow

…enabling significant flexibility on capital management and dividend policy

NB

(1) Data presented are for 3 months ended 30 April

(2) Excludes investments, disposals and maturities of unit trust and money market funds

(3) Excludes repayments of vendor financing and payments of finance leases, which are categorised as cash from

financing for consistency with Bursa disclosure


11 | 1QFY20 results

▪ Leveraging on invested capital, AMH continues to be highly cash generative

▪ The Board of Directors of AMH has declared a quarterly dividend of 2.0 sen per share for 1Q FY20

▪ Quarterly dividend entitlement and payment dates 10 July 2019 and 25 July 2019 respectively

Quarterly dividend announcement

12 | 1QFY20 results

Strengthen Core Business

FY20 Key Focus Areas

13 | 1QFY20 results

PREMIUM

• Reinvigorate Customer

Experience

• Reset Customer Service

• Refresh Content

• Reward Customers

Activate NJOI prepaid

buys with more

content options and

easier purchasing Commerce

Strategic OTT partnerships

Leverage data for

addressable TV advertising

Broadband

Driving Value

FREEMIUM

14 | 1QFY20 results

Established strategic partnership with China’s

No.1 video streaming service platform – iQIYI,

first such partnership in the region

• iQIYI’s first such partnership in the region

• Exclusive rights to deliver iQIYI content on

TV, On Demand and OTT in Malaysia

• Astro to introduce the world’s first iQIYI

branded channel

• Increasing our content library with iQIYI’s

extensive slate of original content from

drama to variety shows and movies

Expanding our premium content offering : iQIYI

Expanding our premium content offering : HBO GO

15 | 1QFY20 results

• HBO GO now available to all Astro Movies

Pack customers

• Astro Pay customers can now access HBO GO

content via the HBO GO app, Astro GO or On

Demand

• Over 3,000 hours of HBO content available

for Astro customers

• Featuring HBO Originals, Hollywood

blockbusters, documentaries, stand-up

comedies, kids content and more

Astro Malay language content tops Raya season

16 | 1QFY20 resultsNB

(1) Numbers are for 7 days starting Raya Eve (4 June to 9 June 2019)

(2) Target Audience: Kantar Media, Dynamic TV Audience Measurement (DTAM). Astro Pay-TV viewers, Individual Malay 4+

• #1 Malay Drama in

Malaysia 2019 with 3.1

million TV viewership

• Most watched show

nationwide during Raya

Eve and first day of

Raya

Original vernacular IPs most watched during Raya celebration

43%

27%

30%

Market share

Astro Malay language channels

FTA Malay language channels

Non-Malay language channels

+7.3% y.o.y

-0.5% y.o.y

BoBoiBoy

The Movie 2

Upcoming movie releases

17 | 1QFY20 results

• Malaysia’s first martial arts flick, our first collaboration

with Media Prima and strategic partners, Infinitus Gold and

MM2 Entertainment

• Produced in collaboration with one of the

biggest local animator, Animonsta

• Upcoming action movie by

the director of Paskal

Sangkar

Wira

A new Astro experience awaits

18 | 1QFY20 results

• Unified user interface across Astro & Astro

GO

• Better recommendations and search

capabilities to discover 50,000 On Demand

titles

• Seamless experience across all devices –

start watching on one device and continue

on another

• Expanded content recording storage with

cloud recording and watch them across

devices

• Coming soon to Astro Pay customersThe new Astro experience across all

connected boxes and mobile devices

Revenue (RM mn)

Registered Customers (mn)

Go Shop makes shopping a breeze

20 | 1QFY20 results

1.4

1.8

YTD FY19 YTD FY20

28%

• Expanded free shipping service to

East Malaysia

• Revamped Go Shop mobile app

features live and recorded shows

to expand reach

• Introduced e-cash on delivery

(e-COD) payment option through

partnership with e-wallets

84 84

YTD FY19 YTD FY20

Appendix

(RM mn) 1Q FY19 1Q FY20

EBITDA 461 444

Margin % 35% 36%

Depreciation and amortisation (165) (159)

EBIT 296 285

Margin % 23% 23%

Finance income 12 7

Finance cost (74) (65)

Share of post tax results from investments 0 0

PBT 235 227

Tax expense (61) (57)

Tax rate % 26% 25%

PAT 174 169

PATAMI 175 176

Margin % 13% 14%

Normalised PATAMI 179 184

Margin % 14% 15%

NB

(1) Depreciation and amortisation excludes

the amortisation of film library and

programme rights which is expensed as

part of content costs (cost of sales)

(2) Normalised PATAMI excludes post-tax

impact of unrealised forex gain/(loss)

1QFY20: (RM 8mn), 1QFY19: (RM 4mn) due

to mark-to-market revaluation of

transponder-related finance lease

liabilities

(3) Numbers may not add up due to rounding

differences

(2)

(1)

PAT reconciliation

21 | 1QFY20 results

(RM mn) FY19 1Q FY20

Non-current assets 4,718 4,713

Property, plant and equipment 2,233 2,228

Other non-current assets 2,485 2,485

Current assets 1,542 1,555

Receivables and prepayments 818 700

Cash and bank balances(1) 632 761

Other current assets 92 94

6,260 6,268

(RM mn) FY19 1Q FY20

Non-current liabilities 3,601 3,652

Payables 412 372

Borrowings 3,096 3,188

Other non-current liabilities 93 92

Current liabilities 1.980 1,836

Payables 1,467 1,286

Borrowings 475 500

Other current liabilities 38 50

Shareholders’ equity 679 780

6,260 6,268

Net debt / LTM EBITDA: 1.8x

NB

(1) Includes money market unit trusts


Balance sheet overview

22 | 1QFY20 results

1,633

615

303

623

519

1QFY20

(RM mn)Total borrowings

Total borrowings of RM3,688mn*

Debt profile

RM term

loan

Finance lease

(primarily

satellite

transponders)

▪ As at 30 April 2019, outstanding principal stood at USD123.75mn

▪ First drawdown date was on 8 June 2011, amortised repayment schedule with final maturity date on 8 June

2021. Average life: 7 years

▪ Fully hedged via cross currency interest rate swap at an exchange rate of USD/RM3.0189 and an all-in interest

rate of 4.19% p.a.

▪ The twelfth principal repayment of USD24.75mn (RM74.72mn) paid on 10 June 2019 and next repayment (of the

same amount) will be paid on 9 December 2019

▪ As at 30 April 2019, total outstanding principal stood at RM617.5mn

▪ A total of RM187.5mn out of the RM617.5mn has amortised repayment schedule with final maturity date on 19

May 2021(Average life: 7 years), at a floating rate (based on cost of funds) of 5.10% p.a. The twelfth principal

repayment of RM37.5mn paid on 21 May 2019 and next repayment (of the same amount) will be paid on 19

November 2019.

▪ Finance lease related to lease of Ku-band transponders on MEASAT-3, MEASAT-3A and MEASAT-3B. Payment

arrangement for the remaining contractual years for M3 and M3A have been redenominated into Ringgit at

USD/RM3.0445 w.e.f. 21 May 2013. The unhedged portion of the finance lease related to M3B is USD169mn

▪ Effective interest rate: 6.2%, 4.6%, 12.5% and 5.6% p.a. for M3, M3-T11, M3A and M3B respectively, average

life: 15 years

Unrated MTN

▪ The first series of notes under the unrated medium-term notes (MTN) programme of up to RM3.0bn in nominal

value of up to 15-year tenor was issued on 10 August 2017. The issuance was for RM300mn with a 5-year tenor

at fixed rate of 5.30% p.a. with semi-annual coupon payment

▪ Bullet repayment on 10 August 2022

23 | 1QFY20 results

Synthetic

Foreign

Currency

Loan (SFCL)

▪ The USD150mn SFCL facility of 4 years 11 months tenor amounted to RM612.7mn upon conversion at the

agreed exchange rate of USD/RM4.0850

▪ Drawn in 2 tranches of RM306.4mn each on 29 December 2017 and 28 February 2018 respectively, at a fixed

rate of 4.80% p.a. with quarterly interest payment

▪ Bullet repayment on 29 November 2022

USD term

loan

▪ The RM380mn is a term loan facility with a 5-year tenor secured and fully drawn down on 23 August 2018, at a

fixed rate of 5.18% p.a. with quarterly interest payment. Repayment will be in 2 tranches i.e. RM50mn on 23

February 2023 and RM330mn on 23 August 2023

▪ The balance RM50mn is a term loan drawn on 28 March 2019 from a RM300mn facility with a 5-year tenor

secured on 28 December 2018, at a floating rate (based on cost of funds) of 5.2975% p.a. with quarterly

interest payment. Repayment will be in 5 equal semi-annual installments, commencing 36 months from the first

drawdown i.e. 28 March 2022

*Includes accrued interest of RM19.1mn

and net of debt issuance costs of

RM5.7mn. USD term loan converted at

quarter end rate of USD/RM4.1337

Thank you

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1st quarter fy20 results · digital brands •largest pay-tv operator in sea •serving 5.7mn...

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