Q2 - Major Cineplex Group

LIFESTYLE
entertainment
Quarterly Briefing
2Q15
MAJOR CINEPLEX GROUP PLC.
Analyst Meeting 2Q15
Paragon Cineplex, 10th August 2015
2Q15 QUARTERLY BRIEFING
Financial Highlights
growth
Bt.Million
2Q14
2Q15
Revenue
2,643 100% 2,666 100%
Gross margin
1,027
Amt.
1H14
%
23
1%
growth
1H15
Amt.
4,347 100% 4,415 100%
%
68
2%
39% 1,013
38%
(14)
-1%
1,615
37% 1,617
37%
2
0%
28% 1,373
31%
167
14%
EBITDA
786
30%
871
33%
85
11%
1,206
EBIT
584
22%
656
25%
72
12%
810
19%
947
21%
137
17%
Net Profit
446
17%
491
18%
45
10%
586
13%
689
16%
103
18%
• Revenue growth from Blockbuster
movies, New branches, Cambodia( Opened
29Jun14) & price increased.
• Gross margin dropped mainly from Movie
contents business.
Net profit improved from ;
• Efficiency expenses management.
• Profit from divestment in SF.
• High profit from portfolio.
2Q15 QUARTERLY BRIEFING
Bt.million
Net profit
Revenue Gross margin dropped from
444
430
(14mb.)
Net profit
2Q15
Cinema : from costs in 9 branches
expansion and 1 branch in Cambodia.
Advertising : from more events and
grand opening in Quatier Cineart.
Bowling : from Ice skate business.
-3%
Excl.gain on
divest. in SF
2Q14
2,666
+10% (45mb.)
491
446
2,643
+1% (23mb.)
2Q14
2Q15
Movie contents : from one time
revenue in 2Q14 from sold movie
license to Mono channel and MVD
revenue dropped
Margins
Admissions
Concessions
Advertising services
Bowling group
Rentals & services
Movie Contents
Consol
2Q14
24%
70%
87%
35%
18%
24%
39%
2Q15 variance
21%
(2%)
70%
84%
(2%)
31%
(4%)
21%
3%
18%
(6%)
38%
(1%)
2Q15 QUARTERLY BRIEFING
Admissions
+7%
(96mb.) Concession
+1%
•Movie content dropped from Film
rights distribution and VCD/DVD
sales.
(5mb.) Advertising
+17%
Movie
Content
-3%
-53%
Retails
+3%
(4mb.)
2Q14
2Q15
129
110
(-3mb.)
2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15
(-128mb.)
113
Bowling
group
133
341
292
(49mb.)
241
457
452
1,416
2,666
2,643
+1%(23mb.)
1,512
Revenue
• Revenue growth in main core
businesses and also cinema in
Cambodia.
113
Bt.million
Revenue Breakdown
2Q14 2Q15
2Q15 QUARTERLY BRIEFING
No.of Screens
Admissions sale
479
520
2Q15
+53 new screens
542
489
+53
413
screens
1,512
1,416
+7%(96mb.)
• 9 branches(+46 screens)
• Cambodia(+7 screens)
(opened 29 Jun14)
2012
2013
2014
2Q14
2Q15
Guest Count & ATP
171
146
Excl.Complementary
Bt.million
Revenue : Admissions Sale
2Q14
2Q15
152
157
160
147
9.9
7.5
5.9
1Q14
9.0
7.4
5.4
2Q14
+13%
(19bt.)
3Q14
4Q14
1Q15
2Q15
-9%
(0.9m)
ATP increased
from up price and
manage price tiers
and promotion
in each locations.
2Q15 QUARTERLY BRIEFING
Bt.million
Revenue : Admissions Sale
3 blockbuster films which
generated more than 200MB
for each movie.
Admissions sale
2Q14
1,512
1,416
+7%(96mb.)
2Q14
436
222
2Q15
2Q15
269
167
163
150
106
102
267
128
2Q15 QUARTERLY BRIEFING
Bt.million
Revenue : Concession
2Q15
• Concession sales slightly growth from
variety of bucket sets less than 2Q14.
Concession sale
• Maintain margin from cost control.
+1% (5mb.)
Concession Sales
457
452
700
600
65%
70%
70%
71%
70%
400
457
324
319
238
40%
100
30%
0
20%
1Q14
2Q15
60%
50%
266
200
2Q14
80%
70%
452
500
300
72%
%Concession margins
2Q14
3Q14
Concession Sales
4Q14
1Q15
2Q15
%Concession margins
2Q14
2Q15 QUARTERLY BRIEFING
Bt.million
Revenue : Advertising
• Revenue growth from movie highlight, expansion
screens and new flagship store. (Quatier Cineart)
0
87%
87%
0
86%
86%
87%
9
84%
8
0
212
0
256
292
0
341
0
0
7
6
5
0
5
0
1Q14
2Q15
7
6
0
2Q14
8
0
274
341
292
+17% (49mb.)
• Gross margin dropped from more events and grand
opening at Quatier Cineart.
349
Advertising sale
2Q14
3Q14
4Q14
Advertising revenue
1Q15
Margin
2Q15
Advertising Business
Advertising Revenue Mix
Production
4%
Outdoor
Media
12%
Screen
Advertising
49%
Event
14%
Beside of Screen advertising , Major
get what we called “Engagement
package”, Agency can customize
advertising package to match with
their target group, interactive with
customers by using Major’s social
media, cross promotion, event.
Sponcership
21%
2Q14
2Q15
Categories
Screen Advertising
Sponcership
Event
Production
(Royal Anthem)
Outdoor Media
(Digital Media, LED, etc.)
1H15 1H14
49%
56%
21%
20%
14%
15%
4%
5%
12%
4%
Advertising Business
The Revenue Review: Ad-spending by Category
Top 3 advertising spender in the last 3 Years
No.
LIFESTYLE
entertainment
(Data as of 1H15)
2013
2014
1H15
1
Food & Beverage
Food & Beverage
Automotive & Petrol
2
Automotive & Petrol
Automotive & Petrol
Food & Beverage
3
Electronic & Communication Electronic & Communication Electronic & Communication
2Q15 QUARTERLY BRIEFING
• Ice skate revenue & gross margin less than 2Q14.
• Gross margin improve from 1Q15 by efficiency cost
management (mainly from utility & rental cost).
300
250
Bowling group sale
-3% (-3mb.)
35%
35%
37%
36%
4
28%
200
31%
3
150
100
2
111
113
127
129
104
110
110
50
113
Bt.million
Revenue : Bowling Group
2Q14
2Q15
0
1
0
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15
Bowling group revenues
margins
2Q15 QUARTERLY BRIEFING
• Revenue increased from Center point at Ratchayothin and
Mini mall at Aomyai and up price in Metropolis.
• Occupancy increase from 90.3% to 91.5%
• Gross margin variance from Utility cost.
22%
18% 19%
23% 24% 21%
30
20
10
0%
Retails sale
+3%
128
129
127
136
132
133
(4mb.)
-1
-2
-3
133
-4
129
Bt.million
Revenue : Retails
2Q14
2Q15
-5
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15
Rental&services Rev.
margins
2Q15 QUARTERLY BRIEFING
Revenue dropped from ;
∙ One time revenue in 2Q14 from sold movie
license to Mono channel and M Channel sold to
outsider.
Movie content sale
241
-53% (-128mb.)
2Q14
∙ More highlight movies in 2Q14 effect to Film
right distribution and sales of VCD/DVD
dropped.
2Q14 2Q15
113
Bt.million
Revenue : Movie Contents
2Q15
2Q15 QUARTERLY BRIEFING
B/S Snapshot
Bt.million
Assets
Liabilities
Equity
Dec 31,14
13,932
7,546
6,387
Dec 31,14
13,932
7,546
Jun 30,15
%chg
13,990 0.4%
7,408 -1.8%
6,582 3.1%
Jun 30,15
13,990
Slightly decrease D/E ratio
Net interest-bearing debts
LIABILITIES
EQUITY
6,582
ASSETS
LIABILITIES
6,387
EQUITY
Net D/E
7,408
0.70
ASSETS
Equity
0.42
0.40
2011
2012
2013
0.62
2014
0.58
0.56
1Q15
2Q15
2Q15 QUARTERLY BRIEFING
Investments Portfolio
vs. Interest-bearing debts
Bt.million
Investments
%Share (as of
4 Aug'15)
Cost per
Share
Market
value*
22.46%
2.49
2,195
995
1,199
MJLF
33.00%
10.00
1,427
1,089
338
MPIC
92.46%
1.67
2,008
2,003
5
PVRL
4.57%
120.45
818
6,447
Interest-bearing debts
Major's Cost Gain(Loss)
Siam Future
Total
Bt.million
229
590
4,316
2,131
Jun 30,15
13,990
7,408
LIABILITIES
*% Share & Closing price on 6 Aug'15
• Investment portfolio as of 6 August 2015:
EQUITY
6,582
ASSETS
• 92.46% in M Pictures Entertainment Plc. (MPIC)
• 22.46% in Siam Future Development Plc. (SF)
• 33.00% in Major Cineplex Lifestyle
Leasehold Property Fund (MJLF)
• 40.00% in ThaiTicketMajor Co., Ltd.
•
4.57% in PVR Limited (PVRL)
• 49.00% in PVR blu-O Entertainment Limited
• 70.00% in Major Platinum Cineplex
Co.,ltd.(Cambodia)
Jun 30,15
Bank OD & ST loans
2,093
CP of LT borrowings
917
LT borrowings
-471
Debentures
1,800
Total
4,340
2Q15 QUARTERLY BRIEFING
Dividend payout
Net Profit (Bt.Million)
% Dividend Payout
2nd dividend pay of Bt 0.55/share
1H12
75.75%
1,500
1,300
71.02%
60.00%
900
700
585.9
500
689.4
300
1H15
Net Profit (Bt.Million)
464.94
740.88
585.93
689.41
% Dividend Payout
73.58%
60.24%
75.75%
71.02%
EPS (Bahts)
0.53
0.83
0.66
0.77
DPS (Bahts)
0.39
0.50
0.50
0.55
15.30
19.60
18.80
33.75
Closed price(Bt.) as of 30 June
740.9
1H14
80.00%
60.24%
1,100
1H13
40.00%
Dividend yield (%)
2.5%
2.6%
2.7%
1.6%
Dividend payment is about Bt 490.66 million
on September 4, 2015
20.00%
100
-100
1H13
FY10
1H14
FY11
1H15
FY12
0.00%
16
LIFESTYLE
entertainment
GROWTH POTENTIALS
GROWTH POTENTIALS
LIFESTYLE
entertainment
Population and Screen comparison
1,400.0
40,158
1,200.0
1,000.0
800.0
24,607
600.0
11,139
400.0
200.0
-
963
715
969
2,281
874
232
225
China
India
US
Indonesia
Philippines
Thailand
South Korea
Malaysia
Hong Kong
Singapore
1,367.5
1,259.7
318.5
251.5
99.4
68.6
50.4
30.5
7.3
5.5
24,607
11,139
40,158
963
715
969
2,281
874
232
225
Population 2014e(million)
Screens 2014e
45,000
40,000
Source: Marche Du Film, data as of 2014e
GROWTH
POTENTIALS
GDP per Capita and Average Ticket Price (ATP) Comparison
LIFESTYLE
entertainment
80,000
70,000
8.1
8.4
7.3
6.9
60,000
5.8
50,000
4.6
40,000
3.5
2.9
30,000
2.1
20,000
0.6
10,000
-
Singapore
US
Hong Kong
South Korea
Malaysia
China
Thailand
Indonesia
Philippines
India
56,109
54,678
40,303
28,739
11,062
7,572
5,550
3,404
2,913
1,626
7.3
8.1
8.4
6.9
3.5
5.8
4.6
2.9
2.1
0.6
GDP per capita 2014e (USD)
Average ticket price 2014e (USD)
Source: Marche Du Film, data as of 2014e
GROWTH POTENTIALS
3Q15 Blockbuster Highlight
3Q15
Mission: Impossible 5 (UIP)
Ant-Man (Sony)
Terminator: Genisys (UIP)
Minions (UIP)
The Fantastic Four (Warner)
Maze Runner (Warner)
Ted 2 (UIP)
Inside Out (Sony)
Transporter Refueled (Mongkol)
Everest (UIP)
Hitman : Agent 47 (Warner)
Pixels (Sony)
Thai Movie
Freelance (GTH)
Jo Watermellon (MPIC)
*Please note that release dates are subject to change.
LIFESTYLE
entertainment
GROWTH POTENTIALS
4Q15 Blockbuster Highlight
4Q15
Bond 24: 007: Spectre (Sony)
Star Wars: Episode VII (Sony)
The Hunger Games: Mockingjay, Part 2
Victor Frankenstein (Warner)
Fallen (MPIC)
Attack on Titan: Part 2 (M Pictures)
Crimson Peak (UIP)
In the Heart of the Sea (Warner)
Hotel Transylvania 2 (Sony)
Doraemon the Movie 2015
The Good Dinosaur (Disney)
Pan (Warner)
Everest (UIP)
Jem and the Holograms (UIP)
The 33 (Warner)
Thai Movie
May Who (GTH)
JYT (MPIC)
*Please note that release dates are subject to change.
LIFESTYLE
entertainment
GROWTH POTENTIALS
Blockbuster Highlight Released In 2016
Year 2016
Batman V Superman: Dawn of Justice
Suicide Squad
Captain America 3
X-Men Apocalypse
Amazing Spider-Man 3
Deadpool
Resident Evil: The Final Chapter
The Divergent Series: Allegiant Part 1
Independence Day 2 Resurgence
Teenage Mutant Ninja Turtles 2
London Has Fallen
Kung Fu Panda 3
Ice Age 5
Frozen 2
Finding Dory
Knights of the Round Table King Arthur
*Please note that release dates are subject to change.
LIFESTYLE
entertainment
Mega Blockbuster in Year
2016 are still attractive.
Superhero-related, sequels
or animated films are
continuous released.
GROWTH POTENTIALS
LIFESTYLE
entertainment
Major is expert in online entertainment and interesting in online media.
ID line: MajorFriends
15,012,000 Friends
Mobile Application
5,050,000 Download
Facebook: www.facebook.com/MajorGroup
2,321,000 Fan page
Twitter: MajorGroup
1,000,000 Followers
Instagram: MajorFriends
189,000 Followers
YouTube Channel: Major Trailers
70,000 Subscriber
23
GROWTH POTENTIALS
LIFESTYLE
entertainment
Online Booking: E-Ticketing, Mobile Application and Online ticketing
•Customers can book the ticket through many channels like E-Ticketing Machines, Mobile
Application (iOS, Android), Major Cineplex’s website, also customers can pick up the tickets
by using barcode at kiosks or receive the tickets at 7-11 (Convenience store)
•85% of admission revenue comes from non box office (Data as of 2Q15)
•Those technology will come to replace manpower in box office areas.
E-Ticketing Machine
454 Units in 84 Branches
24
MAJOR CINEPLEX GROUP
LIFESTYLE
entertainment
Expansion Plan: Major will open 101 screens in year 2015
No.
Location
Screens
1 Emquartier (Opened 1Apr)
8
2 Lotus Nakornsrithammarat (Opend 10Apr)
4
3 Central Rayong (Opend 27May)
8
4
5
6
7
8
9
10
Big C Nan (Opend 29May)
Big C Udonthani (Opened 9July)
Sahathai Suratthani (Opened 16July)
Vientiane Center, Laos
Central West Gate (Bang Yai)
Lotus Suratthani
Central Samui
11 Lotus Khon Kaen
12
13
14
15
16
17
2Q1218
Central East Ville (Ekamai - Ramindra)
Big C Ratburanah
Big C Ratchaburi
Promanade
Lotus Yasothon
Big C Lampang
Lotus
Nadee (Udon)
2Q13
2
4
7
5
12
6
3
5
8
4
4
8
3
5
5
Opening Date
2Q15
(22 Screens)
3Q15
(37 Screens)
4Q15
(37 Screens)
(Data as of August 2015)
LIFESTYLE
entertainment
INTERNATIONAL PROJECT
International
Project
India:
PVR Cinemas
Currently, PVR cinemas has got 474 Screens
in 106 Locations.
Major hold 4.57% of PVR Cinemas (PVRL)
PVR Cinemas is now India's Largest Multiplex Chain.
LIFESTYLE
entertainment
International
Project
India:
PVR BluO
Currently, PVR BluO has got 125 Bowling lanes in 7 Locations.
LIFESTYLE
entertainment
International Project
Cambodia
Cambodia: Major is partnering with local
partner to operate a cinema complex located in
Aeon Mall in Cambodia's capital with 7 screens
comprising five standard cinemas, one VIP
cinema and one 4D cinema (1,560 seats) and 14
bowling lanes .
The investment of 150 million baht will be made
through a holding company of Major's
international joint venture with a local firm.
Major hold 70% of JV.
This project opened since 30th June 2014
The first year since Major Cineplex Cambodia
opened, become the biggest cinema chain with
70% market share and 850,000 admissions has
been sold.
LIFESTYLE
entertainment
International Project
Laos
Laos: Major will open a cinema complex called
“Major Platinum Cineplex By Huawei”
in Vientiane center with 5 screens (1,150 seats).
The investment of 50 million baht will be made
through a holding company of Major's
international joint venture with Platinum
Cineplex Ltd. (Local). Major hold 60% of JV.
This project opened since 7th Aug 2015.
Also the second project in Laos partnering
THE LAOS World Trade Centre (WTC) and
Major Cineplex Group have signed a
cooperation agreement to open a new cinema
complex in Vientiane in the signing ceremony
in Bangkok on July 24.
LIFESTYLE
entertainment
LIFESTYLE
entertainment
Thank you
LIFESTYLE
entertainment