May 20, 2020.
The BSE Limited P. J. Towers, 25th Floor, Dalal Street, MUMBAI – 400001. Scrip Code: 532368
The National Stock Exchange of India Ltd. Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai-400051. Symbol: BCG
Dear Madam/Sir,
Sub: Presentation on nine months financials for FY20
We are enclosing a copy of the presentation on the analysis of Company financials for nine
months for the financial year 2019-20. And the same is proposed to be made available to the
investor and analyst community.
This presentation is also uploaded on the website of the company at www.brightcomgroup.com
under the investor's section.
We request you to take note of this and disseminate this presentation to the shareholder
community.
Thanking you.
Yours faithfully,
for BRIGHTCOM GROUP LIMITED
M. SURESH KUMAR REDDY
CHAIRMAN & MANAGING DIRECTOR
DIN: 00140515
74 7
brightcom groupHel: +91 (40) 67449910 EEAX +91 (22) 66459677
brightcom group limited (Formerly Lycos Internet Limited)
-FLOOR: 5, FAIRFIELD BY MARRIOTT, ROAD NO: 2, NANAKRAMGUDA, GACHIBOWLI, HYDERABAD - 500032, TELANGANA,INDIA.
EMAIL: [email protected] =WEB:WWW.BRIGHTCOMGROUP.COM CIN: L64203761999PLC030996
FINANCIALS OF FY2020 (FIRST THREE QUARTERS)
DisclaimerCertain Statements in this release reflecting our future growth prospects are forward – looking statements which involve a number of risks and uncertainties that could cause result to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include but are not limited to risks and uncertainties with respect to fluctuation in earnings, our ability to manage growth, intense competition in online advertising including these factors which may affect our cost advantage, cost of resources and introduction of regulations that might impact the prospects, our ability to successfully complete the planned projects, general economic conditions affecting our industry. The company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the company.
Income StatementOperating Information Q1 FY2020 Q2 FY2020 Q3 FY2020
Digital/Advertising Revenue $66.61 $73.42 $105.2
Software Revenue $16.05 $16.08 $15.47
Other Revenue $0.04 -$0.35 -$0.09
Extra-ordinary Income/ Gains $0 $0 $1.71
Revenue $82.7 $89.15 $122.28
Growth Rate 2.36% 1.32% 3.5%
Digital/ Advertising COGS $27.34 $32.06 $54.9
Gross Profit $55.36 $57.09 $67.38
Gross Margin % of Digital Revenue 58.96% 56.34% 47.81%
SG&A $28.48 $29.33 $33.6
Extra-ordinary Expense / Write-down $3.66 $0 $0
Depreciation and Ammortization $5.14 $6.7 $7.11
EBIT $18.09 $21.06 $26.68
Ammortization $5.14 $6.7 $7.11
EBITA $23.22 $27.76 $33.79
Deprecitation $0 $0 $0
EBITDA $23.22 $27.76 $33.79
EBITDA Margin 28.08% 31.14% 27.63%
EBITDA Growth -5.41% 0.73% 6.14%
Adjustments $0 $0 $0
Adjusted EBITDA $2.32 $2.78 $3.38
Adj. EBITDA Margin 28.08% 31.14% 27.63%
Adj. EBITDA Growth -5.41% 0.73% 6.14%
Interest Expense $0.41 $0.22 $0.05
Other Expense/ (Income) $5.46 $6.14 $9.74
Pretax Income $17.66 $20.82 $26.62
Income Taxes $5.71 $5.83 $6.43
Tax Rate 32.31% 28.00% 24.14%
Net Income $11.01 $26.18 $24.59
Net Income Margin 13.31% 29.36% 20.11%
9 Months FY2020
$245.23
$47.6
-$0.41
$1.71
$294.13
2.51%
$114.29
$179.84
53.39%
$95.07
$3.66
$18.95
$65.82
$18.95
$84.77
$0
$84.77
28.82%
0.98%
$0
$84.77
28.82%
0.98%
$0.68
$21.34
$65.11
$17.96
27.59%
$61.77
21%
(Amounts in Millions of USD)
Balance Sheet
FY2020 Q2
Cash $15,242.59
Accounts Receivable $123,411.8
Short Term Loans & Advances $106,980.63
Other Current Assets $88,980.48
Total Current Assets $334,615.5
PP&E $3,586.86
Intangible Assets(Including Goodwill) $102,067.63
Capital Work-in-Progress $12,335.54
Intangible Assets Under Development $8,745.1
Non-Current Investements $33,312.97
Long Term Loans & Advances $26,073.02
Deferred Financing Fees $400.5
Other Non-Current Assets $4,108.78
Total Assets $525,245.9
Accounts Payable $12,143.49
Short Term Provisions $11,050.05
Other Current Liabilities $14,410.91
Total Current Liabilities $37,604.44
New RLOC
Existing Borrowings $5,095.56
Lycos Acquisition Payable $16,000
Total Long-Term Debt $21,095.56
Long Term Provisions $454.93
Deferred Tax Liabalities $1,303.51
Other Long Term Liabilities $2,990.32
Total Liabilities $4,748.76
Stockholders Equity $461,797.13
Total Liabilities and Stockholders Equity $525,245.9
ASSETS
LIABILITIES
(Amounts in Thousands of USD)
QUARTERLY REVENUE BRIDGE ( FY19 - FY20)
$81,000
$82,000
$83,000
$84,000
Q1 FY2019 Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom India Q1 FY2020
$521
$500
$955
$85
$168$158
$650
$431
$82,660
$81,235$88,000
$89,000
$90,000
$91,000
Q2 FY2019 Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom India Q2 FY2020
$600$402
$96
$540
$35$76
$239
$189$89,504
$88,527
$115,000
$117,000
$119,000
$121,000
$123,000
Q3 FY2019 Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom India Q3 FY2020
$826$898$195
$1,630
$115$166$342
$292$120,668
$117,856
$280,000
$284,000
$288,000
$292,000
$296,000
$300,000
Q1 - Q3 FY2019 Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom India Q1-Q3 FY2020
$1,947$2,255$375
$1,670$317$399$1,231
$912
$292,831
$287,618
Revenue Growth Analysis
Between Q1 FY19 - Q1 FY20 Between Q2 FY19 - Q2 FY20
Between Q3 FY19 - Q3 FY20 Between 9 months FY19 - 9 months FY20
The revenue growth from each quarter is compared between FY19 to FY20 by subsidiary. The top two growth contributors have been Dream Ad group and OMS. OMS had a de-growth in quarter one but quickly made it up in quarter three to come out in top two.
(Amounts in Thousands of USD)
Revenue Contribution Analysis
Revenue Contribution by Subsidiary (Q1 FY20)
0%
20%
40%
60%
80%
100%
0%
8%
16%
24%
32%
40%
Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom India
Revenue Contribution EBITDA Margin
3%
33.85%
44.1%
29.09%34.66%
70.21%
60.77%56.54%
20%15%
3%
36%
3%4%
12%
7%
56.54%60.77%
70.21%
34.66%29.09%
44.1%
33.85%
3%
Revenue Contribution by Subsidiary (Q2 FY20)
0%
20%
40%
60%
80%
100%
0%
8%
16%
24%
32%
40%
Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom India
Revenue Contribution EBITDA Margin
3.23%
35.65%
46%
29.57%33.26%
56.6%54.56%
46.97%
19%15%
3%
39%
3%4%
11%7%
46.97%
54.56% 56.6%
33.26%29.57%
46%
35.65%
3.23%
Revenue Contribution by Subsidiary (Q3 FY20)
0%
20%
40%
60%
80%
100%
0%
8%
16%
24%
32%
40%
Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom India
Revenue Contribution EBITDA Margin
15.81%
30.73%
39.82%
26.24%32.42%
39.4%
32.14%33.64%
13%16%
3%
42%
3%4%
11%8%
33.64% 32.14%
39.4%
32.42%26.24%
39.82%
30.73%
15.81%
Revenue Contribution by Subsidiary (Q1-Q3 FY20)
0%
20%
40%
60%
80%
100%
0%
8%
16%
24%
32%
40%
Dyomo Corp Frontier Data Intl Expresions Max Interactive OMS YDL Brasil Dream Ad Group Brightcom India
Revenue Contribution EBITDA Margin
6.68%
33.04%
42.89%
27.98%33.29%
52.9%47.47%
43.75%
17%15%
3%
39%
3%4%
11%7%
43.75%47.47%
52.9%
33.29%27.98%
42.89%
33.04%
6.68%
The largest contributor, thus far, to the consolidated revenue during FY20 is OMS. The contribution varies between 36-42%. At the nine month level it’s at 39%.
REVENUE CONTRIBUTION BY SUBSIDIARY
Revenue Breakdown by Subsidiary (Q2 FY 2020):
Brightcom India18.61%
Dream Ad Group14.67%
YDL Brasil3.00%
OMS38.74%
Max Interactive3.11%
Intl Expresions4.09%
Frontier Data10.57%
Dyomo Corp7.22%
Revenue Breakdown by Subsidiary (Q1 FY 2020):
Brightcom India20.11%
Dream Ad Group15.44%
YDL Brasil2.89%
OMS35.55%
Max Interactive3.17%
Intl Expresions4.08%
Frontier Data11.74%
Dyomo Corp7.01%
Revenue Breakdown by Subsidiary (Q3 FY 2020):
Brightcom India13.1%
Dream Ad Group16%
YDL Brasil3%
OMS42%
Max Interactive3%
Intl Expresions4.43%
Frontier Data11%
Dyomo Corp8%
Revenue Breakdown by Subsidiary (Nine-month FY 2020):
Brightcom India16.74%
Dream Ad Group15.41%
YDL Brasil2.99%
OMS39.10%
Max Interactive3.21%
Intl Expresions4.23%
Frontier Data10.92%
Dyomo Corp7.40%
Gross Margin Analysis
GROSS PROFIT, MARGIN, AND COGS BREAKDOWN (FY20 Q1-FY20 Q3)
$0
$60
$120
$180
$240
$300
Q1 Q2 Q3
$50.3$41.36$39.27
$17.08$15.7$16.09
Gross Profit (Software) Gross Profit (Digital)
58.96%56.34%
47.81%
Gross Margin % of Digital Revenue
$0
$60
$120
$180
$240
$300
Q1 - Q3
$130.93
$48.9
53.39%
$55.36 $57.09$67.38
$179.83
Gross Profit
70% 70%
0% 0%
We did see a dip in the gross profit margin of digital revenues in the 3rd quarter. We can attribute that to higher demand and lower supply of media due to the holiday season. However, the overall GP margin at the nine-month level is about 53.39%, which is in line with historic numbers.
(Amounts in Millions of USD)
SG&A Analysis
SG&A COSTS & % OF REVENUE, (FY20 Q1-FY20 Q3)
0%
10%
20%
30%
40%
50%
$0
$20
$40
$60
$80
$100
Q1 Q2 Q3
Total SG&A % of Revenue
22.74%
32.89%34.43%
$33.6$29.33$28.48
34.43%32.89%
22.74%
0%
10%
20%
30%
40%
50%
$0
$20
$40
$60
$80
$100
Q1 - Q3
32.32%
$95.07
32.32%
SG&A costs tend to grow at slower rate than the revenue growth after a certain threshold. You can witness that in the Q3FY20 at 22.74%. The nine-month percentage at 32.32% lines up with the historic expectations.
(Amounts in Millions of USD)
QUARTERLY EBITDA BRIDGE ( FY19 - FY20)
Between Q1 FY19 - Q1 FY20
$21
$23
$25
$27
Q1 FY19 Revenue COGS SG&A Extraordinary expense Q1 FY20
$3.66
$0.02 $0.45
$1.9
$23.22
$24.55
Between Q2 FY19 - Q2 FY20
Between Q3 FY19 - Q3 FY20 Between 9 months FY19 - 9 months FY20
EBITDA Bridge
$25
$26.33
$27.67
$29
Q2 FY19 Revenue COGS SG&A Extraordinary expense Q2 FY20
$1.02
$0.06
$1.16
$27.76$27.56
$30
$32.33
$34.67
$37
Q3 FY19 Revenue COGS SG&A Extraordinary expense Q3 FY20
$0.77
$1.41
$4.14
$33.79
$31.83
$78
$82.67
$87.33
$92
FY19 Q1-Q3 EBITDA Revenue COGS SG&A Extraordinary expense FY20 Q1-Q3 EBITDA
$3.66
$0.26
$2.44
$7.2
$84.77$83.95
EBITDA bridge between FY19 and FY20 levels is measured by Revenue growth, media costs, SG&A costs and extraordinary expense. One can see a slight increase in the consolidated nine-month EBIDTA from FY19 to FY20, from $83.95 million to $84.77 million.
(Amounts in Millions of USD)
$0
$0