Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — FY2012 Earnings Presentation
23 slides from Southern Cross Media's earnings presentation, Aug 29, 2012
Slide 1: Southern Cross Austereo FY12 Results Presentation
For personal use only Southern Cross Austereo FY12 Results Presentation
Slide 2: Sizzle Reel
For personal use only Sizzle Reel
Slide 3: Headline Achievements
Headline Achievements For personal use only • Net Profit After Tax up 48.3% to $95.0m (pcp $64.1m) • Total “like for like” expenses down 4.8% to $462.5m • EBITDA margin expanded by 0.7% to 33.0% on a “like for like” basis • Leverage ratio reduced to 2.62 • Net debt level reduced by $71.6m to $621.8m
Slide 4: Headline Achievements
Headline Achievements For personal use only • Number 1 Metro Radio Network with 36.6%1 market share • Today network 22.0% & MMM 14.6% • Continued radio ratings dominance; • 2Day celebrates 5 years as Sydney’s #1 FM breakfast show • Fox & MMM are the #1 & #2 FM breakfast shows in Melbourne • Fox cont
Slide 5: FY12 Financial Analysis
For personal use only Steve Kelly, CFO FY12 Financial Analysis
Slide 6: Reported Group Statutory Results
Reported Group Statutory Results Key Financial Numbers For personal use only $ millions FY12 FY111 % Variance Revenue 687.3 492.8 39.5% Expenses (460.8) (344.1) Fair Value Gains on Business - 10.9 Combinations Equity Accounted Profit (0.7) 1.4 EBITDA 225.8 161.0 40.2% Depreciation & Amortisation (30
Slide 7: Group Underlying Results Comparative
Group Underlying Results Comparative Reconciliation to Underlying Results for FY12 For personal use only $ millions Reported Proportional Adjustments Underlying Comparative % Variance Consol. of Pro Forma1 JV’s FY12 FY12 FY12 FY12 FY11 Revenue 687.3 3.2 - 690.5 718.5 (3.9%) Expenses 2 (460.8) (3.8)
Slide 8: Regional Underlying Results Comparative
Regional Underlying Results Comparative For personal use only $ millions FY12 1 FY11 2 % Variance TV 249.3 270.0 (7.7%) Radio 167.6 166.0 1.0% Total Revenue 416.9 436.0 (4.4%) Broadcast & Production (92.2) (104.1) (11.4%) Employee (82.5) (83.0) (0.6%) Selling, General & Admin (113.0) (112.0) 0.9% To
Slide 9: Metro Underlying Results Comparative
Metro Underlying Results Comparative For personal use only $ millions FY12 1 FY11 2 % Variance Radio 273.6 282.5 (3.2%) Total Revenue 273.6 282.5 (3.2%) Broadcast & Production (23.2) (25.7) (9.7%) Employee (91.5) (90.0) 1.7% Selling, General & Admin (60.1) (71.1) (15.5%) Total Expenses (174.8) (186.
Slide 10: Debt Facilities
Debt Facilities For personal use only $ millions Jun 2012 Dec 2011 Jun 2011 Reported Borrowings 707.0 710.6 708.6 Borrowing Costs 12.4 14.7 16.9 Lease Liabilities (0.4) (0.3) (0.5) Drawn Debt 719.0 725.0 725.0 Less Cash (97.2) (78.2) (31.6) Net Debt 621.8 646.8 693.4 • Annualised leverage ratio (Net
Slide 11: Cash Flow
Cash Flow For personal use only $ millions Opening Cash 31.6 Cash From Operations (pre tax) 232.6 Interest, Derivative & Borrowing Cost payments (58.5) Tax (23.2) Capital expenditure (21.6) Dividends to Security Holders (56.4) Share Buy-back (1.3) Debt repayment (6.0) Closing Cash 97.2 EBITDA (Repor
Slide 12: EPS Analysis
EPS Analysis For personal use only cents per share FY12 Restated FY11 Underlying Operations 14.2 15.1 Derivative Impact - (0.3) One-Off Costs (0.6) (3.3) FV Gains on Business Combinations - 2.4 One-Off Tax Benefit 5.6 - Tax on Amended Assessment (4.6) - Interest on Amended Assessments, Net of Tax (1
Slide 13: Acquisition creating Shareholder Value
Acquisition creating Shareholder Value For personal use only $ millions Austereo and Radio Newcastle joining the tax consolidated 39.5 group resulted in an income tax benefit at 31 December 2011 Valuation of acquired assets and subsequent restatement of 10.9 FY11acquisition balance sheet resulted in
Slide 14: Operations
For personal use only Rhys Holleran, CEO Operations
Slide 15: Trading Commentary
Trading Commentary For personal use only • Regional radio advertising revenue up 3.4% due to stronger National Sales • National footprint has already realised “All Australia” buys • Economic conditions in regional Australia remain subdued • Metro radio advertising revenue down 4.7% • Today network s
Slide 16: FY12 Advertising Revenues
FY12 Advertising Revenues For personal use only Regional Radio Metro Radio1 Metro Radio Market2 % split of % change vs % split of % change vs % change vs pcp revenues pcp revenues pcp Local Advertising 64.0% (0.2%) 27.2% (5.8%) (2.6%) National Advertising 27.2% 13.0% 67.0% (4.2%) 0.8% Total Advertis
Slide 17: Acquisition Update
Acquisition Update For personal use only • Integration of business operations continues and is realising greater benefits than originally anticipated • Operating as a single entity • ONE United sales force under ONE business name • Integrated content teams operating in unison leveraging brands and c
Slide 18: Outlook
Outlook For personal use only • Most recent survey recorded 25 to 54 audience share of 22.7% for the duopoly in Metro markets dominating all competition 1 (see chart in Appendix 4) • Triple M resurgence continuing with the addition of Merrick & The Highway Patrol • Trading conditions have not improv
Slide 19: Questions?
Questions? For personal use only Rhys Holleran, CEO Steve Kelly, CFO DISCLAIMER This presentation has been prepared by Southern Cross Media Group Limited (SCMGL). The information has been prepared in good faith and is derived from sources understood to be accurate as at the date of this presentation
Slide 20: Appendix – Financial Analysis: Underlying Results FY12
Appendix 1 – Financial Analysis Underlying Results FY12 For personal use only $ millions Regional Metro Underlying TV 249.3 - 249.3 Radio 167.6 273.6 441.2 Total Revenue 416.9 273.6 690.5 Broadcast & Production (92.2) (23.2) (115.4) Employee (82.5) (91.5) (174.0) Selling, General & Admin (113.0) (60
Slide 21: Appendix – Comparative Pro-Forma Results FY11
Appendix 2 – Financial Analysis Comparative Pro-Forma Results FY11 For personal use only $ millions Regional Metro Comparative Pro-forma1 TV 270.0 - 270.0 Radio 166.0 282.5 448.5 Total Revenue 436.0 282.5 718.5 Broadcast & Production (104.1) (25.7) (129.8) Employee (83.0) (90.0) (173.0) Selling, Gen
Slide 22: Appendix – Reported to Underlying results FY11
Appendix 3 – Financial Analysis Reported to Underlying results FY11 For personal use only $ millions Reported Proportional Transaction Underlying Pre Pre Comparative Consol. of Costs and Reported Acquisition Acquisition Pro Forma2 JV’s FV Gains Metro Transaction Results1 Costs FY11 FY11 FY11 FY11 FY
Slide 23: Appendix – Duopoly Share
Appendix 4 – Duopoly Share For personal use only
Southern Cross Media Group — FY2012 Earnings Presentation on 6ix