Nine Entertainment Co. Holdings Limited · ASX:NEC
Nine Entertainment — Macquarie Australia Conference 2021
18 slides from Nine Entertainment's conference presentation, May 4, 2021
Slide 1: Presentation to Macquarie Conference
4 May 2021 ASX Markets Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 PRESENTATION TO MACQUARIE CONFERENCE 4 May 2021: Attached is a copy of Nine’s presentation to the Macquarie Australia Conference 2021. Authorised for lodgment by Mike Sneesby, Chief Executive Officer. Further in
Slide 2: Mike Sneesby | Chief Executive Officer
MIKE SNEESBY | CHIEF EXECUTIVE OFFICER
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer as a result of reliance on this document. as a general guide only, and should not be relied on This document is a presentation of general as an indication or guarantee of future performance. background information about the activities of Nine Forward Looking Statement
Slide 4: Create Distribute Engage: Growth Through Digital
CREATE DISTRIBUTE ENGAGE GROWTH THROUGH DIGITAL Nine has a portfolio of media assets that together are expected to grow consistently through the cycle, and provide enhanced returns to shareholders 3
Slide 5: Nine – Australia's Media Company
NINE – AUSTRALIA’S MEDIA COMPANY CREATE THE CONTENT PLATFORMS COMPETITIVE ADVANTAGE TO DISTRIBUTE AND ENGAGE THROUGH NEWS BROADCAST PUBLISHING VOD MARKETPLACES SPORT Scale – Ability to leverage multiple ENTERTAINMENT & Efficient delivery Migration to digital Audience growth Leveraging Nine’s platfor
Slide 6: Nine is Australia's Leading Television Business
NINE IS AUSTRALIA’S LEADING TELEVISION BUSINESS FREE TO AIR TELEVISION BROADCAST VIDEO ON DEMAND • Content – entertainment, sports, • Extends reach of content beyond news & scripted linear • Audience – volume • Targeted audience proposition for • Advertisers – brand-focused advertisers • Promotional
Slide 7: Strong Audience Performance Across All Platforms Driven by Nine's Premium Content
STRONG AUDIENCE PERFORMANCE ACROSS ALL PLATFORMS DRIVEN BY NINE’S PREMIUM CONTENT 6
Slide 8: Nine Has Lead Audience Shares in Broadcast
NINE HAS LEAD AUDIENCE SHARES IN BROADCAST NO.1 FREE TO AIR NETWORK – YEAR TO DATE, BY WEEK 25-54s, PRIME TIME, MAIN CHANNEL 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 2019 2020 2021 NO.1 TALK RADIO NETWORK – YEAR TO DATE 14.5% 14.0% 12.7% 2019 2020
Slide 9: Audiences Are Also Strong Across Nine's Digital Businesses
AUDIENCES ARE ALSO STRONG ACROSS NINE’S DIGITAL BUSINESSES 19% GROWTH IN STREAMS1 73% GROWTH IN APP LAUNCHES1 35% GROWTH IN TOTAL 25% GROWTH IN MINUTES STREAMED1 40% GROWTH IN LISTING VIEWS2 1 OzTAM DATA, 12 MTHS TO APRIL ON PCP VIEWING OF FIRST RUN SHOWS STAN DATA, Q3, 3 MTHS TO MARCH ON PCP 1 NIEL
Slide 10: More Than Half Nine's Revenue Comes From Growth Segments
MORE THAN HALF NINE’S REVENUE COMES FROM GROWTH SEGMENTS Publishing - retail 4% Subscription & licensing inc. Digital Platforms 23% Advertising - traditional 41% Marketplaces 12% Advertising - structural growth 20% smh.com.au | age.com.au afr.com.au 9
Slide 11: By FY24, Nine Is Focussed on Achieving ~$230M
BY FY24, NINE IS FOCUSSED ON ACHIEVING ~$230M ~60%+ ~30% >35% STRUCTURAL (P&L) OF EBITDA FROM OF NINE’S REVENUE OF GROUP REVENUES COST OUT1 DIGITAL BUSINESSES FROM VOD FROM SUBSCRIPTION2 1 From FY19 (net across FTA, Radio and Publishing) – FY23 original target 2 Domain Digital revenue included as su
Slide 12: We Are on Track to Achieve Key Targets
WE ARE ON TRACK TO ACHIEVE KEY TARGETS ~80% of $230M COST OUT DELIVERED ~60% of EBITDA FROM DIGITAL BUSINESSES $M 1600 1400 1200 1000 800 600 400 >40% DIGITAL 200 0 FY19 FY20 FY21E 2020 2021E FTA Radio Publishing Digital Non-Digital ~30% of REVENUE FROM VOD >35% of REVENUE FROM SUBSCRIPTION >25% OF
Slide 13: Measurement, Advertising, Virtual Oz
MEASUREMENT ADVERTISING VIRTUAL OZ PRODUCT AUDIENCE TAKE UP & ADVERTISING SHARE REVENUE CONTENT DEVELOPMENT CONSUMER & ACQUISITION EXPERIENCE 12
Slide 14: Daily Active Users, Monthly Minutes, Sell-thru Rate
LIVE SELL-THRU RATE CPM +37%1, + up to 20% ~35% of premium for data ~40% ~30% of inventory Daily Active Monthly monthly sold with data Users minutes minutes +6% 1 +25% 1 CATCH UP SELL-THRU RATE CPM + up to 20% +19%1, premium for data ~65% of ~60% ~50% of inventory monthly sold with data minutes 1pas
Slide 15: Stan Revenue a Function of Subscribers and ARPU
STAN REVENUE A FUNCTION OF SUBSCRIBERS AND ARPU Stan Sports Premium launches at Mid-tier (+$2 to $14) +$2 to $19 $10 per month Introduction of tiers and premium tier - mid-tier +$2 to (+$2 to $17) $12; basic tier remains $10, premium $15 per month $10 entry pricing Jun-15 Dec-15 Jun-16 Dec-16 Jun-17
Slide 16: On Track to Deliver, By FY24
ON TRACK TO DELIVER, BY FY24 ~$230M ~60%+ ~30% >35% STRUCTURAL (P&L) OF EBITDA FROM OF NINE’S REVENUE OF GROUP REVENUES COST OUT DIGITAL BUSINESSES FROM VOD FROM SUBSCRIPTION 15
Slide 17: Trading Update
TRADING UPDATE BROADCASTING PUBLISHING STAN DOMAIN • Q3 FY21 Metro FTA market • Digital subscription revenue • Subscriber numbers • Q3 Digital revenue up 8% revenue +6% (on pcp). Nine‘s growth of 20%+ in Q3 (on pcp) consolidating post COVID (on pcp), and Total revenue share of >41%. up 2% (both adju
Slide 18: Australia's Media Company
AUSTRALIA’S MEDIA COMPANY
Nine Entertainment Co. Holdings — Macquarie Australia Conference 2021 on 6ix