Gtn Ltd. · ASX:GTN
Gtn — Macquarie Conference 2017
25 slides from Gtn's conference presentation, May 2, 2017
Slide 1: GTN Limited Conference Presentation
For personal use only GTN Limited Conference Presentation 2 May 2017
Slide 2: Today's presenter
Today’s presenter For personal use only Scott Cody (CFO and COO) 29 years experience in the radio and media industry Joined GTN in 2005 Prior to joining GTN, held various positions with Metro Networks, Inc., (including Vice President of Finance and Senior Vice President of Business Development
Slide 3: Overview of GTN
For personal use only Section 01 Overview of GTN
Slide 4: A unique business model
A unique business model For personal use only GTN’s unique business model seeks to provide value for both broadcasters and advertisers. GTN has successfully replicated this model in all of its operating jurisdictions Broadcasters Advertisers Core value proposition Generates real time content Core
Slide 5: Value for advertisers
Value for advertisers For personal use only Differentiated platform enables advertisers to make a single, cost effective, high impact advertising buy with broad reach Large platform and effective format designed to maximise advertisers’ ROI 1 2 3 Broad reach, covering a large number of high value Hi
Slide 6: Embedded within broadcasters' business models
Embedded within broadcasters’ business models For personal use only GTN becomes embedded in broadcasters’ operations, particularly by converting a cost centre into a profit centre, demonstrated by long-standing relationships with a large number of Affiliates Strong value proposition to Established p
Slide 7: GTN business model
GTN business model For personal use only GTN has demonstrated (in multiple geographies) the ability to achieve revenue growth and margin improvement once a national platform is established, whilst maintaining a relatively constant cost base Revenue Spots inventory Sell-out rate Net spot rate Operati
Slide 8: Recap on the 1H17 Result
For personal use only Section 02 Recap on the 1H17 Result
Slide 9: Key highlights – 1H17
Key highlights – 1H17 For personal use only GTN achieved positive revenue growth in each of its existing geographies while successfully completing the acquisition of Radiate Media Key 1H17 highlights 1H17 results1 Revenue growth achieved in each of GTN’s core geographies (in local Actual Pro Actua
Slide 10: Overview of 1H17 financial performance
Overview of 1H17 financial performance For personal use only GTN achieved growth in all key financial metrics in 1H17 and is on track to deliver the FY17 forecast provided in the IPO prospectus (excl. USTN) Commentary GTN Group revenue Revenue growth of 12.3% driven by: 92.5 — Strong organic growt
Slide 11: Drivers of 1H17 financial performance - revenue
Drivers of 1H17 financial performance - revenue For personal use only Strong revenue growth across GTN’s core existing geographies underpinned a solid 1H17 result ATN revenue performance CTN revenue performance 14.7 44.1 47.8 10.9 Actual 1H16 Actual 1H17 Actual 1H16 Actual 1H17 UKTN revenue performa
Slide 12: Drivers of financial performance - KPIs
Drivers of financial performance - KPIs For personal use only The revenue result in each of GTN’s core geographies was underpinned by strong KPIs ATN KPIs UKTN KPIs 1H16 1H17 1H16 1H17 (Actual) (Actual) % chg (Actual) (Actual) % chg Radio spots inventory ('000s)1 386 416 7.8% Total radio impacts ava
Slide 13: USTN 1H17 financial performance
USTN 1H17 financial performance For personal use only USTN contributed one month of revenue to the 1H17 result following completion of the Radiate acquisition in December 2016 USTN revenue performance Commentary GTN closed the acquisition of Radiate Media in December 2016 and has realised one mont
Slide 14: Update on growth strategy and outlook
For personal use only Section 04 Update on growth strategy and outlook
Slide 15: GTN's global advertising platform
GTN’s global advertising platform For personal use only With the addition of USTN, GTN’s global advertising platform is now a combination of established, market leading businesses and large new market opportunities ATN CTN UKTN BTN USTN Population m 23.5 35.5 64.5 206.1 350.1 Years of operation # 20
Slide 16: Key drivers of growth
Key drivers of growth For personal use only Recent success in Canada and Brazil has validated the GTN model in offshore jurisdictions. Canada, Brazil and the US represent substantial growth opportunities for GTN going forward CTN BTN USTN Years of operation # 11 5 5 Months Radio Audience1 m 14.5 13.
Slide 17: U.S. market is a very large opportunity
U.S. market is a very large opportunity For personal use only U.S. represents a significant market opportunity for GTN. Radiate provides a strong foundation for GTN to build out a national network in the U.S. Large population Significant radio advertising market Significant addressable market Manage
Slide 18: GTN growth cycle: revenue follows audience
GTN growth cycle: revenue follows audience For personal use only Additional affiliates typically result in a net cost to the business until additional inventory is monetised Phase 1: Expand affiliate network & audience Phase 2: Monetise network Sign new affiliate Sell additional inventory Rece
Slide 19: U.S. expansion strategy
U.S. expansion strategy For personal use only Acquiring Radiate was the first step in executing GTN’s broader United States expansion strategy Two key priorities in maximising the US opportunity: A Increase audience Monetise the value of an enlarged network created via addition of CBS and other
Slide 20: U.S. growth levers
U.S. growth levers For personal use only GTN intends to use a number of levers to grow the USTN business 1 Sell spots at premium rates (transition away from ‘wholesale’ sales) 2 Increase spot rates due to larger and high quality network (including CBS) 3 Bundle spots as a network to increase rate 4
Slide 21: Outlook for FY17
Outlook for FY17 For personal use only GTN is focused on executing its growth strategy in each jurisdiction, including the U.S. following the acquisition of Radiate Media and establishment of USTN Outlook for FY17 GTN reaffirms the FY17 forecast as per its IPO Prospectus excluding any impact of th
Slide 22: Appendix A: Additional financial information
For personal use only Appendix A Additional financial information
Slide 23: Reconciliation of pro forma to statutory results
Reconciliation of pro forma to statutory results For personal use only Reconciliation of EBITDA and Adjusted EBITDA to Profit before income tax 1H FY2017 1H FY2016 ($m) Actual Pro Forma Profit before income tax 16.5 1.7 Depreciation and amortization (4.7) (11.9) Finance costs (2.7) (2.0) Interest on
Slide 24: Reconciliation of pro forma to statutory results
Reconciliation of pro forma to statutory results For personal use only Pro forma adjustments to the Statutory NPAT 1H FY 2016 ($m) Actual Statutory NPAT (7.0) IPO transaction costs expensed 1.1 Public company costs (0.4) Net interest adjustment 0.9 Unrealised foreign exchange (gains)/losses 7.5 Offe
Slide 25: Disclaimer and important information
Disclaimer and important information For personal use only The information contained in this document is general background information about GTN Limited (ACN 606 841 801) (the “Company”) and its activities as at the date of this document. It is in summary form and does not purport to be complete. I