Slide 1: Interim results
Interim results 18 May 2015 Interim Results | 18 May 2015
Slide 2: Agenda
Agenda • Executive summary – ZBM • Financial review – RH • Operational update – ZBM 2 Interim Results | 18 May 2015
Slide 3: Executive summary
Executive summary • Transformation activity nearing completion, as planned. • Overall Group EBITDAE of £1.8m. • Group returns to profit, with UK & US all profitable. • Digital and diversified revenues now account for 50% of total revenue. • Audience engagement strengthens - Digital reach up 7% YOY to 7
Slide 4: Finance review
Finance review Richard Haley – Chief Financial Officer 4 Interim Results | 18 May 2015
Slide 5: Group performance - summary
Group performance - summary Continuing: £m H1 2015 H1 2014 Revenue 30.8 35.8 EBITDAE 1.8 (3.7) EBITDAE % 6% (10%) Pre-tax loss (1.3) (24.3) Adjusted profit / (loss) per share 0.1p (1.6)p Net cash / (debt) 4.7 (7.8) • £5.5m swing in EBITDAE. • All territories profitable in the first half. • EBITDAE driv
Slide 6: Group performance - revenue
Group performance - revenue £m H1 2015 H1 2014 H1 15 UK 24.8 29.0 US 6.3 7.1 Digital & Diversified Print Intragroup (0.3) (0.3) 50% 50% Total continuing 30.8 35.8 • 50% of revenue now from digital & diversified activities. • UK digital and diversified revenues increased by 5%. • Strategy underpinning g
Slide 7: Group performance - EBITDAE
Group performance - EBITDAE H1 2015 H1 2015 H1 2014 H1 2014 EBITDAE £m % £m % UK 1.8 7% (2.2) (8%) US - 0.1% (1.5) (21%) Total continuing 1.8 6% (3.7) (10%) • Momentum from Q4 continued into H1. • UK & US all profitable. • US profitable in H1 for first time in seven years. • Improved margin and transfo
Slide 8: Group EBITDAE quarterly trends
Group EBITDAE quarterly trends • Momentum in Q4 FY14 continued into current year. • Seasonality means Q4 is typically the strongest quarter, Q3 is usually the quietest. • H1’s encouraging trends expected to continue into H2. • Third successive quarter of profit. 8 Interim Results | 18 May 2015
Slide 9: Vertical performance
Vertical performance 2014 2015 • Growth in gross margin % in all verticals. • Margin significantly improved through mix and quality of revenue. 9 PreliminaryInterim Results | 21 November Results | 18 May 2014 2015
Slide 10: Vertical revenue
Vertical revenue Technology Games & Entertainment Photography & Creative Other 10 PreliminaryInterim Results | 21 November Results | 18 May 2014 2015
Slide 11: Exceptional items and impairment
Exceptional items and impairment H1 H1 Income statement - £m 2015 2014 Exceptional items (1.4) (1.7) Impairment - (16.8) Total exceptional items and impairment (1.4) (18.5) H1 H1 Cashflow - £m 2015 2014 Exceptional items (2.3) (1.5) • Exceptional costs include property rationalisation, dilapidations
Slide 12: Cashflow
Cashflow £m • Underlying operations cash 2015 opening net cash 7.5 generative in H1. Business in a net Cash generated from operations 1.5 cash position at all times partly as a Exceptional items (2.3) result of the timing of working Interest paid (0.4) capital, expect some to unwind in Capital expend
Slide 13: Strategy update
Strategy update Zillah Byng-Maddick – Chief Executive 13 Interim Results | 18 May 2015
Slide 14: Strategy overview
Strategy overview The Future Wheel - A virtuous circle of engagement Content that connects Brilliant at the Basics Leaner, Simpler Business 14 Interim Results | 18 May 2015
Slide 15: Momentum – Phase 2
Momentum – Phase 2 Business is gaining momentum Transformation Momentum Optimisation Phase 1 Phase 2 Phase 3 H2 FY14 – H1 FY15 FY15 FY16+ Strategic Review Leaner, Simpler Business Brilliant at the Basics Monetising the Customer Need Content that Connects 15 Interim Results | 18 May 2015
Slide 16: Content that connects
Content that connects • Cross platform re-launch of our iconic T3 brand. • re-launched the magazine in May 2015 – ‘Life’s better with T3’. • Doubled ad revenue and ad page count month on month for re-launch issue. • T3 circulation up 27% YoY, Wired and Stuff down 10% and 20% YoY. • T3.com re-platform
Slide 17: Content that connects: Case study “How to”
Content that connects: Case study “How to” Generate : New York • Leveraged our digital and print brands (“creativebloq” and “net”) to run a master class in design. • Unique event with 300 highly engaged digital designers and creatives. • 2nd year of successful franchise, already an event in London,
Slide 18: Content that connects: Case study “Reviews”
Content that connects: Case study “Reviews” REVIEWS: Techradar - wearables •Wearables is an area of significant market opportunity, 16% of Future’s audience intends to buy a wearable product in the next 12 months. •Techradar has taken full advantage of this in creating a dedicated channel for Wearabl
Slide 19: Content that connects: Case study “Data”
Content that connects: Case study “Data” Consideration Intent • Understand the consumer’s needs to capitalise on ecommerce opportunity Purchase • Unique data insight resulted in Techradar ranking no.1 in Google on Black Friday for “techdeals”, this unlocked significant revenues • Stability and resil
Slide 20: Content that connects: Case study “Technology”
Content that connects: Case study “Technology” Consideration Intent Purchase • TechRadar was the first Future site to move to our new Vanilla platform. T3.com followed and MusicRadar is in the process of migrating now. • Techradar transitioned to new platform, that delivers content optimised for all
Slide 21: Brilliant at the Basics
Brilliant at the Basics Brilliant at the Basics • Market leading content; - Creativebloq is no. 1 digital UK design content*. - Technology online portfolio is no. 1 in the UK consumer technology market*. - Gaming online portfolio is no. 2 in the UK market*. • Content teams working together to create
Slide 22: Leaner, Simpler Business
Leaner, Simpler Business Leaner, Simpler Business • EBITDAE margin has returned to positive growth. • Headcount reduced to 540 at 31 March 2015 (31 March 2014: 924). • New organisation structure executing well, with improvements in effectiveness underpinning a global mindset. • Property portfolio rat
Slide 23: Gaining momentum
Momentum Phase 2 Gaining momentum • Transformation largely completed, in line with expectations; business focused on building momentum. • Profitable in all territories, including the US. • Continues to hold the number one or two market positions in key UK verticals. • Transitioned to a digitally div
Slide 24: Appendix: The Future Portfolio
Appendix : The Future Portfolio 1. Technology 2. Games & Entertainment 3. Music 4. Photography 5. Creative & Design 24 Interim Results | 18 May 2015
Slide 25: Technology
Technology • Future is rightly proud of its sector- leading technology portfolio that reaches over 30m readers each month. • Significant magazine portfolio: T3, MacFormat, PCFormat, Linux Format, Windows: Help & Advice, MacLife, TechLife, MaximumPC and APC magazine. • Major online properties include
Slide 26: Games & Entertainment
Games & Entertainment • The Future Games portfolio is famous across the globe, reaching close to 20m readers each month. • Five monthly magazine titles, Edge, Gamesmaster, PCGamer, Official PlayStation magazine, Official Xbox magazine. • Three major online properties, Gamesradar, PCGamer and Kotaku UK.
Slide 27: Music
Music • Future has one of the most highly-respected music portfolios in the world with long-established, market-leading brands. • Six monthly magazine titles: Guitarist, Total Guitar, Guitar Techniques, Computer Music, Future Music, Rhythm. • Market leading online property Musicradar. 27 Interim Res
Slide 28: Photography
Photography • Future has the most envied Photography magazine and events portfolio in the world. • Three monthly magazine titles: Digital Camera, NPhoto and PhotoPlus. • Two leading digital editions: Photography Week and Practical Photoshop. • Two major event brands: The Photography Show and PhotoLi
Slide 29: Creative & Design
Creative & Design • Future’s Creative & Design portfolio reaches over 3m web designers, developers, graphic designers and 3D artists. • Four monthly magazine titles Net, Computer Arts, 3D World, and ImagineFX. • Market leading online property Creativebloq. • Major conference series and industry awar