Ooh Media Ltd · ASX:OML
Ooh Media — H1 2019 Earnings Presentation
24 slides from Ooh Media's earnings presentation, Aug 26, 2019
Slide 1: 1H 2019 Results Presentation
1H 2019 RESULTS PRESENTATION 26 August 2019
Slide 2: Highlights
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Slide 3: 1H19 highlights - revenue up 5%
1H19 highlights - revenue up 5% Commute performing strongly, integration on track • Diversified portfolio underpinned solid revenue growth, up 5% • Commute, now oOh!media’s (oOh!) largest division, delivered revenue growth of 13% (half-on-half), demonstrating the opportunity in street furniture “The
Slide 4: 1H19 key financials
1H19 key financials Delivering revenue growth in a weak market Pro forma1 and pre AASB162 Revenue NPAT 5% (24%) $304.9m $9.0m Gross Profit EPS (33%) $126.6m (2%) 3.7 cents Underlying3 EBITDA Interim Dividend5 (4%) 0% $56.0m 3.5 cents, fully franked Underlying3 NPATA4 Gearing 3% 0.1X $18.2m 2.7X 1. P
Slide 5: Diversified portfolio achieves 5% revenue growth
Diversified portfolio achieves 5% revenue growth¹ Multi-format strategy provides resilience to periodic fluctuations in specific products 2% • Commute grew by 13% on a pro forma basis as 8% 1H 2019 1H 2018 Change it captured the digitization opportunity inherent ($m) ($m) % with this format and impr
Slide 6: Q3 decline, but oOh! well positioned for recovery
Q3 decline, but oOh! well positioned for recovery Management responses and improved Q4 pacing underpins revised guidance “While the recent • Market commentary by media houses and industry reports indicate sluggish adjustment to our earnings major advertiser confidence across the board forecast for t
Slide 7: Out Of Home set for continued structural growth
Out Of Home set for continued structural growth The fundamentals are sound because Out Of Home grows brands and sales Strong internal operations Our sales teams remain focused and competitive even as we integrate Commute Winning market proposition We win in our market as we offer a differentiated mu
Slide 8: Our strategic initiatives to capitalise on Out Of Home structural growth
Our strategic initiatives to capitalise on Out Of Home structural growth REDEFINE OUT OF HOME IN ANZ AS A PUBLIC SPACE MEDIA CAPTIVATING, CONNECTING AND INFORMING CITIZENS NETWORK ADVERTISERS & AUDIENCES TECHNOLOGY CULTURE AGENCIES No material reduction in Continue to recognise Commute assets added
Slide 9: Financial Performance
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Slide 10: Disciplined cost management - opex growth below guidance
Disciplined cost management – opex growth below guidance P&L Pro forma1 and pre AASB162 H1 2019 ($m) H1 20181 ($m) Change3 • Continued revenue growth – organic broadly in line with OOH market Revenue 304.9 291.0 5% • Gross profit growth below revenue growth with an Cost of media sites and production
Slide 11: Excluding one-offs, cash flow positive for 1H19
Excluding one-offs, cash flow positive for 1H19 Reported H1 • 1H cash flows included material non recurring items: Cash flows1 H1 2019 ($m) Change 2018 ($m) • $7m relating to exit the loss making 7-Eleven EBITDA (pre AASB16) 49.1 36.3 12.8 contract, Net change in working capital and • $16m in tax pa
Slide 12: Sound balance sheet - debt will reduce in 2H
Sound balance sheet - debt will reduce in 2H • Strong positive cash flows in 2H will reduce debt 31 Dec 20182 Balance sheet1 30 Jun 2019 ($m) Change ($m) ($m) • Debt reduction will occur across the updated EBITDA Cash and cash equivalents 39.3 33.0 6.3 guidance range provided Trade and other receiva
Slide 13: Business Strategy
BUSINESS STRATEGY
Slide 14: On track to deliver key strategic initiatives
On track to deliver key strategic initiatives Building a diversified, integrated, data-enabled portfolio Key Focus Progress Successfully integrate street furniture and rail into oOh!’s Complete sales structures Commute Physical integration of back office and support functions Complete integration On
Slide 15: Sharpening our focus for 2H
Sharpening our focus for 2H Striving for improved sales, maintaining financial discipline • Revised earnings guidance is clearly disappointing • Energised oOh! sales team proactively hunting new clients and revenue opportunities • Leading the market in audience data and insights • Maintaining discip
Slide 16: Outlook
Unmissable OUTLOOK
Slide 17: Guidance
GUIDANCE • The Out Of Home sector is expected to continue to gain market share across media formats • Q3 trading significantly more difficult than anticipated versus when we provided guidance in February. Pacing now (~-8%) with limited visibility on the important Q4 (~+6%). September has strengthene
Slide 18: Questions
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Slide 19: Appendix
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Slide 20: P&L Post AASB16 vs Pre AASB16
P&L Post AASB16 vs Pre AASB16 1H Pre AASB16 1H Post AASB16 Change1 Key changes: EBITDA increase of $85.8m offset by a Depreciation 2018 ($m) 2019 ($m) and Amortisation increase of $79.5m and an Interest expense increase of $18.5m. Resulting NPAT & NPATA decrease of $8.5m Revenue 304.9 304.9 - which
Slide 21: Underlying EBITDA Bridge between 1H 2018 and 1H 2019
Underlying EBITDA Bridge between 1H 2018 and 1H 2019 21
Slide 22: Financial Information Notice
FINANCIAL INFORMATION NOTICE oOh!’s Financial Statements for the half year ended 30 June 2019 presented in accordance with Australian Accounting Standards. oOh!media has also chosen to include certain non-IFRS financial information. This information has been included to allow investors to relate the
Slide 23: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER IMPORTANT NOTICE AND DISCLAIMER This document is a presentation of general background information about the activities of oOh!media Limited (oOh!media or oOh!) current at the date of the presentation, 26 August 2019. The information contained in this presentation is o
Slide 24: Unmissable
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