Slide 1: FY17 H1 Results
FY1/ H1 RESULTS 19th May.2047
Slide 2: Executive summary
Executive summary 1. Delivered another strong financial performance: ● Group revenue up 35% year-on-year – driven by organic growth and acquisition ● Fast-growing business - EBITDA up 140% year-on-year ● Strong operating cash conversion continues, at 129% of EBITDA 2. Clear benefits from operational g
Slide 3: Future is a global platform for specialist media
“ Future is a global platform for specialist media “ with scalable, diversified brands 3
Slide 4: Financial Review
Financial Review Penny Ladkin-Brand – Chief Financial Officer
Slide 5: Financial KPIs
Financial KPIs Adjusted operating profit EBITDA margin £3.8m (2016: £0.8m) 12% (2016: 7%) Operating cash flows Recurring revenues* £6.2m inflow (2016: £2.6m) 27% (2016: 25%) (before exceptional costs) * Acquisition of Imagine Publishing completed in October 2016. Reflects impact of dilution from Imagine
Slide 6: Financial highlights
Financial highlights Continuing: £m HY17 HY16 YoY Var FY16 Full Revenue increased 35% reflecting Year acquisition of Imagine plus strong Revenue 40.9 30.2 underlying organic growth 35% 59.0 EBITDA 4.8 2.0 140% 5.2 H1 EBITDA includes investment of EBITDA margin 12% 7% 71% 9% £0.5m in new digital asset
Slide 7: HY17: Group performance - revenue
HY17: Group performance - revenue £m HY17 HY16 YoY Growth Media 16.2 13.2 23% 23% YoY growth in the Media division driven by fast growth in eCommerce, up 72% YoY to £4.3m in Magazine 24.7 17.0 45% the first half and events up 15% YoY. Total continuing 40.9 30.2 35% Recurring 27% 25% 2% Magazine divis
Slide 8: eCommerce: organic growth
eCommerce: organic growth Diversifying our monetisation models to create material revenue streams £78m 1m Revenue generated Products sold through for our partners Hawk in 2017 H1 in 2017 H1 £14m 182,000 Black Friday 2016 Black Friday 2016 revenue generated products sold through for our partners Hawk
Slide 9: HY17: Group performance - EBITDA
HY17: Group performance - EBITDA £m HY17 HY16 YoY Var Media margin improvement through Media Division Gross 13.3 10.6 2.7 growth in high margin eCommerce Contribution revenues GC margin 82% 80% 2% Magazine Division Gross 16.5 11.5 5.0 Media margin significantly higher than Contribution magazine gross
Slide 10: Rapid EBITDA growth
6.0 4.0 2.0 0.0 Rapid EBITDA growth Adjusted EBITDA £'m 3 4 5 6 7 -2.0 4.0: 6.0: -8.0- 10
Slide 11: P&L exceptional items
P&L exceptional items £m HY17 HY16 Property 0.1 (0.5) Restructuring and redundancy 1.0 1.1 Profit on disposal of magazines - (0.1) Total P&L 1.1 0.5 Restructuring and redundancy costs relate to headcount reduction and restructuring expenses. Note all deal related exceptional costs accrued in FY16 so
Slide 12: Cashflow
Cashflow Strong cash generation with adjusted free cash flow of £6.2m Increase in net debt due to refinancing of Imagine debt plus deal related costs totalling £7.5m Quickly delivering whilst continuing to invest in future growth with £1.1m of capex spend and £0.5m operating profit investment in future
Slide 13: HY17 in summary
HY17 in summary 1. Operating Profit up 375% (benefit of operating leverage) to £3.8m ● H1 FY17 more than the whole of FY16 operating profit of £2.8m ● Net of £0.5m investment in future digital growth 2. Significant EBITDA margin improvement to 12% (HY16 7%) net of investment in future digital growth of
Slide 14: Business Update & Strategy
Business Update & Strategy Zillah Byng-Thorne - Chief Executive
Slide 15: Executive summary
Executive summary 1. Delivered another strong financial performance: ● Group revenue up 35% year-on-year – driven by organic growth and acquisition ● Fast-growing business - EBITDA up 140% year-on-year ● Strong operating cash conversion continues, at 129% of EBITDA 2. Clear benefits from operational g
Slide 16: Where we are going - our strategy
Where we are going - our strategy Future is a global platform for specialist media with scalable, diversified brands. “ Creating fans of our brands by giving them a place they want to spend their time, where they go to meet their needs. Continuing to create loyal communities. “ Expanding our global r
Slide 17: Future is a global platform for specialist media with scalable, diversified brands
“ Future is a global platform for specialist media “ with scalable, diversified brands 17
Slide 18: Global platform for specialist media
Global platform for specialist media Facilitating material diversified revenue streams 18
Slide 19: Specialised media in multiple sectors
Specialised media in multiple sectors Specialist high value sectors, scalable markets delivering diversified revenues Gaming & Entertainment Technology Field Sports Creative & Photography Music Knowledge & Science 19
Slide 20: Global fast-growing diversified brands
Global fast-growing diversified brands Market-leading and award-winning Scalable, super brands #1 Consumer technology website in the UK, growing 32% in US Top 4 brands account for 41% of total brands’ revenue* #1 PC gaming website in the world, growing 21% “Best Online Consumer Media Brand” AOP Digit
Slide 21: T3 case study
T3 case study Fast-growing small brands +72% YoY online revenue growth, FY17 H1 +46% YoY online audience growth, Mar-17 +315% YoY T3 Awards revenue growth, FY17 H1 2 new content extensions T3 Baby and Home & Kitchen 21
Slide 22: Creating fans of our brands
Creating fans of our brands by “ giving them a place they want to spend their “ time, where they go to meet their needs. Creating loyal communities.
Slide 23: Memberships
Memberships Online Membership Over ● Access to exclusive member content and offers 25,000 ● Monetising our loyal communities members ● TeamRock+, PhotoClub Fans of our Brands Loyal Communities Specialist content Personalised content Editorial exclusives and unique insight Online subscriptions Accessi
Slide 24: PC Gaming Show broadcast to over 622k viewers
PC Gaming Show broadcast to over 622k viewers Connecting our community through meaningful experiences • 90 minute hosted celebration of PC gaming curated by PC Gamer Editors • Livestreamed on Twitch, YouTube and Facebook Live • Extension of PC Gamer that capitalizes on our intimate understanding of
Slide 25: Events
Events Mobilising our loyal communities and deepening our brand franchises ● Small and intimate to truly national events ● 17 annual events across three countries ● Eight new events acquired in last 12 months ● Six events hosted so far this year ● Continuing success of The Photography Show - visitor
Slide 26: Expanding our global reach through organic growth, acquisitions and partnerships
Expanding our global reach through organic “ “ growth, acquisitions and strategic partnerships.
Slide 27: Using data expertise to drive organic growth
Using data expertise to drive organic growth We use data to identify Investment in our platform has opportunities to deliver what our allowed us to launch quickly and users want cheaply 27
Slide 28: Organic growth is our foundation
Organic growth is our foundation Diversifying our monetisation models to create material revenue streams CAGR: +16% CAGR: +246% 28
Slide 29: Scalable technology combined with data insight supports organic growth
Scalable technology combined with data insight supports organic growth Content extensions New brand launch • T3 Home & Kitchen • MVP approach T3Baby.com live within 4 weeks of concept • Only 15 days launch time • TeamRock+ • Impressive EPM* of £28, compared to around £20 on some of our best buying g
Slide 30: Investments in platform & data underpin successful acquisitions
Investments in platform & data underpin successful acquisitions 30
Slide 31: Strategic partnerships
Strategic partnerships Expanding our global reach through digital licensing Enabling global partners to optimise their local offering by accessing trusted brands and authoritative content, and leveraging a unique commercial model developed by Future. Platform as a Service HaaS Scaling the investment
Slide 32: Diversifying our monetisation models
Diversifying our “ monetisation models to create “ significant revenue streams. 32
Slide 33: Global platform for specialist media
Global platform for specialist media Facilitating material diversified revenue streams 33
Slide 34: Diversification within Magazine division
Diversification within Magazine division 1.2m Global magazine circulation 462,000 440+ Global subscribers Published bookazines a year Focus on subscriptions Bookazines Ongoing innovation • Recurring revenue stream • Capitalising on emerging opportunities • Total Guitar re-design • Low cost innovation
Slide 35: Efficiency & excellence of operations
Efficiency & excellence of operations Complete restructure of Magazine division Installation of new editorial and design operational structure New contract terms Revamped rights, freelance and workflow controls, driving synergies 35 35
Slide 36: Acquisitions update
Acquisitions update Launchpad to innovate within legacy division ● Acquired the iconic magazines, website, events and radio license of Classic Rock, Metal Hammer, ● The integration of Imagine Publishing into Prog, Blues and the Golden Gods the Group is now complete ● Comeback issues made in two week
Slide 37: Executive summary
Executive summary 1. Delivered another strong financial performance: ● Group revenue up 35% year-on-year – driven by organic growth and acquisition ● Fast-growing business - EBITDA up 140% year-on-year ● Strong operating cash conversion continues, at 129% of EBITDA 2. Clear benefits from operational g
Slide 38: Appendix
Appendix Our purpose - why we exist How we behave The Future brands 38
Slide 39: Why we exist
Why we exist “ We change people’s lives through sharing our knowledge and expertise with others, making “ it easy and fun for them to do what they want. 39
Slide 40: How we behave
How we behave… …and how we will deliver • We are part of the audience and their community • We are proud of our past and excited about our future • We all row the boat • Let’s do this! • It’s the people in the boat that matter • Results matter; success feels good 40
Slide 41: Delivered by a team with a track record
Delivered by a team with a track record Organised to focus on results and the ability to scale Zillah Byng-Thorne Chief Executive Ben Greenish Penny Julian March Claire MacLellan Jason Kemp Kevin Li-Ying Aaron Asadi Neville Daniels Managing Director Ladkin-Brand Managing Director Managing Director e
Slide 42: Technology
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Slide 43: Gaming & Entertainment
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Slide 44: Creative & Photography
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Slide 45: Music
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Slide 46: Field Sports
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Slide 47: Knowledge & Science
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Slide 48: Thank You
Thank You