Nation Media Group Limited · NSEKE:NMG
Nation Media — H1 2011 Earnings Presentation
29 slides from Nation Media's earnings presentation, Aug 2, 2011
Slide 1: H1 2011 Investor Briefing
H1 2011 Investor Briefing August 2, 2011
Slide 2: Agenda
Agenda • Performance Highlights • Divisional Updates • Financial Results • 2011 Outlook • Q&A
Slide 3: Highlights
Highlights
Slide 4: Highlights
Highlights • Overall good start to the year • New printing press for MPL – Uganda ($2.1M) • Daily Monitor circulation growth • NTVU no. 1 station and station of choice nationally (Synovate Q1 2011) • NTV Kenya national share of eye increase • NTV Business Agenda, PM Live • Epic coverage of news even
Slide 5: Challenges
Challenges • Tough operating environment –High inflation, drought –Increased energy costs: fuel, electricity –Currency depreciation
Slide 6: Divisional Updates
Divisional Updates
Slide 7: Nation Newspapers Division
Nation Newspapers Division Advertising 10% Revenue Circulation 21% Revenue Continued Market leadership 14% Circulation growth, Utahama Total Revenue lini? Direct costs up: high Direct Costs (36)% newsprint prices & increased volumes Operating Profit 16%
Slide 8: The EastAfrican
The EastAfrican Advertising Revenue 20% Circulation Revenue 17 % Operating Profit 31 % Rwanda edition launched Assertive and authoritative content Diageo Africa Business Reporting Awards
Slide 9: Business Daily
Business Daily Circulation Revenue 12% Advertising Revenue 11% 881% Operating Profit Top 100 search ongoing Expect more content variety
Slide 10: Q FM
Q FM Revenue 144% Operating Profit 418% Now the 3rd largest station in Kenya (KARF) On-ground presence and consumer interaction through roadshows
Slide 11: Easy FM
Easy FM Revenue 6% Launch of new breakfast show with Marcus & Munene - Listen, Laugh & Learn Wider variety of music: local R&B
Slide 12: NTV Kenya
NTV Kenya Revenue 27% Operating Results 59% Higher ratings, market share growth Authoritative news coverage Strong offering of local content: Demigods, Saints, Churchill, Noose of Gold, Beba Beba
Slide 13: NTV Uganda
NTV Uganda Advertising Revenue 6% Market leadership: viewership, ratings Most watched, most credible station Simulcasts with NTV Kenya
Slide 14: Monitor Publications Ltd
Monitor Publications Ltd Circulation Revenue 10% Advertising Revenue 7% New printing press installed, superior product Assertive/ authoritative coverage of recent political events Significant circulation growth
Slide 15: Mwananchi Communications Ltd
Mwananchi Communications Ltd Advertising Revenue 6% Circulation Revenue 48% Operating Profit 11% Market share gains, significant circulation growth Superior quality product Mwanaspoti launch in Mombasa in March
Slide 16: Nation Digital
Nation Digital Online Advertising 74% Digital Copy Sales 779% Nation Mobile 143% Operating Results 6% Significant increase in online traffic Focus on new products to continue
Slide 17: H1 Results
H1 Results
Slide 18: Sustained Turnover Growth (Kshs M)
Sustained Turnover Growth (Kshs M) 6,000 15.2% 5,148 5,000 4,469 3,761 3,809 4,000 3,492 3,002 2,640 3,000 2,000 1,000 - H1 2005 H1 2006 H1 2007 H1 2008 H1 2009 H1 2010 H1 2011
Slide 19: Consolidated Statement of Comprehensive Income (Kshs M)
Consolidated Statement of Comprehensive Income (Kshs M) Jun-10 Jun-11 % Kshs M Kshs M Change Turnover 4,468.7 5,148.0 15.2 Profit before income tax 891.6 1,115.4 25.1 Income tax expense (294.1) (368.4) (25.2) Profit after tax 597.5 747.0 25.0 Other comprehensive income (39.8) (15.4) 61.2 Non-control
Slide 20: Half Year Profit Before Tax (Kshs M)
Half Year Profit Before Tax (Kshs M) 1,200.0 1,115.4 1,000.0 891.6 800.0 772.6 678.6 Kshs M 588.2 600.0 400.0 200.0 - 2007 2008 2009 2010 2011
Slide 21: Group Statement of Financial Position (Kshs M)
Group Statement of Financial Position (Kshs M) Dec-10 Jun-11 Kshs M Kshs M Capital and Reserves Share capital 393 393 Other reserves 30 18 Retained earnings 3,916 4,423 Proposed dividends 1,021 1,257 Minority interest 62 63 Non-current liabilities - 165 Total Equity & Non-current liabilities 5,422 6
Slide 22: Condensed Cash Flow Statement (Kshs M)
Condensed Cash Flow Statement (Kshs M) Jun-11 Kshs M Cash generated from operations 1,242 Net Interest 44 Tax paid (557) Net cash from operating activities 729 Net cash used in investing activities (227) Net cash used in financing activities 144 Net Cash Movement 646 At start of period: Jan 2011 2,6
Slide 23: 2011 Outlook
2011 Outlook —=
Slide 24: Rwanda
Rwanda • Launch radio station in Rwanda • Talent search on
Slide 25: 2011 Outlook
2011 Outlook • Economic risk: inflation, weak shilling, oil prices • Market dominance • Pursue new markets • Cautiously optimistic of good results
Slide 26: Interim Dividends
Ss -\) at Kee Interim Dividends ~~ 7
Slide 27: Dividend Trend (Kshs/share)
Dividend Trend (Kshs/share) 9.00 Interim Total 8.00 8.00 7.00 6.00 5.50 5.50 5.25 Div (Kshs) 5.00 4.00 3.00 2.00 1.50 1.50 1.50 1.50 1.50 1.00 0.00 2007 2008 2009 2010 2011 Interim dividend maintained at Kshs 1.50
Slide 28: Earnings Per Share (Kshs)
Earnings Per Share (Kshs) Half Year Full Year 12.0 10.0 9.8 8.3 8.0 6.9 7.0 6.0 4.7 4.0 3.2 3.5 3.6 2.6 2.0 0.0 2007 2008 2009 2010 2011 Half Year EPS Growth 31%
Slide 29: Thank You
Thank You This presentation is available on http://www.nationmedia.com/investor.html