Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — Macquarie Australian Securities Investor Conference 2015
22 slides from Southern Cross Media's conference presentation, May 6, 2015
Slide 1: Southern Cross Austereo Macquarie Australian Securities Investor Conference
For personal use only SOUTHERN CROSS AUSTEREO MACQUARIE AUSTRALIAN SECURITIES INVESTOR CONFERENCE MAY 2015 PRESENTED BY RHYS HOLLERAN, CEO
Slide 2: Disclaimer
DISCLAIMER Summary information For personal use only • The material in this presentation has been prepared by Southern Cross Media Group Limited ABN 91 116 024 536 (“Southern Cross Austereo”). The information in this presentation is of a general background nature and does not purport to be complete.
Slide 3: Southern Cross Media is a multi-media enterprise with national scale
SOUTHERN CROSS MEDIA IS A MULTI-MEDIA ENTERPRISE WITH NATIONAL SCALE For personal use only Numbers represent FY14 full year results excluding non-recurring items ($8m onerous contracts) 3
Slide 4: Regional Summary
REGIONAL SUMMARY 72 RADIO For personal use only 30 TV SUB ONLINE MOBILE STATIONS MARKETS SOCIAL REACH POTENTIAL OF REACH POTENTIAL OF 57 INDIVIDUAL 5.2M 6.3M REGIONAL WEBSITES 16,403 AVERAGE DAILY UNIQUE BROWSERS1 53 FACEBOOK PAGES 303 35 TWITTER PAGES SALES STAFF ON THE GROUND 1. Nielsen Online Rat
Slide 5: Regional Operations – Key Features
REGIONAL OPERATIONS – KEY FEATURES REGIONAL RADIO REVENUE 2012 - 15 For personal use only • Revenue stability through 160.0 geographic and client diversity 140.0 – 41 regional markets across Australia 120.0 – 26,000 client accounts 71.8 73.2 71.4 100.0 • Regional radio 80.0 – strong presence in loca
Slide 6: Metro Summary
METRO SUMMARY SCA METRO LEADS THE CATEGORY IN SCALE For personal use only 4.65M 2.42M 2.23M TOTAL RADIO LISTENERS LISTEN TO THE TODAY NETWORK LISTEN TO THE TRIPLE M NETWORK 6 Source: GfK Radio Ratings. All People 10+, Mon-Sun 5:30-12mn. Survey 2, 2015 5 Metros.
Slide 7: Metro Radio – Key Features
METRO RADIO– KEY FEATURES For personal use only • National network – Triple M & Hit station in each market • Strong National Sales approach- 68% revenue • Localised breakfast and daytime programming supported by national drive and evening shows • Integrated content provides strong client engagement
Slide 8: Operational Strategy
OPERATIONAL STRATEGY For personal use only YEARS 1 2 3 4 5 Regain metro share Maintain Leadership Leverage digital leadership Increase operational efficiency 8
Slide 9: Metro Radio Growth Strategy
METRO RADIO GROWTH STRATEGY For personal use only $700M METRO RADIO AD MARKET 24% FEMALES 36% MALES 18 – 391 25- 541 COMPLEMENTARY BRAND STRATEGY TARGETS OPTIMUM MARKET SHARE Target Target Most listened to Dominate target network in Australia demographic with deep engagement 1 Landsberry & James AQX
Slide 10: Developing Leading Radio Brands: Leading Talent
DEVELOPING LEADING RADIO BRANDS For personal use only LEADING TALENT 10
Slide 11: + Marketing Support
For personal use only + MARKETING SUPPORT 11
Slide 12: + Digital Engagement
For personal use only + DIGITAL ENGAGEMENT 12
Slide 13: + Innovative Partnerships
For personal use only + INNOVATIVE PARTNERSHIPS 13
Slide 14: Long Term Ratings Success
LEADING TALENT For personal use only + MARKETING SUPPORT + DIGITAL ENGAGEMENT + INNOVATIVE PARTNERSHIPS = LONG TERM RATINGS SUCCESS 14
Slide 15: Leveraging Digital Leadership
LEVERAGING DIGITAL LEADERSHIP For personal use only ENTERTAINMENT AUDIENCE STRATEGY WITH INTIMATE SCALE
Slide 16: The URL Is the New Transmitter
THE URL IS THE NEW TRANSMITTER For personal use only • Individual listening devices • Multimedia • Profile data • Observable behaviour 16
Slide 17: SCA Leads the Publisher Industry with Mobile First Product Strategy
SCA LEADS THE PUBLISHER INDUSTRY WITH MOBILE FIRST PRODUCT STRATEGY For personal use only % ADUB VIA MOBILE (EXC. TABLET) DRIVEN BY DIGITAL CONTENT & SOCIAL 17
Slide 18: Increasing Digital Publishing
INCREASING DIGITAL PUBLISHING For personal use only BROADCAST AMPLIFICATION NEWS & ENTERTAINMENT SPORTS 18
Slide 19: Increasing Digital Publishing
INCREASING DIGITAL PUBLISHING For personal use only Triple M Network Users - Sport Daily Unique Browsers (entire network) 2015 TTD (Jan - July) (March 13 – March 15) 900000 800000 700000 600000 Unique Users 500000 400000 300000 200000 100000 0 May-10 May-11 May-12 May-13 May-14 Jan-10 Sep-10 Jan-11
Slide 20: Operational Efficiency
OPERATIONAL EFFICIENCY For personal use only • Demonstrated history of cost efficiencies • Merged regional radio and TV offices METRO and sales teams RADIO • National sales team serves key clients across all media • Single billing platform will increase control and deliver uniform REGIONAL TV proces
Slide 21: Capital Management Strategy
CAPITAL MANAGEMENT STRATEGY For personal use only Capital management initiatives targeting reduction in leverage to 2.5x Investment in talent to deliver ratings and revenue growth Increased cashflow from cost savings Cash conservation through underwritten DRP Review of non-core assets 21
Slide 22: Conclusion
CONCLUSION For personal use only • Multi-media business with national scale and revenue diversity • Strong cashflow generation from assets • Re-generation plan for metro radio underway • Leading digital position – high audience engagement and increasing publishing • Capital management plan is reduci
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