TIME — Investor Presentation (August 2017)
29 slides from TIME's investor presentation, Aug 8, 2017
Slide 1: Management Presentation August 2017
Management Presentation August 2017
Slide 2: Caution Concerning Statements and Non-GAAP Financial Measures
Caution Concerning Statements and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995; particularly statements regarding future financial and operating results of Time Inc. (the “Company”) and it
Slide 3: Time Inc. has Massive Audience, Consumer and Ad Scale
Time Inc. has Massive Audience, Consumer and Ad Scale Top U.S. Digital Media Property2 U.S. Multi-Platform Monthly Uniques (MM) Up from 81MM in June 2014 120MM+ ~30MM ~3 out of 4 4.6B 265MM+ 3x Hundreds 250MM+ 170MM+ ~40MM monthly global print 4 Subscribers Millennials 3 (2016) video starts via glob
Slide 4: Experiencing Significant Growth
Experiencing Significant Growth TOTAL U.S. UNIQUE VISITORS (MM) SOCIAL REACH (MM) 127MM TOTAL UVs 6/2017 1 265MM+ TOTAL GLOBAL FOLLOWERS 6/2017 QUARTERLY U.S. VIDEO STARTS (MM) ~3B TOTAL STARTS 2Q 2017 Sources: 1) comScore Multi-Platform June 2017
Slide 5: Diverse Set of Influential Iconic Brands
Diverse Set of Influential Iconic Brands Covering virtually every interest and passion CELEBRITY & ENTERTAINMENT LIFESTYLE NEWS & BUSINESS SPORTS 91MM CONSUMERS 1 78MM CONSUMERS 1 67MM CONSUMERS 1 80MM CONSUMERS 1 Time Inc. Brands Over-Index with Millennials (18-34)2 for Digital Consumption - More M
Slide 6: Categories: Entertainment
CATEGORIES entertainment #1 U.S. digital audience in Entertainment News 1 Time Inc. Entertainment reaches more than 1 in 3 U.S. adults across print and digital2 People is a cultural force: #1 magazine in print4 Print and digital audience of 72MM2 Reaches ~1 in 3 moms each month2 Entertainment Weekly
Slide 7: Categories: Lifestyle
CATEGORIES lifestyle 78MM 52MM 47MM 86MM Sources: 1) comScore Multi-Platform June 2017; 2) 2017 comScore Multi- Platform /GfK/MRI Fusion (4-17/Fall 2016); 3) MRI Spring 2017; 4)2016 Fall GfK MRI; 5) PIB June 2017 Print & Digital Audience2 69% Female2 Print Audience3 73% Female3 UVs1 37% 18-341 Socia
Slide 8: Categories: News & Business
CATEGORIES news & business Time: #1 U.S. weekly news magazine print audience2 62MM per month in U.S. print and digital audience reach1 41% of Time.com visitors are millennials (18-34)3 38% international visitors to Time.com4 #1 in print advertising for weekly news magazines5 Fortune: #2 U.S. busines
Slide 9: Categories: Sports
sports Sports Illustrated—#1 U.S. sports magazine print audience3 Sports Illustrated’s U.S. print and digital audience is 47MM per month; 31% are millennials (18-34)2 Sports Illustrated—#1 in print advertising for the sports category4 OTHER INITIATIVES: • SI Play is our mobile-first platform devoted
Slide 10: Publisher to Platform
Publisher to Platform
Slide 11: Aggressive Transformation from Publisher to Platform
Aggressive Transformation from Publisher to Platform FROM SILOED BRANDS & SUBSIDIARIES . . . TO INTEGRATED PLATFORMS Decentralized Holding Company Model Built for Scale, Integrated & Supporting the Consumer Brand “Front Doors” Acting as “One Time Inc.” allows for larger-scale strategies and partners
Slide 12: Our Assets Work as One Platform Across All Brands
Our Assets Work as One Platform Across All Brands, Which Enables Scale and Faster Growth Consumers have deep relationships with our brands, but our company builds capabilities and goes to market as one platform PLATFORMS TO POWER OUR BRANDS & CONTENT Our consumer “front doors” are globally recognize
Slide 13: Expanding our Brands in Multiple Dimensions
Expanding our Brands in Multiple Dimensions MultimediaContent Engine Hundreds of stories, videos and photo galleries every day Thousands of posts/day on social Thousands of print editorial pages / month Publishing everywhere in all formats (AMP, IA, Apple News) TVProgramming /OTT People Magazine Inv
Slide 14: Editorial Reorganized to Break Down Silos & Increase Collaboration
EDITORIAL Reorganized to Break Down Silos & Increase Collaboration Significant changes to position us for greater cross-platform success 1) Centralized editorial under Chief Content Officer Alan Murray 2) Clustered across brands and digital desks to pursue efficiencies and cross-platform success 3)
Slide 15: Advertising Sales
ADVERTISING SALES $1.7B Time Inc. Total 2016 Advertising Revenue Integrated Sales Team Brings the Best of the Portfolio to Clients 1) Centralized Sales: Focused on eleven customer categories 2) Enterprise Selling: Bring all brand offerings to the advertiser and agency at once 3) Brand & Product Expe
Slide 16: Consumer Marketing & Revenue
CONSUMER MARKETING & REVENUE Consumer Marketing Now Works Across the Enterprise to Support All Areas of Growth $944MM Time Inc. Total 2016 Circulation Revenue Print Subscriptions New Paid Consumer Products and Services Event Ticketing New Product Launches CONSUMER MARKETING PLATFORM DIGITAL AD CHANN
Slide 17: Strategic Transformation Program
Strategic Transformation Program
Slide 18: Strategic Transformation Program
Strategic Transformation Program Program to accelerate the optimization of cost and revenue growth drivers On August 8, after engaging in a thorough review of the business, management announced the following: 1. Management has already targeted more than $400 million of run-rate cost savings, with th
Slide 19: Key Growth Areas
Key Growth Areas
Slide 20: Digital Advertising: Native / Branded Content
DIGITAL ADVERTISING Native /Branded Content Our immersive content experiences help brands tell their stories so they resonate with the right audiences at the right time The Foundry has established a strong reputation for native, and it is organized for category expertise and to build content across
Slide 21: Digital Advertising: Video
DIGITAL ADVERTISING Video Time Inc. has built major video capabilities and video has quickly become the new way we tell stories. VIDEO STARTS (MM) Record quarterly level Time Inc. ~3B video views Time Inc. Video is attracting fans at a record rate, including an entirely new generation of viewers. In
Slide 22: Leading the Way Across the Video Ecosystem
Leading the Way Across the Video Ecosystem SOCIAL VIDEO LONG FORM TV VIRTUAL REALITY OTT DIGITAL VIDEO 3RD PARTY PLATFORMS 2 BRANDS LAUNCHED YTD 2017 40hrs+ ON THE AIR 360o INTERACTIVE EXPERIENCES 1MM+ DOWNLOADS 1/2017 1B+ STREAMS PER MONTH 3 SNAP CHANNELS 6/2017
Slide 23: Digital Advertising: Time Inc. + Viant People-Based Targeting
DIGITAL ADVERTISING Time Inc. + Viant: Advertisers can find and measure ROI against people-based targets across owned and third-party sites PREMIUM Time Inc. Sites SCALABLE Open platform with self-serve, programmatic integrations Source: 1) March 2016 NPD report People-Based Data & Targeting Time In
Slide 24: Brand Extensions
Brand Extensions BRAND LICENSING TV & LONG FORM EVENTS Extending Time Inc.’s brands to products worldwide, and monetizing against our existing editorial Time Inc. Productions is a full-service production company leveraging Time Inc.’s iconic brands to create and monetize original programming Time In
Slide 25: Growth Strategy
Growth Strategy Sustaining the strength of our print products Growing our large digital revenues Extending our brands through high-margin and high-value areas, such as events, licensing, TV and international Expanding the ARPU of our 30 million paid subscribers with other products and services Build
Slide 26: Financial Highlights
Financial Highlights
Slide 27: 2Q17 Financial Highlights
2Q17 Financial Highlights Total revenues declined 10% year-over-year; excluding FX, total revenues would have declined 8% year- over-year . Print and other advertising revenues declined 17% year-over-year including approx. 100 bps of adverse impact related to FX. Digital advertising revenues decline
Slide 28: Appendix: Reconciliation of Operating Income (Loss) to Adjusted OIBDA
Appendix Schedule I TIME INC. RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OIBDA (Unaudited; in millions) Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Operating income (loss) $ (38 ) $ $ (64 ) $ Depreciation Amortization of intangible assets OIBDA (1) (4 ) Asset
Slide 29: Management Presentation
Management Presentation