Gtn Ltd. · ASX:GTN
Gtn — Macquarie Australia Conference 2019
24 slides from Gtn's conference presentation, Apr 30, 2019
Slide 1: GTN Limited Macquarie Australia Conference Presentation May 2019
For personal use only GTN Limited Macquarie Australia Conference Presentation May 2019
Slide 2: Today's presenter
Today’s presenter For personal use only Bill Yde (Managing Director and CEO) ⚫ Over 35 years of experience in the radio and media industry ⚫ Co-founded The Australia Traffic Network (“ATN”) in 1997, later co-founding GTN and has served as Chief Executive Officer and President since its inception in
Slide 3: Overview of GTN
For personal use only Section 01 Overview of GTN
Slide 4: A unique business model
A unique business model For personal use only GTN’s unique business model seeks to provide value for both broadcasters and advertisers. GTN has successfully replicated this model in all of its current operating jurisdictions Broadcasters Advertisers Core value proposition ⚫ Generates real time conte
Slide 5: Value for advertisers
Value for advertisers For personal use only Platform enables advertisers to make a single, cost effective, high impact advertising buy with broad reach Large platform and effective format designed to maximise advertisers’ ROI 1 2 3 Broad reach, covering a large number of High audience engagement Del
Slide 6: Embedded within broadcasters' business models
Embedded within broadcasters’ business models For personal use only GTN becomes embedded in broadcasters’ operations, particularly by converting a cost centre into a profit centre, demonstrated by long-standing relationships with a large number of Affiliates Strong value proposition to Established p
Slide 7: GTN business model
GTN business model For personal use only GTN has demonstrated (in multiple geographies) the ability to achieve revenue growth and margin improvement once a national platform is established, whilst maintaining a relatively constant cost base Revenue Spots Sold Net Spot Rate Operating expenses Network
Slide 8: Recap on the 1H19 Result
For personal use only Section 02 Recap on the 1H19 Result
Slide 9: Key highlights – 1H FY19
Key highlights – 1H FY19 For personal use only GTN’s 1H FY19 results showed 2.3% revenue increase from continuing operations Key Highlights 1H19 results1 ⚫ All non-Australian markets reported revenue increase over 1H FY18 (m) 1H FY19 1H FY18 % chg in local currencies and AUD ⚫ Strong liquidity posit
Slide 10: GTN's global advertising platform
GTN’s global advertising platform For personal use only GTN’s global advertising platform is a combination of established, market leading businesses and large new market opportunities ATN CTN UKTN BTN 1H FY2019 Revenue A$m 48.6 16.4 22.5 6.9 1H FY2018 Revenue A$m 50.1 15.3 19.9 6.9 1HFY19 vs 1HFY18
Slide 11: Overview of 1H19 financial performance
Overview of 1H19 financial performance For personal use only GTN achieved growth in revenue from continuing operations while earnings declined on higher costs Commentary GTN Group revenue(1) ⚫ Revenue growth of 2.3% driven by: — Organic growth in all non-Australian markets in both local currency and
Slide 12: Drivers of 1H19 financial performance - Revenue
Drivers of 1H19 financial performance - Revenue For personal use only Revenue growth across all non-Australia markets ATN revenue performance CTN revenue performance 50.1 48.6 16.4 15.3 1H18 1H19 1H18 1H19 UKTN revenue performance BTN revenue performance 22.5 6.9 6.9 19.9 1H18 1H19 1H18 1H19 11
Slide 13: Drivers of 1H19 financial performance – Revenue (continued)
Drivers of 1H19 financial performance – Revenue (continued) For personal use only Revenue growth across all non-Australia markets in local currencies ATN revenue performance CTN revenue performance 15.6 50.1 48.6 15.1 1H18 1H19 1H18 1H19 UKTN revenue performance BTN revenue performance 12.6 19.4 11.
Slide 14: Drivers of financial performance - KPIs
Drivers of financial performance - KPIs For personal use only 1H19 revenue underpinned by solid inventory acquisition across the four current operating geographies ATN KPIs UKTN KPIs 1H19 1H18 % chg 1H19 1H18 % chg Radio spots inventory ('000s)1 531 472 12.5% Total radio impacts available ('000s)4 9
Slide 15: Update on growth strategy and outlook
For personal use only Section 03 Update on growth strategy and outlook
Slide 16: GTN has generated consistently high growth in revenue and Adjusted EBITDA
GTN has generated consistently high growth in revenue and Adjusted EBITDA(1) For personal use only Year ended Year ended Year ended Year ended June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 CAGR Net revenue 152,778 165,472 177,289 185,013 6.6% Adjusted EBITDA(2)(3) 28,598 34,646 48,856 48,1
Slide 17: GTN growth cycle: Revenue follows audience
GTN growth cycle: Revenue follows audience For personal use only Additional affiliates typically result in a net cost to the business until additional inventory is monetised Phase 1: Expand affiliate network & audience Phase 2: Monetise network ⚫ Sell additional inventory ⚫ Increase yield by leverag
Slide 18: GTN growth strategy
GTN growth strategy For personal use only Management is focused on accelerating revenue growth from all markets ⚫ Australia —Commitment to managing sales staff and process to ensure ATN maximizes revenue in a difficult market and is well positioned when market conditions improve Brazil —Local manage
Slide 19: Key drivers of growth
Key drivers of growth For personal use only Recent success in Canada and Brazil has validated the GTN model in offshore jurisdictions. Canada and Brazil represent substantial growth opportunities for GTN going forward CTN BTN Years of operation # 13 7 Radio Audience1 m 16.1 14.8 • Established networ
Slide 20: Appendix A: Additional financial information
For personal use only Appendix A Additional financial information
Slide 21: Reconciliation of non-IFRS measurements back to IFRS
Reconciliation of non-IFRS measurements back to IFRS For personal use only EBITDA, Adjusted EBITDA & NPATA Reconciliation of EBITDA and Adjusted EBITDA to Profit before income tax from continuing operations (2) ($m) 1 1H FY2019 1H FY2018 Profit before income tax from continuing operations 15.1 17.6
Slide 22: Annual Pro Forma Income Statement FY2013-FY2018A
Annual Pro Forma Income Statement FY2013-FY2018A For personal use only Pro Forma Historical Results for FY2013 – FY2018 Pro Forma Historical Results Year ending Year ending Year ending Year ending Year ending Year ending A$'000s June 30, 2013 June 30, 2014 June 30, 2015 June 30, 2016 June 30, 20171
Slide 23: Reconciliation of pro forma to statutory results
Reconciliation of pro forma to statutory results For personal use only Pro forma adjustments to the Actual Statutory Historical Results Year ending Year ending Year ending Year ending Year ending Year ending A$'000s June 30, 2013 June 30, 2014 June 30, 2015 June 30, 2016 June 30, 20171 June 30, 2018
Slide 24: Disclaimer and important information
Disclaimer and important information For personal use only The information contained in this document is general background information about GTN Limited (ACN 606 841 801) (the “Company”) and its activities as at the date of this document. It is in summary form and does not purport to be complete. I