Nine Entertainment Co. Holdings Limited · ASX:NEC
Nine Entertainment — Macquarie Australia Conference 2017
16 slides from Nine Entertainment's conference presentation, May 2, 2017
Slide 1: Macquarie Australia Conference
MACQUARIE AUSTRALIA CONFERENCE 2 M AY 2 0 1 7 HUGH MARKS CHIEF EXECUTIVE OFFICER NOLA HODGSON HEAD OF INVESTOR RELATIONS
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Forward Looking Statements intentions expressed in such forward looking statements This document is a presentation of general background This document contains certain forward looking statements and many of these factors are outside the control of NEC. information abo
Slide 3: Create Great Content | Distribute It Broadly | Engage Audiences & Advertisers
CREATE GREAT CONTENT | DISTRIBUTE IT BROADLY | ENGAGE AUDIENCES & ADVERTISERS BROADCAST VIDEO ON DIGITAL CONTENT TELEVISION DEMAND PUBLISHING PRODUCTION Australia’s leading Unique mix of leading Diverse portfolio of Television content FTA network in the local advertising and leading digital platform
Slide 4: Free to Air TV engages 19.7m Australians each week
• Free to Air TV engages 19.7m Australians each week • Free to Air TV accounts for the biggest share of viewing in Australian homes • The TV set is the number one screen for viewing content, accounting for ~85% of screen time • FTA TV is the most effective advertising medium for mass audiences Reven
Slide 5: Anti-siphoning ensures access to key sports
• Anti-siphoning ensures access to key sports • Pay TV penetration c30% in Australia • Foundations are News, Sport and local original content • Migration away from international content. In CY16, 49 of the Top 50 programs were local • Broadcast licence fees cost Nine c$35m per year. Current rate 3.3
Slide 6: survey weeks 7 -17 excl. Easter
9.9 6.7 % pt Source: OzTam Consolidated Data. Year on Year growth based on 5 city Metro , 6pm-midnight, 25-54s, primary channel, survey weeks 7 -17 excl. Easter 66
Slide 7: Advertising and subscription market sizes
~$0.5BN $0.5BN ADVERTISING ~$4.0BN SUBSCRIPTIONS ~$0.7BN ~$3.0BN INCL. SEARCH $3.4BN 7 ~$6B VIDEO ADVERTISING
Slide 8: Married at First Sight highlights value of strong local franchises
• Married at First Sight highlights value of strong local franchises • Total average audience growth of 46% with streamed viewing representing 8% of total viewership • ALL of the top 20 shows by VPM are episodes of Married At First Sight in 2017 to date Married At First Sight - audience distribution
Slide 9: All of Nine's content on 9Now
All of Nine’s content Available on all major Focus on Focus on user Targeted content available on 9Now devices (ex Samsung) improving ad engagement and / advertising (ex NRL) experience content consumption Playback improved Single user sign on APRIL 2016 MAY 2017 DECEMBER 2017 m 7.0 Subscribers LF S
Slide 10: Strong growth trajectory with more than 700,000 active subscribers
• Strong growth trajectory with more than 700,000 active subscribers • January 2017 a record 135,000 gross adds • Market penetration of c20% cf US 54%1 and UK 31%2 • Exceptionally strong slate for CY17 including Twin Peaks, one of the most anticipated shows of the year 10 1 Source: Q3 2016 Nielsen d
Slide 11: Focus on content pillars of News, Women's Lifestyle, Automotive and Youth
Focus on content pillars of News, Women’s Lifestyle, Automotive and Youth NEWS LIFESTYLE AUTOMOTIVE YOUTH #2 #2 #4 #1 11 1 Source: Ranked by Unique Audience from Nielsen Digital Ratings Monthly, February 2017
Slide 12: Q4 FTA market revenue expected to be at least flat
• Q4 FTA market revenue expected to be at least flat • Metro FTA market to be down in the low single digits for FY17 • Strong start to Season 2017, with momentum expected to continue through the year • Second half FTA revenue share expected to grow relative to pcp and H1FY17 • FY17 Free To Air costs
Slide 13: Key Achievements
KEY ACHIEVEMENTS STEADYING IMPROVED BROADENING FTA MARKET RATINGS SHARE REVENUE BASE @ INNOVATIVE CONTENT SALES APPROACH MONETISATION
Slide 14: Ratings momentum, firm cost discipline, monetisation of 9Now
• Continued focus on Australian content, and performance in core demographics RATINGS MOMENTUM • Strong H2 CY17 schedule, and absence of Olympics underpins back-half performance • Group-wide cost focus across all business units FIRM COST DISCIPLINE • $50m cost reduction target through FY18 and FY19
Slide 15: Create Great Content | Distribute It Broadly | Engage Audiences & Advertisers
CREATE GREAT CONTENT | DISTRIBUTE IT BROADLY | ENGAGE AUDIENCES & ADVERTISERS BROADCAST VIDEO ON DIGITAL CONTENT TELEVISION DEMAND PUBLISHING PRODUCTION Australia’s leading Unique mix of leading Diverse portfolio of Television content FTA network in the local advertising and leading digital platform
Slide 16: Nine
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