Slide 1: Interim results
Interim results 20 May 2016
Slide 2: Agenda
Agenda Executive summary Zillah Byng-Thorne Financial review Penny Ladkin-Brand Strategy & operational review Zillah Byng-Thorne 2 Interim Results | 20 May 2016
Slide 3: Executive summary
Executive summary • Optimise phase of strategy - results demonstrate good progress • Media division – strong performance fuelled by Techradar o Media division revenue up 15%, now makes up 44% of overall revenue o New revenue stream, e-commerce, up 250% o Events revenue increased by 13% • Magazine di
Slide 4: Finance Review
Finance Review Penny Ladkin-Brand – Chief Financial Officer
Slide 5: Group performance - summary
Group performance - summary Continuing: £m H1 2016 H1 2015 Revenue 30.2 30.8 EBITDAE 1.8 1.8 EBITE 0.6 0.4 Pre-tax loss (0.3) (1.3) Adjusted profit per share 0.1p 0.1p • Significant improvement in EBITE YoY • Revenue broadly flat • Focus on margin and conversion as mix changes • Timing shift on events
Slide 6: Group performance - revenue
Group performance - revenue H1 2016 H1 2015 • Media now makes up Division £m £m 44% of total revenue Media 13.2 11.5 % of revenue 44% 37% • Recurring revenue streams now Magazines 17.0 19.3 representing 25% of % of revenue 56% 63% total revenue H1 2016 H1 2015 Geography £m £m UK 23.6 24.8 US 7.2 6.3
Slide 7: Exceptional items
Exceptional items Income statement - £m H1 2016 H1 2015 Exceptional items (0.5) (1.4) Cashflow - £m H1 2016 H1 2015 Exceptional items (1.6) (2.3) • Significant reduction in exceptional cashflows from £2.3m to £1.6m • Relate to onerous property and restructuring costs 7 Interim Results | 20 May 2016
Slide 8: Cashflow
Cashflow • Operating cash inflow of £2.6m with focus on working capital improvements and collection of receivables • Includes investment in working capital to drive growth in events (launched PCGamer Weekender) and e-commerce • More investment in H2 expected • Some spend on exceptionals for legacy red
Slide 9: Financial objectives
Financial objectives Operating cashflows EBITDAE Margin £2.6m (H1 2015: £1.5m) 6% (H1 2015: 6 %) EBITE Recurring revenues £0.6m (H1 2015: £0.4m) 25% (H1 2015: 21%) 9 Interim Results | 20 May 2016
Slide 10: Strategy & Operational Review
Strategy & Operational Review Zillah Byng-Thorne – Chief Executive
Slide 11: Momentum built: leading into optimisation
Momentum built: leading into optimisation Now Transformation Momentum Optimisation Phase 1 Phase 2 Phase 3 H2 FY14 – H1 FY15 FY15 FY16+ Strategic Review Leaner Simpler Business Brilliant at the Basics Monetising the Customer Need Content that Connects 11 11 Interim Results | 20 May 2016
Slide 12: Future: Virtuous circle of engagement
Future : Virtuous circle of engagement Producing content that connects people with their passions. Future is the trusted media authority for affluent consumers who love tech, movies, music, games, photography, design & country sports. 12 Interim Results | 20 May 2016
Slide 13: Content used to acquire and retain
Content used to acquire and retain Connect How-to’s Reviews Apple’s Keynote Presentation March 2016 The five scariest Phil Schiller quoted techradar and frightfest movies rated Creative Bloq, “iPad Pro packs powerful enough hardware to be a by heartrate genuine laptop replacement, with - gamesradar+
Slide 14: Media Division: Market-leading global digital brands and events
Media Division : Market-leading global digital brands and events 14 Interim Results | 20 May 2016
Slide 15: Media Division: Global Cross Platform Scale
Media Division : Global Cross Platform Scale 47m unique users 70 37k event attendees million 22m consumers globally 2m social media YouTube followers subscribers * Monthly figures except Event attendees 15 Interim Results | 20 May 2016
Slide 16: A content business with data at its heart
A content business with data at its heart Editorial Data Optimise Win Expertise Content Customer Identify what Analyse trends, Create content that consumers are product releases, is optimised for interested in historical patterns SEO, social channels & the customer journey
Slide 17: Diversified revenue model
Diversified revenue model Media strategy to focus on global brands, monetising audience in a way which is sympathetic to audience goal Retail Advertising Events (e-commerce) Enriching users’ experience Delivering high quality Engaging with Price comparison & purchase 1st party targeting audiences 17
Slide 18: E-commerce
E-commerce ● Data driven merchandising strategy ● Audience with high purchase intent ● 160 million product offerings Retail (e-commerce) ● Hawk delivers real time pricing information ● Built for scale Enriching users’ experience Price comparison & purchase ● Robust tech ● £87.5m generated from April
Slide 19: Digital advertising
Digital advertising ● Access to unique audiences ● Focus on strategic relationships and creative solutions ● Managing advertising yield by optimising Advertising ad stack tech ● Opportunity to expand into tech B2B Delivering high quality consolidating recent purchases 1st party targeting 19
Slide 20: Events
Events ● Highly engaged audience in the specialist brands ● Running The PC Gaming Show for the second time this year in June ● Launching a number of new events this year Events ● Inaugural PC Gamer Weekender was a great success with visitors and sponsors ● The Photography Show generated over £2m rev
Slide 21: Operational efficiency
Operational efficiency One system platform A single platform approach One price Proprietary technology comparison website supporting 7+ database websites Quicker speed to market Unique proprietary comparison database built One unified Content One-time build cost Management System All products in Weste
Slide 22: Brands
Brands 22 Interim Results | 20 May 2016
Slide 23: Brilliant @ the basics
Brilliant @ the basics • Portfolio continues to be managed tightly • Stabilised and we are seeing an increase in market share • Market-leading content: Digital Camera and N-Photo hold the top two positions in the UK photography market • New and re-launched magazines: Professional Photography; Comic
Slide 24: Strengthening the portfolio
Strengthening the portfolio Digital Magazines Events Mobile Choice Mobilechoiceuk.com Mobile Choice for Business Mobiletoday.co.uk Mobile Choice Awards Noble House Media Independent Mobile Choice Wireless-mag.com Mobile Industry Awards Pocket Phone Guides Isellmobile.co.uk ‘Mobile’ & ‘Wireless’ (B2B
Slide 25: Summary
Summary • Media Division – strong performance from global media brands and from two new revenue streams • Magazine Division – building scale with opportunities for further acquisitions • Strengthened events portfolio with acquisition of Noble House & Blaze Publishing assets - five new events added •