Nine Entertainment Co. Holdings Limited · ASX:NEC
Nine Entertainment — Macquarie Australia Conference 2019
14 slides from Nine Entertainment's conference presentation, May 1, 2019
Slide 1: Macquarie Australia Conference
MACQUARIE AUSTRALIA CONFERENC E 1 MAY 2019 HUGH M A RKS | C HI EF EX EC UT I V E O FFI C ER NOL A HODGSON | HEA D OF I NV ES T OR REL A T I ONS
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer ex pect at ions about t he performance of it s businesses. reasonableness of any forw ard looking st at ement s, forecast This document is a present at ion of general background Forw ard looking st at ement s can generally be ident ified by financial informat ion or o
Slide 3: Post Merger – Four Key Pillars
POST MERGER – FOU R KEY PILLARS BROADCASTING DIGITAL & PUBLISHING STAN DOMAIN (59.2%) • Creator of Australia’s • Australia’s most read • Australia’s leading local • Ev olv ing Australian leading broadcast digital publisher SVOD business property marketplace brands, across telev ision and radio • Dom
Slide 4: Nine Today – Diversified, with a Clear Growth Profile
NINE TODAY – DIVERSIFIED, WITH A CLEAR GROWTH PROFILE TRANSFORMING BUILDING RETURNING Inv esting in the premium Using the core of broadcast to power Strong cash flows and content that driv es profitability growth businesses div idends to shareholders Nine Network and Strong cash flow Metro Media Dom
Slide 5: Businesses Offer an Increasing Growth Profile
BUSINESSES OFFER AN INCREASING GROWTH PROFILE BROADCASTING METRO MEDIA DOMAIN 9NOW STAN Controls and carries the Premium content Local leader in high Focused on building Deliv ers primarily Nine’s costs for much of the enabling core focus on growth segment of SVOD Australia’s leading digital broadca
Slide 6: High Growth Assets to Contribute Half of Group Profit
HIGH GROWTH ASSETS TO CONTRIBU TE HALF OF GROU P PROFIT1 EBITDA Contribution - FY18 EBITDA contribution – FY20est 13% 47% 45% 53% 87% Broadcasting Stan Digital & Publishing Domain 6 1 P r o Fo r ma b as is, e con omic in teres t ad jus ted
Slide 7: FTA Provides Premium Content and Marketing
FTA PROVIDES PREMIU M CONTENT AND MARKETING NO.1 FOCUSSED ON GROWTH EFFICIENCY OF AUDIENCE SHARE EVERY AUDIENCE ENGINE KEY BUYING DELIVERY, FOR THE REST OF DEMO1 ACROSS THE NINE PLATFORMS GROUP Higher Revenue Share on Lower Costs $m 41% 540 40% 520 39% 500 38% 480 37% 36% 460 35% 440 34% 420 33% 400
Slide 8: 9Now: A Growing Business
9NOW: A GROWING BU SINESS 83% 51% 75% CLEAR Growth in 9Now Growth in MARKET monthly activ e rev enue at Incremental EBITDA LEADER users 9Now margin Through audience Q1, VOD+Live stream, on pcp Six months to Dec 2018 and technology Growth in BVOD Market to Continue 250 $m 200 150 100 % 50 +$25m 45%+
Slide 9: Metro Media: A New Model
METRO MEDIA: A NEW MODEL Consistent audience growth across SMH, The Age and AFR 10.6m1 • Total de-duplicated • SMH – the most read masthead in Australia audience across digital and print • AFR – a growing B2B proposition 3.4% • Circulation/subscription revenues now exceed total advertising Total gro
Slide 10: Nine and Domain: Working Together
NINE AND DOMAIN: WORKING TOGETHER Deep integration of property content into Nine News and Current Affairs programs CONTENT Launch ‘Your Domain’ TV show Replicate SMH.com.au/Age.com.au digital property rails PROMOTION through nine.com.au Data unification project to enable effective identification DAT
Slide 11: Well Positioned Local SVOD Player
WELL POSITIONED LOCAL SVOD PLAYER • Built a business of scale in a new category in just four years • Clear local leader in the market with 1.5m -plus active subscribers • Differentiated and exclusive content line-up. Partnerships with a broad base of studios and networks, complemented by Stan Origin
Slide 12: Trading Update
TRADING U PDATE BROADCASTING DIGITAL & PUBLISHING STAN DOMAIN (59.2%) • Q3 FY19 FTA • Metro Publishing rev • Continued growth • Double digit growth rev enue +4%. +3% Q3 FY19, with in subscribers in residential digital Nine‘s share of growth in both print notwithstanding yield helping to 40.9% (+4.2
Slide 13: Four Key Drivers in FY20
FOU R KEY DRIVERS IN FY20 +$30M +$25m C$30M CYCLICAL EBITDA delta as Stan Rev enue Incremental annualised Impacts on Domain mov es from loss to growth at 9Now benefit of cost synergies and Broadcasting profit (at 75% already deliv ered incremental to benefit when cycle margin) improv es + share gain
Slide 14: Slide 14
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