Nation Media Group Limited · NSEKE:NMG
Nation Media — H1 2010 Earnings Presentation
30 slides from Nation Media's earnings presentation, Aug 2, 2010
Slide 1: NMG Investor Briefing H1 2010 Financial Results
NMG Investor Briefing H1 2010 Financial Results August 2, 2010
Slide 2: Agenda
Agenda H1 2010 Highlights Divisional Updates H1 2010 Financial Results FY 2010 Outlook Q&A
Slide 3: H1 Highlights
{ p MAAS = H1 Highlights Media of Africa for Africa
Slide 4: H1 Highlights
H1 Highlights Overall good start to the year Kenyan CEOs most optimistic in EA – Business Leaders Confidence Index (Synovate, March 2010) 50th anniversary celebrations: successful PAMC Advertising revenue up – NND achieved highest ever revenue in March NTVU now no. 1 station in Uganda (Synovate) Eas
Slide 5: Divisional Updates
BAS = Divisional Updates Media of Africa for Africa
Slide 6: Nation Newspapers Division
Nation Newspapers Division Advertising Revenue 20% Total Revenue 14% Direct Costs 20% Operating Profit 36% Draft Constitution: Keeping Kenyans informed ; Myths & Facts Continued with agenda‐setting Continued commitment to investigative journalism NiE launched in Kenya in Coast, Eastern & North Easte
Slide 7: The East African
The East African Advertising Revenue 9% Circulation Revenue 5% Content of TheEastAfrican enhanced from November 2009 Improved variety has attracted new readers
Slide 8: Business Daily
Business Daily Circulation Revenue 10% Advertising Revenue 30% New sections on IT –DigiLife magazine More SME content Top 40 under 40 The Edge continued to lead business thought: Green Energy
Slide 9: Easy FM
Easy FM New breakfast team: Munene, Ngatia & Angie New Drive team: The D.I. & Muthoni More music variety: over 20,000GB worth of music The Radio Star: Reality show
Slide 10: Q FM
Q FM Revenue 140% Operating Expenses 16% New transmission site in Kisii Strong growth in listenership Re‐vamped breakfast show Sunday morning gospel show Saturday football show No. 2 Kiswahili station in key areas World Cup: Largest ever ticket treasure hunt in 7 Kenyan towns
Slide 11: K FM Uganda
K FM Uganda Revenue 13% Operating Profit 32% Strength of convergence with print driving revenues
Slide 12: NTV Kenya
NTV Kenya Revenue 27% Operating Expenses 5% New programming: Soaps, local program (Higher Learning, Clinic Matters) New anchors Award‐winning journalism: CNN Multichoice Awards
Slide 13: NTV Uganda
NTV Uganda Revenue 60% Operating Profit 150% NTV U most watched station in Uganda ‐ Synovate Impressive results boosted by extended coverage following expansion especially to key markets such as Gulu
Slide 14: Monitor Publications Ltd
Monitor Publications Ltd Circulation Revenue 5% Direct Costs 3% Focus on Editorial quality and content Improved circulation through NiE Monitor awarded best business paper in Uganda award by CMA Digital revenue up 100%: innovation through mobile and www.monitor.co.ug
Slide 15: Mwananchi Communications Ltd
Mwananchi Communications Ltd Advertising Revenue 29% Circulation Revenue 32% Operating Profit 128% New press fully operational – best print quality in Tanzania today Increased circulation volumes Higher colour capacity & better quality advertisements
Slide 16: Nation Digital
Nation Digital Online Advertising 48% www.nation.co.ke the leading local portal in East & Central Africa N‐soko: preferred online classifieds Additional international expertise on board Wingo: First ever game show of its kind on Kenyan TV continues World Cup: Mobile football update application – liv
Slide 17: H1 2010 Financial Results
{ p MAAS = H1 2010 Financial Results Media of Africa for Africa
Slide 18: Turnover Growth (Kshs M)
Turnover Growth (Kshs M) 17.3%
Slide 19: H1 2010 Strong Performance
H1 2010 Strong Performance 4,469M 877M 2,770M 891.6M Kshs 3.6 51.6% 40% 17.3% 20.1% 9.5% Cost of Profit Turnover Over‐ EPS Sales Before heads Tax
Slide 20: H1 2010 Strong Performance
H1 2010 Strong Performance 4,469M 3,577M 891.6M Kshs 3.6 51.6% 40% 17.3% 11.1% Profit Turnover Total EPS Before Costs Tax
Slide 21: Profit and Loss Account (Kshs M)
Profit and Loss Account (Kshs M) June 2010 June 2009 % Change Turnover 4,469 3,809 17.3% Profit Before Tax 891.6 588.2 51.6% Tax Expense (294) (194) (51.5)% Profit Attributable to Shareholders 558.1 364.5 53.1% Earnings per Share 3.6 2.6 40%
Slide 22: Underlying Performance (Kshs M)
Underlying Performance (Kshs M) June 2010 June 2009 % Change Turnover 4,468.7 3,809.3 17.3% LESS: Discontinued Business (EAM/DM) ‐ 27.5 ‐ Turnover: Continuing Business 4,468.7 3,781.8 18.2% Costs 3,577.1 3,221.1 (11.1)% LESS: Discontinued Business (EAM/DM) ‐ 75.9 ‐ Costs: Continuing Business 3,577.1
Slide 23: Interim Dividend (Kshs M)
Interim Dividend (Kshs M) •Interim dividends per share held constant at Kshs 1.50 from 2007 despite bonus issue •10% increase in cash payout
Slide 24: Consolidated Balance Sheet (Kshs M)
Consolidated Balance Sheet (Kshs M) June 2010 Dec. 2009 Capital & Reserves Share Capital 393 357 Retained Earnings 3,957 3,637 Other Reserves 49 82 Proposed Dividends 806 570 Non‐current Liabilities 62 89 Total Equity & Non‐current liabilities 5,333 4,803 Assets Non‐current Assets 2,739 2,807 Workin
Slide 25: Condensed Cash Flow Statement (Ksh M)
Condensed Cash Flow Statement (Ksh M) June 2010 Cash Generated from Operations 1,477 Net Interest 43 Tax Paid (266) Net Cash from Operating Activities 1,254 Net Cash used in Investing Activities (150) Net Cash used in Financing Activities (49) Net Cash Movement 1,056 Cash: Jan. 2010 1,474 Cash: June
Slide 26: Outlook
Media of Africa for Africa
Slide 27: DN Re-launch
DN Re‐launch Increase in variety Innovation in advertising positions and shapes Positive initial response to translate into higher circulation and increased advertising
Slide 28: H2 Outlook
H2 Outlook Reap benefits of DN content improvement Cross –listing: Uganda, Rwanda, Tanzania New colour tower and major press refurbishment in Nairobi Global newsprint prices on the increase – expected to affect H2
Slide 29: H2 Outlook
H2 Outlook Refreshing of Citizen in Tanzania Monitor: Focus on distribution, marketing and content improvement QFM: Increased ratings from tapping into expanded reach NTV: Increasing local show offering eAfrica: aggressive sales strategy Digital: New products AfricaReview.com: authoritative one‐stop
Slide 30: Thank You
Thank You This presentation is available on our website www.nationmedia.com