Nine Entertainment Co. Holdings Limited · ASX:NEC
Nine Entertainment — FY2022 Earnings Presentation
32 slides from Nine Entertainment's earnings presentation, Aug 25, 2022
Slide 1: 2022 Financial Year Results
2022 FINANCIAL ‘ YEAR RESULTS | 25TH AUGUST 2022
Slide 2: Mike Sneesby, Chief Executive Officer
MIKE SNEESBY CHIEF EXECUTIVE OFFICER 2
Slide 3: Operational Highlights
OPERATION AL HI GHLI GH T S S TRONG AUDIENCE RESULT S RECORD YEAR FOR TOTAL 53% GROW TH IN PUBLISHING TELEVISION EBITDA Across all platforms – Record Total television advertising With more than 60% of revenue Broadcasting, Streaming, revenue. #1 share notwithstanding derived from digital sources Pub
Slide 4: Strong Growth in Total Television and Publishing
S TRONG GROW TH IN TOTAL TELEVISION AND PUBLISHING EBITDA, $M TOTAL TV +$61.8M TOTAL TV +$61.8M 4 Refer to glossary in Appendix 4 for definitions. Totals may not add due to rounding
Slide 5: Digital Growth Continues
DIGITAL GROW TH CONTINUES EBITDA, $M REVENUE, $M 400 1200 DIGITAL REVENUE +29% TO 43%1 OF GROUP 350 REVENUE 1000 300 800 250 200 600 DIGITAL EBITDA 150 +43% TO 50%1 OF GROUP 400 EBITDA 100 200 50 0 0 FY20 FY21 FY22 Digital EBITDA Domain Digital EBITDA Total Digital revenue Digital includes 9Now, Sta
Slide 6: Graeme Cassells, Deputy Chief Financial Officer
GRAEME CASSELLS DEPUTY CHIEF FINANCIAL OFFICER 6
Slide 7: Group Results
GROUP RESULT S GROUP GROUP GROUP FY REVENUE EBITDA MARGIN DIVIDEND $2.7B $701M 26% 14 CPS (+15%) (+24%) (+1.8 pts) (+3.5 CPS) A$M FY22 FY21 VARIANCE REVENUE1 2,688.8 2,331.5 +15% GROUP EBITDA1 700.7 564.7 +24% EBIT1 551.6 415.6 +33% GROUP NPAT, PRE MINORITIES1 373.5 277.5 +35% GROUP NPAT, AFTER MINO
Slide 8: Specific Items
SPECIFIC ITEMS A$M H1 FY22 H2 FY22 FY22 DOMAIN - REFER DOMAIN ACCOUNTS (ASX : DHG), 17TH AUG 2022 (8.7) (14.7) (23.4) ACQUISITION COSTS - (2.4) (2.4) RESTRUCTURING COST (6.6) (14.5) (21.1) ASSET IMPAIRMENT 0.2 (29.1) (28.9) NET LOSS ON SALE OF FINANCIAL ASSETS (1.0) - (1.0) TOTAL SPECIFIC ITEMS BEFO
Slide 9: Cash Flows
CASH FLOWS CASH FY22 CONVERSION 1 CAPEX 1 99% $54M A$M, WHOLLY-OWNED FY22 REPORTED DOMAIN FY22 ADJUSTED1 FY21 ADJUSTED1 EBITDA (BEFORE ASSOCIATES) 698.9 122.1 576.8 463.1 WORKING CAPITAL (17.0) (9.6) (7.4) (19.7) ASSOCIATES 0.2 - 0.2 0.1 OPERATING CASH FLOW, PRE SPECIFIC ITEMS, INTEREST AND TAX 682.
Slide 10: Strong Cash Flows Support Investment
S TRONG CASH FLOWS SUPPOR T INVES TMENT $M, WHOLLY OWNED A$M, AS AT 30TH JUNE WHOLLY OWNED GROUP DOMAIN CONSOLIDATED GROUP INTEREST BEARING LOANS AND BORROWINGS1 259.2 218.6 477.8 LESS: CASH AND CASH EQUIVALENTS (86.3) (67.1) (153.4) NET DEBT/(CASH) 172.9 151.5 324.4 NET LEVERAGE 0.3X 1.2X 0.5X Refe
Slide 11: Announcement of On-Market Buy-Back
ANNOUNCEMENT OF ON -MARKET BUY-BACK DATE ANNOUNCED 25 AUGUST 2022 DATE COMMENCED FROM 12 SEPTEMBER, 2022 SCALE UP TO 10% OF ISSUED CAPITAL TERM 12 MONTHS • Reflects: • Nine’s strong operating performance and balance sheet • Confidence in Nine's business outlook • Board’s ongoing focus on active capi
Slide 12: Divisionals
DIVISIONALS FY22 FINAL RESULTS 12
Slide 13: Broadcast
BROADCAS T Revenue contribution1 – FY22 A$M FY22 FY21 VARIANCE REVENUE TOTAL TV 1,269.5 1,151.8 +10% 50% RADIO 102.4 90.8 +13% BROADCAST REV 1,371.9 1,242.6 +10% COSTS TOTAL TV 883.6 827.7 +7% 4% RADIO 87.2 82.4 +6% EBITDA contribution1,2 – FY22 BROADCAST COSTS 970.8 910.1 +7% EBITDA TOTAL TV 385.9
Slide 14: Total Television
DIGITAL REVENUE TOTAL TELEVISION TOTAL MARKET LEADING AUDIENCE REVENUE GROW TH +12% SHARE OF 10% FOR A TO $3.2B 1 ACROSS FTA & BVOD 39.0% SHARE 2 LINEAR REVENUE A$M FY22 FY21 VARIANCE REVENUE FTA 1,118.5 1,044.7 +7% 9NOW 151.0 107.1 +41% TOTAL TELEVISION REVENUE 1,269.5 1,151.8 +10% COSTS FTA 833.1
Slide 15: Free to Air Television (FTA)
FREE TO AIR TELEVISION (FTA) METRO FTA NO.1 RATINGS #1 FTA REVENUE HIGHEST MARKET SHARE SHARE 1 MARGIN FOR +9% 1 ALL KEY BUYING ACROSS FY22 > 10 YEARS DEMOS 2 A$M FY22 FY21 VARIANCE REVENUE 1,118.5 1,044.7 +7% COSTS 833.1 794.0 +5% EBITDA 285.4 250.7 +14% MARGIN 25.5% 24.0% +1.5 PTS • Nine Network a
Slide 16: 9Now – Broadcast Video on Demand
9NOW – BROADCAS T VIDEO ON DEMAND DAILY ACTIVE LIVE STREAMS 46% OF 9NOW SALES USERS +75% 2 ATTRACT A PREMIUM +33% 1 DUE TO DATA (FROM 40% AT H1) A$M FY22 FY21 VARIANCE REVENUE 151.0 107.1 +41% COSTS 50.5 33.7 +50% EBITDA 100.5 73.4 +37% MARGIN 66.6% 68.5% - 1.9PTS • BVOD market of $369m3, up 47% in
Slide 17: Radio
RADIO RADIO MARKET NINE RADIO 119M DIGITAL +10%1 AGENCY SHARE 2 STREAMS 2 AUDIENCE NINE RADIO AD +1.1 PTS UP 15% UP 51% REVENUE GROWTH ON FY21 ON FY21 +14% A$M FY22 FY21 VARIANCE REVENUE 102.4 90.8 +13% COSTS 87.2 82.4 +6% EBITDA 15.2 8.4 +81% MARGIN 14.8% 9.2% +5.6 PTS • Talk Radio audience up 10%
Slide 18: Stan
S TAN Revenue contribution1 – FY22 ACTIVE STAN REVENUE OVERALL ARPU SUBSCRIBERS GROWTH GROW TH 15% >2.5M +22% ~9% A$M FY22 FY21 VARIANCE TOTAL REVENUE 381.2 311.8 +22% COSTS – STAN 277.7 239.3 +16% ENTERTAINMENT COSTS – STAN SPORT 75.0 33.0 +127% TOTAL COSTS 352.7 272.3 +30% EBITDA contribution1,2 –
Slide 19: Nine Publishing
NINE PUBLISHING Revenue contribution1 – FY22 DIGITAL EST 23% EBITDA DIGITAL REVENUES SUBSCRIPTION GROW TH >60% OF TOTAL DOUBLE DIGITAL EX NET IMPACT REVENUE REVENUE GROW TH GOOGLE/FACEBOOK 23% A$M FY22 FY21 VARIANCE DIGITAL REVENUE SUBSCRIPTION & LICENSING 170.8 102.8 +66% ADVERTISING – O & O 164.0
Slide 20: Domain
DOMAIN A$M FY22 FY21 VARIANCE REVENUE RESIDENTIAL 239.2 195.3 +22% Revenue contribution1 – FY22 MEDIA, DEVELOPERS & COMMERCIAL 49.4 46.0 +7% AGENT SOLUTIONS 21.9 13.1 +66% PROPERTY DATA SOLUTIONS 14.9 11.0 +35% CORE DIGITAL 325.5 265.5 +23% 8% CONSUMER SOLUTIONS 9.4 5.5 +71% TOTAL DIGITAL 334.9 271.
Slide 21: Nine Has 20M Signed In Users
3.8M1 871K1 2.1M1 2.7M1 816K1 Nine has 20M signed in 595K1 users 8.0M1 731K1 8.8M1 5.4M1 and a unique suite of assets with monthly 898K1 reach of 16M 1.8M1 Creating a powerful data 3.7M1 proposition for brands at scale R EVENUE AT TACHED TO N INE’S UN IQUE DATA P ROP O S ITI ON I S G ROWI NG AT 5 0
Slide 22: Trading Update & Outlook
T R A D I N G U P D AT E & OUTLOOK MIKE SNEESBY 22
Slide 23: Trading Update
TRADING UPDATE TO DATE, THE ADVERTISING MARKET HAS REMAINED RESILIENT EXPECT SHARE GROWTH ACROSS ALL OF OUR ADVERTISING BUSINESSES Total Television Radio Stan Publishing Domain Total Television revenues to Radio ad market Strong revenue momentum Q1 subscription revenues First 6 weeks of FY23 -> grow
Slide 24: In FY22, Progress Towards Nine's Long Term Targets Has Been Exceptional
IN FY22, PROGRESS TOWARDS NINE’S LONG TERM TARGETS HAS BEEN EXCEPTIONAL DIGITAL EBITDA SUBSCRIPTION REVENUES1 VOD REVENUES + 43% + 28% + 27% TO 50% OF TOTAL2 TO 32% OF TOTAL2 TO 21% OF TOTAL2 EXECUTION OF DIGITAL STRATEGY UNDERPINNING CONTINUING MOMENTUM Total Television Radio Stan Total Publishing
Slide 25: Appendices
APPENDICES FY22 FULL YEAR RESULTS 25
Slide 26: Appendix 1: FY22 Group Divisional Results
APPENDIX 1: FY22 GROUP DIVISIONAL RESULTS Revenue1 contribution – FY22 $M BROADCAST PUBLISHING STAN DOMAIN CORPORATE ASSOCIATES INTERSEGMENT TOTAL REVENUE 1,371.9 593.5 381.2 356.7 4.9 - (19.4) 2,688.8 PCP 1,242.6 504.5 311.8 286.6 2.3 - (16.3) 2,331.5 % CHG +10% +18% +22% +24% +113% - +19% +15% EBI
Slide 27: Appendix 2: Linear TV Ratings – Calendar Year
APPENDIX 2: LINEAR TV RATINGS – CALENDAR YEAR SURVEY 2022 DATE (1 JANUARY – 20 AUGUST) NETWORK PRIMARY CHANNEL COMMERCIAL RATINGS SHARE (%) Seven Nine Ten Seven Nine Ten CALENDAR INCL TOTAL COMM GAMES 6PM-MIDNIGHT 38.2 38.9 22.9 38.1 40.3 21.6 PEOPLE 25-54S 33.8 38.5 27.7 33.6 40.0 26.3 16-39S 34.8
Slide 28: Appendix 2: Linear TV Ratings – Survey Year
APPENDIX 2: LINEAR TV RATINGS – SURVEY YEAR SURVEY 2022 DATE (WEEKS 7-34, EXCL EASTER) NETWORK PRIMARY CHANNEL COMMERCIAL RATINGS SHARE (%) Seven Nine Ten Seven Nine Ten SURVEY INCL TOTAL COMM GAMES 6PM-MIDNIGHT 39.0 38.2 22.8 39.0 39.5 21.5 PEOPLE 25-54S 34.6 37.6 27.8 34.5 39.2 26.3 16-39S 35.5 36
Slide 29: Appendix 3: Forward Estimates
APPENDIX 3: FORWARD ESTIMATES FY23 CORPORATE COSTS – WHOLLY OWNED ~$35M TO 38M DEPRECIATION & AMORTISATION - REPORTED ~$140M TO 150M INTEREST EXPENSE - REPORTED $30-35m EX BUY-BACK TAX RATE - REPORTED ~30% CAPEX (EX DOMAIN) ~$90M TO 105M 60-80% OF NET PROFIT AFTER TAX, BEFORE SPECIFIC ITEMS DIVIDEND
Slide 30: Appendix 4: Glossary
APPENDIX 4: GLOSSARY Broadcast – Broadcast comprises Nine Network, 9Now and Nine Radio. Net Leverage (wholly owned) – Net Debt (wholly owned) divided by wholly owned Group BVOD – Broadcast Video on Demand EBITDA plus dividends received (last 12 months) Cash conversion – Refers to operating cash pre
Slide 31: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Important Notice and Disclaimer This document is a presentation of general background information about the activities of Nine Entertainment Co. Holdings Limited (“NEC”) current at the date of the presentation, (25 August 2022). The information contained in this prese
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