Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — FY2010 Earnings Presentation
23 slides from Southern Cross Media's earnings presentation, Aug 31, 2010
Slide 1: 2010 Full Year Results
For personal use only 2010 Full Year Results A presentation by Rhys Holleran, CEO and Steve Kelly, CFO
Slide 2: Radio and Television Signal and Radio Locations
For personal use only Darwin TV1 (Southern Cross Darwin) Atherton/Mareeba Cairns Townsville NT Regional Queensland TV1 Mount Isa Mackay (Southern Cross TEN) Mt Isa TV1 (Seven Central) Rockhampton QLDEmerald Bundaberg WA Roma Maryborough Nambour Kingaroy SA Toowoomba Gold Coast Broken Hill TV1 Northe
Slide 3: Southern Cross Assets
For personal use only Southern Cross Assets Television Radio Online • 33 TV stations across 30 • 66 commercial radio stations in • 100+ regional radio websites regional markets 37 licence areas from one central address Integrated Media 3
Slide 4: Key Events
1H10 Key Events For personal use only Headline Achievements Divested American Newspaper Business June 2010 Corporatisation and Internalisation Completed March 2010 Successfully completed $294m entitlement offer December 2009 Refinance completed March 2010 Sales, EBITDA and Margins all up on PCP EPS
Slide 5: Steve Kelly, CFO
For personal use only Steve Kelly, CFO 5
Slide 6: Financial Performance
For personal use only Financial Performance Revenue (reported) $406.9m 2.8% Revenue (underlying) $416.7m 3.5% EBITDA (underlying) $129.8m 11.1% NPAT (underlying) $ 52.3m 181% EPS (underlying) 16.2 cps 126% Net Debt $249.7m 63.3% 6
Slide 7: Underlying Performance (Continuing Operations)
Underlying Performance (Continuing Operations) $ millions FY10 For personal use only Reported Adjustments Underlying Adjustments Revenue 406.9 9.8 416.7 Expenses (285.6) (1.3) (286.9) •Proportional consolidation of JV’s Equity accounted profit 1.6 (1.6) - •Internalisation payment EBITDA 122.9 6.9 12
Slide 8: Underlying (Continuing Operations)
Underlying (Continuing Operations) $ millions FY10 FY09 Revenue 416.7 402.6 For personal use only 3.5% Expenses (286.9) (285.8) 0.4% EBITDA 129.8 116.8 11.1% Depreciation & Amort. (22.1) (20.2) Net Interest Expense (53.8) (65.2) 53.9 31.4 71.7% Financial Derivatives 17.4 (46.2) Underlying PBT 71.3 (
Slide 9: EBITDA by Half (Underlying Cont. Ops)
EBITDA by Half (Underlying Cont. Ops) $ millions H1 10 H2 10 FY 10 H1 09 H2 09 FY09 For personal use only Revenue TV 136.0 129.9 265.9 136.8 112.9 249.7 Radio 75.9 74.9 150.8 80.0 72.9 152.9 Total Revenue 211.9 204.8 416.7 216.8 185.8 402.6 Expenses Broadcast & Production 53.1 51.1 104.2 54.9 47.1 1
Slide 10: Full Year Cash Flow
Full Year Cash Flow $ millions Australian US Ops Total Ops Opening Cash 343.5 3.6 347.1 For personal use only Cash From Operations (ex Internalisation fee) 125.7 16.2 141.9 Internalisation fee (40.5) - (40.5) Capital expenditure (9.4) (0.9) (10.3) Distributions to Security Holders (19.4) - (19.4) Ne
Slide 11: Balance Sheet (Continuing Operations)
Balance Sheet (Continuing Operations) $ millions June 2010 June 2009 Cash 38.1 343.5 For personal use only Receivables 84.8 80.7 Property Plant & 147.9 159.3 Equipment Investments (equity 29.6 29.5 accounted) Deferred Tax Assets 30.6 34.5 Intangibles 1,064.8 1,065.7 Total Assets 1,395.8 1,713.2 Borr
Slide 12: Debt Facilities (Continuing Operations)
Debt Facilities (Continuing Operations) $ millions June 2010 June 2009 Current and Non-Current For personal use only Bank facilities 300.0 872.5 Deferred borrowing costs (12.8) (10.4) Lease liabilities 0.6 0.5 287.8 862.6 Bank facilities Facilities available 375.0 1,011.0 Facilities utilised (300.0)
Slide 13: EPS Analysis
EPS Analysis cents per share FY10 FY09 Operations 12.46 11.77 For personal use only Prior year tax adjustment impact - 7.91 Derivative impact 3.78 (12.48) Continuing Ops (underlying) 16.24 7.20 Net restructuring cost impact (1.27) - Internalisation impact (8.79) - Continuing operations (reported) 6.
Slide 14: Rhys Holleran, CEO
For personal use only Rhys Holleran, CEO 14
Slide 15: Trading Highlights
For personal use only Trading Highlights Second half improvement Radio return to growth in Q4 Strong national performance across all media Local markets gradually improving 15 15
Slide 16: Advertising
Advertising Basic Revenues and Diluted H2 lift in advertising conditions resulted in a positive growth outcome TV was very strong across half and broadly in line with market trends For personal use only Radio, whilst down on prior period, has recovered to growth in Q4 FY10 Metro Metro Full Year Radi
Slide 17: Revenue Trends
Revenue Trends For personal use only 80.0 70.0 The GFC Bites 60.0 Radio provides greater stability and resilience through 50.0 the cycle 40.0 30.0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 RADIO TV 17
Slide 18: Revenue Comparative Trend
Revenue Comparative Trend For personal use only RADIO 15% 10% National growth trend 5% Local rebounding 0% -5% -10% -15% -20% -25% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 TV 25% 20% National Local 15% 10% Strong National Comps 5% 0% Local recovery evident -5% Q410 local market effected by -1
Slide 19: Our Programs
Our Programs’ For personal use only Continuing to build a strong multi market and multi media platform with a range of shows Radio Brands achieving strong ratings 19 19
Slide 20: Our Community
For personal use only Our Community Initiative has achieved over $1.25 million in donations during the Give Me 5 For Kids appeal through June. All proceeds benefiting local regional communities Now in its second year this initiative is delivering happiness to thousands of families in need in regiona
Slide 21: Outlook
Outlook For personal use only The market has been solid in the second half of FY10 and we have seen a return to growth in radio in Q4 of FY10 Advertising cycle has lengthened Q1 FY11 has seen strong performance aided by the Election and a continuing robust TV Market Commonwealth Games in October wil
Slide 22: Summary
1H10 Key Events For personal use only Summary Business has been returned to core Regional Australia Media Assets Return to profitability and improved margins Cash conversion is strong and capital capacity restored Q1 FY11 has seen a continuation of a strong Q4 FY10 Radio continuing a gradual return
Slide 23: Contact and Disclaimer
For personal use only Rhys Holleran Chief Executive Officer Tel: (613) 9922 2024 Steve Kelly Chief Financial Officer Tel: (613) 9922 2036 DISCLAIMER This presentation has been prepared by Southern Cross Media Group Limited (SCMGL). The information has been prepared in good faith and is derived from
Southern Cross Media Group — FY2010 Earnings Presentation on 6ix