Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — H1 FY2011 Earnings Presentation
24 slides from Southern Cross Media's earnings presentation, Feb 22, 2011
Slide 1: 2011 First Half Year Results
For personal use only 2011 First Half Year Results A presentation by Rhys Holleran, CEO and Steve Kelly, CFO
Slide 2: Radio and Television Signal 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 QLD Emerald Bundaberg WA Roma Maryborough Nambour Kingaroy SA Toowoomba Gold Coast Broken Hill TV1 North
Slide 3: Southern Cross Integrated Media
For personal use only Southern Cross Television Radio Online • 33 TV stations across 30 regional • 68 commercial radio stations in 37 • 100+ regional radio websites from markets licence areas one central address Integrated Media 3
Slide 4: 1H10 Key Events: Headline Achievements
1H10 Key Events For personal use only Headline Achievements Further improvement in operating margins Revenue up 5.9% EBITDA Growth +10.9% Good Cost Management Underlying NPAT up 29.2% (reported NPAT up 36.6%) Interim dividend of 7.0 cps fully franked Takeover Offer for AEO Launched 4
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) $218.7m 5.0% Revenue (underlying) $224.4m 5.9% EBITDA (underlying) $70.3m 10.9% NPAT (underlying / reported) $33.6m 29.2% / 36.6% EPS (underlying) 8.3 cps 69% Net Debt to EBITDA (annualised) 1.8 : 1 10% 6
Slide 7: Underlying Performance (Continuing Operations)
Underlying Performance (Continuing Operations) $ millions First Half FY11 First Half FY10 Reported JV Adjustments Underlying Reported Adjustments Underlying For personal use only Revenue 218.7 5.7 224.4 208.3 3.6 211.9 Expenses (150.2) (3.9) (154.1) (148.7) 0.2 (148.5) Equity accounted profit 1.1 (1
Slide 8: Comparative Earnings Analysis
Underlying (Continuing Operations) $ millions H1 11 H1 10 For personal use only Revenue 224.4 211.9 5.9% Expenses (154.1) (148.5) 3.8% EBITDA 70.3 63.4 10.9% Depreciation & Amort. (10.1) (11.1) Net Interest Expense (15.4) (35.9) 44.8 16.4 173% Financial Derivatives 3.4 18.7 Underlying PBT 48.2 35.1
Slide 9: EBITDA Comparison by Half
EBITDA Comparison by Half (Underlying Cont. Ops) $ millions H1 11 H1 10 Comparison For personal use only Revenue adjusted on pcp TV 143.1 63.8% 136.0 64.2% 5.2% Radio 81.3 36.2% 75.9 35.8% 7.1% Total Revenue 224.4 100% 211.9 100% 5.9% Expenses Broadcast & Production 59.7 26.6% 56.4 26.6% 5.9% Employ
Slide 10: Half Year Cash Flow
Half Year Cash Flow $ millions For personal use only Opening Cash 38.1 Cash From Operations 56.0 Capital expenditure (8.8) Distributions to Security Holders (23.5) Interest & Derivative payments (14.8) Closing Cash 47.0 EBITDA (Reported) 69.6 Conversion 80% 1st half cash conversion is consistent wit
Slide 11: Balance Sheet
Balance Sheet $ millions Dec 2010 June 2010 Cash 47.0 38.1 For personal use only Receivables 88.1 84.8 Property Plant & 147.1 147.9 Equipment Investments (equity 29.8 29.6 accounted) Deferred Tax Assets 22.2 30.6 Intangibles 1,064.5 1,064.8 Total Assets 1,398.7 1,395.8 Borrowings 289.6 287.8 Payable
Slide 12: Debt Facilities
Debt Facilities $ millions Dec 2010 June 2010 Current and Non-Current For personal use only Bank facilities 300.0 300.0 Deferred borrowing costs (11.0) (12.8) Lease liabilities 0.6 0.6 289.6 287.8 Bank facilities Facilities available 375.0 375.0 Facilities utilised (300.0) (300.0) Unused facilities
Slide 13: EPS Analysis
EPS Analysis cents per share Dec 10 Dec 09 Operations 8.3 4.9 For personal use only Derivative impact 0.6 4.9 Continuing Ops (underlying) 8.9 9.8 Net restructuring cost impact (0.6) From discontinued operations - (64.8) Reported 8.9 (55.6) Weighted average # of shares 378.8 m 266.3m* Actual closing
Slide 14: Rhys Holleran, CEO
For personal use only Rhys Holleran, CEO 14
Slide 15: Trading Highlights
For personal use only Trading Highlights TV up 4.0%, despite challenging ratings Radio up 5.7% Local market still in recovery mode and steady Expenses managed well, margins improving 15 15
Slide 16: Advertising Revenues
Basic and Diluted Metro Regional H1 11 Radio TV Radio TV For personal use only % split of % change % change % split of % change % change revenues vs pcp vs pcp revenues vs pcp vs pcp Local Advertising 64.7% 2.7% 7.7% 38.6% 5.1% 6.5% National Advertising 22.7% 15.0% 9.1% 54.2% 3.3% 12.3% Total Advert
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 50.0 through the cycle 40.0 30.0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 RADIO TV 17
Slide 18: Revenue Comparative Trend
Revenue Comparative Trend For personal use only RADIO Local markets performed strongly 40.0% in softer Q2 30.0% 20.0% 10.0% 0.0% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 -10.0% -20.0% TV -30.0% National Local 25.0% 20.0% 15.0% Local markets embraced 10.0% Commonwealth Games in Q21
Slide 19: Our Programs
Our Programs For personal use only Launch of Fifi & Jules, Hamish & Andy and Kyle & Jackie O’s Hour of Power on the Hit Music Network Continued rating strength on the Gold Coast Market The launch of new web sites for all radio assets i.e.: seafm.com.au Cross platform revenue & ratings expansion i.e.
Slide 20: Our Community
For personal use only Our Community I Believe in Christmas Toy Drive – over 30,000 donations Our radio stations play a pivotal community service role during floods and cyclones 20 20
Slide 21: Outlook
Outlook For personal use only Market has softened at a national level and local markets have been challenging. However, January and February will post positive sales growth Channel Eleven early results have been encouraging however TV ratings overall have been disappointing Costs are expected to mod
Slide 22: Offer for Austereo Update
Offer for Austereo Update For personal use only Board of Austereo have unanimously recommended the offer Deal is funded through:- A new senior debt facility of up to $755 million; an Equity Bridge up to a maximum of $540 million to be re-paid by – A pro-rata, renouncable Equity rights issue. Bidders
Slide 23: Summary
1H10 Key Events For personal use only Summary Further improvement in operating margins Confidence shown via final dividend of 7.0 cps (84% on underlying earnings of 8.3 cps) Radio remains resilient and less volatile Channel Eleven encouraging Acquisition positions the Group well as a premium integra
Slide 24: 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 — H1 FY2011 Earnings Presentation on 6ix