Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — H1 FY2010 Earnings Presentation
22 slides from Southern Cross Media's earnings presentation, Feb 23, 2010
Slide 1: Southern Cross Media Group – 2010 Interim Results Presentation
For personal use only Southern Cross Media Group – 2010 Interim Results Presentation Rhys Holleran, Chief Executive Officer Liam Buckley, Chief Financial Officer 23 February 2010
Slide 2: Disclaimer
DISCLAIMER For personal use only DISCLAIMER Southern Cross Media Group (SCMG) comprises Southern Cross Media Trust (ARSN 116 151 467) (SCMT), Southern Cross Media Group Limited (ABN 91 116 024 536) (SCMGL) and Southern Cross Media International Limited (EC 37694, ARBN 118 577 423) (SCMIL). Macquarie
Slide 3: Agenda
Agenda For personal use only 1H10 Highlights Financial Results Business Updates Outlook P
Slide 4: 1H10 Results
For personal use only 1H10 Results Rhys Holleran – Chief Executive Officer Q
Slide 5: 1H10 Highlights
1H10 Highlights For personal use only Southern Cross Media Group (SCMG) Half Year FY10 Proportionate Earnings per Security (EPS)1,2 13.5cps Total Media Operations Revenues down 5.0% on prior corresponding period (like for like) Total Media Operations EBITDA down 7.2% on prior corresponding period (l
Slide 6: Internalisation and Corporatisation - Update
Internalisation and Corporatisation - Update For personal use only o Internalisation and Corporatisation approved by security holders on 17 December 2009 o Consideration for Internalisation payable to Macquarie ($40.5 million) upon completion o Completion of both Internalisation and Corporatisation
Slide 7: Financial Results
For personal use only Financial Results Liam Buckley – Chief Financial Officer T
Slide 8: Summary Statutory Consolidated Results
Financial Results Summary Statutory Consolidated Results For personal use only A$m 1H10 1H09 Revenue 264.9 293.8 Other income1 20.9 42.8 Share of net profits from equity accounted investments 1.1 0.3 Operating expenses (189.3) (200.7) Other expenses2 (6.4) (71.6) Finance costs (50.4) (51.2) Deprecia
Slide 9: Proportionate Earnings
Financial Results Proportionate Earnings For personal use only Pro-forma A$m 1H10 1 1H09 1H09 Media operations revenue 261.9 275.8 284.8 Media operations expenses (183.9) (191.7) (198.9) Media operations EBITDA 78.0 84.1 85.9 Media operations maintenance capital expenditure (1.0) (2.6) Media operati
Slide 10: Reconciliation of Statutory (Loss)/Profit to Proportionate Earnings
Financial Results Reconciliation of Statutory (Loss)/Profit to Proportionate Earnings For personal use only A$m 1H10 1H09 Net Loss after tax attributable to security holders (148.1) (127.3) Add backs and adjustments: Media operations maintenance capital expenditure (1.0) (2.6) Amortisation of establ
Slide 11: Capital Management
Capital Management For personal use only SCM Business Level Debt ACM Business Level Debt A$337.5 million drawn (total facilities of A$507.5m, US$133.7m drawn (total facilities of US$136.7m) maturing November 2010) ACM is in breach of certain covenants under its In December 2009, SCM’s business l
Slide 12: Repositioned balance sheet
Capital Management For personal use only Repositioned balance sheet Ô Net proceeds of the Entitlement Offer and available parent level cash used to pay down $535m of SCM debt in December 2009 Ô SCM debt leverage considerably reduced post paydown A$m SCM ACM Fund Total Cash on hand – 31 December 2009
Slide 13: Business Updates
For personal use only Business Updates Rhys Holleran – Chief Executive Officer NP
Slide 14: 1H10 Group Revenue & EBITDA Contributions
1H10 Group Revenue & EBITDA Contributions For personal use only Year to date Change 31 December 2009 Growth Growth EBITDA in margin A$m Revenue on pcp1 EBITDA on pcp1 margin on pcp1 SCM – Radio 75.9 (5.1%) SCM – Television 136.0 (0.6%) Total Australian operations 211.9 (2.3%) 68.9 (4.4%) 32.5% (0.7%
Slide 15: Southern Cross Media Advertising Revenues
Southern Cross Media Advertising Revenues For personal use only Improved advertising conditions especially evident in the December quarter TV revenues have been very strong compared to peers Radio recovering, though still down on prior period SCM revenue is dominated by local advertising, which has
Slide 16: Southern Cross Media Business Initiatives
Southern Cross Media Business Initiatives For personal use only Revenue enhancement initiatives: Brandworks Cornerstone local offering , emphasis on leveraging both TV and Radio in those offerings Super 14s - leveraging best practices across media and across the group High Definition TV chan
Slide 17: American Consolidated Media
American Consolidated Media For personal use only Impacted by very challenging broader US economic conditions Declines in classifieds revenue caused by weak cyclicals (employment, real estate and automotive industries) Other revenues boosted by circulation increases % Split of 1H10 % Change 1H10 Rev
Slide 18: Outlook
For personal use only Outlook Rhys Holleran – Chief Executive Officer NU
Slide 19: Outlook – SCM
Outlook For personal use only SCM Evidence that the Australian market is gaining momentum Advertising revenue declines have stopped and we are seeing some growth in TV and expect Radio to improve The advertising cycle remains short National television has been especially solid in the last qu
Slide 20: Outlook – SCMG
Outlook For personal use only SCMG — The recent strategic initiatives to recapitalise SCMG, internalise management, corporatise SCMG’s structure and refinance SCM’s asset level bank facilities are designed to position SCMG with an optimal capital structure and a solid balance sheet for the future —
Slide 21: Contacts
Investors: Rhys Holleran For personal use only Chief Executive Officer Tel: (613) 9922 2023 Media: Karen Halbert Public Affairs Tel: (612) 8232 6755 Email: karen.halbert@macquarie.com Contacts ON
Slide 22: Appendix A: Parent Level Cash Flows
Appendix A: Parent Level Cash Flows For personal use only A$m Parent level cash Cash on hand – 30 June 2009 331.2 Proceeds from Entitlement Offer 293.6 Underwriting fees1 (5.8) Transaction costs2 (4.4) SCM debt paydown (535.0) SCM interest rate swap break costs (8.5) Net other receipts and payments3
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