Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — H1 FY22 Earnings Presentation
31 slides from Southern Cross Media's earnings presentation, Feb 24, 2022
Slide 1: H1 FY22 Investor Presentation
For personal use only SOUTHERN CROSS AUSTEREO H1 FY22 INVESTOR PRESENTATION 24 February 2022
Slide 2: Disclaimer
DISCLAIMER For personal use only Summary information The material in this presentation has been prepared by Southern Cross Media Group Limited ABN 91 116 024 536 (SCA) and contains summary information about SCA’s activities current as at 24 February 2022. The information in this presentation is of a
Slide 3: H1 FY22 Results
For personal use only H1 FY22 RESULTS Grant Blackley CEO
Slide 4: Group Results Summary
GROUP RESULTS SUMMARY • EBITDA excluding Jobkeeper & PING1 was For personal use only $ millions H1 FY22 H1 FY21 Var. $46.5m, 16.3% above prior corresponding period Revenue 259.8 259.2 0.2% • Audio Revenue grew 11.5% over pcp with lower Expenses (213.3) (219.2) (2.7%) Television revenues due to affil
Slide 5: Headline Achievements
HEADLINE ACHIEVEMENTS For personal use only • Audio revenues grew 11.5% or $20m with SCA metropolitan revenue growth exceeding the market Sales & • Radio – the rate of market recovery improved with audiences and revenues producing a sharp increase in November and December (following the end of lockd
Slide 6: H1 FY22 Financial Results
For personal use only H1 FY22 FINANCIAL RESULTS Nick McKechnie CFO N
Slide 7: Group Reported Statutory Results
GROUP REPORTED STATUTORY RESULTS For personal use only $ millions H1 FY22 H1 FY21 Var. • EBITDA up $6.5m or 16.3%, excluding Revenue 259.8 259.2 0.2% Jobkeeper & PING Expenses (213.3) (219.2) (2.7%) EBITDA exc JK/ PING 46.5 40.0 16.3% • EBITDA margin excluding Jobkeeper & PING EBITDA Margin exc JK/
Slide 8: Cashflow
CASHFLOW For personal use only $ millions H1 FY22 H1 FY21 • Free cashflow of $16.2m – with Opening Cash 75.4 271.4 consistent cashflow generation Net Cash from Operations 28.7 84.8 from asset set Leases (3.9) (2.7) Tax Payment (11.9) (4.7) • Recovery in audio earnings and Payments for Non-Current As
Slide 9: Strong Balance Sheet
STRONG BALANCE SHEET • Bank facility successfully For personal use only $m's refinanced in December 2021 – new 4-year facility through to 250 January 2026 following strong support from banking group Undrawn • Cash interest on net debt is forecast 122 at ~$3.5m for the full year FY22, substantially b
Slide 10: Operational Review
For personal use only REVIEW OPERATIONAL
Slide 11: Operational Review
OPERATIONAL REVIEW For personal use only • EBITDA was $46.5m, 16.3% above $ millions H1 FY22 H1 FY21 Var. prior corresponding period excluding Audio Revenue 193.8 173.8 11.5% Television Revenue 65.8 84.7 (22.3%) Jobkeeper & PING Corporate Revenue 0.2 0.7 Total Revenue 259.8 259.2 0.2% • Audio revenu
Slide 12: Operating Costs
OPERATING COSTS For personal use only $ millions H1 FY22 H1 FY21 Var • Non revenue related (NRR) costs Revenue 259.8 259.2 0.2% increased 5.3% to $148.6m driven by Revenue Related Costs (64.7) (78.1) (17.1%) on-going investment in a rapidly scaling digital audio business Revenue related costs as % 2
Slide 13: Broadcast Audio - Overview
BROADCAST AUDIO - OVERVIEW For personal use only EBITDA of $53.1m up 20.0% $ millions H1 FY22 H1 FY21 Var. Total Revenue 183.3 166.2 10.3% EBITDA Margin improves to 29.0%, each excluding Jobkeeper and PING Revenue Related (31.7) (27.0) 17.4% Employee Expenses (69.4) (69.7) (0.4%) • Revenue growth of
Slide 14: Audio – Radio Advertising Revenues
AUDIO – RADIO ADVERTISING REVENUES For personal use only H1 FY22 H1 FY21 Var. • Metropolitan revenues grew by $11.0m or Metro Radio 13.8%, aided by the strengthening National 68.1 59.4 14.6% market recovery and an improved Local 22.6 20.2 11.6% commercial revenue share for SCA Total Revenue 90.6 79.
Slide 15: Audio – Audiences and Advertising Recovered Quickly Post Lockdowns
AUDIO – AUDIENCES AND ADVERTISING RECOVERED QUICKLY POST LOCKDOWNS For personal use only • End of lockdown in Sydney and Melbourne resulted in immediate lift in audience numbers. • Advertising market also recovered sharply, with November and December revenue exceeding FY20 Average Audience ('000) -
Slide 16: Digital Audio - Overview
DIGITAL AUDIO - OVERVIEW $ millions H1 FY22 H1 FY21 Var. For personal use only Total Revenue 10.5 7.7 36.6% Revenue Related Expenses (1.9) (1.4) SCA well placed to take advantage of Employee Expenses (7.9) (4.8) this high growth and expanding Other NRR Expenses (8.4) (2.2) audio segment through orga
Slide 17: Television - Overview
TELEVISION - OVERVIEW $ millions H1 FY22 H1 FY21 Var. EBITDA grew 27.3% to $17.5m over pcp. For personal use only Total Revenue 65.8 84.7 (22.3%) EBITDA margin expands to 26.5% over same Revenue Related (31.0) (49.5) (37.3%) period, each excluding Jobkeeper and PING. Employee Expenses (8.6) (10.5) (
Slide 18: Television – Power Ratio
TELEVISION – POWER RATIO For personal use only Commercial Share & Power Ratio • High quality TV sales and engineering leadership ensured a smooth transition to 1.16 Ten - and strong monetisation over the six 1.02 months ended Dec 31 2021 • Q1 performance was pleasing following 22.7% seamless sales t
Slide 19: The Opportunity for Growth
For personal use only THE OPPORTUNITY FOR GROWTH FIVE KEY INFLUENCES
Slide 20: The Opportunity for Growth
THE OPPORTUNITY FOR GROWTH For personal use only Radio market recovery to produce more growth Key revitalised shows maturing Digital Audio Market accelerating SCA’s LiSTNR to grow strongly Digital Transformation well advanced 20
Slide 21: Radio Recovery to Produce Further Growth
RADIO RECOVERY TO PRODUCE FURTHER GROWTH For personal use only • A strength of Radio is its exposure to a large Metro Audio Market portfolio of SME/Local advertisers along with 765 strong national advertiser ties. -25% +16% 666 +15% • National advertising categories led by Automotive 572 (-$25m1), H
Slide 22: Investing in Marquee Shows to Drive Engagement & Audience
For personal use only INVESTING IN MARQUEE SHOWS TO DRIVE ENGAGEMENT & AUDIENCE TRIPLE M’S LIVE FROM 6AM TRIPL 105.1 AlsoON (e) LISTNR SHEARGOLD SHOW
Slide 23: Digital Audio Market – Accelerating in U.S & Australia
DIGITAL AUDIO MARKET – ACCELERATING IN U.S & AUSTRALIA For personal use only • The U.S Digital audio market continues US Podcast Market (US$'m) to grow strongly 2500 • US podcasting market shows market 2000 exceeding US$1.0bn in 2021 and is forecast to exceed $2bn by 2023 1500 • Australian digital a
Slide 24: LiSTNR - Growing Strongly
LiSTNR - GROWING STRONGLY For personal use only LiSTNR achieves 500,000 signed-up users in first 12 months LISTNR Sign-ups February 500,000 2022 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 February 50,000 2021 0 Source: SCA Internal data 24
Slide 25: Leading Premium Slate of Engaging Talent
LEADING PREMIUM SLATE OF ENGAGING TALENT P WN f Pi nd ie y y 3S «' 4 \ yt > f V we \ , » Vow Vf *s j y ro 2 nds D a! {3 —> L ' /, n S * = 9 © 4 a, (
Slide 26: Audio Format Extensions & Innovation
AUDIO FORMAT EXTENSIONS & INNOVATION AUDIO FICTION AUDIO FICTION REAL CRIME & TRUE CRIME Episodic series Audio Movies Factual investigative journalism r personal use only Zoe a=), FOSTER BLAKE ¥ a il >) j / PHT | 4 sian niges oer r Younge! REALCRIME T ——— ff \e PODCASTS \ | ] \ , ae FROM AWARD-WINNI
Slide 27: Digital Transformation Maturing
DIGITAL TRANSFORMATION MATURING Transformed audio business - best practice processes, systems, deployed locally For personal use only Content Sales Technology A unified brand portfolio that A best-in-class suite of Sales Centralised Network Operations optimises the relationship Systems and Processes
Slide 28: Summary: Key Priorities & Trading Outlook
For personal use only SUMMARY KEY PRIORITIES & TRADING OUTLOOK
Slide 29: Key Priorities – The Year Ahead
KEY PRIORITIES – THE YEAR AHEAD • Revitalised new formats maturing - focus on key markets and formats to optimise ratings, For personal use only mature existing/new shows – while benefiting from improving mobility trends in key markets Revenue & • Advertising markets to grow further - radio will con
Slide 30: Trading Update
TRADING UPDATE Revenue For personal use only • Trading momentum strong in November & December. Recovery rate impacted across January & February by Omicron as some advertisers deferred approvals of campaigns due to disrupted supply chains and reduced consumer and business confidence. Pacing stronger
Slide 31: For personal use only
For personal use only
Southern Cross Media Group — H1 FY22 Earnings Presentation on 6ix