Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — Investor Presentation (August 2021)
26 slides from Southern Cross Media's investor presentation, Aug 18, 2021
Slide 1: Southern Cross Austereo FY21 Investor Presentation
SOUTHERN CROSS AUSTEREO FY21 INVESTOR PRESENTATION 18 AUGUST 2021
Slide 2: Disclaimer
DISCLAIMER 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 18 August 2021. The information in this presentation is of a general background natu
Slide 3: FY21 Results
FY21 RESULTS Grant Blackley CEO
Slide 4: Group Results Summary
GROUP RESULTS SUMMARY • EBITDA of $126m, up 16.4% or $17.7m on prior year. $ millions FY21 FY20 Var. (May 21 guidance was $118m - $125m) Revenue 529.1 540.8 (2.2%) • NPAT of $48m up 91.6% or $23m on prior year • Revenue for FY21 was 2.2% lower than in FY20 Expenses (403.2) (432.6) (6.8%) following s
Slide 5: Headline Achievements
HEADLINE ACHIEVEMENTS • Investment in Digital audio resulting in revenue growth of 40% in FY21. Strategic goal to implement and embed a sustainable Digital Audio First Operating Model Sales & • Investment in core formats and marketing across both the Hit and Triple M networks Content Performance • S
Slide 6: FY21 Financial Results
FY21 FINANCIAL RESULTS Nick McKechnie CFO N
Slide 7: Group Reported Statutory Results
GROUP REPORTED STATUTORY RESULTS FY21 FY20 Var. $ millions Revenue 529.1 540.8 (2.2%) • NPAT $48.1m, up 91.6% or $23m from FY20 Expenses (403.2) (432.6) (6.8%) • Group EBITDA margin of 23.8% - up from a EBITDA 125.9 108.2 16.4% 20% margin in prior year EBITDA Margin 23.8% 20.0% • Revenues down only
Slide 8: Cashflow
CASHFLOW $ millions FY21 FY20 Opening Cash 271.4 32.4 • Free cashflow of $79m Net Cash from Operations 131.4 121.6 Leases (6.2) (7.5) • Cash collection has remained Tax Payment (16.0) (18.3) strong with no adverse changes in Payments for Non-Current Assets (13.8) (16.7) collection profiles Proceeds
Slide 9: High Quality of Earnings
HIGH QUALITY OF EARNINGS Free Cash Conversion Consistent high quality earnings over past 5 years 138% • Free cash conversion of 122.2% 90% - 100% Normalised range 122% • Cash conversion in last 2 years aided by working capital cycle and restrained capital investment 94% 91% 86% • FY22 cash conversio
Slide 10: Strong Balance Sheet
STRONG BALANCE SHEET Leverage Ratio $330M 4.50 4.50 4.50 3.50 3.50 3.50 2.29 1.76 1.24 0.59 0.43 Jun 19 Dec 19 Jun 20 Dec 20 Jun 21 Dec 21 Covenant Leverage Ratio (LTM EBITDA) Net debt reduced to $53m, 60% down on June 20 • $275m of debt repaid in FY21, debt facility reduced to $250m with $128m curr
Slide 11: Operational Review
OPERATIONAL REVIEW
Slide 12: Operational Review
OPERATIONAL REVIEW $ millions FY21 FY20 Var. EBITDA was $126m, 16.4% above prior corresponding period Audio Revenue 359.7 371.1 (3.1%) Television Revenue 169.0 169.5 (0.3%) • Audio EBITDA up 6% to $115m. Revenue back 3.1% on prior year, aided by strong recovery in Corporate Revenue 0.4 0.2 137.3% re
Slide 13: Operating Costs
OPERATING COSTS $ millions FY21 FY20 Var • Revenue related costs for FY21 are 30% of revenue, up 1pt in FY21 due to strong Revenue 529.1 540.8 (2.2%) recovery of lower margin TV Revenue. Revenue Related • Non revenue related (NRR) costs reduced (158.4) (156.7) 1.1% Costs $31m or 11.2% from $276m in
Slide 14: Category Analysis
CATEGORY ANALYSIS Top 10 Categories Restricted Categories % variance to prior comparative periods % variance to prior comparative periods H1 FY21 v. H2 FY21 v. H1 FY21 v. H2 FY21 v. H1 FY21 v. H2 FY21 v. H1 FY21 v. H2 FY21 v. H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY19 H2 FY19 H1 FY20 H2 FY20 13.0% 24%
Slide 15: Audio - Overview
AUDIO - OVERVIEW $ millions FY21 FY20 Var. EBITDA of $115m up 6.0% with margin improved to 32.0% Total Revenue 359.7 371.1 (3.1%) • Revenue 3.1% down on prior year, H2 Revenue Related Expenses (61.3) (59.0) 4.0% revenues up 16.3% on p.c.p. Employee Expenses (122.6) (138.0) (11.1%) • Total expenses d
Slide 16: Audio – Radio Advertising Revenues
AUDIO – RADIO ADVERTISING REVENUES $m’s National Local Regional radio revenue has recovered faster than metro radio with only 2.7% decline over prior year 176.6 162.8 158.4 167.0 • National Regional Radio provided solid 42.9 growth of +10%, the impact of improved 42.5 monetisation, the continued Boo
Slide 17: Digital Advertising
DIGITAL ADVERTISING Digital Revenue Digital revenue continues to accelerate following further maturing of SCA’s Instream service and after launch of $15.4m LiSTNR. Total Digital Audience Network of 4.5m listeners +40% Instream revenue (Addressable Advertising) • Live radio streaming reach of 1.5m, u
Slide 18: LiSTNR Audio Consumption
LiSTNR AUDIO CONSUMPTION 1,600,000 The house of LiSTNR prides itself on 4 content verticals – Radio, Music, Podcasts & News. 1,400,000 LiSTNR Sport vertical will soon launch with 5x growth in listening streaming content from the AFL, NRL and 1,200,000 Cricket Australia 1,000,000 • Radio streaming ha
Slide 19: LiSTNR Audio Consumption
LiSTNR AUDIO CONSUMPTION • Consider additional slide highlighting specific pieces of new content and key pillars? 19
Slide 20: LiSTNR Audio Consumption
LiSTNR AUDIO CONSUMPTION • Consider additional slide highlighting specific pieces of new content and key pillars? 20
Slide 21: LiSTNR Audio Consumption
LiSTNR AUDIO CONSUMPTION • Consider additional slide highlighting specific pieces of new content and key pillars? 21
Slide 22: Television - Overview
TELEVISION - OVERVIEW EBITDA of $38.1m up 59.7% with margin $ millions FY21 FY20 Var. improving to 22.5% • TV revenue led the overall market recovery Total Revenue 169.0 169.5 (0.3%) and continues to post good momentum Revenue Related (97.1) (97.5) (0.4%) Expenses • Revenue related expenses at 57.5%
Slide 23: Television – Power Ratio
TELEVISION – POWER RATIO Commercial Share & Power Ratio • Market leading power ratio 1.11 1.09 1.11 1.11 maintained in H2, despite market 1.05 1.07 uncertainty on affiliation switch • Unparalleled TV sales leadership has 37.7% 38.5% 38.3% 37.6% 37.10% 37.20% ensured a smooth transition and 35.9% 35.
Slide 24: Key Priorities – The Year Ahead
KEY PRIORITIES – THE YEAR AHEAD • Grow Radio Audiences – remain laser focused on the improvement of high value Revenue & economic formats to increase ratings and revenue Audience • Optimise TV Earnings – continue to deliver strong revenue to ratings power ratios to maximise earnings • Digital Audio
Slide 25: Trading Update
TRADING UPDATE Revenue • Group Audio revenues up circa 20% for both July & August against pcp • Television revenues have achieved internal targets for July & August, on target to deliver EBITDA neutral outcome across FY22 (exc. JobKeeper & PING funding) • Digital revenues expected to grow by 75% - 1
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