Slide 1: Full year results
Full year results 27 November 2015
Slide 2: Agenda
Agenda • Executive summary • Financial review • Strategic overview • Media Division • Magazine Division • Summary and outlook 2 Preliminary Results | 27 November 2015
Slide 3: Executive summary
Executive summary • FY15 results ahead of expectations • Strategy delivered as expected • Successfully completed transformation • Generated momentum; building on existing strengths and market position • Moving into optimisation phase • New revenues streams growing and focus on margin growth • Buildi
Slide 4: Financial review
Financial review Penny Ladkin-Brand – Chief Financial Officer 4
Slide 5: Financial highlights
Financial highlights Continuing: £m FY15 FY14 Revenue 59.8 66.0 EBITDAE 3.6 (7.0) EBITE 0.8 (10.3) Pre-tax loss (2.3) (35.4) Adjusted earnings/loss per share 0.0p (3.2)p Net (debt) / cash (1.8) 7.5 • Significant improvement in EBITDAE • Adjusted loss per share excludes exceptional items • Cash outflow
Slide 6: FY15: Group performance - revenue
FY15: Group performance - revenue £m FY15 FY14 UK 47.3 53.1 US 13.4 13.7 Digital & Intragroup (0.9) (0.8) Diversified Print 47% 53% Total continuing 59.8 66.0 • 47% of revenue from Digital & Diversified activities • E-commerce and affiliates up 200% and high GC margin • Events up 23% and attractive GC m
Slide 7: FY15: Group performance - EBITDAE
FY15: Group performance - EBITDAE FY15 FY14 EBITDAE £m £m • Group EBITDAE £3.6m, ahead of UK 3.3 (5.3) expectations US 0.3 (1.7) • All territories profitable with the US continuing H1 trends Total continuing 3.6 (7.0) • Significant EBITDAE margin improvement to 6% EBITDAE margin UK 7% (10)% US 2% (12)
Slide 8: P&L exceptional items
P&L exceptional items £m FY15 FY14 Exceptional items 2.5 7.5 Impairment - 16.8 Total P&L exceptional items and impairment 2.5 24.3 Exceptional costs include : • Restructuring costs of £2.8m - redundancies and property rationalisation • Gain of £0.3m on sale of UK property 8 Preliminary Results | 27
Slide 9: FY15: Cashflow
FY15: Cashflow £m • Outflow from operations includes working capital payments relating to disposed titles FY14 net cash 7.5 Cash used in operations (2.3) • Significant restructuring payments - £3.2m reorganisation and £2m property Restructuring (5.2) • Cash inflow from sale of Bath property and Interest
Slide 10: Business update and strategy
Business update and strategy Zillah Byng-Thorne – Chief Executive 10
Slide 11: Momentum built: leading into optimisation
Momentum built: leading into optimisation Transformation Momentum Optimisation Phase 1 Phase 2 Phase 3 H2 FY14 – H1 FY15 FY15 FY16+ Strategic Review Leaner Simpler Business Brilliant at the Basics Monetising the Customer Need Content that Connects 11 Preliminary Results | 27 November 2015
Slide 12: A virtuous cycle within our business
A virtuous cycle within our business Leading Content Ecommerce Experiential revenues revenues Advertising revenue 12 Preliminary Results | 27 November 2015
Slide 13: FY16: creating shareholder value
FY16: creating shareholder value Optimising the structure for growth • Maximise shareholder value by splitting into two divisions: Media and Magazine • Brand focused and organised around culture • Two divisions are margin enhancing with transparency of overhead Media Division Magazine Division Marke
Slide 14: Media division
Media division 14
Slide 15: Exploiting global brands through diverse revenue streams
Exploiting global brands through diverse revenue streams E-commerce Digital leadership • Golden Joysticks • 4.5m social followers games download shop • No.1 PC Gaming (fulfilment by Exertis brand in UK and US Storm) beta launch October Industry event leadership Experiential events • Over $650k of sp
Slide 16: Optimising via diversified revenue streams
Optimising via diversified revenue streams • Continues execution of strategy, with three Event growth growth revenue streams; e-commerce, events, digital advertising • The Photography Show expanding into US Sept 2016 and plans to license in other • New revenue streams have initially negative countrie
Slide 17: Case study: techradar
Case study: techradar • Repositioned the brand as “the home of technology”, the place techradar:The Home of Technology for all consumer technology needs • Capitalised on growing technology market via new market sectors with three new content channels: “Wearables”, “How To” and “Car Tech” • Huge glob
Slide 18: Magazine division
Magazine division 18
Slide 19: Optimising via leadership in print
Optimising via leadership in print Print vertical leadership • Technology: total circulation c.312k; c.214k subscribers • Games & Entertainment: total circulation c.252k; c.112k subscribers • Photography: market leading portfolio with total circulation c.100k; 50k subscribers • Music: total circulat
Slide 20: Case study: T3
Case study: T3 • Re-launch of iconic T3 brand • Re-launched magazine in May 2015 – “Life’s better with T3” • T3 Squared – supplements every month • Ad revenues growing vs last year. • T3 UK newstrade sales up 31% in FY15 H2 vs. H1, increasing market share 20 Preliminary Results | 27 November 2015
Slide 21: Summary and outlook
Summary and outlook • FY15 results ahead of expectations • Strategy delivered as expected • Successfully completed transformation • Generated momentum; building on existing strengths and market position • Moving into optimisation phase • New revenues streams growing and focus on margin growth • Buil
Slide 22: Appendix
Appendix Media Division Brands Magazine Division Brands techradar Mac|Life Total Guitar GamesRadar+ Maximum PC ImagineFX Pcgamer.com Total Film Computer Music T3 net Creative Bloq TechLife Guitarist Digital Camera World Digital Camera Computer Arts MusicRadar PC Gamer Future Music T3.com MacFormat W
Slide 23: Global online audience with very desirable demographics
Global online audience with very desirable demographics Future and its Partners reach 62% of the 18-44 male audience in the UK 23 Preliminary Results | 27 November 2015
Slide 24: Targeting two of the hottest industries
Targeting two of the hottest industries Technology Games Global gaming software revenue by platform Growing 5.9% ***** US UK £22.9bn UK tech market sales revenue 2014 $225bn N. America tech market sales revenue 2014 Global +5.3% 2015 YoY tech market growth Global 2016 YoY tech +5.9% market growth So