Nine Entertainment Co. Holdings Limited · ASX:NEC
Nine Entertainment — Macquarie Australia Conference 2018
16 slides from Nine Entertainment's conference presentation, May 1, 2018
Slide 1: Macquarie Australia Conference
MACQUARIE AUSTRALIA CONFERENCE 1 MAY 2018 ?2Nine Hugh Marks, Chief Executive Officer Nola Hodgson, Head of Investor Relations : X\ we TRUE STORY Se \ . ae =
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer and comments about future events, including NEC’s necessarily a guide to future performance and no This document is a presentation of general background expectations about the performance of its businesses. representation or warranty is made by any person as to the in
Slide 3: Australia's leading FTA network
Australia’s leading FTA Unique mix of leading local Diverse portfolio of leading Television content network in the key advertising and subscription digital platforms across production and distribution advertiser demographics based on demand television News, Sport, Entertainment services and Lifestyl
Slide 4: The way we operate is changing
T H E WAY W E O P E R AT E I S C H AN G I N G CONTENT P RE M I UM, L OCAL , AL L RI GHTS , F UL L Y I NTE GRATABL E DISTRIBUTION MONETISATION Premium BVOD Integrated YouTube Native content revenue partnership partner revenue partnership revenue 4 4 MAY 2018
Slide 5: Free to air television is Nine's traditional business
FREE TO AIR TELEVISION IS NINE’S TRADITIONAL BUSINESS NEWS PAPERS OOH RADIO TRADITIONAL TELEVISION FTA C I N E M A MAGS PAY TV 5 MAY 2018 Not to scale
Slide 6: But the opportunities are broader
BUT THE OPPORTUNITIES ARE BROADER R E T A I L A C T I V A T I O N & M E R C H . NEWS DIRECT PAPERS OOH RADIO SALES & MARKETING TRADITIONAL TELEVISION FTA MARKETING PAY MAGS TV C I N E M A G L O B A L T E C H . DIGITAL LEAD DISPLAY GEN. & VIDEO C O N T E N T A L L O T H E R VIDEO 6 MAY 2018 Not to sc
Slide 7: Nine's revenue composition is evolving
N I N E ’ S R E V E N U E C O M P O S I T I O N I S E V O LV I N G Share of Revenue - %; FY17 to FY22 100% VIDEO ON DEM AND PREMIUM TV & DIGITAL Traded TV & Digital to account for ~60% of our revenue – down from ~80% TRADED TV & DIGITAL 0% FY17 FY18 FY19 FY20 FY21 FY22 7 MAY 2018
Slide 8: Aggregation of premium audience
AG G R E G AT I O N O F P R E M I U M AU D I E N C E 1 Audience 2,500,000 2,000,000 16% 1,500,000 32% 17% 1,000,000 500,000 0 Married At First Sight - 2018 Australian Ninja Warrior The Block Overnight Time shift to 28 day Encore 9Now 1 Cal endar 2017, Met ro m arket s onl y 8 8 MAY 2018
Slide 9: Married at First Sight: across screen success
M AR R I E D AT F I R S T S I G H T: A C R O S S S C R E E N S U C C E S S Content Amplification Platforms 501 17.6 LIVE VPM MILLION MILLION +142% VOD MINUTES PAGE VIEWS YOY STREAMED Overnight Time-Shift Encore Catch-Up Total Audience 1,696,876 134,902 304,195 237,737 2,373,710 PER EPISODE Source: O
Slide 10: Nine's strong balance sheet provides significant optionality
INVESTING IN THE FUTURE OF NINE TELEVISION BVOD SVOD DIGITAL PUBLISHING • Migration to local content • Strong revenue growth • Continue to build on strong • Aim to efficiently extend and continuing local leadership in a growing market content beyond Free • Increasing rights acquired market To Air TV
Slide 11: Strong ratings & revenue momentum
S T R O N G R AT I N G S & R E V E N U E M O M E N T U M NO.1 NO.1 NO.1 +4% ACHIEVED EVERY FTA AD REV IN 25-54S 25-54S WITHIN A BUYING DEMO SHARE +3PTS +2.5 PTS 2 AUDIENCE2 FLAT COST CALENDAR YR 2017 38.3%1 SURVEY YTD 2018 SURVEY YTD 2018 BASE CALENDAR YR 2017 METRO NETWORK COMMERCIAL SHARE - 6AM-MI
Slide 12: 9Now: a growing business
9NOW: A GROWING BUSINESS STREAMS REVENUE 5.8M +98% YOY +80% +86% REGISTERED GROWTH IN 6 MTHS TO DEC 2017 6 MTHS TO DEC 2017 USERS MAFS AS AT 30 APRIL STREAMS M 14.0 13.0 Married at First 12.0 Subscribers LF Streams Sight Married at First Chopper Sight 11.0 Underbelly Talking Married Travel Travel Gu
Slide 13: Maintaining growth trajectory
M AI N TAI N I N G G R O W T H T R AJ E C TO RY • Built a business of scale in a new category in just three years • Clear local leader in the market • Competitive content line-up • Strategic partnerships with studios and networks, including Showtime • Funding to date of ~$110m – approaching cash flo
Slide 14: Digital publishing
D I G I TAL P U B L I S H I N G • 4.9m unique audience1 • #2 commercial news website1, up 7% month-on-month • No 1 time spent per person, at just over one hour1 • 1.8m unique audience, up 1.2% month-on-month1 • #1 engagement in sector • Revenue growth of more than 100% in March quarter • #1 audience
Slide 15: Trading update
T R AD I N G U P D AT E NINE’S METRO FTA REVENUES ARE TRADING ~5% AHEAD OF SAME TIME LAST YEAR (CYTD) CORE DIGITAL REVENUES 1 ARE PACING ~21% AHEAD FOR THE SAME PERIOD • Metro market growth of c2% for FY18 TELEVISION • Share of at least 38.5% • Growth in 9Now and Digital Publishing to offset lower D
Slide 16: :33:Nine
:33:Nine
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