Zinc Media Group Plc · LSE:ZIN
Zinc Media — Ten Alps — H1 2007-8 Earnings Presentation
25 slides from Zinc Media's earnings presentation, December 2007
Slide 1: The Factual Media Company
TEN ALPS THE FACTUAL MEDIA COMPANY
Slide 2: Presentation Team
THE FACTUAL MEDIA COMPANY Presentation Team Alex Connock Chief Executive Officer Nitil Patel Financial Director Adrian Dunleavy Chief Executive Officer, Communications Division 2
Slide 3: Disclaimer
THE FACTUAL MEDIA COMPANY This presentation is being made only in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, that is investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2
Slide 4: The Factual Media Company
THE FACTUAL MEDIA COMPANY The Factual Media Company Ten Alps provides factual content - online, on TV and in print Ten Alps produces dozens of factual TV programmes, online TV channels and features, 630 specialist magazines, hundreds of websites and scores of events Modern, multi-platform business m
Slide 5: Trading review - December 2007
THE FACTUAL MEDIA COMPANY Trading review - December 2007 Good operational trading results Strong current trading delivering on-target results for the full year to March ‘08 Both profits growth and investments were ahead in half year, cancelling each other out Online TV delivery £1m investment progra
Slide 6: Interim results - Headline numbers
THE FACTUAL MEDIA COMPANY Interim results - Headline numbers First half First half Full year £’000’s 2007-8 2006-7 2007 Revenue 37,566 33,578 69,045 EBITDA 1,967 1,911 3,170 PBT 1,494 1,611 2,750 Basic Eps 2.20p 1.93p 3.47p Note: The charge for the period under IFRS was £168,000 (2006: £Nil) whilst
Slide 7: Continued Profit and Revenue growth
THE FACTUAL MEDIA COMPANY Continued Profit and Revenue growth EBITDA (adj for online investment) Revenue (000’s) (000’s) 3,000 40,000 2,500 30,000 2,000 1,500 20,000 1,000 10,000 500 0 0 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2003 2004 2005 2006 2007 2008 2002 2003 2004 2005 2006 2007 2008 Online in
Slide 8: Group Profit & Loss
THE FACTUAL MEDIA COMPANY Group Profit & Loss 6 months 6 months Year to £’000’s to 30/09/2007 to 30/09/2006 31/3/2007 Revenue 37,566 33,578 69,045 Operating costs before amortisation (35,599) (31,667) (65,875) EBITA 1,967 1,911 3,170 Amortisation of intangible assets (168) - (17) Operating profit 1,
Slide 9: Selected Group balance sheet items
THE FACTUAL MEDIA COMPANY Selected Group balance sheet items £’000’s At 30/09/2007 At 30/09/2006 At 31/3/2007 Cash 10,812 13,183 14,368 Net current assets 768 3,754 4,520 Bank loans - current 3,250 2,000 1,000 Bank loans - non-current 8,800 7,350 9,150 Net assets 15,683 13,724 14,372 9
Slide 10: Group cash flow items
THE FACTUAL MEDIA COMPANY Group cash flow items 6 months 6 months Year to £’000’s to 30/09/2007 to 30/09/2006 31/3/2007 Profit for the period 1,292 1,111 2,010 Add back: Taxation 202 500 740 Depreciation 360 354 685 Amortisation 168 - 17 FRS 20 share based payment charge 10 14 23 Loss on sale of fix
Slide 11: Ten Alps is organised in two divisions
THE FACTUAL MEDIA COMPANY Ten Alps is organised in two divisions Digital content is now central to both Ten Alps Broadcast Ten Alps Communications (33% of revenue) (67% of revenue) TV RADIO ONLINE TV DIGITAL EVENTS PRINT 11
Slide 12: Communications Division
THE FACTUAL MEDIA COMPANY Communications Division managed by Adrian Dunleavy Growth of Communications businesses, supplemented by bolt on acquisitions, consolidation and cross selling across the group Good performance from publishing, events, marketing, communication companies All business units per
Slide 13: The range of Communications output
THE FACTUAL MEDIA COMPANY The range of Communications output 630 Publications in Print Video Production 270 initiated Publications on Web 14 100 Web TV Channels Communications Web sites developed 65 59,000 Events organised 120 Adverts sold Corporate projects 13
Slide 14: Revenue growth by commercial activity
THE FACTUAL MEDIA COMPANY Revenue growth by commercial activity Revenue split Year on year revenue growth 6.8% 21.2% 4.7% 259.4% 50% 40% 42.8% 259.4% 30% 29.6% 20% 24.4% 10% 67.3% 0% Publishing Corporate Communications Events Digital 14
Slide 15: Performance - Communications
THE FACTUAL MEDIA COMPANY Performance - Communications 6 months 6 months Year to £’000’s to 30/09/2007 to 30/09/2006 31/3/2007 Revenue 24,678 18,670 39,367 Gross profit 7,726 6,000 11,842 Organic Growth On Line Leaders Cross Selling Targeted Acquisition 15
Slide 16: Cross-selling events
THE FACTUAL MEDIA COMPANY Cross-selling events Owned events Leverage off sector expertise Government Transport Education Legal Environment Trade Public sector Delegate / Sponsorship model 18 staff and growing Event Video / Event Web/Public TV 16
Slide 17: Owning B2B online video distribution
THE FACTUAL MEDIA COMPANY Owning B2B online video distribution Our own video channels 14 sector specific channels User generated content Sponsor content Ten Alps Publications Commercial opportunities Sold by sector sales teams Links Banners / Buttons Sponsorship Content Advertisements 17
Slide 18: Making money in online video
THE FACTUAL MEDIA COMPANY Making money in online video Full video services Digital On line advertising Corporate Communications Film High quality, low cost video Delivery Multi-Platform Client/Sector Web, Free Access Web, Public TV, DVD - Sales / Marketing, Events 18
Slide 19: Broadcast Division
THE FACTUAL MEDIA COMPANY Broadcast Division Managed by Nitil Patel This was a flat period, but good second half is underway from factual TV companies Strong full year revenues from core production companies Blakeway and Brook Lapping Good development slate Dispatches for Channel4, documentaries for
Slide 20: Performance - Broadcast
THE FACTUAL MEDIA COMPANY Performance - Broadcast 6 months 6 months Year to £’000’s to 30/09/2007 to 30/09/2006 31/3/2007 Revenue 12,921 14,886 29,678 Gross profit 2,900 3,600 7,078 21
Slide 21: Group priorities for '08
THE FACTUAL MEDIA COMPANY Group priorities for ‘08 Continued acquisition programme to enhance existing operations - wide range of low-multiple opportunities Major push in online video advertising production - clear opportunity to be UK market leader Further development of online TV on contract publi
Slide 22: History
THE FACTUAL MEDIA COMPANY History Founded in 1999 by Alex Connock and Bob Geldof Listed 2001 @ 23p with 10 staff and revenues below £2m Now 650 staff, 61,000 clients and revenues this year well above £75m Consistent EPS growth Revenue growth compound 45% over 6 years to June 2007 Average of 2 acquis
Slide 23: 5 years of growth
THE FACTUAL MEDIA COMPANY 5 years of growth Ten Alps fundamentals Year ending Revenue (£m) Pre-tax (£m) EPSP EPS Grth 31-Mar-03 13.06 0.08 0.20p -90% 31-Mar-04 16.73 0.13 1.33p +565 31-Mar-05 34.75 0.63 1.81p +36 31-Mar-06 42.21 1.66 2.54p +40 31-Mar-07 69.04 2.26 3.88p +53 24
Slide 24: Ten Alps Team
THE FACTUAL MEDIA COMPANY Ten Alps Team Alex Connock - co-founder, graduate of Oxford & Columbia, INSEAD, TV production background Nitil Patel - ex Sayers Butterworth & Planet 24 Adrian Dunleavy - former Chief Executive McMillan Scott, Nationwide Accident Repair Service Plc & NTS Ltd Derek Morren -
Slide 25: Some Clients
THE FACTUAL MEDIA COMPANY Some Clients 26