Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — FY2016 Earnings Presentation
24 slides from Southern Cross Media's earnings presentation, Aug 25, 2016
Slide 1: FY16 Investor Presentation
For personal use only SOUTHERN CROSS AUSTEREO FY16 INVESTOR PRESENTATION 25 August 2016 1
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 (“Southern Cross Austereo”) and contains summary information about Southern Cross Austereo’s activities current as at 25 August 2016. The
Slide 3: FY16 Results
For personal use only FY16 Results Grant Blackley 3
Slide 4: Results summary
Results summary For personal use only • Improvement across all key financial measures FY16 • Net Profit After Tax (NPAT) up 19.1% Revenue $642.3m 5.1% • Balance sheet repair complete after significant reduction in net debt EBITDA $167.7m 2.8% • Increased shareholder returns; NPAT* $77.2m 19.1% • Fin
Slide 5: Headline achievements
Headline achievements For personal use only • Advertising revenue growth across all asset classes – group revenue up 5.1% Sales • Outperformed the market in both Metropolitan Radio and Regional TV sales Performance • Regional Radio up by 6.1% - 5th consecutive year of advertising growth • Improved f
Slide 6: FY16 Financial Results
For personal use only FY16 Financial Results Nick McKechnie 6
Slide 7: Group reported statutory results
Group reported statutory results For personal use only $ millions FY15 FY16 Var. Revenue 611.1 642.3 5.1% Expenses (447.9) (474.6) (6.0%) EBITDA 163.2 167.7 2.8% EBITDA Margin 26.7% 26.1% nm Depreciation & Amortisation (28.5) (28.9) (1.4%) Significant items – Impairment (361.4) - nm EBIT (226.7) 138
Slide 8: Cashflow
Cashflow For personal use only $ millions FY16 • Strong EBITDA to cash conversion – 93.3% Opening Cash 143.1 • $215.0m debt repayment funded through Cash from Operations 156.5 combination of ATN proceeds, divestment Tax payment (32.8) of non core assets and improved free cash Payments for Non-Curren
Slide 9: Debt facilities
Debt facilities For personal use only Leverage Ratio • Drawn debt reduced by $215.0m to $435.0m 3.75 3.75 3.50 3.50 • $100.0m undrawn facility remains 3.12 • Net debt reduced by $166.7m (32.9%) 2.84 2.60 • Securitised receivables facility of $65.0m, 1.89 $36.8m utilised at 30 June Dec 2014 Jun 2015
Slide 10: Operational Review
For personal use only Operational Review 10
Slide 11: Operational Review
Operational Review For personal use only $ millions FY15 FY16 Var. Regional Revenue 361.6 382.2 5.7% • Revenue includes one off gain on sale of land of $5.6m • $4.7m adverse revenue and EBITDA impact from ATN Metro Revenue 224.1 242.3 8.1% contract • Revenue includes $5.0m loss on sale of network Co
Slide 12: Metro Radio
Metro Radio For personal use only $ millions FY15 FY16 Var. • Strong revenue growth resulting from share Total Revenue 224.1 242.3 8.1% improvement and solid market growth Broadcast & Production (19.1) (20.6) (7.9%) • $4.7m adverse revenue and EBITDA impact Employee (69.7) (84.4) (21.1%) from ATN co
Slide 13: Metro Advertising Revenue
Metro Advertising Revenue For personal use only $m’s Commercial Share¹ 222.2 204.0 29.1% 28.8% 28.7% 28.3% 28.4% 64.9 27.9% 27.5% 27.4% 65.9 157.3 138.1 Q1 Q2 Q3 Q4 FY15 FY16 National Local FY15 FY16 • Outperformed the market - SCA revenue up 8.9% compared to market growth of 5.9% • Revenue share up
Slide 14: Metro Radio - Investment in Content & Marketing
Metro Radio - Investment in Content & Marketing For personal use only Hit Network Triple M Network 4.5 0.1 1.2 5.0% 4.0 $3.6m $1.0m 0.1 1.0 3.5 $3.3m $0.9m 4.0% $0.8m 3.0 0.1 0.8 3.0% 2.5 $0.6m 0.0 0.6 2.0 $1.4m 2.0% 1.5 0.0 0.4 $0.9m 0.5% 0.5% 1.1% 1.1% 1.0 0.1% 0.7% 0.6% 1.0% 0.0 0.2 0.5 (1.5%) -
Slide 15: Regional – TV and Radio
Regional – TV and Radio For personal use only $ millions FY15 FY16 Var. • Group TV & Radio EBITDA up 14.3% with TV Revenue 202.3 213.2 5.4% revenues up 5.7% Radio Revenue 159.3 169.0 6.1% Total Revenue 361.6 382.2 5.7% • Cost control remains a key focus with Broadcast & Production (85.5) (87.3) (2.1
Slide 16: Regional Radio Advertising
Regional Radio Advertising For personal use only $m’s National/Local Split • 6.1% growth in advertising revenues 162.1 • Driven by improving blend of national and 152.8 local clients and better monetisation strategies 106.7 112.3 • Investment in 21 new audience surveys underpinning increased nationa
Slide 17: Regional TV Advertising Revenues
Regional TV Advertising Revenues For personal use only $m’s National/Local Split 190.2 • 3.1% growth in revenue achieved through 184.5 better monetisation of inventory and focus on 84.7 87.0 yield • General decline in TV Market assisted by 99.8 103.2 improved audience share • New landmark deal with
Slide 18: Regional TV Advertising Revenue Share
Regional TV Advertising Revenue Share For personal use only 4AGG Market TV Share Analysis (Channel 10)³ • Commercial revenue share up 2.5 points in H2 compared to increase 22.7% 22.7% in audience share of 1.2 points 22.0% 21.5% • H2 power ratio of 1.0 – up from 20.7% 20.7% 20.2% 0.94 18.7% • Task ah
Slide 19: Corporate
Corporate For personal use only $ millions FY15 FY16 Var. • Revenue and EBITDA impact of $5.0m – Total Revenue 25.4 17.8 (29.9%) due to loss on sale of network telecommunication asset (non-cash) Broadcast & Production (3.1) (3.6) (16.1%) • Other revenue down $2.6m, largely due Employee (34.1) (33.2)
Slide 20: Outlook and Strategic Vision
For personal use only Outlook and Strategic Vision 20
Slide 21: Outlook and guidance
Outlook and guidance For personal use only • Full year EBITDA expected to be in the range of $177 - $183m (up 6% to 9%) EBITDA • H1 EBITDA to be ~$92-$94m • Guidance includes full year impact from ATN, $(5.4)m revenue and EBITDA • Advertising revenue growth forecast across all assets in year ahead A
Slide 22: Strategic vision
Strategic vision For personal use only Leading • Continued investment in core radio brands across all 34 markets entertainment • Invest in improving premium audio and video inventory across our leading social, web and mobile assets provider • Identify and secure new content partnerships like VEVO -
Slide 23: For personal use only
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Slide 24: For personal use only
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