Nine Entertainment Co. Holdings Limited · ASX:NEC
Nine Entertainment — FY2024 Earnings Presentation
33 slides from Nine Entertainment's earnings presentation, Aug 28, 2024
Slide 1: FY24 Results
FY24 Results 28 AUGUST 2024
Slide 2: Mike Sneesby, Chief Executive Officer
Mike Sneesby Chief Executive Officer
Slide 3: Nine's Group Strategy
3 Nine’s Group Strategy Scale & Diversification INTEGRATED CONTENT AUDIENCE PLATFORM DATA Creating Australia’s Best Content & integrating our Data & Audience Platforms GROWTH Maximising Monetisation across multiple revenue Advertising Subscriptions Distribution & Licensing Transactions models Suppor
Slide 4: Milestones in FY24
4 Milestones in FY24 INTEGRATED AUDIENCE PLATFORM Implementation of new Consumer Data Platform Ongoing investment in More than 1.5b real CONTENT Upgrade of 9Now tech – DATA premium content generating with major application time data points growth in audiences releases across 29 platforms collected e
Slide 5: Nine's integrated audience platform comes to life in Paris
5 Nine’s integrated audience platform comes to life in Paris Total TV Total Publishing Total Audio Stan/Stan Sport 5000 hours of content (up from 300 hours in 2012) National reach of 19.5m people Daily average national TTV reach of 9.9m 9Now providing 16% incremental reach More than 50% increase in
Slide 6: Highlights including strong audience, growth in subscription revenues and reduced costs
6 Highlights including strong audience, growth in subscription revenues and reduced costs DIGITAL – ~50% OF TRADITIONAL MEDIA - SOLID PERFORMANCE GROUP REVENUE IN A CHALLENGING MARKET Up 5% with growth across all key digital revenue streams – Strong audience and revenue share performance Streaming,
Slide 7: Matt Stanton, Chief Financial and Strategy Officer
Matt Stanton Chief Financial and Strategy Officer
Slide 8: Group Results – Growth in Digital & Subscription, offset by weaker advertising market
8 Group Results – Growth in Digital & Subscription, offset by weaker advertising market Group Revenue Group EBITDA Group EBITDA Margin FY Dividend $2.6B $517M 19.8% 8.5 CPS (-3%) (-12%) (-2.1 pts) (11cps last year) A$M FY24 FY23 VARIANCE REVENUE1 2,619.4 2,694.6 (3%) GROUP EBITDA1 517.4 591.2 (12%)
Slide 9: Around $100m of total underlying cost out expected across FY24 and FY25
9 Around $100m of total underlying cost out expected across FY24 and FY25 FY24 FY25 $m Average 3.5% wage inflation Further $50m Includes UK Ashes and re underlying cost out NRL /WNRL targeted in FY25 contracts Of which $47m is underlying Refer to Glossary in Appendix 3 for definitions Total may not
Slide 10: Specific Items
10 Specific Items A$M H1 FY24 H2 FY24 FY24 DOMAIN - REFER DOMAIN ACCOUNTS (ASX:DHG), 14TH FEB 2024 (1.5) (6.5) (8.0) IMPAIRMENT OF GOODWILL, OTHER INTANGIBLES, PP&E AND INVESTMENTS (1.1) (21.6) (22.7) INVENTORY WRITE-DOWNS AND PROVISIONS (45.6) (4.6) (50.2) RESTRUCTURING COSTS (4.9) (19.8) (24.7) OT
Slide 11: Olympic Impact on Cash Flow to Unwind through H1 FY25
11 Olympic Impact on Cash Flow to Unwind through H1 FY25 Reported Cash Adjusted Cash FY24 Conversion1 Conversion1,2 Capex1 73% 93% $99M FY24 FY23 A$M DOMAIN FY24 ADJUSTED1 REPORTED ADJUSTED1 EBITDA (BEFORE ASSOCIATES) 519.1 136.2 382.9 487.6 WORKING CAPITAL (16.8) 8.5 (25.3) (40.4) WORKING CAPITAL –
Slide 12: Balance Sheet Remains Strong
12 Balance Sheet Remains Strong $m AS AT 30TH JUNE 2024, A$M CONSOLIDATED GROUP DOMAIN WHOLLY OWNED GROUP INTEREST BEARING LOANS AND BORROWINGS 732.8 184.6 548.2 LESS: CASH AND CASH EQUIVALENTS (92.8) (33.8) (59.0) NET DEBT/(CASH) 640.0 150.8 489.2 NET LEVERAGE 1.2X 1.1X 1.2X Refer to glossary in Ap
Slide 13: Divisionals
Divisionals FY24 Results
Slide 14: Total Television – Strong revenue share performance supported by audience growth
14 Total Television – Strong revenue share performance supported by audience growth Revenue1 contribution – FY24 Total Market3 Nine Revenue of Digital $2.7b $1,131M (-10%) (-10%) A$M FY24 FY23 VARIANCE EBITDA1,2 contribution – FY24 REVENUE NINE NETWORK 941.3 1,074.1 (12%) 9NOW 189.3 175.5 8% TOTAL R
Slide 15: Audience growth to underpin revenue performance from FY25
15 Audience growth to underpin revenue performance from FY25 TOTAL TV AUDIENCE GROWTH for Nine 1 Total People: +3.6% incl. broadcast +1.1% and streaming +50.5% 25-54s: +2.7% incl. broadcast -1.7% and streaming +42.9% Free to air BVOD #1 #1 #1 +13%3 +21%4 +46%5 Ratings Share Ratings Share Ratings Sha
Slide 16: Stan – Continues to deliver strong earnings growth
16 Stan – Continues to deliver strong earnings growth Revenue1 contribution – FY24 Paying Revenue Growth in Subscribers3 Growth overall ARPU 2.3m +5% +8% A$M FY24 FY23 VARIANCE REVENUE 447.7 427.6 5% COSTS – STAN ENTERTAINMENT 320.7 300.5 (7%) EBITDA1,2 contribution – FY24 COSTS – STAN SPORT 81.0 90
Slide 17: Nine Publishing – Metro Media outperforms
17 Nine Publishing – Metro Media outperforms Revenue1 contribution – FY24 Digital revenues ~ 62% of total revenue A$M FY24 FY23 VARIANCE DIGITAL REVENUE METRO MEDIA 258.9 248.7 4% DRIVE 21.0 19.9 6% EBITDA1,2 contribution – FY24 OTHER 69.1 83.0 (17%) PRINT REVENUE METRO MEDIA 209.6 223.4 (6%) TOTAL
Slide 18: Metro Media – Digital subscription revenue growth more than offsetting print decline
18 Metro Media – Digital subscription revenue growth more than offsetting print decline Revenue1 contribution – FY24 Digital Active Subscriber revenues Subscriptions ARPU4 ~ 55% of ~ 500k3 (+3.5% on pcp) total revenue (+8% on pcp) A$M FY24 FY23 VARIANCE DIGITAL REVENUE SUBSCRIPTION & LICENSING 197.3
Slide 19: Domain – positive turnaround in Melbourne and Sydney
19 Domain – positive turnaround in Melbourne and Sydney, benefitting from double digit yield increase Revenue1 contribution – FY24 A$M FY24 FY23 VARIANCE REVENUE RESIDENTIAL 265.8 223.1 19% MEDIA, DEVELOPERS & 51.5 47.8 8% COMMERCIAL AGENT SOLUTIONS 38.2 40.7 (6%) DOMAIN INSIGHT 18.7 17.3 8% CORE DI
Slide 20: Domain's market position is underpinned by Nine's Integrated Audience Platform
20 Domain’s market position is underpinned by Nine’s Integrated Audience Platform $ Transactions $ Advertising $ Advertising $ Subscription The next day Suzie, reads a car review on Drive.com.au, makes a new car enquiry and receives a Suzie is an SMH subscriber, she reads property articles targeted
Slide 21: Nine's partnership with Domain also enhances our first party data asset
21 Nine’s partnership with Domain also enhances the breadth and depth of our first party data asset Registered Watches live sport and Drive TV Enable targeting and measurement for Subscribed Advertising partners in premium content Watches Drama: Billions, Yellowstone environments (without cookies) R
Slide 22: Total Audio – Strong growth in streaming revenues
22 Total Audio – Strong growth in streaming revenues Radio Nine Radio Agency Digital Total listening Market1 Revenue Share Revenue hours2 -3.3% 16.7% Up 35% On PCP Up 12% On FY23 A$M FY24 FY23 VARIANCE REVENUE BROADCAST 97.5 102.1 (5%) DIGITAL incl. STREAMING 5.8 4.3 35% TOTAL REVENUE 103.3 106.4 (3
Slide 23: Trading Update & Outlook
Trading Update & Outlook Mike Sneesby
Slide 24: Trading Update
24 Trading Update Total Television Stan Publishing Domain Radio Audience performance from the Strong subscriber performance Ongoing strength in digital Ongoing growth into FY25 with Nine’s Q1 Audio revenues Olympics underpinning a strong start from Stan in Q1, with some audiences and ARPU for key me
Slide 25: Nine's Group Strategy
25 Nine’s Group Strategy Scale & Diversification INTEGRATED CONTENT AUDIENCE PLATFORM DATA Creating Australia’s Best Content & integrating our Data & Audience Platforms GROWTH Maximising Monetisation Advertising Subscriptions Distribution & Licensing Transactions across multiple revenue models Produ
Slide 26: Ambitions in FY25
26 Ambitions in FY25 INTEGRATED AUDIENCE PLATFORM Unprecedented pipeline of Completion of profitable tentpole sporting and cultural Games in Paris Growth and development of events across FY25 CONTENT Utilisation of gains (data and DATA 2nd generation data product, subscriber) made through incl. util
Slide 27: At Nine, we shape culture by sparking conversations
At Nine, we shape culture by sparking conversations, challenging perspectives, informing and entertaining our communities. We bring people together by celebrating the big occasions and connecting the everyday moments. Australia Belongs Here
Slide 28: Appendices
Appendices FY24 Results
Slide 29: Appendix 1: Group Divisional Results
29 Appendix 1: Group Divisional Results Revenue1 contribution – FY24 BROADCAST FY24 A$M TELEVISION TOTAL AUDIO STAN PUBLISHING DOMAIN3 CORPORATE ASSOCIATES INTERSEGMENT TOTAL REVENUE 1,130.6 103.3 447.7 558.6 395.7 1.2 - (17.7) 2,619.4 PCP 1,249.6 106.4 427.6 575.2 354.5 2.1 - (20.8) 2,694.5 % CHG (
Slide 30: Appendix 2: Forward Estimates
30 Appendix 2: Forward Estimates ITEM FY25 CORPORATE COSTS – WHOLLY OWNED ~$38M TO 40M DEPRECIATION & AMORTISATION - REPORTED ~$165M TO 175M INTEREST EXPENSE - REPORTED ~$55-65M TAX RATE - REPORTED ~30% CAPEX (EX DOMAIN) ~$95 TO 105M DIVIDEND 60-80% OF NET PROFIT AFTER TAX, BEFORE SPECIFIC ITEMS
Slide 31: Appendix 3: Glossary
31 Appendix 3: Glossary ARPU – Average Revenue Per User borrowings, excluding finance lease liabilities UA – Unique Audience BVOD – Broadcast Video on Demand Net Debt (Wholly Owned) – Net Debt for the Wholly Owned Group VOZ - Virtual OZ Cash conversion – Operating Cashflow pre Specific Items, tax an
Slide 32: Important notice and disclaimer
32 Important notice and disclaimer Important Notice and Disclaimer This document is a presentation of general background information about the activities of Nine Entertainment Co. Holdings Limited (“NEC”) current at the date of the presentation, (28 August 2024). The information contained in this pr
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