Nine Entertainment Co. Holdings Limited · ASX:NEC
Nine Entertainment — Macquarie Australia Conference 2020
18 slides from Nine Entertainment's conference presentation, May 5, 2020
Slide 1: Presentation to Macquarie Conference
PRESENTATION TO MACQUARIE CONFERENCE 5 May 2020: Attached is a copy of Nine’s presentation to the Macquarie Australia Conference 2020. Authorised for lodgment by Hugh Marks, Chief Executive Officer. Further information: Nola Hodgson Victoria Buchan Head of Investor Relations Director of Communicatio
Slide 2: Hugh Marks | Chief Executive Officer
H U G H M A R K S | C H I E F E X E C U T I V E O F F I C E R N O L A H O D G S O N | H E A D O F I N V E S T O R R E L A T I O N S
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer expectations about the performance of its businesses. reasonableness of any forward looking statements, forecast This document is a presentation of general background Forward looking statements can generally be identified by financial information or other forecast. No
Slide 4: Nine has successfully repositioned its business
NINE HAS SUCCESSFULLY REPOSITIONED ITS BUSINESS 3
Slide 5: Strong positions in all key markets
STRONG POSITIONS IN ALL KEY MARKETS BROADCASTING 9NOW METRO MEDIA STAN DOMAIN NO.1 NO.1 NO.1 AND 2 NO.1 NO.2 Audience share BVOD operator by Total news Australian Real estate every demographic1 audience and audience SVOD marketplace revenue2 (print + digital)3 operator NO.1 (The Sydney FTA revenue s
Slide 6: ~$1B annual content investment distributed across evolving platforms
~$1B ANNUAL CONTENT INVESTMENT DISTRIBUTED ACROSS EVOLVING PLATFORMS 29% 25% 25% 21% News & Local Entertainment Sport International Current Affairs Broadcast Broadcast Broadcast Broadcast BVOD BVOD Streaming BVOD Metro Media Stan Metro Media Stan Digital Platforms Nine’s business model will continue
Slide 7: Linear TV is now less than 50% of revenue
LINEAR TV IS NOW LESS THAN 50% OF REVENUE1 2017 2020est Linear TV 9Now Nine Digital Linear TV 9Now Nine Digital Stan Stan Metro Media Radio Domain (59.2%) 1 FY20 based on Nine’s FY20 estimates , Share of Revenue, economic interested adjusted basis 6
Slide 8: Resulting in reduced reliance on advertising revenue
RESULTING IN REDUCED RELIANCE ON ADVERTISING REVENUE 1 FROM 98% IN 2017 OTHER, INCL SUBSCRIPTION ACCOUNTS FOR ~23% 70% OF TOTAL REVENUES IS DOMAIN FROM ~7% ADVERTISING Advertising Domain Other, incl subscription 7 1 FY20 estimates, Other includes Stan and Metro Media’s non-advertising revenues
Slide 9: ~30% growth in digital EBITDA to almost half of total group
~30% GROWTH IN DIGITAL 1 EBITDA TO ALMOST HALF OF TOTAL GROUP 2 ~30% ~45% of total EBITDA2 28% of total EBITDA FY19 FY20est Digital 8 1 Digital includes 9Now, 9Digital, Stan and the digital components of Domain (59%) and Metro Media 2 Based on Nine’s FY20 estimates, pre AASB16
Slide 10: The average Australian consumes ~125 hours of long form video per month
THE AVERAGE AUSTRALIAN CONSUMES ~125 HOURS OF LONG FORM VIDEO PER MONTH 1 2015 79% 2019 55% 0 20 40 60 80 100 120 140 FTA Pay TV SVOD BVOD WITH NINE’S SHARE 1 STEADY OVER PAST FOUR YEARS 2015 24% 2019 24% 0 20 40 60 80 100 120 140 Nine Netflix Other 9 1 Nine estimates based on available data
Slide 11: Audiences are turning to Nine for quality content
AUDIENCES ARE TURNING TO NINE FOR QUALITY CONTENT Television Video on Demand Digital & Publishing Radio 10
Slide 12: Audience growth across broadcast platforms
AUDIENCE GROWTH ACROSS BROADCAST PLATFORMS NINE NETWORK TOTAL PEOPLE, WEEKLY AVERAGE, 6AM-MIDNIGHT 500,000 450,000 400,000 350,000 300,000 Mar Apr 2020 2019 9NOW MINUTES STREAMED, DAILY 1 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 2020 2019 0 Mar Apr 11 1 Excludes Married At Fi
Slide 13: Metro Media benefits from audience growth
METRO MEDIA BENEFITS FROM AUDIENCE GROWTH WEEKLY SUBSCRIPTION REVENUE Average monthly +9%1 averageAverage monthlymonthly +4% +4%1 January February March April Home delivery + digital Digital Only +36% 2 2 2 +38% +89% Sydney Morning Herald The Age The Australia Financial Review Growth in unique Growt
Slide 14: More subscribers watching more Stan
MORE SUBSCRIBERS WATCHING MORE STAN AVG HOURS STREAMED PER ACTIVE SUBSCRIBER PER MONTH 40 38 36 34 32 30 28 26 24 22 20 21% GROWTH $250M In viewing per sub over Revenue run-rate in May past three months (ex GST) (Feb-Apr) 13
Slide 15: Significant cost initiatives across the business
SIGNIFICANT COST INITIATIVES ACROSS THE BUSINESS COST SAVINGS - P&L BASIS, FY19 to FY212 140 120 Includes est. annualized savings and cost initiatives 100 that manifest in revenue 80 60 40 20 0 Television1 Radio Metro Media Digital Publishing one-off recurring recurring - other ~$289M3 $150M Previou
Slide 16: Further opportunities for change
FURTHER OPPORTUNITIES FOR CHANGE BROADCAST 9NOW METRO MEDIA STAN DOMAIN Sports rights Growth in streaming Acceleration of Acceleration of Strengthening agent as % of total viewing reader revenue subscriber build relationships through Sales costs model, particularly support initiatives Growth in digi
Slide 17: Trading update
TRADING UPDATE DIGITAL & BROADCASTING STAN DOMAIN (59.2%) PUBLISHING • Q3 FY20 FTA market revenue • Digital (incl bundle) • Strong growth in active • Q3 Digital revenue up 3%, -9.5%. Nine‘s share of 43.9% subscription revenue growth subscribers and per and Total revenue up 1% (+3.1 pts). Nine’s Q3 r
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