Arn Media Limited · ASX:A1N
Arn Media — FY2021 Earnings Presentation
31 slides from Arn Media's earnings presentation, Feb 23, 2022
Slide 1: FY21 Results Presentation
Tee FY21 Results Presentation February 2022
Slide 2: Agenda
• FY21 Financial Highlights • Investor Proposition • Group Financials • Executing our strategy • Outlook FY21 Results Presentation
Slide 3: FY21 Financial Highlights
Revenue1 EBITDA2 EBIT2 NPAT2 $225m $59.8m $45.9m $28.8m +16% +21% +41% +87% EPS2 Cash flow from Full Year Dividend operating activities3 10.4cps $34.2m 7.4cps Fully franked +89% +51% Final Dividend 3.9cps 1. On a like basis, excluding disposed businesses (iNC & The Roar) in 2020 FY21 Results Present
Slide 4: Track record as leading radio broadcaster
FY21 Future focus and opportunity Track record as leading No. 1 rated metro network; 5.4m weekly listeners Leverage our market leading talent, brands and content across all radio broadcaster our distribution channels - metro, regional and digital Radio revenue grew at 13% as ad market recovered Grow
Slide 5: Broadcast and digital audience network; 2022 priorities
• 8 million broadcast and digital audience network A$ million CY19 CY20 CY21 FY21 Local 69 65 67 71 • 2022 priorities National 27 27 30 30 Digital 3 4 4 5 − Ensure local revenues continue to perform strongly Revenue 99 96 101 105 (1) Pro forma Revenue 105 96 101 105 − Grow our share of national reve
Slide 6: Podcasting, Live Streaming, The Edge
Podcasting Live Streaming The Edge • 60% of the population (12+) have listened to a • Digital live listening to radio growing with 66% of • Building a new brand and commercial offering for podcast (up from 32% in 2020) the population now streaming ARN • 37% listened monthly in 2021, up from 25% in •
Slide 7: Group Financials
FY21 Results Presentation
Slide 8: Group financial results
• Like basis comparatives remove the impacts of sold businesses; JobKeeper 2021 2020 A$ million Reported Restated excluded from underlying historical EBITDA Revenue before finance income 225.0 196.1 • Revenue up $29.0m (15%); 16% on a like basis Other income 0.7 2.1 - Ad spend returning in markets o
Slide 9: Australian Radio Network results
• Radio revenues up 13% A$ million 2021 2020 % Change % change Excl iNC • Digital audio revenues up 48% on a like basis and The Roar • Total costs up 14% on a like basis Radio 186.2 165.2 13% 13% - Costs of sales growth on higher revenues Digital 9.4 8.9 5% 48% - People & Opex costs at low end of H1
Slide 10: Radio and digital segment results
% Excl disp businesses • Radio ad market part-recovery and strong cost control fundamentals A$ million 2021 2020 Change 2020 % Change 2019 delivering improved radio margin Revenue - Cost of sales growth on higher revenues and impact of Radio 186.2 165.2 13% 165.2 13% 208.4 Digital 9.4 8.9 6% 6.3 48%
Slide 11: Cody Outdoor Hong Kong and Soprano
Cody Outdoor – Hong Kong Local currency • Significantly improved trading performance for Cody Outdoor with A$ million 2021 2020 % change % change advertiser confidence returning in H221 Total revenue 21.9 16.5 33% 44% - Roadside up 25%1, Transit up 96%1 Total costs (11.3) (8.8) 29% 40% - Total costs
Slide 12: Net cash position and balance sheet
Reported Reported Change • Net cash position of $189.1m bolstered by improved trading performance, A$ million Dec 2021 Dec 2020 $ proceeds from sale of OML stake and partial sale of shares in Lux Group; Cash and cash equivalents (incl deposits) 257.1 115.1 142.0 debt drawn prior to year end to fund
Slide 13: Cash flow
• Operating cash flows and lease payments of $34.2m A$ million Dec 2021 Dec 2020 impacted by higher earnings, EBITDA up 21% Operating cash flows and lease payments 34.2 22.7 • Investing cash flows includes $49.3m on sale of oOh!media Tax payments and receipts (9.8) 3.1 stake and $14.4m on partial se
Slide 14: Normalised pro forma 2021 financial information
Normalised pro forma 2021 financial information HT&E ARN Regional HT&E A$ million 2021 2021(2) 2021 • Strong H221 performance for acquired business (‘ARN Regional’); local / Reported Pro forma Pro forma direct revenues a standout. Revenue 225.0 105.1 330.1 • ARN Regional pro forma financials adjuste
Slide 15: Executing our strategy
FY21 Results Presentation
Slide 16: Leading metropolitan broadcast network
• Leading metropolitan broadcast network; #1 National Network Share for 17 Consecutive Surveys 20% • Grew audiences 2% in 2021; Reaching 5.4m weekly 18% • Strong performances in key benchmarks shows 16% 14% − The Kyle & Jackie O Show (KIIS 106.5, Syd): 24 consecutive surveys as #1 FM Breakfast show
Slide 17: 543m Australian podcast downloads in 2021
+ 543m 37% Australian Podcast Australians Listen Downloads in 2021 Monthly (up 29%) (up 12%) 85% 66% 73% 59% 63% 56% 46% 47% 33% 36% 36% 20% 14% 5% 2016 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Source: FY21 Results Presentation Edison, Infinite Dial, 2017-2021, P12+ The Australian Podcast R
Slide 18: Content, distribution, commercialisation
Content Distribution Commercialisation Superbrands Local Brands Podcasting 58 Stations; 33 Markets FY21 Results Presentation
Slide 19: Summary
• Strong FY21 operational performance; delivered significant strategic milestones • Well positioned to drive shareholder returns in FY22 and beyond • Regional acquisition to achieve revenue synergies and expand core radio margins • Clearly defined digital audio investment strategy with path to profi
Slide 20: Outlook
FY21 Results Presentation
Slide 21: Outlook
ARN Q1 revenues are forecasted to grow 3-4% based on current market visibility. February market has been transitory with bookings shifting to March as advertisers deal with the lingering effects of Covid such as staff shortages. The easing of restrictions and opening of borders is having a positive
Slide 22: FY21 Results Presentation
FY21 Results Presentation
Slide 23: Disclaimer
HT&E Limited (HT&E) does not accept any liability to any person, organisation or company for any loss or damage suffered as a result of reliance on this document. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, and are subject to varia
Slide 24: Appendices
Appendices FY21 Results Presentation
Slide 25: Segment result, exceptional items, statutory result
Segment result Exceptional items Statutory result A$ million 2021 2020 2021 2020 2021 2020 Revenue before finance income 225.0 196.1 – – 225.0 196.1 Other income 0.7 2.1 17.9 10.7 16.9 12.8 Share of associate profits 9.1 6.0 0.7 – 9.8 6.0 Costs (175.0) (154.8) (7.3) (62.8) (182.3) (217.6) Underlying
Slide 26: Half-year segment revenue and EBITDA
H1 Revenue H1 EBITDA H2 Revenue H2 EBITDA As As As As A$ million 2021 reported 2021 reported 2021 reported 2021 reported Australian Radio Network 97.1 17% 28.1 55% 98.5 8% 25.7 (9%) HK Outdoor 8.5 9% 4.3 23% 13.4 53% 6.3 49% Digital Investments 3.4 52% 3.0 42% 4.9 45% 2.6 55% Corporate – – (5.0) 21%
Slide 27: Exceptional items
A$ million Dec 2021 Dec 2020 • Current year includes: Fair value adjustment on Lux Group shares ($14.4m realised 17.9 – through sale) ⎯ One-off SaaS implementation costs (CRM, Payroll and Finance System) of $1.2m Interest and penalties on settlement of ATO matters (14.5) – ⎯ Associate share of adjus
Slide 28: Corporate costs and currency rates
• Corporate costs up 21%, but in-line with historical run-rate. A$ million 2021 2020 % change • FY20 P&L benefited from one-off cost measures as part of COVID-19 response Salary and wages 3.5 2.8 27% − Executive incentives forgone Incentives provided for 2.3 0.3 >100% − Board fee reductions Board co
Slide 29: AASB 16 leases adjustment 2021
AASB 16 AASB 16 AASB 16 Result Leases Reported Leases Leases without A$ million Adjustment 2021 Adjustment Adjustment adoption of Digital ARN HK Outdoor AASB 16 Investments ARN 53.8 (3.5) – – 50.4 HK Outdoor 10.5 – (9.2)2 – 1.3 Digital Investments 5.6 – – (0.1) 5.5 Corporate (10.1) – – (0.0) (10.1)
Slide 30: AASB 16 leases adjustment 2020
AASB 16 AASB 16 AASB 16 AASB 16 Result Leases Reported Leases Leases Leases without A$ million Adjustment 2020 Adjustment Adjustment Adjustment adoption of Digital ARN HK Outdoor Corporate AASB 16 Investments ARN 46.2 (3.3) – – – 43.0 HK Outdoor 7.7 – (11.3) 2 – – (3.6) Digital Investments 3.8 – – (
Slide 31: HT&E Limited
FY21 Results Presentation HT&E Limited / ABN 95 008 637 643