Ebiquity Plc · LSE:EBQ
Ebiquity — FY2009 Earnings Presentation
37 slides from Ebiquity's earnings presentation, Jul 22, 2009
Slide 1: Company Presentation: Year ended 30 April 2009
Company Presentation Year ended 30 April 2009 an Ebiquity company
Slide 2: Marketing investment choices in a globalised world
Marketing investment choices in a Change sub heading - via *View* / HEADER & FOOTER globalised world Global client acquisitions have been our biggest growth driver 2
Slide 3: Complex & consumer-led media landscape
Complex & consumer-led media landscape Change sub heading - via *View* / HEADER & FOOTER 3
Slide 4: The recession has reset the agenda
The recession has reset the agenda Change sub heading - via *View* / HEADER & FOOTER Media and Marketing decisions are driven by ROI 4
Slide 5: Total group revenues increased by 7% to £18.4m
Total group revenues increased by 7% to £18.4m Analytics business revenue increased by 13% to £12.8m representing 69% of total revenue Revenue from international assignments within Analytics grew by 36% Platform business renewals at 84% 5
Slide 6: Positive results despite difficult market
Positive results despite difficult market ... with underlying operating profit up 17% Group underlying operating profit of £2.4m (2008: £2.0m) Reported operating profit turned around to £1.4m (2008: £1.1m loss) Underlying diluted EPS of 5.28p (2008: 4.39p) 6
Slide 7: What we do – a reminder
What we do – a reminder We help our clients get a better return on their marketing and advertising spend Analytics Division Media auditing, optimisation and marketing effectiveness Platform Division Ad Monitoring News Monitoring Publisher Services 7
Slide 8: A progress update: Analytics
A progress update Analytics What we said last time… An update… Billetts ‘Marketing Investment Management’ This offering has seen good traction in a market focusing provides ‘best practice’ approach to media on ROI and marketing investment Billetts name - strongest sector specialist The Billetts bran
Slide 9: A progress update: Ad monitoring (Platform)
A progress update Ad monitoring (Platform) What we said last time… An update… Successful launch of ‘vertical strategy’ Launched as planned, and has been well received by existing clients Few premium pricing opportunities The recession means our prices continue to be under pressure Renewal rates unde
Slide 10: A progress update: News monitoring (Platform)
A progress update News monitoring (Platform) What we said last time… An update… Weak economy means reputation monitoring This is still very much the case increasingly mission critical More price competitive than before We have noted fierce price competition from the key competitors in this space, ma
Slide 11: Billetts: Marketing Investment Management
Billetts Marketing Investment Management We We deliver deliver better better returns returns from from marketing marketing and and media media spend spend Everything We We have have aa team team of of over over 100 100 Everything we we do do is is rooted rooted in in data data analysts drawing insig
Slide 12: Making our clients' money work harder
Making our clients' money work harder Effectiveness Effectiveness Efficiency Efficiency Monitoring Monitoring Marketing Marketing Media Media auditing auditing News News effectiveness effectiveness & & benchmarking benchmarking Monitoring Monitoring (UK) (UK) Data Data landscaping landscaping Sponso
Slide 13: A growing opportunity
A growing opportunity • The global market for media measurement and evaluation is growing rapidly as international advertisers expand their operations into emerging markets from a US/Western Europe base • This is part of a wider global shift in business from mature markets to expanding territories,
Slide 14: Global business: international growth
Global business International growth 35% £6.1m 30% 33% % of total group revenue 25% £4.4m 26% 20% £2.9m 15% 18% 10% 5% 0% 2007 2008 2009 International clients are defined as non-UK sourced revenue or UK sourced revenue where marketing activity is analysed in more than one country 14
Slide 15: Growth in international clients since 2005
Growth in international clients since 2005 2005 2006 2007 2008 2009 Clients 17 23 30 35 45 Clients in 10+ 7 9 10 14 20 markets Clients in 15+ 0 1 2 4 8 markets 15
Slide 16: The Billetts Global Network
The Billetts Global Network The Billetts network & our local expert partners Sweden Denmark UK Russia Poland Germany Ireland Canada Czech Hungary Rep France USA Turkey Japan Greece Spain Italy Middle China East Mexico India Brazil Australia Billetts branded S Africa Billetts Network Partners 16
Slide 17: Billetts branded offices
Billetts branded offices Billetts Germany Media Value Billetts Billetts UK 10% stake, with option Option to obtain 100% 100% owned to take control Billetts America MediaPath Billetts Billetts France 95% owned Trading agreement Trading agreement MediaPath Billetts Billetts Ireland 100% owned Trading
Slide 18: International growth strategy
International growth strategy 1. Expanding international client base 2. Focus on US and Asia Pacific 3. Putting in place consistent processes 4. Building relationships with key market players 18
Slide 19: Financial Summary
Financial Summary Year ended 30 April 2009 19
Slide 20: Revenue
Revenue All numbers in £’000s Year ended % of Year ended % of YOY 30 Apr 2009 total 30 Apr 2008 total % Analytics 12,786 69% 11,310 66% 13% Platform 5,633 31% 5,910 34% (5%) Total 18,419 17,220 7% 20
Slide 21: Analytics division: international expansion
Analytics division: international expansion International revenue up 36% (an increase of £1.6m) International represents 47% of Analytics revenue (2008: 39%) and 33% of total revenue (2008: 26%) 21
Slide 22: Platform division: softer ad monitoring renewals
Platform division: softer ad monitoring renewals 2008/9 2007/8 84% 92% Renewal rates by value 22
Slide 23: Gross profit
Gross profit Year ended Year ended YOY 30 Apr 2009 30 Apr 2008 % Analytics 6,851 5,541 24% Platform 2,994 3,418 (12%) Total 9,845 8,959 10% 23
Slide 24: Gross margin analysis
Gross margin analysis Increased revenue 2008/9 2007/8 and better management of Analytics 54% 49% ‘partner’ costs Reduced revenue 2008/9 2007/8 from ad monitoring, Platform 53% 58% and start up costs for Newslive Improvement in 2008/9 2007/8 Analytics performance has Total 54% 52% outweighed lower ma
Slide 25: Underlying operating profit (pre highlighted items)
Underlying operating profit (pre highlighted items) Year ended Year ended YOY 30 Apr 2009 30 Apr 2008 % Analytics 3,241 1,857 74% Platform (355) 419 (185%) Central (523) (259) (101%) Underlying operating profit 2,363 2,017 17% Analytics: Revenue increase, partner and staff cost management and exchan
Slide 26: Forex gain utilised against one off costs
Forex gain utilised against one off costs 2,800 £292 2,700 2,600 £105 2,500 £165 £157 2,400 £2,363 £2,300 £106 2,300 £26 2,200 £k 2,100 £2,016 2,000 1,900 1,800 1,700 1,600 1,500 9 id /o o 8 9 /o FX n /0 /0 w/ 0 io bs tw w 8/ 08 07 is g su s bt t0 en ov in st ts de ts ad S l co m pr su ul ul U op Tr
Slide 27: Underlying profit margin analysis
Underlying profit margin analysis 2008/9 2007/8 EBITDA margin 15.4% 14.0% 2008/9 2007/8 Operating Profit (EBIT) margin 12.9% 11.7% 27
Slide 28: Profit before tax
Profit before tax Year ended Year ended YOY 30 Apr 2009 30 Apr 2008 % Underlying operating profit 2,363 2,017 17% Highlighted items - non cash (675) (1,835) 63% - cash (258) (1,304) 80% Reported operating profit 1,430 (1,123) 227% Net finance costs (243) (250) 0% Share of associates (14) - 100% Repo
Slide 29: Diluted EPS
Diluted EPS 2008/9 2007/8 Underlying profit Underlying 5.28p 4.39p after tax up 19% 2008/9 2007/8 Reported profit after Reported tax turned around 0.26p (4.00p) from loss to profit 29
Slide 30: Net debt
Net debt 30 Apr 2009 30 Apr 2008 Cash 1,246 1,687 Loans to associates (Billetts Germany) 373 - Gross debt (3,800) (3,751) Net debt (2,181) (2,064) 2009 gross debt: term loan £1,800k, RCF £2,000k 2008 gross debt: term loan £2,200k, RCF £1,500k, loan notes £51k Improvement in debtor days and ageing pr
Slide 31: Our future continues to look bright
Our future continues to look bright • We have high recurring revenue streams • We control our costs tightly • We have high gross margins • We are conservatively financed • We have strong working capital management • We see big international opportunities with limited credible competition • We help o
Slide 32: Outlook
Outlook • International is a key driver of growth • Media and Marketing analytics continues to accelerate with strong pipeline • Highly scalable software tools and analytics products • Significant early stage investment in Newslive - revenues beginning to scale although loss making in first full yea
Slide 33: The Registry, Royal Mint Court, London
The Registry Royal Mint Court London EC3N 4QN Tel. +44 (0) 20 7650 9600 Fax. +44 (0) 20 7650 9650 www.ebiquity.com an Ebiquity company
Slide 34: Financial Appendices
Financial Appendices an Ebiquity company
Slide 35: Highlighted items
Highlighted items Year ended Year ended 30 Apr 2009 30 Apr 2008 Recurring Share based expenses 313 99 Amortisation of purchased intangibles 362 369 675 468 Non recurring Management restructuring 258 521 Write down of development asset - 1,457 Property costs - 458 Other - 236 258 2,672 Total 933 3,14
Slide 36: Balance sheet
Balance sheet 30 Apr 2009 30 Apr 2008 Non current assets 12,871 13,606 Current assets Trade debtors 3,118 3,052 Accrued income 1,836 1,904 Cash 1,246 1,687 Loans to associates 362 - Other 978 797 7,540 7,440 Current liabilities Trade creditors 1,070 1,555 Loans 2,513 1,951 Deferred income 2,605 2,83
Slide 37: Cashflow
Cashflow Year ended Year ended 30 Apr 2009 30 Apr 2008 Cashflows from operating activities 2,396 1,200 Working capital movements (1,032) 811 Cash generated from operations 1,364 2,011 Finance expense (268) (312) Income taxes paid (269) 107 Net cash from operating activities 827 1,806 Investing activ