Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — Investor Presentation (February 2023)
34 slides from Southern Cross Media's investor presentation, Feb 16, 2023
Slide 1: FY23 H1 Investor Presentation
F GAILOREN. © Essay TURES FY23 H1 INVESTOR PRESENTATION 16 FEBRUARY 2023 SCA 2 “fia _- | ONPURPOSE &' XY
Slide 2: Disclaimer
DISCLAIMER Summary information The material in this presentation has been prepared by Southern Cross Media Group Limited ABN 91 116 024 536 (SCA) and contains summary information about SCA’s activities current as at 15 February 2023. The information in this presentation is of a general background na
Slide 3: SCA Leading the Way
SCA LEADING THE WAY * SCA is the largest Live and On Demand Audio creator and broadcaster in Australia * SCA posts highest ever audience for Metro Radio in 2022 - #1 Radio network for P25-54 demographic! * SCA posts Metro Radio revenue growth of 6.8% in H1- improving our share of market * LISTNR rea
Slide 4: Our Core Assets
OUR CORE ASSETS 100 BROADCAST RADIO STATIONS LARG EST LIVE AND * 29 DEDICATED IP MUSIC STATIONS ON DEMAND AUDIO * 600+ PREMIUM PODCASTS PREMIUM PARTNER AFL, NRL & CRICKET AUSTRALIA CREATOR AN D * DEVELOPER & OPERATOR OF LiSTNR BROADCASTER . Spreeaeias TO PROLIFIC GLOBAL & LOCAL PODCAST | N AU ST RAL
Slide 5: H1 FY23 Results
H1 FY23 RESULTS GRANT BLACKLEY SCA
Slide 6: SCA Results Overview
SCA RESULTS OVERVIEW EBITDA of $43.1m, 7.3% below the prior corresponding period * H1 Radio Broadcast EBITDA of $48.2m with Metro revenue up 6.8% versus a market up 4.6% * SCA audience for All People up 22% in CY22 to a record high * SCA #1 Metro Radio network in Australia for People 25-54! (70%+ of
Slide 7: Group Results Summary
SCA $ millions HIFY22' Vor. GROUP RESULTS SUMMARY Evens Bos) Oniks + EBITDA of $43.1m, 7.3% below the prior corresponding period Expenses (213.3) 1.7% * NPAT $14.6m, $1.0m or 6.1% below pcp + National radio revenues grew by $5m or 2.7% over pcp. EBITDA 46.5 (7.3%) Metropolitan radio revenues grew 6.
Slide 8: H1 FY23 Financial Review
H1 FY23 FINANCIAL R TIM YOUNG - CFO SCA
Slide 9: Group Results
SCA $ millions HIFY22' Var. GROUP RESULTS Revenue 259.8 0.1% + EBITDA down $3.4m or 7.3% to $43.1m Expenses (213.3) 1.7% + NPAT $14.6m, down $1m or 6.1% on prior corresponding EBITDA 46.5 (7.3%) period Depreciation & Amortisation (15.7) (8.2%) + Net Finance costs $0.5m or 6.1% below prior period at
Slide 10: Cashflow & Financing
$ millions Net Debt Start of Period Net Cash from Operations Leases Cash from Operations less Leases Tax Payments Capital Expenditure Proceeds from sale of Non Core Assets Net Interest Cash flow pre-dividend & non recurring items Investments Dividends to security holders Share Buy Back Net Debt End
Slide 11: Capital Expenditure Digital Audio Transformation
FY20 FY21 FY22 FY23* Digital Audio Transformation Maintenance Property
Slide 12: Banking Covenant Leverage Ratio
• • • • Dec 19 Jun 20 Dec 20 Jun 21 Dec 21 June 22 Dec 22 Banking Covenant Leverage Ratio (LTM EBITDA) Leverage ratio calculated under Syndicated Facility Agreement definition
Slide 13: Operational Review
OPERATIONAL REVIEW SCA
Slide 14: Operational Review
$ millions Audio Revenue Television Revenue Corporate Revenue Revenue Audio Expenses Television Expenses Corporate Expenses Expenses Audio EBITDA Television EBITDA Corporate EBITDA EBITDA H1FY22' 193.7 65.8 0.3 259.8 (149.3) (48.7) (15.2) (213.3) 44.3 171 (14.9) 46.5 Var. 3.5% (9.5%) nm 0.1% 7.0% (7
Slide 15: Operating Costs
$ millions H1FY22' Var. Revenue 259.8 0.1% Revenue Related Expenses (64.7) (1.9%) Revenue related expenses 25% - as % of revenue Non Revenue Related (148.5) 3.3% Expenses EBITDA 46.5 (7.3%) SCA OPERATING COSTS + Non-revenue related (NRR) expenses increased 3.3% primarily driven by investment in LIST
Slide 16: Broadcast Radio
- SCA $ millions H1FY22' Var. BROADCAST RADIO Revenue 183.2 2.7% . 2 wf . Revenue Related EBITDA of $48.2m down $3.9m or 7.4%, with underlying (31.7) 6.4% EBITDA margin of 25.6% Expenses + SCA Metro Radio revenues grew 6.8% or $3.2m, lifting SCA’s Employee Expenses (70.6) 5.1% share of the market (g
Slide 17: YoY Revenue Growth: Tale of Two Periods
YoY REVENUE GROWTH SCA TALE OF TWO PERIODS * SCA audio revenue growth in the first 4 months was strong — up 8.7% or $10.4m, cycling over an equally buoyant period of 8.6% or $10.2m growth over FY21 July to Oct (4 months) * Conversely, SCA audio revenues contracted across the November- December perio
Slide 18: Television
$ millions H1FY22" Var. Revenue 65.8 (9.5%) Revenue Related (31.0) (14.0%) Expenses Employee Expenses (9.0) 4.6% Other NRR Expenses (8.7) 6.1% Total NRR Expenses (17.7) 5.3% Expenses (48.7) (7.0%) EBITDA 171 (16.8%) EBITDA Margin 26.0% SCA TELEVISION * EBITDA Margin of 23.9% * Underlying EBITDA redu
Slide 19: Digital Audio - LiSTNR
SCA DIGITAL AUDIO - LiSTNR $ millions H1FY22 Var. * LISTNR EBITDA loss narrows 12% - improving path to cashflow Digital Audio Revenue 76 37.5% breakeven Revenue Related (1.9) 54.6% + LISTNR digital audio revenue growth of 37.5%, led by Expenses . . growing InStream (addressable advertising) and Podc
Slide 20: Core Influences
CORE INFLUENCES SCA
Slide 21: Workforce Evolution
WORKFORCE EVOLUTION HEADCOUNT REDUCTION OF 12% CONTENT OUTPUT UP 66% SCA has systematically reviewed all workforce structures and processes over last few years The result has been a reduction in permanent headcount of circa 12% comparing FY19 to FY23 While also deploying a Digital First strategy inc
Slide 22: 2018 2019 2020 2021 2022
75 70 65 60 55 50 45 2018 2019 2020 2021 2022
Slide 23: Radio audience reach
2017 2018 2019 2020 2021 2022 Source : Gfk – the official data provider . Total metro panel Comm Radio and DAB+, P10+, Cume Reach Mon-Sun 0.00-24.00
Slide 24: Radio network audience share vs competitors
#5 2019 #6 2019 #7 2019 #8 2019 #1 2020 #2 2020 #6 2020 #7 2020 #8 2020 #1 2021 #2 2021 #3 2021 #4 2021 #5 2021 #6 2021 #7 2021 #8 2021 #1 2022 #2 2022 #3 2022 #4 2022 #5 2022 #6 2022 #7 2022 #8 2022 SCA NOVA ARN NINE 1 GFK – 5 cap cities, Cume audience All People 10+ (incl DAB), Survey 8, 2021 v Su
Slide 25: LiSTNR signed-in users
375,000 375,000 1,200,000 348,000 348,000 1,000,000 274,000 274,000 800,000 600,000 400,000 110,000 110,000 200,000 0 H1 CY21 H2 CY21 H1 CY22 H2 CY22 H1 CY21 H2 CY21 H1 CY22 H2 CY22 Source : SCA Internal data
Slide 26: LiSTNR stream starts
9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Nov-21 Nov-22 Aug-21 Aug-22 Feb-21 Apr-21 May-21 Jul-21 Sep-21 Oct-21 Dec-21 Feb-22 Apr-22 May-22 Jul-22 Sep-22 Oct-22 Dec-22 Mar-21 Jun-21 Jan-22 Mar-22 Jun-22 H1 CY21 H2 CY21 H1 CY22 H2 CY22 Source: Firebas
Slide 27: Secured Impactful Partnerships
SECURED IMPACTFUL PARTNERSHIPS The Stitcher and Wondery partnerships have increased depth of content and doubled engaged audiences in an effective and efficient manner; * Wondery offers 49 premium titles across key LISTNR core verticals — Factual & Drama and Entertainment & Culture * Stitcher offers
Slide 28: Value Drivers & Trading Outlook
VALUE DRIVERS & TRADING OUTLOOK SCA
Slide 29: Improving Value
IMPROVING VALUE + LiSTNR - we have developed & operate a world class Audio ecosystem — scaling at pace * Digitised Workplace — constantly reviewing and transforming every function within our operations - with the aim of driving more value for audiences and advertisers * LISTNR unlocks a “known audie
Slide 30: Trading Update
TRADING UPDATE SCA ~ REVENUE * Q3 Broadcast radio forecast to be flat to low single digit growth + January Metro revenue was up 3.4%, Regional Local up 7.0% while Regional National back 14.8%. * February Metro revenue forecast to be up 2%, Regional Local up 10% and Regional National back 8% * TV mar
Slide 31: Slide 31
Slide 32: Appendix
Slide 33: Public Interest News Gathering
• • • 1 Public Interest News Gathering
Slide 34: Appendix: DAB Audiences Grow SCA Dominates
APPENDIX: DAB AUDIENCES GROW SCA DOMINATES Top 20 Stations Network Share% Top 20 Stations Network Cume Coles Radio NOVA Ent 11.2 90's ARN Network 321 MMM Classic Rock SCA Network 8.0 Coles Radio NOVA Ent 274 RnB Fridays SCA Network 77 TikTok ARN Network 262 SmoothFM DAB+ NOVA Ent 75 RnB Fridays SCA
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