Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — H1 FY2012 Earnings Presentation
25 slides from Southern Cross Media's earnings presentation, Feb 28, 2012
Slide 1: Southern Cross Austereo H1 FY12 Results Presentation
For personal use only Southern Cross Austereo H1 FY12 Results Presentation
Slide 2: Sizzle Reel
For personal use only Sizzle Reel
Slide 3: Headline Achievements
Headline Achievements For personal use only • Underlying Net Profit After Tax up 73% to $58.0m (pcp $33.6m) • Reported NPAT up 180% to $94.0m • EBIT margin expanded by 1.1% to 30.6% • Revenue only down 2.7% on a “like for like” basis to $364.1m despite difficult TV comps (Commonwealth games) and sub
Slide 4: Headline Achievements
Headline Achievements For personal use only • Number 1 Metro Radio Network with 37.05%1 market share • Today network 23.03% & MMM 14.02% • Number 1 Ranked FM station in Melbourne, Sydney & Perth • Number 1 Drive show in Sydney, Melbourne, Adelaide & Perth2 • Number 1 Breakfast show in Sydney, Melbou
Slide 5: Only One Media Company
Only One Media Company For personal use only FM Radio TV regional audience reach of 7.6m Mobile sites Radio national network covers 95% of Australia’s population with 5.4m listeners in metro markets 41.1m videos viewed on-line in CY11 (28.5m on YouTube) Digital Radio 1.4m unique browsers per month 1
Slide 6: H1 FY12 Financial Analysis
For personal use only Steve Kelly, CFO H1 FY12 Financial Analysis
Slide 7: Group Statutory Results
Group Statutory Results Key Financial Numbers For personal use only $ millions H1 FY12 H1 FY11 % Variance Revenue 362.6 218.7 65.8% Expenses (239.0) (150.2) Equity accounted profit (0.3) 1.1 EBITDA 123.3 69.6 77.2% Depreciation & Amortisation (16.9) (10.0) EBIT 106.4 59.6 78.5% Net Finance Costs (30
Slide 8: Group Statutory Results: Reconciliation to Underlying Results
Group Statutory Results Reconciliation to Underlying Results H1 FY12 For personal use only $ millions Reported Proportional One off Underlying Consol. of JV’s Adjustments Revenue 362.6 1.5 364.1 Expenses 1 (239.0) (1.8) 1.1 (239.7) Equity Accounted Profit (0.3) 0.3 - EBITDA 123.3 - 1.1 124.4 Depreci
Slide 9: Underlying Pro Forma Results Comparative
Underlying Pro Forma Results Comparative For personal use only $ millions H1 FY121 H1 FY112 % Variance TV 135.3 143.1 (5.5%) Radio 228.8 231.1 (1.0%) Total Revenue 364.1 374.2 (2.7%) Broadcast & Production (62.5) (69.5) (10.1%) Employee (87.2) (84.8) 2.8% Selling, General & Admin (90.0) (95.5) (5.8%
Slide 10: Regional Results Comparative Performance
Regional Results Comparative Performance For personal use only $ millions H1 FY12 H1 FY111 % Variance TV 135.3 143.1 (5.5%) Radio 85.6 85.4 0.2% Total Revenue 220.9 228.5 (3.3%) Broadcast & Production (50.7) (56.1) (9.6%) Employee (41.2) (41.9) (1.7%) Selling, General & Admin (57.6) (58.4) (1.4%) To
Slide 11: Metro Results Comparative Performance
Metro Results Comparative Performance For personal use only $ millions H1 FY12 H1 FY111 % Variance Radio 143.2 145.7 (1.7%) Total Revenue 143.2 145.7 (1.7%) Broadcast & Production (11.8) (13.4) (11.9%) Employee (46.0) (42.9) 7.2% Selling, General & Admin (32.4) (37.1) (12.7%) Total Expenses (90.2) (
Slide 12: Debt Facilities
Debt Facilities For personal use only $ millions Dec 2011 June 2011 Reported Borrowings 710.6 708.5 Borrowing Costs 14.7 16.9 Lease Liabilities (0.3) (0.4) Drawn Debt 725.0 725.0 Less Cash (78.2) (31.6) Net Debt 646.8 693.4 • Annualised leverage ratio (Net Debt : EBITDA) for secured group of 2.75 •
Slide 13: Cash Flow
Cash Flow For personal use only $ millions Opening Cash 31.6 Cash From Operations (pre tax) 127.1 Interest, Derivative & Borrowing Cost payments (30.1) Tax (17.4) Capital expenditure (10.9) Distributions to Security Holders (21.2) Share Buy-back (0.9) Closing Cash 78.2 EBITDA (Reported) 123.3 Conver
Slide 14: EPS Analysis
EPS Analysis For personal use only cents per share H1 FY12 H1 FY11 Underlying Operations 8.2 8.3 Derivative Impact - 0.6 One – Off Costs (0.5) - One – Off Tax Benefit 5.6 - Reported 13.3 8.9 Weighted average # of Shares 705.7m 378.8m Actual closing # of Shares 705.6m 378.8m
Slide 15: Acquisition creating Shareholder Value
Acquisition creating Shareholder Value For personal use only $ millions Austereo and Radio Newcastle joining the tax consolidated 39.5 group resulted in an income tax benefit at 31 December 2011 Valuation of acquired assets and subsequent restatement of 10.9 FY11acquisition balance sheet resulted in
Slide 16: Operations
For personal use only Rhys Holleran, CEO Operations
Slide 17: Trading Commentary
Trading Commentary For personal use only • TV advertising revenues down 6.2% due to lower TV ratings and no comparative event to replace the Commonwealth games in H1 FY11 • Regional radio advertising revenue up 1.1% due to stronger agency sales • Retail at a National level has had some strong wins •
Slide 18: Advertising Revenues
Advertising Revenues For personal use only Half Year Regional Radio Metro Radio1 Metro Radio Market2 % split of % change vs % split of % change vs % change vs pcp revenues pcp revenues pcp Local Advertising 64.6% (1.4%) 27.1% (3.2%) (1.7%) National Advertising 26.1% 8.1% 67.3% (3.1%) 0.5% Total Adve
Slide 19: Acquisition Update
Acquisition Update For personal use only • Integration of business operations continues and is realising greater benefits than originally anticipated • Co-location completed • ONE United sales force under ONE business name • Integrated content teams operating in unison leveraging brands and content
Slide 20: Outlook
Outlook For personal use only • Most recent survey recorded total audience share of 21.1% for the duopoly in Metro markets dominating all competition 1 (see chart in Appendix 4) • MMM resurgence expected to continue with the addition of Merrick & The Highway Patrol • Trading conditions remain subdue
Slide 21: Questions?
Questions? For personal use only Rhys Holleran, CEO Steve Kelly, CFO DISCLAIMER This presentation has been prepared by Southern Cross Media Group Limited (SCMGL). The information has been prepared in good faith and is derived from sources understood to be accurate as at the date of this presentation
Slide 22: Appendix – Underlying Pro Forma Results Components H1 FY12
Appendix 1 – Financial Analysis Underlying Pro Forma Results Components H1 FY12 For personal use only $ millions Regional Metro Underlying TV 135.3 135.3 Radio 85.6 143.2 228.8 Total Revenue 220.9 143.2 364.1 Broadcast & Production (50.7) (11.8) (62.5) Employee (41.2) (46.0) (87.2) Selling, General
Slide 23: Appendix – Reconciliation of H1 FY11 Regional Results
Appendix 2 – Financial Analysis Reconciliation of H1 FY11 Regional Results For personal use only $ millions Reported Proportional 50% Underlying Consol. of JV’s Newcastle Revenue 218.7 5.7 4.1 228.5 Expenses (150.2) (3.9) (2.3) (156.4) Equity Accounted Profit 1.1 (1.1) EBITDA 69.6 0.7 1.8 72.1 Depre
Slide 24: Appendix – Reconciliation of H1 FY11 Metro Results
Appendix 3 – Financial Analysis Reconciliation of H1 FY11 Metro Results For personal use only $ millions Reported Proportional Adjustments1 Remove Underlying Consol. of 50% JV’s Newcastle Revenue 146.2 4.1 (0.5) (4.1) 145.7 Expenses (93.9) (2.3) 0.5 2.3 (93.4) Equity Accounted Profit 1.2 (1.2) - EBI
Slide 25: Appendix – National Audience Share Trends
Appendix 4 – National Audience Share Trends1 For personal use only 1 Source: Nielsen Media Research Survey #1 2012
Southern Cross Media Group — H1 FY2012 Earnings Presentation on 6ix