Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — H1 FY13 Earnings Presentation
21 slides from Southern Cross Media's earnings presentation, Feb 19, 2013
Slide 1: Southern Cross Austereo H1 FY13 Results Presentation
For personal use only SOUTHERN CROSS AUSTEREO H1 FY13 Results Presentation
Slide 2: Sizzle Reel
For personal use only Sizzle Reel
Slide 3: Headline Achievements
Headline Achievements For personal use only • Result in line with market expectations • Underlying Net Profit After Tax $47.6m • Synergy benefits and further cost savings resulting in total expenses down 6.6% to $223.8m • Continuing strength in cash conversion • Dividend payout ratio maintained at 4
Slide 4: Headline Achievements
Headline Achievements For personal use only • Number 1 Metro Radio Network with 34.4%1 market share • Today network 18.9% - 3.6 million listeners • MMM 13.8% • Continued radio ratings dominance2; • 2Day celebrates 51 surveys as #1 FM station • Fox continues to be #1 FM breakfast show in Melbourne •
Slide 5: Headline Achievements
Headline Achievements For personal use only • Continued growth in Social Media and Online3; • 2dayfm.com.au is Australia’s most visited radio website • 1.7m unique browsers per month across all our sites • 1.0m app downloads • Merrick Watts No.1 Comedy podcast • 1.2m Facebook Likes • 600,000 Twitter
Slide 6: H1 FY13 Financial Analysis
For personal use only STEPHEN KELLY, CFO H1 FY13 Financial Analysis
Slide 7: Reported Group Statutory Results
Reported Group Statutory Results Key Financial Numbers For personal use only $ millions H1 FY13 H1 FY121 % Variance Revenue 327.7 362.6 (9.6%) Expenses (223.2) (239.0) (6.6%) Equity Accounted Profit (0.3) (0.3) EBITDA 104.2 123.3 (15.5%) Depreciation & Amortisation (12.9) (16.9) EBIT 91.3 106.4 (14.
Slide 8: Group Underlying Results Comparative
Group Underlying Results Comparative Reconciliation to Underlying Results for H1 FY13 For personal use only $ millions Reported Proportional Adjustments Underlying Underlying1 % Variance Consol. of JV’s H1 FY13 H1 FY13 H1 FY13 H1 FY13 H1 FY12 Revenue 327.7 1.7 2.2 331.6 364.1 (8.9%) Expenses (223.2)
Slide 9: Regional Underlying Results Comparative
Regional Underlying Results Comparative For personal use only $ millions H1 FY13 H1 FY12 % Variance TV 113.0 135.3 (16.5%) Radio 84.1 85.6 (1.8%) Total Revenue 197.1 220.9 (10.8%) Broadcast & Production (42.7) (50.7) (15.8%) Employee (42.7) (41.6) 2.6% Selling, General & Admin (51.1) (57.2) (10.7%)
Slide 10: Metro Underlying Results Comparative
Metro Underlying Results Comparative For personal use only $ millions H1 FY13 H1 FY121 % Variance Radio 134.5 143.2 (6.1%) Total Revenue 134.5 143.2 (6.1%) Broadcast & Production (11.8) (11.8) (0.0%) Employee (45.9) (46.0) (0.2%) Selling, General & Admin (29.6) (32.4) (8.6%) Total Expenses (87.3) (9
Slide 11: Debt Facilities
Debt Facilities For personal use only $ millions Dec 2012 June 2012 Reported Borrowings 703.2 707.0 Borrowing Costs 10.1 12.4 Lease Liabilities (0.3) (0.4) Drawn Debt 713.0 719.0 Less Cash (83.8) (97.2) Net Debt 629.2 621.8 • Annualised leverage ratio (Net Debt : EBITDA) for secured group of 2.86 (2
Slide 12: Cash Flow
Cash Flow For personal use only $ millions Opening Cash 97.2 Cash From Operations (pre tax) 95.9 Proceeds from sale of Land & Building 1.7 Interest, Derivative & Borrowing Cost payments (29.9) Tax (29.2) Capital expenditure (9.7) Dividends to Security Holders (35.2) Investments (1.0) Debt repayment
Slide 13: EPS Analysis
EPS Analysis For personal use only cents per share H1 FY13 H1 FY12 Underlying Operations 6.8 8.1 Hot 30 Impact (0.4) - One-Off Costs - (0.5) DTL Write off - 5.7 Reported 6.4 13.3 Weighted average # of Shares 704.8 705.7 Actual closing # of Shares 704.8 705.6
Slide 14: Operations
For personal use only Rhys Holleran, CEO Operations
Slide 15: Trading Commentary
Trading Commentary For personal use only • Revenue down 8.9% ($32.5m) due to Ten share issues and Metro Radio share loss exacerbated by on-air incidents • Regional TV contributed 69% of shortfall and Metro Radio 27% of shortfall • TV advertising revenues impacted by ratings and loss of AFL • Regiona
Slide 16: H1 FY13 Advertising Revenues
H1 FY13 Advertising Revenues For personal use only Regional Radio Metro Capital City Radio1 Metro Radio Market2 % split of % change vs % split of % change vs % change vs pcp revenues pcp revenues pcp Local Advertising 65.7% 0.2% 26.9% (7.2%) 2.0% National Advertising 26.0% (2.1%) 66.3% (7.7%) (4.2%)
Slide 17: Outlook
Outlook For personal use only • Current market sentiment is improving and a long Federal Election campaign may help revenue opportunities • Continued dominance in Metro radio market, recording 23.8 share of 25 – 54 audience1 • New TEN line-up in 2013 promises to be stronger than 2012 1. Source: Niel
Slide 18: Outlook
Outlook For personal use only • After a number of years of declining markets we are well positioned to deliver as it turns • Re-defining content • Hamish & Andy back 5 days including The Business Brunch and Drive on a Monday joining Fifi & Jules • The Bump • Dan & Maz – Late Drive • Scoopla • Mamami
Slide 19: Outlook
Outlook For personal use only • Full year after tax earnings expected to come in within market estimates of $90m to $95m
Slide 20: 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 21: Appendix – Reconciliation of Underlying Results H1 FY12
Appendix 1 – Financial Analysis Reconciliation of 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 (239.0) (1.8) 1.1 (239.7) Equity Accounted Profit (0.3) 0.3 - EBITDA 123.3 - 1.1 124.4 D
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