Slide 1: HY22 Results Presentation
Ini | sie HY22 Results Presentation August 2022
Slide 2: Agenda
• HY22 Financial Highlights • Investor Proposition • Group Financials • Operational Performance • Outlook
Slide 3: HY22 Financial Highlights
REVENUE1 EBITDA1 EBIT1 $172m $48.5m $38.1m $26.4m +58% +60% +61% +61% CASH FLOW FROM INTERIM OPERATING ACTIVITIES2 DIVIDEND 7.9cps $34.4m 5.0cps +51% +71% Fully franked +43% 1) Before exceptional items 2) Before tax payments, includes lease payments
Slide 4: Regional integration gaining momentum
• Radio listening is at an all time high; nearly 12m weekly(1) Leaders in a strong Australian • No. 1 network; 21 surveys in a row commercial radio and audio • Group radio revenues +7%; EBITDA +11% market • Inflationary measures being actively managed; Full year people and opex costs, excluding digi
Slide 5: iHR regional digital expansion
iHR regional digital expansion ------------------- Enabling Teams and Integration of TRSN into ARN syndicated shows launched systems integrated ARN Agency Sales team January 2022 February 2022 March 2022 June 2022 July 2022 August 2022 September 2022 Acquisition Agency upfront Disposal of 4KQ for Ho
Slide 6: Financial Results
Financial Results T&eE
Slide 7: Acquisition delivers EPS growth, up 51%
% change Acquisition delivers EPS growth, up 51% A$ million 2022 2021 % Pro forma Reported Restated2 Change • 2022 results include full 6 months of ARN Regional; pro forma comparatives through-out prepared as if acquisition owned in 2021 Revenue before finance income 172.0 108.5 58% 8% Other income
Slide 8: Cost base reflects digital investments
Cost base reflects digital investments A$ million 2022 2021 % 2021 % change Change Pro forma Pro forma • Radio revenues up 7%, digital up 6% - Digital billings to customers up 41% Radio 151.4 93.0 63% 141.7 7% • Total costs up 10% Digital 6.4 4.1 57% 6.0 6% - Costs of sales on higher revenues Total
Slide 9: Regional acquisition delivering margin expansion
Regional acquisition delivering margin expansion A$ million 2022 2021 % Change 2021 % Change Pro forma Pro forma • Total pro forma revenues up 7% Revenue • Metro revenue performance maintained across complex integration Metro 97.2 93.0 5% 93.0 5% period Regional 54.2 – 100% 48.7 11% • Regional busin
Slide 10: Digital audio billings growth +41%
Digital audio billings growth +41% A$ million 2022 2021 % 2021 % change Change Pro forma Pro forma • Digital audio billings up 41% yoy on pro forma basis - Strong yoy growth in Q2 after slow Jan / Feb market 10.4 5.5 91% 7.4 41% Billings - Flow through to revenue was impacted by a higher percentage
Slide 11: Cody Outdoor – Hong Kong
Cody Outdoor – Hong Kong Local currency • Market continued to improve in Hong Kong with revenues up 5% on a local A$ million 2022 2021 % change % change currency basis Total revenue 9.4 8.5 12% 5% - Roadside up 7%1, Total costs (4.8) (4.2) 13% 6% - HK Tramways contributed revenue of $2.5m, up 58%1;
Slide 12: Robust capital structure and leverage under 1x
Reported Restated Change A$ million Jun 2022 Dec 2021 $ Robust capital structure and leverage under 1x Cash and cash equivalents 19.6 257.1 (237.4) Receivables 69.0 51.4 17.6 • Balance sheet with net debt of $78.4 million and leverage under 1 times EBITDA(1). Assets held for sale 12.1 – 12.1 • Good
Slide 13: Highly cash generative business
Highly cash generative business A$ million Jun 2022 Jun 2021 • Operating cash flows of $34.4m, up 71%, owing to the Operating cash flows and lease payments 34.4 20.1 acquisition of ARN Regional Tax payments (22.9) (5.6) • HT&E Group is highly cash generative: Tax settlement (incl interest and penalt
Slide 14: Operational performance and opportunity
Operational performance and opportunity hileste
Slide 15: Commercial radio audiences reach an all time high
Time Spent Commercial radio audiences • 15 hours 21 minutes of Age groups Cumulative Listening (T) Audience % reach an all time high listening every week (h:mm) • Strong across all age demos People 10-17 86.1 10:06 People 18-24 73.3 8:54 People 25-39 76.9 9:21 People 40-54 79.4 13:23 People 55-64 80
Slide 16: No. 1 commercial metropolitan network 21 surveys in a row
No. 1 commercial metropolitan No. 1 podcast publisher Delivering Australia’s most network 21 surveys in a row1 27 surveys in a row2 complete audio offering 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 - 2018 2019 2020 2021 2022 ARN SCA NOVA Nine • Truly national network – 58 stations; rea
Slide 17: Expanding digital audio network is building a commercial bridge
Expanding digital audio network is building a commercial bridge between linear and digital audiences AM/FM/DAB+ All pre-roll, in stream revenue All podcasting revenue Excludes streaming revenue 40.6% CAGR 39% CAGR 1.5% CAGR 2022-2026 Source: Its Pwc’s Outlook 2022-2026
Slide 18: The heart of ARN's digital audio strategy
The heart of ARN’s digital audio strategy Radio & Music streaming Australia’s #1 Podcast Network for 27 consecutive rankers. The easiest way to reach Australian audio streamers at scale across an endless array of platforms. Sources: 1) ARN and iHeartRadio streaming logs and ad servers, Unique Users
Slide 19: Building a 360 genre-focused offer
• Building a 360 genre-focused offer reaching new audiences, new territories with new technology • Multi-channel approach allows access to revenues beyond traditional media budgets • Strong audience growth since launch in March 2022; 367,000 pre-launch to 3.3m weekly connections in June 20221 • Over
Slide 20: Outlook
Outlook hileste
Slide 21: ARN
ARN Total radio revenues1 for Q3 are pacing +6-8% on same time last year following a soft July advertising market. Growth is in both metro and regional markets and weighted more toward metro. Limited visibility into Q4 is in line with radio industry forecasting over many years however briefing activ
Slide 22: Thank You
Thank You hileste
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 hileste
Slide 25: Aligning our narrative with our strategy
Aligning our narrative with our strategy and articulating our purpose beyond profit. At HT&E, the sustainability of our business and our ongoing success is dependent upon everyone at HT&E’s ability to move people – through practical, tangible decisions, actions and outputs – big and small, made in e
Slide 26: Team-HT&E Local Connections Planet Impact
Team-HT&E Local Connections Planet Impact Constructive Culture Champions & People-First Approach (Customer, Audience, Carbon Auditing, Reduction & Offsetting Community, Team, DEI) Audio Employer of Choice Green Energy Purchasing & Efficiencies Ethical Operations, Partnerships, Purchasing Listening P
Slide 27: Segment result
Segment result Exceptional items Statutory result A$ million 2022 2021 2022 2021 2022 2021 Revenue before finance income 172.0 108.5 – – 172.0 108.5 Other income 1.6 0.4 5.3 – 7.0 0.4 Share of associate profits 5.2 4.4 – – 5.2 4.4 Costs (130.3) (83.0) (8.9) (0.6) (139.3) (83.5) Underlying EBITDA 48.
Slide 28: Exceptional items
A$ million Jun 2022 Jun 2021 • Current year includes: Fair value adjustment on Lux Group shares 5.3 – ⎯ $5.3m fair value gain on disposal of Lux Escapes shares Acquisition costs – ARN Regional (5.5) – ⎯ ARN Regional acquisition & integration costs of $6.4m Integration costs – ARN Regional (0.9) – ⎯
Slide 29: Corporate costs and currency rates
• Corporate costs up 8% reflecting management and board salary A$ million 2022 2021 % change changes and a normalized level of executive incentive expense Salary and wages 1.8 1.6 10% • FY22 Corporate costs expectation remains unchanged at ~$10.5m to $11m, subject to on-target achievement of FY22 in
Slide 30: Reported to AASB 16 reconciliation 2022
AASB 16 AASB 16 AASB 16 AASB 16 Result Leases Reported Leases Leases Leases without A$ million Adjustment 2022 Adjustment Adjustment Adjustment adoption of ARN ARN Metro HK Outdoor Investments AASB 16 Regional ARN Metro 24.8 (1.8) – – – 23.1 ARN Regional 21.1 – (1.1) – – 20.0 HK Outdoor 4.7 – (4.4)
Slide 31: Reported to AASB 16 reconciliation 2021
AASB 16 AASB 16 AASB 16 Result Reported Leases Leases Leases without A$ million 2021 Adjustment Adjustment Adjustment adoption of ARN HK Outdoor Investments AASB 16 ARN 28.1 (1.7) – – 26.4 HK Outdoor 4.3 – (4.4)2 – (0.1) Investments 3.0 – – (0.1) 2.9 Corporate (5.0) – – – (5.0) Underlying EBITDA1 30
Slide 32: HT&E Limited
HT&E Limited / ABN 95 008 637 643