Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — Southern Cross Austereo — FY2011 Earnings Presentation
29 slides from Southern Cross Media's earnings presentation, Aug 24, 2011
Slide 1: Southern Cross Austereo FY11 Results Presentation
For personal use only Southern Cross Austereo FY11 Results Presentation
Slide 2: Headline Achievements
Headline Achievements For personal use only • Like for Like sales up 4.7% to $719.2m • Like for Like EBIT up 8.4% to $204.4m • Acquired Austereo to create a National multimedia company • Launched Southern Cross Austereo Brand • Formed one management team • Ahead of plan with integration and correspo
Slide 3: Headline Achievements (cont.)
Headline Achievements (cont.) For personal use only • Successfully secured new financing (expiring March 2015) at better pricing and covenant package • Net Debt at 30 June of $693.4m (Covenant ratio < 3 times) • Increased EBITDA and EBIT margins • EPS from operations up 20.6% to 15.0 cps (Reported 1
Slide 4: Sizzle Reel Slide
For personal use only Sizzle Reel Slide 4
Slide 5: Australia's biggest broadcasting group with potential audience reach of over 95%
Australia’s biggest broadcasting group with potential audience For personal use only reach of over 95% of Australians… FY12 Results Analysis 5
Slide 6: Multi Media Entertainment Solutions
Multi Media Entertainment Solutions For personal use only Analogue Radio DAB+ Online video FTA TV & IPTV Online & Social Podcasts Media Mobile & Tablets 6
Slide 7: FY11 Financial Analysis
For personal use only Steve Kelly, CFO FY11 Financial Analysis 7
Slide 8: Financial Analysis Contents
Financial Analysis Contents For personal use only • FY11 reported to underlying results • Underlying results summary • Underlying results components • Regional results FY11 v FY10 comparative • Metro results reconciliation 8
Slide 9: Financial Analysis Contents (cont.)
Financial Analysis Contents (cont.) For personal use only • Metro results FY11 to FY10 comparative • Pro forma full year Group comparative result • Balance Sheet Summary • Debt Facilities • Cash Flow summary • EPS analysis 9
Slide 10: FY11 Underlying Results
FY11 Underlying Results For personal use only $ millions Reported Proportional Transaction Underlying Consol. of Costs JV’s Revenue 492.8 9.3 - 502.1 Expenses (344.0) (7.1) 7.3 (343.8) Equity accounted profit 1.4 (1.4) - - EBITDA 150.2 0.8 7.3 158.3 Depreciation & Amort. (22.1) (0.1) - (22.2) Net Fi
Slide 11: FY11 Underlying Results Components
FY11 Underlying Results Components For personal use only $ millions Regional Metro Underlying* (April to June) TV 270.0 - 270.0 Radio 158.3 74.5 232.8 Total Revenue 428.3 74.5 502.8 Broadcast & Production (112.7) (6.6) (119.3) Employee (93.7) (26.6) (120.3) Selling, General & Admin (81.5) (16.7) (98
Slide 12: FY11 Underlying Comparative Summary
FY11 Underlying Comparative Summary For personal use only FY11 FY10 Revenue $502.1m $416.7m 20.5% EBITDA $158.3m $129.8m 22.0% EBITDA Margin 31.5% 31.1% EBIT $136.1m $107.7m 26.4% EBIT Margin 27.1% 25.8% NPAT $68.5m $52.3m 31.0% NPAT Margin 13.6% 12.6% Reported EPS 11.55 cps 5.761 cps 100% 1 Reporte
Slide 13: Regional Results Comparative Performance
Regional Results Comparative Performance For personal use only $ millions FY11 FY10 % Variance TV 270.0 265.9 1.5% Radio 158.3 150.8 5.0% Total Revenue 428.3 416.7 2.8% Broadcast & Production (112.7) (104.2) 8.2% Employee (93.7) (91.6) 2.3% Selling, General & Admin (81.5) (82.6) (1.4%) Corporate (6.
Slide 14: Metro Results Reconciliation
Metro Results Reconciliation For personal use only $ millions FY11 FY11 FY11 Pre FY11 (July to March) acquisition (April to June) One Off Underlying Pre acquisition Post acquisition Costs Result Radio 216.4 74.5 290.9 - 290.9 Total Revenue 216.4 74.5 290.9 - 290.9 Broadcast & (18.6) (6.6) (25.2) - (
Slide 15: Metro Results Comparative Performance
Metro Results Comparative Performance For personal use only $ millions FY11 1 FY10 1 % Variance Radio 290.9 270.0 7.7% 290.9 270.0 7.7% Broadcast & Production (25.2) (24.0) 5.0% Employee (99.1) (91.4) 8.4% Selling, General & Admin (67.6) (65.6) 3.0% Total Expenses (191.9) (181.0) 6.0% EBITDA 99.0 89
Slide 16: Pro Forma FY Group Results Comparative
Pro Forma FY Group Results Comparative For personal use only $ millions FY11 FY10 % Variance TV 270.0 265.9 1.5% Radio 449.2 420.8 6.7% Total Revenue 719.2 686.7 4.7% Broadcast & Production (137.9) (128.2) 7.6% Employee (192.8) (183.0) 5.4% Selling, General & Admin (149.1) (148.2) 0.6% Corporate (6.
Slide 17: Balance Sheet Summary
Balance Sheet Summary For personal use only $ millions FY11* FY10 Movement Intangibles Radio & TV Licences 1,642.3 768.5 873.8 Goodwill 355.6 295.9 59.7 Other 0.1 0.4 (0.3) 1,998.0 1,064.8 933.2 Cash 31.6 38.1 (6.5) Other assets 368.7 292.9 75.8 Total Assets 2,398.3 1,395.8 1,002.5 Borrowings (708.5
Slide 18: Debt Facilities
Debt Facilities For personal use only $ millions FY11 FY10 Reported Borrowings 708.5 287.5 Borrowing Costs 16.9 12.8 Lease Liabilities (0.4) (0.3) Drawn Debt 725.0 300.0 • Newly completed $765m four year syndicated facility, maturing in March 2015 • $503m term facility • $222m re-drawable facility •
Slide 19: Cash Flow
Cash Flow For personal use only $ millions Opening Cash 38.1 Cash From Operations 164.6 Interest, Derivative & Borrowing Cost (38.8) payments Capital expenditure (13.9) Distributions to Security Holders (48.5) Net Capital raising proceeds 471.6 Debt increase 220.4 Payment for acquisition of Austereo
Slide 20: EPS Analysis
EPS Analysis For personal use only cents per share FY11 FY10* Operations 15.04 11.62 Derivative Impact (0.20) 3.52 Transaction & Integration Costs (3.29) Net Restructuring Cost Impact (1.19) Internalisation Impact (8.19) Discontinued Operations (29.69) Reported 11.55 (23.93) Weighted average # of Sh
Slide 21: Operations
For personal use only Rhys Holleran, CEO Operations 21
Slide 22: Trading Highlights
Trading Highlights For personal use only • Radio up 6.7% • Maintained market leadership position nationally • Metro radio business grew 8.0% vs 5.7% market growth • Regional business grew 5.0% • TV Revenue up 1.5% impacted by:- • Strong power ratio performance in H2 - circa 1.1 • Commonwealth Games
Slide 23: Advertising Revenues
Advertising Revenues For personal use only Full Year Regional Radio Metro Radio 1 Metro Radio Market 2 % split of revenues % change vs pcp % split of revenues % change vs pcp % change vs pcp Local Advertising 67.40% 1.40% 28.75% 3.81% 5.90% National Advertising 24.06% 8.40% 69.78% 10.19% 5.50% Total
Slide 24: Revenue Trends
Revenue Trends For personal use only PCP Growth 20% 15% 10% 5% 0% -5% Q1 11 Q2 11 Q3 11 Q4 11 Metro Radio Regional TV Regional Radio 24
Slide 25: Acquisition Update
Acquisition Update For personal use only • Southern Cross Austereo launched as new brand • Peter Harvie appointed to the Board • One management structure announced • Integration teams working well and ahead of required run rate • Synergy run-rate to date $5.7m p.a. (40% of total target and 100% of f
Slide 26: Outlook
Outlook For personal use only • Current revenue performance is mirroring consumer uncertainty • Agencies and market analysts have ADEX forecasts ranging from 0% to 5% growth with regional being slightly behind metro in most cases. • Radio forecasts are similarly diverse 26
Slide 27: Outlook (cont.)
Outlook (cont.) For personal use only • Channel TEN have announced 2012 line up • We expect markets to remain challenging for the remainder of this year • Despite the uncertain trading conditions we expect to deliver positive underlying profit growth as the benefits of the combination of the Regiona
Slide 28: Summary
Summary For personal use only • Another strong year in the development of our business plan - acquiring the leading metropolitan radio business. • Rapid and co-operative development in creating one Southern Cross Austereo business • Operational performance of the businesses was not distracted by the
Slide 29: Disclaimer
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. However,
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