Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — Investor Presentation (August 2022)
28 slides from Southern Cross Media's investor presentation, Aug 22, 2022
Slide 1: FY22 Investor Presentation
FY22 . INVESTOR We, Wecierq 20° PRESENTATION | 22 AUGUST 2022 Aus SCA
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 22 August 2022. The information in this presentation is of a general background natu
Slide 3: FY22 Results
FY22 RESUL Grant Blackl CEO SCA
Slide 4: FY22 results highlights
• • • • • • 1 Source: GFK Metro radio data, Survey 5, 2021 - Survey 4 2022
Slide 5: Group financial results
• • • • • • • 1 Underlying Expenses and Underlying EBITDA excludes government grants received in FY21 and FY22 and $4.0m of significant items in FY22
Slide 6: FY22 Results – CFO
FY22 RESU Nick McKec CFO SCA :
Slide 7: Underlying EBITDA and Underlying NPAT
• • • • • • Underlying EBITDA and Underlying NPAT excludes government grants received in FY21 and FY22 and $4.0m of significant items in FY22
Slide 8: Public Interest News Gathering
• • • 1 Public Interest News Gathering
Slide 9: Cash from Operations less Leases
• Cash from Operations less Leases • • • •
Slide 10: Leverage Ratio
Leverage Ratio 4.50 4.50 4.50 3.50 3.50 3.50 3.50 • • 2.29 • 1.76 1.24 • 0.95 0.70 • 0.59 0.43 • Jun 19 Dec 19 Jun 20 Dec 20 Jun 21 Dec 21 June 22 Covenant Leverage Ratio (LTM EBITDA) • Leverage ratio calculated under Syndicated Facility Agreement definition
Slide 11: Operational Review
OPERATIONAL REVIEW
Slide 12: Segment results
• • • • • 1 Underlying Expenses and Underlying EBITDA excludes government grants received in FY21 and FY22 and $4.0m of significant items in FY22
Slide 13: Operating Costs
$ millions Revenue Revenue Related Expenses Revenue related expenses as % of revenue Underlying Non Revenue Related Expenses Underlying EBITDA FY22 519.7 3) 24% (304.5) FY21 529.2 (158.4) (285.3) Var (1.8%) (19.6%) 6.7% OPERATING COSTS « Non revenue related (NRR) expenses increased 6.7% to $304.5m d
Slide 14: Segment results
• • • • • Underlying Expenses and Underlying EBITDA excludes government grants received in FY21 and FY22 and $1.8m of significant items in FY22
Slide 15: Audio – Radio Advertising Revenues
National Local ‘otal Revenue gional Radio National Local ‘otal Revenue AUDIO — RADIO ADVERTISING REVENUES * Metropolitan revenues grow by 9.4% or $15.7m, in line with market recovery * Regional radio revenues grow by 6.4% or $10.1m over the pcp, led by strong national revenue growth of 8.9% * Region
Slide 16: Digital Audio – Overview
$ millions Revenue Revenue Related Expenses Employee Expenses Other NRR Expenses Total NRR Expenses Expenses EBITDA 20.8 (3.6) (16.9) (17.6) (34.5) (38.1) 15.4 (3.0) (1.0) (75) (18.5) (21.5) 35.2% 77.0% DIGITAL AUDIO - OVERVIEW * Digital audio revenues grew 35.2% across the full year to $20.8m, unde
Slide 17: Television segment results
• • • • • • Underlying Expenses and Underlying EBITDA excludes government grants received in FY21 and FY22 and $0.7m of significant items in FY22
Slide 18: Audience share, commercial share and power ratio
• • • H1 FY22 H2 FY22 Audience Share Commercial Share Power Ratio Source: KPMG Market Share Report for Regional Queensland, SNSW, Regional Victoria (3Agg only), RegTam
Slide 19: The Outlook for FY23
Slide 20: Radio market revenue trend
2017 2018 2019 2020 2021 2022 Source : Commercial Radio Australia
Slide 21: Radio audience comparison by network
340 300 260 220 180 140 100 #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 SCA NOVA ARN NINE • • 1 GFK – 5 cap cities, Cume audience All People 10+ (incl DAB), Survey 8, 2021 v Su
Slide 22: Digital Audio – Strategic Rationale
DIGITAL AUDIO STRATEGIC RATIONALE — OWN OUR DESTINY @ LiSTNR MUSIC | NEWS * Consumers migrating at pace to digitally enabled IP listening across multiple devices and platforms. In time this will become the dominant mode of audio consumption RADIO | PODCASTS | + Strategic imperative to own and operat
Slide 23: LISTNR user growth
350,000 800,000 700,000 275,000 600,000 500,000 400,000 115,000 300,000 200,000 100,000 0 H1 CY21 H2 CY21 H1 CY22 Source : SCA Internal data
Slide 24: LISTNR usage metrics
H1 CY21 H2 CY21 H1 CY22 Source: SCA Internal data
Slide 25: Radio – reach amplifier
RADIO SCA * Audio has a unique and meaningful opportunity in a cost conscious market where consumer behaviour is changing * Radio and Audio On-Demand are Make \ 4 ) J both cost effective and efficient our 1 7 * ‘Reach extender’ — audio provides y' ‘ the cost effective solution to meet reach &. reach
Slide 26: Summary
SUMMARY
Slide 27: SCA Key Priorities
SCA KEY PRIORITIES OPERATIONAL FINANCIAL IMPROVEMENTS REVENUE & AUDIENCE Build stronger radio audiences in key markets Drive higher revenue from improving radio audiences Secure new premium partnerships to supercharge LiISTNR LiSTNR — accelerate user sign- ups and time spent on platform LISTNR - enh
Slide 28: Trading Update
TRADING UPDATE REVENUE * Q1 Broadcast radio forecast to be up 5-7% with stronger momentum in metro radio * Ql1 Digital Audio forecast to be up “30% * TV market tracking below last year — cycling tougher comps COST GUIDANCE + Non-Revenue Related Cost growth for FY23 forecast to be up 24% * Total fina
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