Gtn Ltd. · ASX:GTN
Gtn — Investor Presentation (February 2020)
25 slides from Gtn's investor presentation, Feb 27, 2020
Slide 1: GTN Limited 1H20 Results Presentation
GTN Limited 1H20 Results Presentation 27 February 2020
Slide 2: Today’s presenters
Today’s presenters Bill Yde (CEO and founder) Scott Cody (CFO and COO) 1
Slide 3: Contents
Contents 01 Overview 3 02 Group financial performance 6 03 Financial performance by operating segment 9 04 Update on growth strategy 18 A Additional financial information 22
Slide 4: Overview
Section 01 Overview
Slide 5: Overview: 1H FY20 results showed 1.4% revenue increase
Overview GTN’s 1H FY20 results showed 1.4% revenue increase 2Q FY20 revenue growth (+7%) much stronger than 1Q FY20 (-5%) Key Highlights ⚫ 1H20 revenue underpinned by growth in all non-Australian markets A$m(2) 1H20 1H19 % Difference — All non-Australian markets reported revenue increase over 1H FY1
Slide 6: GTN’s global advertising platform
GTN’s global advertising platform GTN’s global advertising platform is a combination of established, market leading businesses and large new market opportunities ATN CTN UKTN BTN 1H FY2020 Revenue A$m 46.8 16.7 23.3 8.8 1H FY2019 Revenue A$m 48.6 16.4 22.5 6.9 1HFY20 vs 1HFY19 (3.7)% +1.9% +3.9% +27
Slide 7: Group financial performance
Section 02 Group financial performance
Slide 8: Key drivers of financial performance
Key drivers of financial performance GTN achieved growth in revenue from while earnings declined on higher costs Commentary GTN Group revenue ⚫ Revenue growth of 1.4% driven by: — Organic growth in Brazil and UK in local currency — Favourable currency movements in all non-Australian markets — Overal
Slide 9: Strong liquidity position
Strong liquidity position Net debt (debt less cash balances) of $14.0 million. Total Gearing to Adjusted EBITDA of 0.42x Historical balance sheet (31 December 2019 & 30 June 2019) Summary cash flow 31 December 2019 30 June 2019 $’000 $’000 1H FY20 1H FY19 Current Assets $Am Cash and cash equivalents
Slide 10: Financial performance by operating segment
Section 03 Financial performance by operating segment
Slide 11: ATN
ATN ATN revenue decreased in a challenging Australian advertising market ATN revenue performance Commentary ⚫ ATN revenue declined by 3.7% due to weak first quarter performance — Difficult macro advertising market in Australia — 1Q FY20 had difficult comparison as 1Q FY19 was up 8.5% 48.6 46.8 compa
Slide 12: ATN (continued)
ATN (continued) ATN revenue rebounded sharply in 2Q20 despite continued challenging market ATN revenue performance 24.1 26.0 20.8 24.4 1Q FY19 1Q FY20 2Q FY19 2Q FY20 11
Slide 13: CTN
CTN CTN revenue softer than expected, primarily due to very weak July/August 2019 CTN revenue performance (AUD) CTN revenue performance (CAD) 16.7 15.6 16.4 15.1 1H FY19 1H FY20 1H FY19 1H FY20 Commentary ⚫ CTN revenue decreased in local currency but increased in AUD CTN KPIs — Currency fluctuations
Slide 14: CTN (continued)
CTN (continued) Canada recovered from a soft summer to increase revenue in CAD and AUD in 2Q FY20 CTN revenue performance (AUD) CTN revenue performance (CAD) 7.6 7.3 7.4 6.7 1Q FY19 1Q FY20 1Q FY19 1Q FY20 9.3 8.4 8.3 8.8 2Q FY19 2Q FY20 2Q FY19 2Q FY20 13
Slide 15: UKTN
UKTN UKTN produced solid revenue performance in both AUD and GBP for the period UKTN revenue performance (AUD) UKTN revenue performance (GBP) 23.3 12.6 12.7 22.5 1H FY19 1H FY20 1H FY19 1H FY20 UKTN KPIs Commentary ⚫ UKTN revenue increased in GBP primarily due to increase in 1H20 1H19 % chg availabl
Slide 16: UKTN (continued)
UKTN (continued) Solid revenue performance across both quarters of 1H FY20 UKTN revenue performance (AUD) UKTN revenue performance (GBP) 11.4 6.3 6.2 11.1 1Q FY19 1Q FY20 1Q FY19 1Q FY20 12.0 6.3 6.4 11.4 2Q FY19 2Q FY20 2Q FY19 2Q FY20 15
Slide 17: BTN
BTN BTN achieved strong revenue growth of greater than 25% in both AUD and local currency BTN revenue performance (AUD) BTN revenue performance (BRL) 8.8 24.4 6.9 19.4 1H FY19 1H FY20 1H FY19 1H FY20 Commentary ⚫ Strong revenue growth in Brazil driven by: — Significant increase in available spots in
Slide 18: BTN (continued)
BTN (continued) Outstanding revenue performance across both quarters of 1H FY20 BTN revenue performance (AUD) BTN revenue performance (BRL) 4.2 11.4 3.2 9.2 1Q FY19 1Q FY20 1Q FY19 1Q FY20 4.7 13.1 3.8 10.3 2Q FY19 2Q FY20 2Q FY19 2Q FY20 17
Slide 19: Update on growth strategy
Section 04 Update on growth strategy
Slide 20: GTN growth strategy
GTN growth strategy Management is focused on accelerating revenue growth from all markets ⚫ Australia —Continued commitment to managing sales staff and process to ensure ATN maximizes revenue in a difficult market and is well positioned when market conditions improve Brazil —Local management continu
Slide 21: Capital Management
Capital Management The Board announced extension of on-market share buy-back that was originally announced 25 February 2019 ⚫ Continuing on-market share buy-back as part of ongoing capital management —Up to 10% of outstanding shares for up to the next twelve months should the GTN stock price trade a
Slide 22: Outlook
Outlook Revenue for the beginning of 2H FY2020 is anticipated to be up mid-single digits for January & February 2020 compared to last year ⚫ Australia revenue anticipated to be approximately down low single digits for January/February 2020 —Broader advertising market in Australia continues to be cha
Slide 23: Appendix A: Additional financial information
Appendix A Additional financial information
Slide 24: Reconciliation of non-IFRS measurements back to IFRS
Reconciliation of non-IFRS measurements back to IFRS EBITDA, Adjusted EBITDA & NPATA Reconciliation of EBITDA and Adjusted EBITDA to Profit before income tax ($m) 1 1H FY2020 1H FY2019 Profit before income tax 10.7 15.1 Depreciation and amortization (5.9) (5.5) Finance costs (1.6) (1.8) Interest on
Slide 25: Disclaimer and important information
Disclaimer and important information The information contained in this document is general background information about GTN Limited (ACN 606 841 801) (the “Company”) and its activities as at the date of this document. It is in summary form and does not purport to be complete. It should be read in co