Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — Investor Presentation (August 2023)
24 slides from Southern Cross Media's investor presentation, Aug 17, 2023
Slide 1: FY23 Results Presentation
FY23 RESULTS PRESENTATION 17 AUGUST 2023 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 17 August 2023. The information in this presentation is of a general background natu
Slide 3: FY23 Overview
FY23 OV ERV| JOHN KELLY SCA
Slide 4: Results Summary and Highlights
RESULTS SUMMARY AND HIGHLIGHTS * FY23 EBITDA’ of $77.2m and NPAT! of $21.9m * Despite challenging market conditions, SCA has maintained overall Audio revenues, and increased metro radio revenue share by 0.6% to 27.2%, at a 24.7% margin? * LISTNR revenue increased 36% and reduced its EBITDA loss for
Slide 5: Operational Scorecard
OPERATIONAL SCORECARD * SCA has outperformed the market in all audio segments — growing revenue share in digital audio from 8.8% to 12.1%', metro radio by 0.6%? and regional radio by 1.1%? * SCA posted its highest ever audience for Metro Radio in FY2023 — and remains the #1 Radio network in the P25-
Slide 6: LiSTNR users and monthly streams growth
10,000,000 10,000,000 9,000,000 9,000,000 8,000,000 8,000,000 7,000,000 7,000,000 6,000,000 6,000,000 5,000,000 5,000,000 4,000,000 4,000,000 3,000,000 3,000,000 2,000,000 2,000,000 July 2022 June 2023 July 2022 June 2023
Slide 7: Progress on Strategic Priorities
PROGRESS ON STRATEGIC PRIORITIES * SCA is all about audio * Audio continues to deliver audience growth and improved revenue share — with digital growing significantly * GfK Radio360 provides a trusted currency for agencies and advertisers * LISTNR is a fully SCA-owned, world class digital audio prod
Slide 8: FY23 Financial Results
FY23 FINANCIAL R TIM YOUNG SCA
Slide 9: Group Results
$ millions FY22'2, Var $ Var % Revenue 524.9 (19.3) (3.7%) Ree aces (130.8) 47 3.6% iia tee (306.1) 38 1.3% Total Expenses (436.9) 8.5 2.0% EBITDA 87.9 (10.7) (12.2%) Peprecition (31.9) 27 8.5% EBIT 56.1 (8.1) (14.4%) Net Finance Costs (16.1) (0.7) (4.5%) PBT 40.0 (8.8) (22.0%) Tax (12.6) 33 26.0% N
Slide 10: Broadcast Radio
SCA BROADCAST RADIO $ millions FY22'2 Var $ Var % Revenue 377.3 (4.5) (1.2%) * Overall radio revenue declined by $4.5M or 1.2% Revenue Related (CYA) (0.9) (1.4%) Expenses . . . * Metro Radio advertising revenues grew 0.6% or $1.1m ina flat market, lifting SCA’s revenue share of the market to Non-Rev
Slide 11: Digital Audio - LiSTNR
$ millions FY22 Var $ Var % Digital Audio Revenue 15.6 5.7 36.2% Revenue Related Bases (3.8) (2.5) (66.1%) Non-Revenue Related (34.0) 38 N1% Expenses Total Expenses (37.8) 1.2 3.3% Digital Audio EBITDA (22.2) 7.0 31.3% Other Digital Revenue 51 (1.8) (35.5%) SCA DIGITAL AUDIO - LiSTNR + LiSTNR revenu
Slide 12: Television
$ millions FY22' Var$ Var% Revenue 126.2 (18.4) (14.5%) Revenue Related (59.5) 81 13.7% xpenses Non-Revenue Related Expenses (85) (9) ze) Total Expenses (96.4) 7.2 7.5% EBITDA 29.8 (11.1) (37.2%) EBITDA Margin 23.6% 1Excludes significant and other non recurring items. See appendix for details. SCA T
Slide 13: Operating Costs
$ millions FY22'? Var $ Var % Revenue 524.9 (19.3) (3.7%) Revenue Related (130.8) 47 3.6% Expenses % of revenue 24.9% - Employee Expenses (195.5) (3.6) (1.9%) Other Non-Revenue Related Expenses (Hog) us GSS Non-Revenue Related Expenses (ess) ats TERS EBITDA 87.9 (10.7) (12.2%) 1 Excludes significant
Slide 14: Capex Reduced and Expenditure Focused on Innovation
SCA CAPEX REDUCED AND pees EXPENDITURE FY22 & FY23 FOCUSED ON IN NOVATION * SCA has reduced CAPEX by 30% or $8.2m YOY to $19.3m 2A (below previous guidance of $20m) * Reflects lower maintenance burden of contemporary systems and conclusion of the refurbishment and relocation efforts Reduced 19.3m *
Slide 15: Cashflow & Financing
$ millions Net Debt Start of Period Net Cash from Operations Principal lease payments Capex net of sales proceeds Free cash flow Net Financing Costs Tax Payments Cash flow available for investment and to shareholders Investments Dividends to security holders Share Buy Back Movement in net debt Net D
Slide 16: Dividends FY18 to FY23
FY18 FY19 FY20 FY21 FY22 FY23 Interim dividend Final dividend Total dividend • •
Slide 17: FY24 Approach & Trading Outlook
/ FY24 APPROACH & | TRADING OUTLOOK
Slide 18: Building Shareholder Value in FY24
BUILDING SHAREHOLDER VALUE IN FY24 REVENUE * Continuing to build revenue share across our Broadcast Audio assets * Building greater collaboration and synergy on national Television sales with Ten * Growing our Digital Audio revenues at least in line with FY23 levels COST & CAPEX Ensuring “Always On”
Slide 19: Trading Outlook
TRADING OUTLOOK * Short, inconsistent trading conditions expected to continue through H1iFY24 * Revenue markets in H2FY24 expected to improve with more favourable market conditions ¢ Digital Audio revenue currently pacing at over 30% in line with FY23 19
Slide 20: Q&A
Slide 21: SCA logo
Slide 22: Appendix
Slide 23: Group Reported to Underlying Results Reconciliation
$ millions APPENDIX SCA GROUP REPORTED TO UNDERLYING RESULTS RECONCILIATION EBITDA Depreciation & Amortisation Impairments EBIT Net interest PBT Tax NPAT ‘Public Interest News Gathering Grant. FY22 FY22 FY22 Reported Significant Underlying Items + PING Grant’ 85.6 2.3 87.9 (31.8) 2 (31.8) (251.7) 25
Slide 24: Analysis of Significant and Other Non-Recurring Items
APPENDIX SCA ANALYSIS OF SIGNIFICANT AND OTHER NON-RECURRING ITEMS PING Grant Significant Items EBITDA impact Impairments PBT impact * The significant and other non-recurring items in the adjacent table have been excluded throughout this presentation unless otherwise noted * The Public Interest News
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