Nine Entertainment Co. Holdings Limited · ASX:NEC
Nine Entertainment — H1 FY22 Earnings Presentation
29 slides from Nine Entertainment's earnings presentation, Feb 24, 2022
Slide 1: FY22 Interim Results, 24 February 2022
Slide 2: Mike Sneesby, Chief Executive Officer
MIKE SNEESBY CHIEF EXECUTIVE OFFICER 2
Slide 3: Operational Highlights
OPERATION AL HIGHLIGHT S S TRONG AUDIENCE RESULT S AD MARKET S TRENG TH RECORD YEAR FOR TOTAL TELEVISION Across all platforms – Broad growth in the ad market, Total TV advertising revenue Broadcasting, Streaming, across television, radio and (Nine + 9Now) in calendar Publishing & Marketplaces publis
Slide 4: Growth in Total Television (Nine+9Now) and Publishing Drives Profit
GROW TH IN TOTAL TELEVISION (NINE+9NOW) EBITDA, $M AND PUBLISHING DRIVES PROFIT Refer to glossary in Appendix 5 for definitions. Totals may not add due to rounding 4
Slide 5: Digital Growth Continues
DIGITAL GROW TH CONTINUES EBITDA, $M REVENUE, $M 200 600 DIGITAL REVENUE 180 +30% TO 43%1 OF GROUP REVENUE 500 160 140 400 120 100 300 DIGITAL EBITDA +31% TO 46%1 OF 80 GROUP EBITDA 200 60 40 100 20 0 0 H1 FY20 H1 FY21 H1 FY22 Digital EBITDA Domain Digital EBITDA Digital revenue Digital includes Sta
Slide 6: Graeme Cassells, Deputy Chief Financial Officer
GRAEME CASSELLS DEPUTY CHIEF FINANCIAL OFFICER 6
Slide 7: Group Results
GROUP RESULT S GROUP GROUP GROUP H1 REVENUE EBITDA MARGIN DIVIDEND $1,333M $406M 30.5% 7.0 CPS (+15%) (+2.0 CPS) A$M H1 FY22 H1 FY21 VARIANCE REVENUE1 1,332.9 1,154.3 +15% GROUP EBITDA1 406.3 354.3 +15% EBIT1 330.3 279.7 +18% GROUP NPAT, PRE MINORITIES1 225.2 187.4 +20% GROUP NPAT, AFTER MINORITIES1
Slide 8: Specific Items
SPECIFIC ITEMS A$M H1 FY22 DOMAIN - REFER DOMAIN ACCOUNTS (ASX:DHG), 17TH FEB 2022 (8.7) RESTRUCTURING COSTS (6.6) REVERSAL OF PREVIOUS DEBTOR WRITE-OFFS 0.2 NET LOSS ON SALE OF FINANCIAL ASSETS (1.0) TOTAL SPECIFIC ITEMS BEFORE TAX (16.1) TOTAL TAX RELATING TO SPECIFIC ITEMS (4.0) NET SPECIFIC ITEM
Slide 9: Cash Flows
CASH FLOWS CASH CONVERSION 1 H1 FY22 CAPEX 1,2 90% $27M H1 FY22 H1 FY22 H1 FY21 A$M, WHOLLY-OWNED DOMAIN REPORTED ADJUSTED2 ADJUSTED1 EBITDA (BEFORE ASSOCIATES) 405.3 61.0 344.3 299.9 WORKING CAPITAL (33.2) (0.2) (33.0) (48.1) ASSOCIATES 0.1 - 0.1 - OPERATING CASH FLOW, PRE SPECIFIC ITEMS, TAX AND I
Slide 10: Strong Cash Flows Reduce Debt
S TRONG CASH FLOWS REDUCE DEBT AS AT 31 DECEMBER, A$M WHOLLY OWNED GROUP DOMAIN CONSOLIDATED GROUP INTEREST BEARING LOANS AND BORROWINGS 204.0 219.0 423.0 LESS: CASH AND CASH EQUIVALENTS (140.8) (52.6) (193.4) NET DEBT/(CASH) 63.2 166.4 229.6 NET LEVERAGE 0.1X 1.6X 0.4X Refer to glossary in Appendix
Slide 11: Divisionals
DIVISIONALS FY22 INTERIM RESULTS 11
Slide 12: Broadcast – TV & Radio
BROADCAS T – T V & RADIO Revenue1 contribution – H1 FY22 A$M H1 FY22 H1 FY21 VARIANCE REVENUE TOTAL TELEVISION 632.8 572.4 +11% RADIO 48.9 44.0 +11% BROADCAST REV 681.7 616.4 +11% COSTS TOTAL TELEVISION 396.2 367.9 (8%) EBITDA1,2 contribution – H1 FY22 RADIO 42.5 41.1 (3%) BROADCAST COSTS 438.7 409.
Slide 13: Total Television – FTA & BVOD
TOTAL TELEVISION – FTA & BVOD DIGITAL REVENUE TOTAL NINE REVENUE MARKET 1 GROW TH TO $2.0B $633M LINEAR (+15%) (+11%) REVENUE A$M H1 FY22 H1 FY21 VARIANCE REVENUE FTA 558.5 522.9 +7% 9NOW 74.3 49.5 +50% TOTAL TV REVENUE 632.8 572.4 +11% COSTS FTA 370.0 351.6 (5%) 9NOW 26.2 16.3 (60%) TOTAL TV COSTS
Slide 14: Free to Air Television (FTA)
FREE TO AIR TELEVISION (FTA) METRO FTA #1 REVENUE RECORD H1 MARKET RATINGS SHARE MARGIN + 13%1 SHARE 36%1 OF ~34% 25-54s 2 $M H1 FY22 H1 FY21 VARIANCE FTA REVENUE 558.5 522.9 +7% FTA COSTS 370.0 351.6 (5%) FTA EBITDA 188.5 171.3 +10% MARGIN 33.7% 32.8% +0.9 PTS • Nine Network and Primary Channel - #
Slide 15: 9Now – Broadcast Video on Demand
9NOW – BROADCAS T VIDEO ON DEMAND BVOD MARKET LIVE EBITDA GROWTH OF +58% TO $193M1 STREAMS 45% +75% 3 A$M H1 FY22 H1 FY21 VARIANCE REVENUE 74.3 49.5 +50% COSTS 26.2 16.3 (61%) EBITDA 48.1 33.2 +45% MARGIN 64.7% 67.1% -2.6 PTS • 55% increase in daily active users2 (incl Love Island) Significant upsid
Slide 16: Nine Radio
NINE RADIO RADIO MARKET NINE RADIO 63M STREAMS 2 8M+ DIGITAL +13%1 AGENCY SHARE UP 19% LISTENERS NINE RADIO AD +1.1 PTS ON H2 FY21 UP 45% ON H2 FY21 REVENUE GROWTH +15% A$M H1 FY22 H1 FY21 VARIANCE REVENUE 48.9 44.0 +11% COSTS 42.5 41.1 (3%) EBITDA 6.4 2.9 +121% MARGIN 13.1% 6.6% +6.5 PTS • Talk Rad
Slide 17: Stan – Subscription Video on Demand
S TAN – SUBSCRIPTION VIDEO ON DEMAND Revenue1 contribution – H1 FY22 ACTIVE REVENUE DOUBLE-DIGIT SUBSCRIBERS GROW TH % GROW TH IN ~2.5M +23% OVERALL ARPU A$M H1 FY22 H1 FY21 VARIANCE REVENUE 183.5 149.1 +23% COSTS – STAN 131.7 112.6 (17%) ENTERTAINMENT COSTS – STAN SPORT 29.9 - - (INCREMENTAL) EBITD
Slide 18: Nine Publishing
NINE PUBLISHING Revenue1 contribution – H1 FY22 DIGITAL REVENUES DIGITAL 7% GROW TH IN >60% OF TOTAL SUBSCRIPTION DIGITAL ADVERTISING REVENUE DOUBLE DIGITAL REVENUE GROW TH A$M H1 FY22 H1 FY21 VARIANCE DIGITAL SUBSCRIPTION & LICENSING 84.6 51.9 +63% REVENUE ADVERTISING – O & O 84.3 79.0 +7% EBITDA1,
Slide 19: Domain
DOMAIN Revenue1 contribution – H1 FY22 A$M, CONTINUING BUSINESS BASIS H1 FY22 H1 FY21 VARIANCE REVENUE RESIDENTIAL 120.3 93.5 +29% MEDIA, DEVELOPERS & 25.4 22.1 +15% COMMERCIAL AGENT SERVICES 14.1 11.7 +21% CORE DIGITAL 159.8 127.3 +26% CONSUMER SOL’NS 4.6 2.9 +60% TOTAL DIGITAL 164.4 130.2 +26% PRI
Slide 20: Trading Update & Outlook
T R A D I N G U P D AT E & O U T L O O K MIKE SNEESBY 20
Slide 21: Trading Update
TRADING UPDATE Total Television Radio Stan Publishing Domain TV ad market conditions Radio ad market Strong revenue Growth driven by Underlying property remain strong continues to recover momentum continues Subscription and market remains strong Licensing. Nine’s Q3 Metro FTA ad Q3 Radio revenue Bet
Slide 22: Appendices
APPENDICES FY22 INTERIM RESULTS 22
Slide 23: Appendix 1: Group Divisional Results
APPENDIX 1: GROUP DIVISIONAL RESULTS Revenue1 contribution – H1 FY22 H1 FY22 BROADCAST PUBLISHING STAN DOMAIN CORPORATE ASSOCIATES INTERSEGMENT TOTAL $M REVENUE 681.7 299.6 183.5 175.3 2.5 - (9.7) 1,332.9 PCP 616.4 260.0 149.1 136.9 1.1 - (9.2) 1,154.3 % CHG +11% +15% +23% +28% +127% - (5%) +15% EBI
Slide 24: Appendix 2: Restatement of Digital Revenues (PCP)
APPENDIX 2: RESTATEMENT OF DIGITAL REVENUES (PCP) 1 A$M H1 FY21 COGS H1 FY21 ADJ 9NOW REVENUE 54.6 (5.1) 49.5 COSTS (21.4) 5.1 (16.3) EBITDA 33.2 - 33.2 PUBLISHING REVENUE 263.4 (3.6) 260.0 COSTS (195.3) 3.6 (191.9) EBITDA 68.1 - 68.1 1 From the FY21 result, Nine has restated FY20 revenue for the Ni
Slide 25: Appendix 3: Linear TV Ratings
APPENDIX 3: LINEAR TV RATINGS SURVEY 2021 (WEEKS 7-48, EXCL EASTER) NETWORK PRIMARY CHANNEL COMMERCIAL RATINGS SHARE Seven Nine Ten Seven Nine Ten SURVEY INCL TOTAL OLYMPICS 6PM-MIDNIGHT 40.0 36.8 23.2 40.4 38.4 21.2 PEOPLE 25-54S 36.1 36.5 27.4 36.4 37.9 25.8 16-39S 36.8 34.4 28.8 36.6 36.4 26.9 GS
Slide 26: Appendix 4: Forward Estimates
APPENDIX 4: FORWARD ESTIMATES ITEM FY22 CORPORATE COSTS – WHOLLY OWNED ~$30M TO 34M DEPRECIATION & AMORTISATION - REPORTED ~$150M TO 160M INTEREST EXPENSE - REPORTED $25-30M TAX RATE - REPORTED ~30% CAPEX (EX DOMAIN) ~$65 TO 75M 60-80% OF NET PROFIT AFTER TAX, BEFORE SPECIFIC ITEMS DIVIDEND 26
Slide 27: Appendix 5: Glossary
APPENDIX 5: GLOSSARY Broadcast – Broadcast comprises Nine Network, 9Now and Nine Radio. Net Leverage (wholly owned) – Net Debt (wholly owned) divided by wholly owned Group BVOD – Broadcast Video on Demand EBITDA plus dividends received (last 12 months) Cash conversion – Refers to operating cash pre
Slide 28: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Important Notice and Disclaimer This document is a presentation of general background information about the activities of Nine Entertainment Co. Holdings Limited (“NEC”) current at the date of the presentation, (24 February 2022). The information contained in this pre
Slide 29: Nine
Nine
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