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ARN MEDIA LIMITED — AGM Information 2016
May 10, 2016
64267_rns_2016-05-10_18710c66-4648-4642-93f0-a5648e363e6f.pdf
AGM Information
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Annual General 20 Meetin 16 g
APN NEWS & MEDIA LIMITED ABN 95 008 637 643
Ciaran Davis
Annual General Meeting
APN GROUP HIGHLIGHTS
52% INCREASE IN REGISTRATIONS METROPOLITAN NETWORK 49% INCREASE IN REVENUE RADIO BRAND - KIIS #1 SYDNEY FM STATION BRISBANE FM STATION AWARDED BRONZE CANNES LION ADELAIDE FM STATION
87% MARKET PENETRATION LAUNCHED REGIONAL DIGITAL SUBSCRIPTION PROGRAM
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LAUNCHED DIGITAL STREET FURNITURE NETWORK IN AUSTRALIA AND NEW ZEALAND, WITH MORE TO COME
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THE NEW ZEALAND HERALD NEWSTALK ZB RADIO SPORT #1 RE-POSITIONED DIVERSIFYING OFFERING DELIVERED ON TRANSFORMATION SECURING NEW CONTRACTS 2
Annual General Meeting
2015 FINANCIAL HIGHLIGHTS
Revenue $850.0m EBITDA $166.2m Cash flows $78.2m**
1%
1% 2.74x
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From continuing operations
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** From continuing operations and before exceptional items
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*** Before the impact of acquisitions and divestments
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Annual General Meeting
STRATEGIC PRIORITIES
Investment in growth areas
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Demerger
Potential divestment
A leading Australian-focused, growth orientated media and
entertainment company
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ARN GROUP
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Annual General Meeting
RATINGS SUCCESS
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#1 metropolitan radio network in Australia
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1FM in Sydney #2FM in Sydney
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1 in Brisbane #1 in Adelaide
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1 radio brand
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Kyle & Jackie O and Jonesy & Amanda - #1 & #2FM breakfast positions in Sydney for 16 straight surveys
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Robin, Terry & Bob - #1FM Jodie & Soda - #1FM ‘Hughesy & Kate’ national drive Breakfast in Brisbane breakfast for 42nd program – National #2 position consecutive survey in Adelaide within year of launch
Source: GFK Metro Radio Ratings 10+, Mon‐Sun 0530‐12mn, Commercial Share SMBAP, 2015 s1‐s8
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Annual General Meeting
OUTPERFORMING THE MARKET
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- Source: Deloitte / CRA 12 months to December
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Annual General Meeting
IHEARTRADIO – MULTI-PLATFORM
527,000 registered users 803,000 app downloads 2,400,000 streaming hours
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Custom radio stations Events Partnerships
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Adshel
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Annual General Meeting
LAUNCH OF ADSHEL LIVE
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Digital expansion sites
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Annual General Meeting
BENEFITS OF ADSHEL LIVE
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Annual General Meeting
INVESTMENT DRIVING GROWTH
Total AU OOH ad market v Adshel
Total NZ OOH ad market v Adshel
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25% 35%
21.6% 30.4%
30%
20%
16.3% 16.6% 16.6% 23.6%
14.2% 25%
15%
10.6% 20%
14.7%
10%
15%
5.7%
8.8% 9.3%
5% 10% 7.6% 6.2%
5% 1.5%
0%
Q1 Q2 Q3 Q4 0%
-5% -2.0% Q1 Q2 Q3 Q4
Total market Adshel Total market Adshel
growth
growth
YoY
YoY
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Source: OMA AU & NZ
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Launch of Adshel LIVE
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HONG KONG OUTDOOR
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Annual General Meeting
CODY OUT-OF-HOME
- Onerous contract
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New management team
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Rebranded
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Diversified offering
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Securing new contracts
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Australian Regional Media
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Annual General Meeting
LOCAL AUDIENCES CONTINUE TO GROW
Weekly ARM Audience
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2.00
1.60
1.20
0.80
0.40
0.00
2013 2014 2015
Print Digital Only
Millions
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Source: ARM weekly aggregate audience as developed with Nielsen; 12 months to December 2013, 2014 & 2015
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Annual General Meeting
DIGITAL SUBSCRIPTION PROGRAM
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NZME
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Annual General Meeting
TRANSFORMATION ON-TRACK
| Target | Achieved |
|---|---|
| Deliver FY15 EBITDA of $70.8m* | $74.9m delivered |
| Deliver cost savings of $18m | Over $20m secured |
| Merge three businesses into one | Merged business – one newsroom, merged commercial teams Auckland and eleven regions co-located |
| Generate over $55m of annual revenue from digital and other growth channels in FY15 |
Over $59m generated 33% growth in digital publishing revenues |
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*$4m of listed costs were included in the November 2014 market forecast of $70.8m, like for like comparison therefore $74.8m
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Annual General Meeting
STRONG BRANDS
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#1 News Media brand
#1 News Radio Station
#1 Sports Radio Station
#1 Music Radio Station
Source: Nielsen CMI, February 2016 fused database. Print and Radio based on weekly [cume], digital based on monthly domestic unique audience; Publishing: CMI readership Q1 - Q4 2015, Radio: TNS New Zealand Commercial National Survey 2 / 2015 station share (%), All 10+, Mon-Sun 12MN-12MN, unless specified. GrabOne: [data]
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Annual General Meeting
NEW REVENUE INITIATIVES
- Focus on new revenue initiatives driving growth
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APN STRATEGY
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Annual General Meeting
APN STRATEGY
Australian-focused media and entertainment company concentrated on the growth sectors of radio and outdoor
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Expand
Grow
digital and
audience
data
base
capabilities
Diversify Optimise
revenues integration
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Annual General Meeting
TRADING UPDATE
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Annual General Meeting
TRADING UPDATE
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In Australia, the Radio and Outdoor sectors continue to outperform a relatively weak advertising market. ARN revenues were up in line with the strong market growth of 9% in Q1. In Outdoor, the strong performance of the Adshel LIVE digital panels has delivered overall revenue growth in line with the market at 17% year to date
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In ARM the revenue trend has been consistent with 2015, with local revenues in line with prior year and National revenues remaining weak. Digital subscriptions have helped to deliver total audience revenues in line with prior year. Cost savings have offset more than half the revenue decline
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In New Zealand, market conditions have been challenging and revenues were down 10% to the end of Q1. We have seen some improvement in April and bookings data suggests this will continue into May. The significant cost savings delivered as a result of the integration have offset most of the revenue shortfalls
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At the end of April, Group revenues are down 4% on prior year while cost savings have delivered a flat EBITDA
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THANK YOU
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