22 February 2012
Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000
By electronic lodgement
Total pages : 50 (including covering letter)
HALF-YEAR RESULTS PRESENTATION
Please find attached a presentation on the half-year results to 31 December 2011.
Yours faithfully
For and on behalf of Seven West Media Limited
Peter Bryant Company Secretary
SEVEN WEST MEDIA LIMITED | ABN 91 053 480 845 50 HASLER ROAD, OSBORNE PARK WA 6017 | GPO BOX D162, PERTH WA 6840 TELEPHONE +61 8 9482 3111 | FACSIMILE +61 8 9482 9080
SEVEN WEST MEDIA RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 2011
Presentation on Wednesday 22 February 2012 DISCLAIMER Slide 2
Basis of preparation of slides – Additional information including Pro-forma 6 or 12 months included in this presentation is data prepared for the management of Seven West Media (SWM) and other associated entities. This data is included for information purposes only and has not been audited or reviewed or subject to the same level of review by the company as the statutory accounts and so is merely provided for indicative purposes. The company and its employees do not warrant the data and disclaim any liability flowing from the use of this data by any party. – SWM does not accept any liability to any person, organisation or entity for any loss or damage suffered as a result of reliance on this document. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, and are subject to variation. All forward-looking statements in this document reflect the current expectations concerning future results and events. Any forward-looking statements contained or implied, either within this document or verbally, involve known and unknown risks, uncertainties and other factors (including economic and market conditions, changes in operating conditions, currency fluctuations, political events, labour relations, availability and cost of labour, materials and equipment) that may cause actual results, performance or achievements to differ materially from the anticipated results, performance or achievements, expressed, projected or implied by any forward-looking statements. – Unless otherwise indicated, all references to estimates, targets and forecasts and derivations of the same in this material are references to estimates, targets and forecasts by SWM. Management estimates, targets and forecasts are based on views held only at the date of this material, and actual events and results may be materially different from them. SWM does not undertake to revise the material to reflect any future events or circumstances.
FY12 Half Year Results - Presentation 22 February 2012 AUSTRALIA’S LEADING MULTI-PLATFORM Slide 3 MEDIA BUSINESS
FY12 Half Year Results - Presentation 22 February 2012 PREMIUM CONTENT REACHING MORE AUSTRALIANS Slide 4 EVERY DAY
Market leading positions in core media categories - FTA television, print media and online Best mix of media assets in Australia, a combination ideally placed to capture advertising spend Highly free cash flow generative, high margin, low capital intensity / high return on capital Entrenched market positions supported by strong fundamentals
• 11 of top 20 Primary • 57% of West • Magazines reach channel programs Australians read The 7 million people • Yahoo!7 has West or visit 8.2 million • 16 of top 20 digital each month TheWest.com.au unique users channel programs
FY12 Half Year Results - Presentation 22 February 2012 TODAY’S AGENDA Slide 5
First Half FY12 Overview Financials Television Newspapers Magazines Yahoo!7 Priorities and Outlook Questions
FY12 Half Year Results - Presentation 22 February 2012 FIRST HALF FY12 OVERVIEW Slide 6
Profit after tax of $163.0m up from $50.1m in prior corresponding period (before SMG merger) EBITDA(i) of $340.8m up from $89.9m in prior corresponding period (before SMG merger). Pro-forma prior corresponding period $364.5m including SMG operations EBIT of $309.7m up from $78.8m in prior corresponding period (before SMG merger). Pro-forma prior corresponding period $329.6m including SMG operations – Market guidance EBIT issued in November 2011 (>$300m) Overall group EBIT margin still over 30% despite difficult market and consumer sentiment Television EBIT down 7% on pro-forma 2011 – Pro-forma revenue decline of 1% – Pro-forma cost growth at 1% – EBIT margin of 31% and EBITDA margin of 34% – Number 1 again in revenue share for CY11 at 38% of Metro market – Number 1 in revenue share since December 2006 half – Won every official ratings week in 2011
Note: (i) Refer to slide 13 for a reconciliation between EBITDA and EBIT
FY12 Half Year Results - Presentation 22 February 2012 FIRST HALF FY12 OVERVIEW Slide 7
Newspaper earnings reflects challenging economic conditions. – December circulation up 0.32% for Monday to Friday editions – Revenue decline of 1.6% pcp – EBITDA margin maintained at 42%.
Magazines earnings held consistent despite difficult conditions – Pro-forma revenue decline of 6% pcp – Pro-forma cost reduction of 7% – EBITDA margin improvement to 18%
Yahoo!7 double-digit EBITDA growth – Revenue growth of 40% – EBITDA growth of 18% to $26m – Strong EBITDA margin of 40%
FY12 Half Year Results - Presentation 22 February 2012 Slide 8
First Half FY12 Overview
Financials Television Newspapers Magazines Yahoo!7 FY12 Priorities and Outlook Questions
FY12 Half Year Results - Presentation 22 February 2012 KEY FINANCIAL NUMBERS Slide 9
Total Group – Statutory Numbers (refer disclaimer)
1HFY12 1HFY11 Actual Actual (ii) $m $m Profit before tax 231.7 70.7 Profit after tax 163.0 50.1
Basic EPS after tax (ordinary shares) 26.1 cents 23.2 cents Proposed dividend – fully franked 19 cents 19 cents
As at As at 31 Dec 11 25 Jun 11 $m $m Net assets 2,613.4 2,511.5 Net (debt) / cash (1,830.0) (1,943.5)
Note: (i) Amounts, totals and change percentages calculated on whole underlying numbers and not the rounded amounts presented (ii) 1HFY11 comparative includes 6 months of WAN only and does not include Seven Media Group FY12 Half Year Results - Presentation 22 February 2012 CONSOLIDATED SWM INCOME STATEMENT Slide 10
Total Group P&L for the period ended 31 December 2011 - Statutory Numbers (ii)
SWM Consol SWM Consol 1HFY12 1HFY11 (ii) $m $m Revenue 1,012.0 208.7 Other income 0.2 0.1 Expenses (714.2) (132.6) Share of equity accounted investees 11.7 2.6 Profit before net finance costs and tax 309.7 78.8 Net finance costs (78.1) (8.1) Profit before tax 231.7 70.7 Income tax expense (68.6) (20.6) Profit after tax 163.0 50.1
Note: (i) Amounts, totals and change percentages calculated on whole underlying numbers and not the rounded amounts presented (ii) 1HFY11 comparative includes 6 months of WAN only and does not include Seven Media Group FY12 Half Year Results - Presentation 22 February 2012 CONSOLIDATED SWM BALANCE SHEET Slide 11
Total Group – based on Statutory Numbers (refer disclaimer)
31 December 25 June 2011 2011 Actual Actual $m $m Receivables 287.1 315.5 Program rights and inventories 114.4 129.2 Intangibles 3,859.7 3,862.9 Available for sale financial assets 0.8 0.8 Investments 346.8 346.8 Fixed assets 273.8 282.1 Other assets including Tax 29.1 31.8 Current Payables, Provisions, Deferred Income and Tax (407.7) (431.4) Non Current Payables, Provisions, Deferred Income and Tax (60.7) (82.8) Net Cash / (Debt) (1,830.0) (1,943.5) Total Shareholders’ Equity 2,613.4 2,511.5
Note: (i) Amounts, totals and change percentages calculated on whole underlying numbers and not the rounded amounts presented
FY12 Half Year Results - Presentation 22 February 2012 CONSOLIDATED SWM NET CASH/DEBT FLOW Slide 12
Total Group – based on Statutory Numbers (refer disclaimer) 1HFY12 1HFY11 Actual Actual (ii) $m $m EBITDA 340.8 89.9 Working capital and other movements (8.9) (7.9) Dividends received from associates 13.7 3.0 Operating cash flows before interest and tax 345.6 85.0 Loans received / (issued) (0.7) - Income tax paid (50.5) (14.8) Net finance costs paid (including refinance costs) (125.1) (9.0) Net payment for property, plant & equipment and software (14.5) (7.2) Share issues 0.4 0.2 Dividends paid (64.6) (31.7)
Net increase in cash and cash equivalents 90.6 22.5 Opening Net Cash / (Debt) (1,943.5) (248.9) Unamortised refinancing costs 22.9 - Closing Net Cash / (Debt) (1,830.0) (226.4)
Note: (i) Amounts, totals and change percentages calculated on whole underlying numbers and not the rounded amounts presented (ii) 1HFY11 comparative includes 6 months of WAN and does not include Seven Media Group FY12 Half Year Results - Presentation 22 February 2012 CONSOLIDATED PRO FORMA INCOME STATEMENT Slide 13
1HFY12 EBIT of $309.7 million (including Associates) Market Guidance issued in November 2011 of more than $300m
1HFY12 1HFY11 Actual Pro-forma (ii) $m $m Revenue 1 1,023.9 1,044.7 Operating expenses (683.1) (680.2) EBITDA 340.8 364.5 Depreciation and amortisation (31.1) (34.9) EBIT 309.7 329.6
1) Includes share of profit of equity accounted investees and other income
Note: (i) Amounts, totals and change percentages calculated on whole underlying numbers and not the rounded amounts presented (ii) 1HFY11 Proforma includes 6 months of both WAN and Seven Media Group FY12 Half Year Results - Presentation 22 February 2012 PRO FORMA DIVISIONAL PERFORMANCE Slide 14
Revenue and EBIT by Division (ii)
1HFY12 1HFY11 PF(ii) inc / $m $m (dec) % Revenue Television 655.8 664.8 (1.4) Newspapers1 185.6 188.6 (1.6) Magazines 150.0 159.8 (6.1) Other2 32.5 31.5 2.9 1,023.9 1,044.7 (2.0) EBIT Television 205.7 220.0 (6.5) Newspapers1 66.5 72.0 (7.6) Magazines 22.3 22.3 (0.3) Other2 15.2 15.3 (0.4) 309.7 329.6 (6.0)
1) Newspapers includes The West Australian and Regionals 2) Other includes share of profit of equity accounted investees, Radio, Quokka ColourPress, Digital and other
Note: (i) Amounts, totals and change percentages calculated on whole underlying numbers and not the rounded amounts presented (ii) 1HFY11 Proforma includes 6 months of both WAN and Seven Media Group FY12 Half Year Results - Presentation 22 February 2012 PRO FORMA COSTS BY DIVISION Slide 15
Expenses including Licence Fees and Depreciation
1HFY12 1HFY11PF(ii) inc / $m $m (dec) % Expenses Television 450.1 444.8 1.2 Newspapers 119.1 116.6 2.2 Magazines 127.7 137.5 (7.0) Other1 17.3 16.2 5.9 714.2 715.1 (0.1)
1) Other includes Radio, Quokka, ColourPress, Digital and other
Note: (i) Amounts, totals and change percentages calculated on whole underlying numbers and not the rounded amounts presented (ii) 1HFY11 Proforma includes 6 months of both WAN and Seven Media Group FY12 Half Year Results - Presentation 22 February 2012 SWM NET DEBT Slide 16
Dec 2011 June 2011 Actual Actual $m $m Syndicated Bank Facilities 1,927 1,531 Bilateral Bank Facilities - 216 Subordinated Notes - 315 Total Debt 1,927 2,062 Cash (97) (119) SWM Total Net Debt 1,830 1,944 SWM Pro-forma Total LTM EBITDA (ii) 594 618 SWM Total Leverage Ratio 3.1x 3.1x
Syndicated bank facilities amounts include unamortised refinancing costs. SWM refinanced all the debt components into one facility in November 2011. The new facilities have the following characteristics as at the time of the refinancing : – average tenor of over 4 years with 3, 4 and 5 year tranches – total annual cost of debt similar to the cost under the old facilities and is based on the prevailing net leverage ratio of SWM
Note: (i) Amounts, totals and change percentages calculated on whole underlying numbers and not the rounded amounts presented ii) Proforma LTM EBITDA includes 12 months of both WAN and Seven Media Group FY12 Half Year Results - Presentation 22 February 2012 Slide 17
First Half FY12 Overview Financials Television Newspapers Magazines Yahoo!7 FY12 Priorities and Outlook Questions
FY12 Half Year Results - Presentation 22 February 2012 RATINGS SUPREMACY Slide 18
Seven TTL delivered dominant All Commercial Shares across Night 1800-2400 for key demographics for Survey Year 2011: – Total Individuals 39.4% up 11.1% in Average Audience versus 2010. – People 16-39 34.8% up 12.8% in Average Audience versus 2010. – People 18-49 35.6% up 9.5% in Average Audience versus 2010. – People 25-54 35.9% up 9.4% in Average Audience versus 2010.
Impressive numbers recorded for key properties: – Australia’s Got Talent ‘The Winner Announced’ averaged 2.98 million people. – My Kitchen Rules – The Winner Announced averaged 2.13 million viewers. – The X Factor – The Winner Announced averaged 2.11 million viewers. – Australia’s Got Talent – Tues averaged 1.94 million viewers.
7TWO was the No.1 Digital Commercial Network in 2011 Survey Year with 5.8% All Commercial Share.
7mate was No. 1 for Men 16-39 with 8.6% All Commercial Share.
Seven had 16 of the Top 20 Regular Digital Networks Programs in 2011 Survey Year.
Source: OzTAM. 5 City Metro. Wks 7-48, 2011. All Commercial Share: 1800-2400. Audience Growth Wks 7-48, 2011 vs Wks 7-48, 2010. Average Audience. Digital Channels Ranking: Top 20 Regular Digital Programs on 7TWO, 7mate, GO!, Gem, ONE, ELEVEN (regular programs aired 3 times or more.)Data: Consolidated (Live + As Live + TSV). Copyright of the Data is owned by OzTAM. The Data may not be reproduced, published or communicated (electronically or in hard copy) without the prior written consent of OzTAM.
FY12 Half Year Results - Presentation 22 February 2012 EVERY WEEK - EVERY DEMOGRAPHIC Slide 19
Commercial Primary Channel Shares across Night (1800-2400) for key demographics in 2011 Survey Year
45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Tot. Ind. Ppl 16-39 Ppl 18-49 Ppl 25-54 Seven 39.4% 36.8% 37.2% 37.1% Nine 33.5% 31.6% 32.7% 33.6% TEN 27.1% 31.5% 30.1% 29.3%
Source: OzTAM. 5 City Metro. Wks 7-48, 2011. Primary Stations: Total Individuals, People 16-39. People 18-49. People 25-54. Commercial 3 Station Shares. Sun-Sat 1800-2400. Data: Consolidated (Live + As Live + TSV) 2011. Copyright of the Data is owned by OzTAM. The Data may not be reproduced, published or communicated (electronically or in hard copy) without the prior written consent of OzTAM.
FY12 Half Year Results - Presentation 22 February 2012 AUSTRALIA’S FAVOURITE SHOWS Slide 20
Seven claimed 11 of the Top 20 Regular Primary Seven claimed 16 of the Top 20 Regular Digital Channel Programs in 2011 Survey Year. Channel Programs in 2011 Survey Year.
Rank Program Network AUD Rank Program Network AUD
1 AUSTRALIA'S GOT TALENT-TUE Network 7 1,935,841 1 HEARTBEAT-SAT (R) Network 7TWO 350,267 2 DOWNTON ABBEY Network 7 1,905,962 2 SURVIVOR: REDEMPTION ISLAND -EV Network GO! 342,274 3 PACKED TO THE RAFTERS Network 7 1,861,067 3 NEIGHBOURS Network ELEVEN 341,971 4 THE BLOCK -SUN Network 9 1,750,129 4 JONATHAN CREEK Network 7TWO 339,900 5 MASTERCHEF AUSTRALIA MON Network TEN 1,704,420 5 DOC MARTIN-EP.2 Network 7TWO 335,023 6 MASTERCHEF AUSTRALIA WED Network TEN 1,657,293 6 HEARTBEAT (R) Network 7TWO 330,682 7 UNDERBELLY: RAZOR Network 9 1,653,006 7 HEARTBEAT-SAT EP.2 (R) Network 7TWO 326,215 8 THE X FACTOR AUDITIONS-TUE Network 7 1,646,041 8 HEARTBEAT-EP.2 (R) Network 7TWO 324,527 9 MASTERCHEF AUSTRALIA SUN Network TEN 1,645,254 9 THE VICAR OF DIBLEY-TUE (R) Network 7TWO 322,303 10 MASTERCHEF AUSTRALIA THURS Network TEN 1,633,781 10 HEARTBEAT-WED (R) Network 7TWO 314,190 11 THE X FACTOR AUDITIONS-WED Network 7 1,569,892 11 DOC MARTIN Network 7TWO 308,000 12 MASTERCHEF AUSTRALIA TUES Network TEN 1,564,991 12 KEEPING UP APPEARANCES-MON Network 7TWO 301,908 13 MY KITCHEN RULES-TUE Network 7 1,558,049 13 INSPECTOR MORSE Network 7TWO 293,097 14 THE X FACTOR-TUE Network 7 1,552,147 14 WILLIAM AND MARY Network 7TWO 288,950 15 DANCING WITH THE STARS Network 7 1,526,920 15 ESCAPE TO THE COUNTRY-EP.2 Network 7TWO 287,419 16 DOC MARTIN-EV Network ABC1 1,522,351 16 THE AMAZING RACE-18 Network 7mate 285,944 17 AUSTRALIA'S GOT TALENT-WED Network 7 1,516,725 17 FAMILY GUY-ALL NEW TUE Network 7mate 284,383 18 THE BLOCK -MON Network 9 1,512,393 18 PIE IN THE SKY Network 7TWO 283,939 19 MY KITCHEN RULES-WED Network 7 1,478,404 19 THE BIG BANG THEORY -EV TX1 Network GO! 279,723 20 WINNERS & LOSERS Network 7 1,477,909 20 THE BIG BANG THEORY -EV TX2 Network GO! 267,870
Source: OzTAM. 5 City Metro. Wks 7-48, 2011Total Individuals. Average Audience for Regular Programs (ie must have aired at least three times to be counted).. Consolidated (Live + As Live + TSV). Copyright of the Data is owned by OzTAM. The Data may not be reproduced, published or communicated (electronically or in hard copy) without the prior written consent of OzTAM.
FY12 Half Year Results - Presentation 22 February 2012 2012 AUSTRALIAN OPEN TENNIS Slide 21
The audience in 2012 grew by 33.8% when compared to the previous year and is up 8.7% on 2010.
The Night session averaged 1,116,000 (up 30.2% on 2011) with 47.0% Commercial 3 Station Share (up 10.1 percentage points on 2011).
The Night – Late session averaged 616,000 viewers (up 128.5% on 2011) with 54.3% Commercial 3 Station share (up 7.6 percentage points on 2011).
The Day session averaged 425,000 (up 14.7% on 2011) with 45.3% Commercial 3 Station Share (up 1.5 percentage points on 2011).
The Men’s Final averaged 2,047,000 viewers (up by 48% on 2011), peaked at 2,710,000 (up by 38.8% YOY) and claimed a massive Commercial 3 Station Share of 60.8%.
An additional 207 hours and 23 minutes of Tennis was aired on 7TWO this season. This includes the Australian Open, the Brisbane International, the APIA International Sydney and Kooyong. In 2011, 7TWO broadcast 129 hours and 14 mins, so this is an increase of 79 hours and 9 minutes year on year.
Source: OzTAM. 5 City Metro. Australian Open 2012 (16.1.12-30.1.12), 2011 (17.1.11-30.1.11) and 2010 (18.1.10-31.1.10). Average Audience, Peak audience , Commercial 3 Station Shares, Reach (based on 5 cons. minutes viewed). Total Individuals. Consolidated (Live + As Live + TSV). Copyright of the Data is owned by OzTAM. The Data may not be reproduced, published or communicated (electronically or in hard copy) without the prior written consent of OzTAM.
FY12 Half Year Results - Presentation 22 February 2012 Slide 22 2012 CALENDAR YEAR TO DATE – PRIMARY CHANNELS
Seven is dominating the 2012 calendar year to date with Commercial Shares in excess of 40% in all key demographics.
45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Tot. Ind. Ppl 16-39 Ppl 18-49 Ppl 25-54 Seven 42.8% 40.5% 40.5% 40.3% Nine 33.2% 30.9% 31.9% 32.8% TEN 24.0% 28.6% 27.6% 26.9%
Source: OzTAM. 5 City Metro. Wks 1-8, 2011 (to Mon in Wk 8 only). Sun-Sat1800-2400. Commercial 3 Station Shares. Total Ind. , Ppl 16-39, Ppl 18-49 and Ppl 25-54. Consolidated (Live + As Live + TSV) for 1.1.12-12.2.12. Overnight (Live + As Live) for 13.2.12-20.2.12 . Copyright of the Data is owned by OzTAM. The Data may not be reproduced, published or communicated (electronically or in hard copy) without the prior written consent of OzTAM.
FY12 Half Year Results - Presentation 22 February 2012 Slide 23 SEVEN DOMINATES RANKINGS IN 2012
Seven claims 13 of the top 20 “All “programs in 2012 to date.
TV Item Description (grouped) Channel AUD
1 REVENGE-EP.1 Network 7 2,066,897 2 SEVEN'S TENNIS: 2012 AUST OPEN - MEN'S FINAL Network 7 2,047,069 3 REVENGE–EP.2 Network 7 1,800,380 4 SEVEN'S TENNIS: 2012 AUST OPEN - SEMI FINAL: NIGHT 11 Network 7 1,753,931 5 MY KITCHEN RULES-WED Network 7 1,676,145 6 MY KITCHEN RULES-MON Network 7 1,663,962 7 MY KITCHEN RULES-THU Network 7 1,657,984 8 SEVEN'S TENNIS: 2012 AUST OPEN - DAY 7 NIGHT SESSION Network 7 1,606,014 9 MY KITCHEN RULES-TUE Network 7 1,591,100 10 THE BIG BANG THEORY -EP2 Network 9 1,511,502 11 THE BIG BANG THEORY Network 9 1,498,337 12 PACKED TO THE RAFTERS Network 7 1,444,984 13 TWENTY/20 - AUSTRALIA V INDIA GAME 2 Network 9 1,432,835 14 TWENTY/20 - AUSTRALIA V INDIA GAME 1 Network 9 1,420,206 15 SEVEN'S TENNIS: 2012 AUST OPEN - SEMI FINAL: NIGHT 12 Network 7 1,407,207 16 SEVEN'S TENNIS: 2012 AUST OPEN - MEN'S FINAL - LATE Network 7 1,382,752 17 SEVEN'S TENNIS: 2012 AUST OPEN - DAY 8 NIGHT SESSION Network 7 1,366,979 18 ONE DAY CRICKET -AUSTRALIA V INDIA GAME 1 SESSION 2 Network 9 1,332,163 19 THIRD TEST - AUSTRALIA V INDIA SESSION 3 Network 9 1,296,960 20 NEW GIRL Network TEN 1,290,484
Source: OzTAM. 5 City Metro. Wks 1-8, 2012 (to Mon only in Wk 8). Total Individuals. Average Audience for All Programs (includes one-off programs). Consolidated (Live + As Live + TSV) for 1.1.12-12.2.12. Overnight (Live + As Live) for 13.2.12-20.2.12. Copyright of the Data is owned by OzTAM. The Data may not be reproduced, published or communicated (electronically or in hard copy) without the prior written consent of OzTAM.
FY12 Half Year Results - Presentation 22 February 2012 A STRATEGY THAT UNDERPINS SEVEN’S AUDIENCE Slide 24 GROWTH AND SUCCESS
FY12 Half Year Results - Presentation 22 February 2012 REVENUE SHARE – SEVEN DOMINATES Slide 25
38.2 38.1 38.0 37.9 Total Metro Market growth 37.8 of -5.1% 37.7 Seven Network revenue 37.6 growth of -3.7% 37.5 Seven Network share of 37.4 revenue market of 38.1% 37.3 37.2 Seven Share of Metro Revenue
Dec-09 Jun-10 Dec-10 Jun-11 Dec-11
FY12 Half Year Results - Presentation 22 February 2012 Slide 26
FY12 Half Year Results - Presentation 22 February 2012 PRODUCTIONS Slide 27
FY12 Half Year Results - Presentation 22 February 2012 KEY PRIORITIES Slide 28
Continued development of management team
Structural advantage of programming and sales shares
Content brands integrations
Ratings outlook
FY12 Half Year Results - Presentation 22 February 2012 Slide 29
First Half FY12 Overview Financials Television Newspapers Magazines Yahoo!7 Priorities and Outlook Questions
FY12 Half Year Results - Presentation 22 February 2012 THE WEST AUSTRALIAN NEWSPAPER GROUP Slide 30
FY12 Half Year Results - Presentation 22 February 2012 THE WEST AUSTRALIAN NEWSPAPER GROUP Slide 31
FY12 Half Year Results - Presentation 22 February 2012 THE WEST AUSTRALIAN NEWSPAPER GROUP Slide 32
FY12 Half Year Results - Presentation 22 February 2012 THE WEST AUSTRALIAN NEWSPAPER GROUP Slide 33
FY12 Half Year Results - Presentation 22 February 2012 THE WEST AUSTRALIAN NEWSPAPER GROUP Slide 34
FY12 Half Year Results - Presentation 22 February 2012 THE WEST AUSTRALIAN NEWSPAPER GROUP Slide 35
FY12 Half Year Results - Presentation 22 February 2012 THE WEST AUSTRALIAN NEWSPAPER GROUP Slide 36
FY12 Half Year Results - Presentation 22 February 2012 Slide 37
First Half FY12 Overview Financials Television Newspapers Magazines Yahoo!7 Priorities and Outlook
Questions
FY12 Half Year Results - Presentation 22 February 2012 LEADERSHIP IN KEY CATEGORIES Slide 38
* No. 1 in Readership – not Circulation audited
FY12 Half Year Results - Presentation 22 February 2012 CIRCULATION & READERSHIP Slide 39
Source: ABC Audit, December 2011 (Based on Annual Gross Copies Sold)
FY12 Half Year Results - Presentation 22 February 2012 BUSINESS UPDATE Slide 40
Difficult trading conditions – retail and consumer expenditure down Advertising market continues to be short and highly competitive EBITDA down 1.6% ($0.4m) PCP Strong cost management - expenses down 7% PCP EBITDA margin up to 18% New print arrangement commenced October 1, 2011 Launch of SBS Feast Magazine in August 2011 Circulation share growth in the key women’s weekly market
FY12 Half Year Results - Presentation 22 February 2012 Slide 41
First Half FY12 Overview Financials Television Newspapers Magazines
Yahoo!7 Priorities and Outlook Questions
FY12 Half Year Results - Presentation 22 February 2012 YAHOO! 7 Slide 42
FY12 Half Year Results - Presentation 22 February 2012 YAHOO! 7 Slide 43
FY12 Half Year Results - Presentation 22 February 2012 YAHOO! 7 Slide 44
FY12 Half Year Results - Presentation 22 February 2012 Slide 45
First Half FY12 Overview Television Financials Newspapers Magazines Yahoo!7 Priorities and Outlook
Questions
FY12 Half Year Results - Presentation 22 February 2012 PRIORITIES AND OUTLOOK Slide 46
SWM Group Market and trading conditions remain soft impacted by weak consumer confidence and retail conditions Focus on cost control and deliver on revenue and cost synergies within the Group Continued focus on management development and longer term growth strategy
Television Target market share gains by Channel with a strong and demographically focused programming schedule: – Main Channel 24-54 with female skew – 7TWO 25+ Audience – 7mate male 16-54 – 4-Game AFL coverage from 2012 Leverage the strength and reach of the Seven West Media group to deliver relevant marketing solutions for our clients
FY12 Half Year Results - Presentation 22 February 2012 Slide 47 PRIORITIES AND OUTLOOK CONT.
Newspapers Continued focus on expanding our position as the number one media organisation in WA Deliver customer benefits through: – The amalgamation of West Australian assets under one Executive Management structure – Leveraging off and delivering benefits that flow from the expanded national SWM Group Development of digital footprint to grow digital revenue whilst protecting and supporting the printed product Continued development of product quality to build readership and circulation, ensuring continued dominant position as products of choice for advertisers in WA Retail confidence remains subdued, although outlook for WA remains very good Regional WA continues to grow
FY12 Half Year Results - Presentation 22 February 2012 Slide 48 PRIORITIES AND OUTLOOK CONT.
Magazines Leverage and extend key magazine brands – Men’s Health “Urbanathlon” – New Idea “Masterclass” Develop Pacific Magazines digital capabilities & footprint Promote magazine medium to advertisers and agencies Support retail channels – Nexus program – newsagencies Continue cost management and productivity gains Yahoo!7 Continued development of connected experiences across “4 Screens” for scale reach in PC, Mobile, Tablets and Connected TV Margin expansion for transactional businesses through deeper integration
FY12 Half Year Results - Presentation 22 February 2012 Slide 49
First Half FY12 Overview Financials Television Newspapers Magazines Yahoo!7 FY12 Priorities and Outlook
Questions
FY12 Half Year Results - Presentation 22 February 2012