annual general meeting - asxnov 24, 2016  · • relaunched mymp as ‘classic rock hits” to...

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Annual General Meeting THURSDAY 24 NOVEMBER 2016 9:30AM For personal use only

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Annual General Meeting

THURSDAY 24 NOVEMBER 2016 – 9:30AM

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Our niche audiences are served through the following brands:

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Chairman’s Update

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FY16 in Review • YOY Group Revenue up 15% to $24 million:

o Broadcasting revenue up 3% to $14.6 milliono Publishing revenue up 42% to $9.3 million (reflecting full 12mths post acquisition)

• Delivered an underlying Group EBITDA result of $3.45 million for the year, up 26% on the prior year of $2.73 million (excluding restructuring costs of $0.6 million)

• Earnings Per Share (based on underlying EBITDA) increased 9% to 4.8 cents and paid a franked dividend of 2.4 cents, up 4% on the prior period

• Operating cash flows of $2.0 million allowed repayment of $1.25 million to reduce debt to $5.75 million

• Significant year on year growth in digital traffic across key brands:o SEN.com.au unique visitors up 41% to 2.45 million; ando frankie Facebook likes up 9% and Instagram up 79% to 345,000 and 147,000 respectively

• Number of key management changes made during the year

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FY17 Outlook • Investing in our AFL programming for 2017 and beyond

• Continuing to invest in digital development including:o recruiting new technology staff, - a new role for Head of Technology in place;o rolling out new websites / apps and upgrading on-line publishing store;o monetising digital spectrum with the lease of DAB spectrum to a third party ethnic radio

station; ando partnering with preferred digital experts to drive innovation across the Group

• Board level review of structure and positioning for next phase of growth with the appointment of new Chairman, John Bertrand AO commencing 25 November 2016

• Continued focus on core profitable publishing assets and audiences, post sale of non-core Publishing titles

• Group underlying EBITDA will be approximately $3 million in FY17 (FY16: $3.45 million), post ongoing reinvestments and dependent on the outcome of the seasonally strong Publishing results for December and also the market response to any AFL programming changes

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Broadcasting Update

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FY16 in Review

• Appointment of new GM - Broadcasting, Cathy Thomas, 20+ years of radio industry experience, most recently as GM – Melbourne for Southern Cross Austereo

• Melbourne agency team on budget however direct market share was flat year on year in the Melbourne radio advertising market

• Throughout the year, 1116SEN regularly rated as # 2 rating station for Males 35-54

• Underlying EBITDA contribution result of $2.5 million was up 20% on the prior year (FY16: $2.1 million)

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FY17 Outlook • Secured AFL broadcast rights for a further 6 years (2017-2022) to broadcast six live games per

week during the AFL season and latest rights include calling women’s AFL games

• Expect to announce soon, an experienced high profile breakfast team and contributors, with featured programming; which will drive new revenue opportunities

• Developed new SEN website / apps to enhance on-line user experience and align digital offering with Tier 1 sponsorships (29,000 downloads since the app launch in October)

• Recruited additional experienced staff into the broadcasting management team to assist in driving programming and sales outcomes

• Build new AFL properties and develop more tailored/integrated campaigns for clients

• Relaunched MyMP as ‘Classic Rock Hits” to better align with SEN audience and client profile

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1116SEN Ratings Survey Results

Source: Gfk Ratings Survey No.7

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4.8 5.04.2

5.44.5

4.0

4.6

10.49.2 8.6

12.3

9.5

9.210.1

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Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16

Nielson/GFK Ratings 2010-16

Men 35-54: ranked #2 in 2016 Survey 7

All people 10+

Source: Gfk Ratings Survey No.7

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1116SEN Website

359 555 624 761 1,0592,165 2,034

3,3594,946

6,498 6,7467,894

26,711

21,208

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5,000

10,000

15,000

20,000

25,000

30,000

Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16Unique Users Page Views

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Publishing Update

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FY16 in Review

• Frankie magazine was the joint 2nd largest selling print media in the Women’s Lifestyle / Fashion category with a 16% market share (Marie Claire was # 1 with a 21% market share and Elle was joint # 2 with 16%)

• Digital platforms continue to engage, 79% YOY increase in Instagram followers to 147,000, 13% YOY increase in EDM subscribers to 52,000 and 9% increase in Facebook likes to 345,000

• Divested non core / loss making publications to a third party

• Steady performance in subscriptions, supermarkets, international and independent stockists in face of declining news agency channel

• Underlying EBITDA contribution result was $1.7 million (FY16: $1.33 million), up 26% on prior year reflecting full 12mths post acquisition

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frankie Market Performance (in 000’s and %)

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312 320312

272

139 138

324334

128 122

163143

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Jun-15 Jun-16frankie Marie Claire Elle Vogue Harper's Bazaar InStyle

16% 16%

22%21%

16% 16%

14% 14%14%15%

13% 13%

6% 6%

0%

5%

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25%

Jun-15 Jun-16frankie Marie Claire Elle Vogue Harper's Bazaar InStyle Russh

Readership: category market share

Australian Magazine Readership Survey - June 2016:

Circulation: women’s lifestyle / fashion category Australian Bureau of Circulation Audit – (January – June)

Source: Roy Morgan Research

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FY17 Outlook

• Completed redesign of frankie and Slow magazines plus investment into Smith Journal

• Continued success of frankie’s annual diary and calendar and launch of a new book, “Something to Say” plus another edition of SPACES

• Projects underway to grow subscription revenue with a new system and payment options plus a frankie for schools program

• New advertising revenue stream with the introduction of content marketing solutions

• Facing cost pressures with an increase in the per copy distribution fee in Australia and New Zealand and other distributor card increases

• Build on international distribution with free promotional spaces in Barnes & Noble stores

• Improvements in costs post divestment of assets and streamlining of operations

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frankie Press Digital (in 000’s)

In 000’s

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212

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70 80 85 92

140127 119

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4458 68

15 21

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Oct-13 Oct-14 Oct-15 Oct-16Facebook Twitter Unique Visitor's Instagram EDM's Pinterest

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AGM Resolutions

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Resolution 1 – Non Binding

In hundreds of 000’s“That, for the purposes of Section 250R(2) of the Corporations Act 2001 and for all other purposes, the Company adopts the Remuneration Report for the financial year ended 30 June 2016.”

For 1,241,936Against 12,335Proxy’s Discretion 1,441,568Abstain 21,289Excluded 20,272,721 (KMP’s ineligible to vote)Total 22,989,849

The Chairman held all of the proxy discretion votes.

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Resolution 2

In hundreds of 000’s“That, Mr Ron Hall, who retires from office in accordance with the Constitution, being eligible and offering himself for re-election, be re-elected as a Director”

For 1,882,050Against 31,085Proxy’s Discretion 21,076,714Total 22,989,849

The Chairman held all of the proxy discretion votes.

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Resolution 3

In hundreds of 000’s"That, for the purposes of Exception 9(b) of Listing Rule 7.2, and for all other purposes, approval be given for the existing Exempt Employee Share Plan, on the terms detailed in the Explanatory Statement and the Company be authorised to continue to issue securities under the Exempt Employee Share Plan."

For 1,234,161Against 38,874Proxy’s Discretion 1,441,568Abstain 2,525Excluded 20,272,721Total 22,989,849

The Chairman held all of the proxy discretion votes.

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Resolution 4

In hundreds of 000’s"That, for the purposes of Exception 9(b) of Listing Rule 7.2, and for all other purposes, approval be given for the existing Employee and Executive Incentive Plan, on the terms detailed in the Explanatory Statement and the Company be authorised to continue to issue securities under the Employee and Executive Incentive Plan."

For 1,166,486Against 106,549Proxy’s Discretion 1,441,568Abstain 2,525Excluded 20,272,721Total 22,989,849

The Chairman held all of the proxy discretion votes.

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Close of Meeting

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