dear sir or madam for personal use only - asxmar 29, 2011 · sensis strategy points to digital as...
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Telstra Corporation Limited
ACN 051 775 556
ABN 33 051 775 556
29 March 2011 The Manager Company Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street SYDNEY NSW 2000
Office of the Company Secretary Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA General Enquiries 08 8308 1721 Facsimile 03 9632 3215
ELECTRONIC LODGEMENT Dear Sir or Madam Sensis Investor Briefing – media release and presentation
In accordance with the Listing Rules, I enclose the following for release to the market: 1. Sensis media release;
2. A presentation to be delivered by Bruce Akhurst, Chief Executive Officer Sensis, at a
Sensis investor briefing to be held today. Regards
Carmel Mulhern Company Secretary
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Sensis strategy points to digital as key to future growth 29 March 2011: Sensis CEO Mr Bruce Akhurst today outlined the company’s strategy for long term profitable growth, backed by a new range of digital marketing products and solutions developed to specifically meet the needs of the Australian small business sector. Sensis will help drive even more customers to their businesses by harnessing the power of digital marketing. “The marketing and advertising environment confronting small businesses today is totally different to what it has been in the past. Gone are the days where a local business owner wanting to advertise their business would simply advertise in the Yellow Pages, paint contact details on their company car and print business cards. “The explosion of technology and advertising channels, and the popularity of digital devices, has created a complex digital world that small businesses must be part of to ensure they are found by customers looking for their services. “I am genuinely excited by the direction we’re taking and the long term opportunities available to Sensis and our customers. We will leverage our unique strengths including an extensive, loyal customer base; the capability, knowledge and local on-the-ground presence of our salesforce; unrivalled local business content and our integrated multi-platform publishing capabilities. We will deliver a superior value proposition to our customers that is tailored, frequently adjusted to meet their needs and measured by return-on-investment reporting.” Mr Akhurst said Sensis had been investing in this business evolution for more than two years now to ensure it was in a position to offer the suite of solutions to solve this digital dilemma for Australian businesses. “We re-engineered our IT systems and processes to ensure we had the flexibility to remain competitive in the digital world and deliver increased business leads to our customers across the multiple platforms consumers are now searching. “We have also been busy launching a range of new mobile sites and applications. These have built on our already strong digital position, as Australia’s largest locally owned digital media company. In fact, these new services have helped us grow Yellow Pages digital usage by 50% over the last year
1.”
Throughout Sensis’ 2011 selling cycle, Yellow Pages customers will have a totally new experience. Key aspects of Sensis’ strategy in 2011 to deliver increased customer value will include:
More targeted and simplified bundled customer solutions offering greater value including the Sensis Priority Advertising Network and SiteSmart bundle;
New product offerings to connect businesses with customers in new ways such as the Yellow Pages iPad app and YellowPagesOffers.com.au;
More sophisticated tailored reporting mechanisms to ensure small business can measure their performance and return on investment (ROI);
Extended small businesses presence across digital media through agreements with leading industry players including Google, Bing and Yahoo;
Increased accessibility of customers content on yellowpages.com.au to developers by launching an application programming interface (API); and
Bolt on acquisitions to provide customers with more ways to generate leads for their businesses such as the recently acquired Quotify.com.au - one of Australia’s largest providers of request for quote services.
1 Omniture site catalyst avg monthly visits Dec QRT 2010 – Dec QRT 2009
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While Mr Akhurst noted the Yellow Pages print directory still had a valuable role to play and would remain a key source of competitive advantage for the company, he acknowledged the business was experiencing trends in line with the industry globally. “The Yellow Pages print books continue to be used more than 3.4m times per week
2 and continue to be a
highly accountable generator of real business leads to our customers, but we recognise the shift to digital is likely to continue. “Our print directories remain a powerful point of differentiation for advertisers. Sensis’ difference is that we offer advertisers a simple way to be found in many different products and across multiple channels. This includes print, which represents millions of searches every week that are unique to Yellow Pages. “As we commence our selling cycle for 2011 and execute with excellence, key success factors will include growing customer numbers, uptake in digital products and new bundles sold, and increasing total digital sales and customer satisfaction,” concluded Mr Akhurst.
-ends-
About Sensis: Sensis helps Australians find, buy and sell. Our integrated network of local search and digital marketing solutions helps make marketing easy and delivers real, measurable business leads to Australian businesses. Sensis’ multichannel network includes Yellow Pages®, White Pages®, the 1234 and 12456 Call Connect voice services, Whereis® digital mapping solutions, the Sensis Digital Media advertising business, and request-for-quote service quotify.com.au. This increasingly diverse network spans print, online, voice, mobile, iPhone, iPad, Android, Telstra’s T-Hub and satellite navigation, and information can also be shared from online to mobile and social networking sites. Sensis helps ensure our advertisers are found by more customers than ever by managing their presence across a growing number of advertising platforms including search engines like Google, Bing and Yahoo!. For further product and solution information you can also visit: Yellow Pages advertising hub and customer centre - http://www.yellowadvertising.com.au Yellow Pages® iPad - http://itunes.apple.com/us/app/yellow-pages-australia-for/id424516241 Yellow Pages® Offers - http://www.yellowpagesoffers.com.au Sensis Developer Centre - http://developers.sensis.com.au Sensis® Priority Advertising Network - http://www.sensispriority.com.au Sensis SiteSmart™ – http://www.yellowadvertising.com.au/products/online/sitesmart Sensis ClickManager™ - http://www.yellowadvertising.com.au/products/online/click-manager Quotify - http://www.quotify.com.au Yellow Pages® You Tube Channel: http://www.youtube.com/user/yellowpagesonline?blend=1&ob=5
Media enquiries: Prue Deniz – 0438 588 460 or Danielle Horan – 0409 861 645
2 Roy Morgan Single Source Australian Sep 2010 – Base: Australians 14+
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Telstra Corpora,on: investor.rela,[email protected]
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Marke,ng Made Easy™ Sensis’ strategy in the evolving adver,sing world
Page 1
Bruce Akhurst, Sensis Chief Execu,ve Officer
Disclaimer
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These presenta,ons include certain forward-‐looking statements that are based on informa,on and assump,ons known to date and are subject to various risks and uncertain,es. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-‐looking statements. Such forward-‐looking statements are not guarantees of future performance and involve known and unknown risks, uncertain,es and other factors, many of which are beyond the control of Sensis, which may cause actual results to differ materially from those expressed in the statements contained in these presenta,ons.
All forward-‐looking figures in this presenta,on are unaudited and based on A-‐IFRS. Certain figures may be subject to rounding differences. All market share informa,on in this presenta,on is based on management es,mates based on internally available informa,on unless otherwise indicated. All amounts are in Australian Dollars unless otherwise stated.
® ™ Registered trademark and trademark of Telstra Corpora,on Ltd. Citysearch® and Citysearch logo are registered trade marks of Citysearch Australia Pty Ltd . Apple is a trademark of Apple Inc, registered in the US and other countries. iPhone and iPad are trademarks of Apple Inc. Other trademarks are the property of their respec,ve owners.
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Telstra Corpora,on: investor.rela,[email protected]
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Summary
We are now a digital-‐led business
Already selling into high-‐growth digital opportuni,es
Uniquely posi,oned to drive adver,ser ROI and long term, profitable growth
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Local search leaders with strong SME support
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Leading brands helping you find, buy and sell Well penetrated across most sectors1
1: Sensis Business Index SME Adver,sing Study, 2010
9% 20% 22% 25% 25% 25% 25%
31% 31% 31%
35% 39% 40% 40% 42%
48%
Agriculture, Forestry, Fishery Cultural & Recrea,onal
Mining Educa,on
Accom., Cafe, Restaurant Finance and Insurance
Communica,on Retail Trade
Property & Business Personal & Other
Transport & Storage Manufacturing
Wholesale trade Electricity, Gas & Water
Construc,on Health & Community
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Telstra Corpora,on: investor.rela,[email protected]
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Providing a highly valued service to Australia’s SMEs
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“Without that Yellow Pages adver,sing our business would stagnate and die. I’ve done an analysis of where people come from and 52% of our new clients come from Yellow Pages.” Chris, Micro Excava/ons
“I would probably say in excess of 50% of my phone calls are coming from Yellow Pages.” Anthony, Car Mobile Mechanics
“Yellow Pages is an integral part of our marke,ng strategy. The return on our investment is really high and we track all of our adver,sing and we know – without a doubt – that it works for us.” Elizabeth, City Clinic on Crown
“We probably get at least 40% of our business through Yellow Pages.” Juman, SBS Mobile Mechanics.
“Yellow Pages is predominately 70% of the new business that I get in. I couldn’t be without the Yellow Pages for my business.” Robert, All Hours Windscreens
“Rela,ve to the amount the advert costs, it brings in many many ,mes the value of the advert, so I think its good value for money.” Peter, Aesthe/c Dental
Print usage down but remains powerful1
Industry impacted by digital growth and structural change
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Cyclical decline changed into structural print decline
1: : Roy Morgan Single Source Australia. Base: Australians 14+
0
200000
400000
600000
800000
1000000
1200000
1400000
FY08 FY09 FY10
Mon
thly uniqu
e visits (,000)
Yellow Pages digital Yellow Pages print
15.1% 17.5% 19.9% Digital
Share
6,605 6,802 6,674 6,629 6,485 6,155
5,871 5,828 5,630
Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10
Last 30 day un
ique
users (,00
0)
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We have been preparing for this transi,on…
• SPA network: in produc,on in five weeks
• Yellow Offers: in produc,on within three weeks
• Value packages: in produc,on within 3.5 months
Significant improvements in Yellow Pages® strike rates Latest iGen release unlocking enormous poten,al
Product development ,mes slashed
• Customer benefits: • Simpler billing
• Improved and expanded self service
• Improved proposal and order documenta,on
• Landing pages with improved SEO
• Significant print content improvements
• Opera,onal benefits • Easier to key value packages • Less clicks to retrieve key informa,on
• Improved order and case management usability
• Single view of customer fulfillment
• Enhanced search and customer summary
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And inves,ng in our products…
• Marke,ng made Easy™ • Empowerment:
• Re-‐design the way we work with customers
• Presence: • Extending our network, including:
• Deeper content including video produc,on, social media feeds
• New Yellow Pages applica,ons, such as iPad and Offers
• Web site crea,on
• Enhanced SEO and SEM capabili,es
• Applica,ons Program Interface
• Quo,fy quota,on services
• Performance: • Benchmark new repor,ng system
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The high growth digital opportunity
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There is very strong digital demand
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Monthly ad appearances on Bing Local only and Whereis.com
Yellow Pages® digital usage up 50% YoY1
Excep,onal usage growth in key digital segments3
Even further digital adver,ser ROI from syndica,on2
1: Omniture SiteCatalyst, December 2010; 2: Whereis data from Omniture SiteCatalyst, December 2010. Bing data provided by Microsop; 3: Roy Morgan Single Source Australia. Base: Australians 14+
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However, today’s adver,sers are facing a ‘digital dilemma’
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• 55% of businesses with the Internet have a lack of exper,se or knowledge1
• 62% of adver,sers don’t measure ROI2
• Of them:
• 32% say it is to ,me consuming
• 17% don’t know how
• 7% say it is too hard or there’s no accurate way
• 85% of SMEs don’t use social media3
• Only 17% of SMEs have a digital strategy1
Fragmenta,on makes marke,ng increasingly difficult Digital media is growing and fragmen,ng
The winning media providers posi,on adver,sers wherever buyers search… and make it all simple and accountable
1: Sensis eBusiness Report, 2010; 2: Sensis Business Index Adver,sing Study, November 2010; 3: Sensis Business Index Social Media Study, February 2011
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Channels Rela,onships
Brands Content
A unique ability to build, package and market cross-‐plasorm solu,ons
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Yellow Pages now a powerful cross-platform lead generator…
Key to addressing the digital dilemma
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A simple opera,ng model
Penetra,on: plenty of headroom for growth1 Well managed cost base
1: Sensis Business Index Adver,sing Study, November 2010
885 862
804
12 7
38
FY08 FY09 FY10
Underlying expenses (A$m): FY08 to FY10
Underlying opex Strategic opex
-‐ 2.2%
-‐ 10.4%
39% 44%
42%
26%
13%
1% SOHO SME Corporate
Penetra,on Wallet share For
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Sensis Financial Outlook
Page 15 Page 15
• FY11: mid single digit revenue decline and high single digit EBITDA decline • Subject to flood impact
• Return to organic revenue growth in 3 years
• Con,nued relentless focus on cost control • We must move to lower cost opera,ng model
Fundamentals
Fundamental Today Future
Customer numbers ARPA (print/digital) Digital sales Digital customer penetra,on
Value packages sold N/A Churn
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