tnhl fy13 h1 results presentation v2.0
TRANSCRIPT
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FY13 H1 RESULTS
HAMISH McLENNAN CEO
PAUL ANDERSON CFO
TEN NETWORK HOLDINGS LIMITED
9 APRIL 2013
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CHIEF EXECUTIVE OFFICER
1
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ConfidentialpropertyofTenNetworkHoldings
OVERVIEW
2
TENsperformance
for
FY13
H1
remains
unsatisfactory
Thecompanyhasreactedaccordingly:
NewCEO,HamishMcLennan,appointed
$230m
Capital
Raising
in
December
2012
Netdebtreducedby$262m($1.2masatendofFY13H1)
Operationalinitiativesimplementedtoimproveperformance
Focusonconsistentandstableschedule.Buildprogrammingforthefuture
TelevisionEBITDA(prenonrecurringitems)of$34.9m
Nonrecurringchargesof$304.0mincluding atelevisionlicenceimpairmentchargeof$292.1m
Theinformationcontainedonthispage maynotnecessarilybeinstatutoryformat.AfullreconciliationofEBITisprovided in Appendix4D
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ConfidentialpropertyofTenNetworkHoldings
FY13 H1: CORPORATE
3
Successful$230m
Capital
Raising
in
December
2012
USD125m(AUD210m)PrivatePlacementFacility
repaid February2013
New$80mDomesticBankFacility February2013
SaleofEYEUK February2013
Managementchanges February2013
NewCEOannounced
Otherseniormanagementchanges
Ongoingcostcontrolprogram
Sharperfocusinmarketingandpromotions
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ConfidentialpropertyofTenNetworkHoldings
2013 PROGRAMMING
4
Solidaudiences
for
key
programs:
Aust.FIAFormulaOneWorldChampionship2013Race:1.24million
Elementary:seriestodateaverage1.1million
MasterChef:
The
Professionals:
series
average
808,000.
Winner
Announced:
1.12million
TheBiggestLoser:TheNextGeneration:seriestodateaverage838,000
Modern
Family:
series
to
date
average
826,000
NCIS:seriestodateaverage805,000
Mr&MrsMurder:seriestodateaverage741,000
TEN
News
At
Five
audience
up
on
2012
StrongaudiencegrowthforTENonSaturdaynights
Source:OzTAM,5CityMetro,Weeks4142013,Consolidated(excludingApril1toApril6,2013,whichisOvernight)
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2013 PROGRAMMING
ConfidentialpropertyofTenNetworkHoldings 5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Week
TEN,
2012
v
2013,
Overnight18to49s 5CityMetro
Source:
OzTAM, 5
City
Metro,
TEN,
Zone
1
(1800
2230),
Sun
Sat,
18
to
49s,
Overnight.
2012 2012CalendarAverage 2013
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2013 PROGRAMMING
6
Newand
returning
programs
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OUTLOOK
7
Televisionadvertising
market
remains
short
with
limited
visibility
Timingofimprovementinadvertisingconditionsstilluncertain
Federalelectionimpactisunclear
Targetedfocusoncostscontinues
Totalcostbase(exsellingcosts)ofapproximately$560minFY13
Capital
structure
materially
strengthened
Investmentinnewcontentparamount
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CHIEF FINANCIAL OFFICER
8
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FINANCIAL RESULTS FY13 H1: KEY POINTS
9
FY13H1
Television
EBITDA
of
$34.9m
Televisioncostreduced(exselling)by10.6%
Nonrecurringchargesof$304.0m
Televisionlicenceimpairment$292.1m
Restructuringexpenses$11.9m
Discontinuedoperationsof$7.1m(EYE)
CapitalRaisingof$223.3m(netofcosts)
Netdebtreducedby$262m
Underlyingprofit
attributable
to
members
of
$6.8m
NointerimdividendtobepaidforFY13H1
Theinformationcontainedonthispage maynotnecessarilybeinstatutoryformat.AfullreconciliationofEBITisprovided in Appendix4D
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FINANCIAL RESULTS FOR FY13 H1
ConfidentialpropertyofTenNetworkHoldings
HY13GroupResults 2013 2012 Fav /(Unf)
Television Revenue 301.7 358.3 (15.8%)
Television Expenses 266.8 301.5 11.5%
EBITDA 34.9 56.8 (38.5%)
Depreciation 7.8 9.4 17.3%
EBIT 27.1 47.4 (42.7%)
NetInterestExpense 11.4 18.3 37.9%
PROFITBEFORETAX,NRI&DISCONTINUEDOPERATIONS 15.8 29.1 (45.8%)
NonRecurringItems (304.0)
Discontinuedoperations (7.1) 2.3
(LOSS)/PROFITBEFORETAX (295.4) 31.4
TaxExpense Normal (5.4) (10.7) 49.3%
Tax effectofNRIs/Discontinuedoperations 61.0 (0.5)
(LOSS)/PROFIT
AFTER
TAX (239.8) 20.1
Noncontrollinginterest 3.6 5.3 (32.7%)
NET(LOSS)/PROFITAFTERTAXATTRIBUTABLETOMEMBERS (243.3) 14.8
UnderlyingNetProfitAfterTaxAttributabletoMembers 6.8 13.1 (48.2%)
10
Income Statement
Theinformationcontainedonthispage maynotnecessarilybeinstatutoryformat.AfullreconciliationofEBITisprovided in Appendix4DOnerous
contract
provisions
of
$9.9m
(2012:
$7.4m)
for
Television
and
$5.8m
(2012:
$5.2m)
for
Out
of
Home
have
been
released during
the
period.
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NON-RECURRING AND DISCONTINUED
OPERATIONS FOR FY13 H1
ConfidentialpropertyofTenNetworkHoldings 11
NonRecurringItems(NRI) $m
Television
Impairmentoftelevisionlicences 292.1
Restructureexpenses 11.9
Total NonRecurringItems 304.0
Discontinued Operations
SaleofEYE(ANZIandUK) 5.1
Restructuringcosts
0.1
Trading loss 1.9
TotalDiscontinued Operations 7.1
TotalSignificantItemsBeforeTax 311.1
Incometax
benefit 61.0
NetNRI andDiscontinuedOpsAfterTax 250.1
Theinformationcontainedonthispage maynotnecessarilybeinstatutoryformat.AfullreconciliationofEBITisprovided in Appendix4D
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CASH FLOW ANALYSIS & CAPEX
ConfidentialpropertyofTenNetworkHoldings
2013 2012
FINANCECOSTS $m $m
Cash
Netbankinterestpaid 7.4 14.7
Treasurycostspaid 2.0 1.7
NonCash
OnerousContractInterest 2.0 1.9
TotalFinanceCosts 11.4 18.3
12
Allincostofinterest6.8%asatFebruary2013
CapitalexpenditureguidanceFY13ofapproximately$10.0m
Onerouscontracts
Provisionof$51.3masatFebruary2013
Theinformationcontainedonthispage maynotnecessarilybeinstatutoryformat.AfullreconciliationofEBITisprovided in Appendix4D
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DEBT STRUCTURE & BANKING COVENANTS
ConfidentialpropertyofTenNetworkHoldings
Facility
$m Maturity Covenant
Feb2013
$m
Aug 2012
$m
Facility
USD125mUSPP 03/13 210
AUD150mUSPP 150 12/15 150 150
Domestic 80 11/15
Total 230 150 360
Cashat
Bank (149)
(97)
NetDebt 1 263
DebtServiceRatio 2.48x 3.83x
NetDebt
Service
Ratio 0.02x
2.80
x
Interest CoverRatio 3.22x 3.32x
13
$125mUSPPrepaidFeb2013
New$80mDomesticFacility CBA
Existing$350mDomesticFacility
cancelled
Debtreducedby$262m
Theinformationcontainedonthispage maynotnecessarilybeinstatutoryformat.AfullreconciliationofEBITisprovided in Appendix4D
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ConfidentialpropertyofTenNetworkHoldings 14