TNHL FY13 H1 Results Presentation V2.0

7/28/2019 TNHL FY13 H1 Results Presentation V2.0

1/15

FY13 H1 RESULTS

HAMISH McLENNAN CEO

PAUL ANDERSON CFO

TEN NETWORK HOLDINGS LIMITED

9 APRIL 2013


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CHIEF EXECUTIVE OFFICER

1


3/15

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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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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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



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FINANCIAL RESULTS FOR FY13 H1


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


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



13/15

CASH FLOW ANALYSIS & CAPEX


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



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DEBT STRUCTURE & BANKING COVENANTS


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



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TNHL FY13 H1 Results Presentation V2.0

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Transcript of TNHL FY13 H1 Results Presentation V2.0