1 / 41

INDEPENDENT NEWS & MEDIA PLC.

INDEPENDENT NEWS & MEDIA PLC. 1999 Full Year Results 29th March, 2000. INTRODUCTION. Liam P Healy Group Chief Executive. HIGHLIGHTS FOR THE YEAR. Strong performances in Ireland, Australia and New Zealand iTouch expands internationally

carlota
Télécharger la présentation

INDEPENDENT NEWS & MEDIA PLC.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. INDEPENDENT NEWS & MEDIA PLC. 1999 Full Year Results 29th March, 2000

  2. INTRODUCTION Liam P Healy Group Chief Executive

  3. HIGHLIGHTS FOR THE YEAR • Strong performances in Ireland, Australia and New Zealand • iTouch expands internationally • Unison launches “internet on TV” initiative in Ireland • UK Independent makes circulation gains - losses reduced • South African economy set for recovery • E 200 million 10 year bond issued at coupon of 5.75% • Group restructuring plan substantially completed • Successful bid for Belfast Telegraph since year end

  4. GROUP PROFILE James J Parkinson Group Finance Director

  5. GROUP PROFILE • Listing Information: PLC listed on the Irish, London and New Zealand Stock Exchanges • Current Shareholder Profile: • Dr AJF O’Reilly 28% Irish Institutions 27% • UK Institutions 18% • US Institutions 12% • European Institutions 6% • Private 5% • Board 4% • Market Capitalisation: • E 2.7bn IR£2.1bn STG£1.6bn

  6. LEADING MEDIA BRANDS • Ireland • No. 1 National Publisher • No. 1 Regional Publisher • No. 1 Newspaper/ Magazine Distributor • No. 2 Cable/ MDS Operator • United Kingdom • The Independent, Independent on Sunday • No. 1 Recruitment Magazine Publisher • No. 2 Rugby/ No. 1 U.S. Football Publisher • No. 1 Paid-For Regional Publisher in London • Portugal • No. 1 National Publisher • Hong Kong • No. 2 Transport Adv. • Australia • No. 1 Regional Publisher • No. 2 Radio Operator • No. 1 Outdoor/ Transport Adv • No. 1 Pay-TV Movies • South Africa • No. 1 National Publisher • No. 1 Regional Publisher • No. 1 Commercial Printer • New Zealand • No. 1 National Publisher • No. 1 Regional Publisher • No. 1 Radio Operator • No. 1 Commercial/ Magazine Printer • No. 1 Security Printer

  7. LEADING MEDIA BRANDS • Ireland • No. 1 National Publisher • No. 1 Regional Publisher • No. 1 Newspaper/ Magazine Distributor • No. 2 Cable/ MDS Operator • United Kingdom • The Independent, Independent on Sunday • No. 1 Recruitment Magazine Publisher • No. 2 Rugby/ No. 1 U.S. Football Publisher • No. 1 Paid-For Regional Publisher in London • Dominant media company in 4 of 5 markets • Market share > 50% • 160 newspaper titles/ 45m readers per week • Largest radio/outdoor operator in Australasia • Fast-growing new media operator • Portugal • No. 1 National Publisher • Hong Kong • No. 2 Transport Adv. • Australia • No. 1 Regional Publisher • No. 1 Radio Operator • No. 1 Outdoor/ Transport Adv • No. 1 Pay-TV Movies • South Africa • No. 1 National Publisher • No. 1 Regional Publisher • No. 1 Commercial Printer • New Zealand • No. 1 National Publisher • No. 1 Regional Publisher • No. 1 Radio Operator • No. 1 Commercial/ Magazine Printer • No. 1 Security Printer

  8. GROUP STRATEGY • Geographically diversified • Tight focus on CORE competencies Publishing Outdoor New Media / Electronic • Brand market-leadership positions • Operating margin enhancements • Target + 20%

  9. GROUP STRATEGY • Primary content provider across diverse media platforms • Migrate into revenue enhancing new media platforms • Growth orientated through organic growth & earnings enhancing investments • Deliver double-digit earnings growth & enhanced shareholder value

  10. 1999 RESULTS

  11. HEADLINE NUMBERS 1999 1998 Change E m E m % Turnover 1,168.2 798.8 + 46.2 Operating Profit * 192.4 138.7 + 38.7 Profit Before Tax 142.7 85.4 + 67.1 Net Profit 70.1 58.7 + 19.4 EPS ** 30.72c 24.56c + 25.1 DPS 13.33c 11.43c + 16.7 * Continuing activities before exceptionals ** Before exceptional items and amortisation

  12. SUMMARY BALANCE SHEET 1999 1998 E m E m Fixed Assets * 2,100 1,466 Other Net Liabilities (15) (54) Net Debt (868) (568) Total Shareholders’ Funds * 1,217 844 Interest Cover (EBITDA/Interest) 4.8x 3.3x Net Debt to EBITDA 3.8x 3.6x * Including the revalued elements of mastheads

  13. SUMMARY CASH FLOW 1999 1998 E m E m Operating Profit 190.6 86.9 Restructuring Costs - 54.1 190.6141.0 Share of Associates & JV’s Results (5.8) (15.3) Depreciation & Amortisation 43.2 32.5 EBITDA 228.0158.2 Working Capital Movements (41.5) (28.8) Operating cash flow 186.5129.4 Operating cash flow conversion (%) 81.8% 81.8%

  14. TEN YEAR PERFORMANCE Earnings per Share (E) (Fully diluted before exceptionals & goodwill amortisation) • 10 Year C.A.G.R. • Turnover +22% • Operating Profit +27% • Pre-Tax Profit +31% • Earnings Per Share +14% • Dividends Per Share +15%

  15. KEY OPERATIONAL DRIVERS: 1999 • Recovery in key currencies • Strong performance from Australian operations • Strong second half performance from New Zealand operations • Return to double-digit growth in Irish operations • UK turnaround of Independent titles • Efficient treasury and tax management • Successful implementation of E 50m Group-wide restructuring • > 80% of total planned headcount reductions achieved

  16. CORPORATE ACTIVITY: 1999 • Acquired 100% of South African business • Increased stake in Australia (APN) to 41% • Issued 10 year E 200m Eurobond at 5.75% • New media activities • i-Touch stake >70% • Internet Ireland acquired • Post year end • Successful bid for Belfast Telegraph • Significant expansion of i-Touch activity

  17. GROUP TURNOVER BY MARKET Turnover by Market -- 1999 Total: E 1,168.2m Ireland 27% South Africa 15% UK 13% New Zealand 22% Australia 23%

  18. GROUP PROFITS BY MARKET Operating Profit by Market -- 1999 Total: E 190.6m Ireland 32% South Africa 12% Australia 31% New Zealand 25%

  19. DIVISIONAL PERFORMANCE Brendan M. A. Hopkins Chief Executive - Independent News & Media (UK)

  20. NEW ZEALAND 1999 1998 Change Em Em % Turnover 253.2 208.4 + 21.5 EBITDA 66.7 58.2 + 14.6 Operating Profit 50.0 42.9 + 16.6 Margin (%) 19.7% 20.5%

  21. PROSPECTS • GDP growth of + 3% forecast in 2000 • Significant benefits from restructuring • Growth in New Zealand Herald circulations • Strong start to 2000 NEW ZEALAND • Largest publisher - The New Zealand Herald with 71% national market share and 83% recruitment market share • Largest regional publisher with 58% market share • Largest commercial/ magazine printer • Largest radio operator with 50% + market share

  22. AUSTRALIA 1999 1998 * Change E m E m % Turnover 275.7 243.5 + 13.2 EBITDA 72.1 56.7 + 27.1 Operating Profit 60.8 49.6 + 22.5 Margin (%) 22.1% 20.3% * including 100% of ARN

  23. PROSPECTS • GDP growth of + 3% forecast in 2000 • Organic growth across all divisions • Exciting developments in APN Digital • Syndey Olympics • Strong start to 2000 AUSTRALIA • APN News & Media consolidated from 1999 • Strongest performing media stock (EPS) • Largest regional publisher with 60% + paid penetration • 2nd largest radio operator with 25% + market share • Largest outdoor operator with 70% + market share

  24. SOUTH AFRICA 1999 1998 Change E m E m % Turnover 177.3 175.3 + 1.2 EBITDA 28.2 31.1 - 9.3 Operating Profit 23.3 27.0 - 13.7 Margin (%) 13.1% 15.4%

  25. PROSPECTS • GDP growth of + 3% forecast in 2000 • Interest rates down to 14% - Rand stable • Significant benefits from restructuring • Positive readership/ circulations • Positive start to 2000 SOUTH AFRICA • Largest publisher with 14 metropolitan titles achieving 54% readership market share and 58% of total classified market • Ongoing circulation gains in Gauteng and Cape • New media R&D centre in CapeTown • www.iol.co.za busiest newspaper site • Successful magazine launches with Condé Nast

  26. UNITED KINGDOM 1999 1998 * Change E m E m % Turnover 151.5 142.9 + 6.0 EBITDA (3.3) (3.5) Operating Profit (4.8) (4.9) Margin (%) (3.1%) (3.4%) * based on 100% of UK operation

  27. PROSPECTS • Strong advertising/ circulations • Rapid growth in new media - www.independent.co.uk in top 20 content web sites • Belfast Telegraph integration • Overall strong start to 2000 UNITED KINGDOM • Significant publisher in national, regional press and magazines • Regionals: operating margins at top end of UK peer group • Independent turnaround: • YOY volumes +4% and Circulation share up to 9.5% • Second-time Winner of “Editor of the Year” • Losses significantly reduced • Group synergies achieved • Breakeven on track for 2001

  28. BELFAST TELEGRAPH ACQUISITION • The Belfast Telegraph • Northern Ireland’s leading daily newspaper • Circulates 117,000 Monday-Saturday • More than 50% home delivered • The Sunday Life • Northern Ireland's leading Sunday newspaper • Circulates 95,000 every Sunday • Other Titles • Community Titles, Farm Trader • Thriving new media business • Significant printing facilities and freehold

  29. BELFAST TELEGRAPH ACQUISITION • Earnings enhancing in first year • Unique metropolitan franchise with strong growth prospects • Excellent track record with proven management/ editorial team • Dynamic new media resource • Automatic referral to UK Competition’s Commission • Likely timing 4-6 months • Legal advice positive • Trinity Mirror joint approach • Acquisition price: £300m (less £5m debt)

  30. IRELAND 1999 1998 * Change E m E m % Turnover 310.5 278.8 + 11.4 EBITDA 69.4 59.4 + 16.8 Operating Profit 63.3 53.9 + 17.4 Margin (%) 20.4% 19.3%

  31. PROSPECTS • Continued strong economic growth forecast • Significant benefits from restructuring • New “Citywest” production plant (Q42000) • PHL - broadband network build • Strong start to 2000 IRELAND • Largest publisher with 50% market share and 72% readership penetration • No. 1 title in all 5 newspaper categories • Readership/ circulations up and Advertising market share up • Largest regional publisher with 39% market share • 2nd largest cable/ MDS business (co-owned with TCI Liberty) • Managing >250,000 subscribers

  32. INDEPENDENT DIGITAL Gavin K. O’Reilly Chief Executive - Independent News & Media (Ireland)

  33. GROUP STRATEGY TO OWN THE ONLINE MEDIASPACE CHANNEL MARKETING CONTENT BUILD NEW REVENUE STREAMS ENHANCE EXISTING REVENUE STREAMS

  34. EDUCATION INTERNET TELEPHONY B2B WAP/ SMS CELLULAR • Content Aggregation/ Packaging • Software Development • Proprietorial Software • Premium Database • Distance Learning • Software Development • PrePaid Cards • Residential • SME • Network Provision Worldwide Australasia Ireland • Web “Back Office” Solutions • E-Commerce Engines, Web Enabling, Web Design • B2B Content Solutions • Software Development • Proprietorial Software Ireland Ireland U.S.A. Ireland Australia Israel Ireland New Zealand South Africa United Kingdom Australia Ireland New Zealand South Africa United Kingdom SOPRANO SOPRANO • ISP - Commercial/ Consumer Worldwide Worldwide Ireland Worldwide INDEPENDENT DIGITAL

  35. DIGITAL BRANDING • Ireland’s largest consumer ISP • Set Top Box = market USP and market first. • ISP offering broadband multi-media • PHL’s exclusive “home page” portal for their 250,000 existing subscribers • Building substantial phone/ data traffic for PHL fixed and wireless broadband (2MB) network

  36. DIGITAL BRANDING … CONTENT Independent content Yellow page directory Ireland’s largest classified Shopping mall 27 non-group regional newspaper titles Horoscopes/ weather/ lifestyle/ entertainment/ chat... … CHANNEL / MARKETING Initial 10,000 STB give-away Annualised +£35m equivalent media spend in participating titles Channel promotion to 250,000 subscribers

  37. Enhanced Revenues • New Revenue Streams • New Markets • Leading Brands • Core Expertise • Content • Channel • Marketing … powered by Independent Digital • Delivering • Earnings Growth • Capital Values

  38. SUMMARY: INVESTMENT CASE • Geographically diversified - with tight focus on core competencies • Brand leadership positions - dominant in 4 out of 5 markets • Turnaround of UK Independent • Belfast Telegraph - EPS enhancing • Increasing value of Irish cable/ telephony business

  39. SUMMARY: INVESTMENT CASE • Economic recovery in New Zealand and South Africa • Continuing strong growth in Australia, Ireland and United Kingdom • Returns enhanced through aggressive restructuring • Revenue and profit enhancing new media strategy Strong Double-Digit Earnings Growth

  40. WE ARE COMMITTED TO... • TO DELIVERING DOUBLE-DIGIT EARNINGS GROWTH... • CORE operational strengths • Unrivalled BRAND dominance • COST Restructuring • Expansionist • CREATING REAL SHAREHOLDER VALUE... • PHL cable/ telephony network • Prudent new media strategy • iTouch

  41. Independent News & Media PLC 1999 Preliminary Results 29th March, 2000

More Related