investor briefing f18 hy results - nation media group · investor briefing f18 hy results 17th...

INVESTOR BRIEFINGF18 HY RESULTS

17TH AUGUST 2018

@Nation Media Group @nationmediaGrp www.nationmedia.com

2016 HIGHLIGHTS

DIVISIONAL UPDATES

2016 GROUP RESULTS

Q & A

F18 H1 Highlights

F18 H1 Divisional Results

F18 H1 Group Results

Q & A

HALF YEAR RESULTS BRIEFING

OUR FOOTPRINT

4

Our Values

Inspiring leadership; Team work; Continuous improvement

Consumer FocusContinuous Improvement &

Innovation

Drive for Performance

Integrity & Trust

We are a team

5

Business Objective

New revenue streams

Innovation

Protect & grow current business

Consumer

Living our values

Pursue value benefits anchored on driving growth through new revenue sources and innovation

6

Innovate to continuously meet consumer demands Develop new products to maintain competitive edge Growing the top line

Grow current revenues Generating new revenue streams

Strengthen performance of legacy brands Investing in the right talent and capabilities Manage costs to constantly invest in growth

We are clear

on our journey

Pursue value benefits anchored ondriving growth through new revenuesources and innovation

7

Driving Return on Investment

Reach

Relevance

Impact

Power BrandPartnerships/

AlliancesInnovations

Operational excellence

FY18 H1 HIGHLIGHTS

DIVISIONAL RESULTS

FY18 H1 GROUP RESULTS

Q & A

9

2018 Key Revenue Drivers

Protect & grow current business New revenue streams

Advertising

Circulation

Music

Gaming

Education

EventsDigital (SMS, E-paper, E-commerce)

Contract printing

10

307.9

16.9k

22.1

33.69.25

20.2k

24.3

July

11

307.9

16.9k

22.1

33.69.25

20.2k

24.3

Digital Revenue Trend: 2013-2018

2013 2014 2015 2016 2017 2018

12

Record Label • Lit Music is an exciting new record label that bringstogether the most talented and diverse artists

• A platform to recruit, nurture, develop, manageand promote music talent

• Engaged a number of studios, production houses &other 3rd parties to provide the mostcomprehensive solutions for our artists to buildbigger and more dynamic careers.

Record Label

13

Music offering

On Nation FM every Friday and Saturday at

7pm.

Available on lit360.Africa

Top trending show every Thursday

Every Thursday on NTV at

10pm Re-run on Sunday

Premiered May 3RD 2018

14

Way Forward

Events and Event management

Music and video production

Artists and repertoire

Merchandising

Online Distribution Channels

TV Offering

Partnerships

15

16.9k

24.3

Ecommerce enabled experiential platform for movies, events & retailers

Audience growth: 87,000 in Jan 2017 to 155,000 in 2018

Doubled circulation since its acquisition

Launching UgandaBuzz & TanzaniaBuzz

cinema presence on the ticketing platform

Provider of the most comprehensive event and lifestyle information in Kenya. (Online & Print)

KenyaBuzz.com

16

307.9

16.9k

22.1

33.69.25

20.2k

Events

Farm Clinic

myNetwork career fairNation Leadership Forum

17

307.9

16.9k

33.69.25

20.2k

Education

JuniorSpot

Newspapers in Education Programme

Printing of Books(Supplementary reading

material)

Objective is to increase literacy in line with our mission

18

Other Growth Areas

Kenya Buzz Online Directory & TicketingOnline TV

Online Lifestyle Platform

Focus on growing new revenue streams for sustainability

19

World Cup CoverageFIFA World Cup Matches aired inpartnership with Kwesé FreeSports

No. of viewers on NTV on theFIFA World Cup opening match

Growth of NTV Viewership duringthe world cup period

NTV is currently positioned as No. 2 TV station

32

20

NTV Programming

Strong news & entertainment content to drive growth of audiences

21

New Look NTV

22

307.9

22.1

33.6

20.2k

24.3

Government Debt

Outstanding GAA debt: Kshs 856 million; 85% overdue (Kshs 726m)Discussions with government ongoing; credit suspendedSeeking alternative sources of revenue

23

307.9

22.1

20.2k

24.3

NTV Closure

NTV Closure at the beginning of the year due to political unrest

24

307.9

16.9k

22.1

9.25

20.2k

24.3

Mercy Care Children’s Home - Ndabibi, Naivasha County

Shika Adabu Primary School - Likoni Sub-County

Corporate Social Responsibility

Talitha Kum Children’s Home -Nyahururu , Laikipia County

Mama Fatuma Goodwill Children’ Home - Nairobi County

25

Excellence Awards

Energy Management Awards - Best New Entrant Award (Small and Medium

Consumer) Communications Authority KUZA Awards - (3 Awards in various categories)

Media Council of Kenya Annual Journalism Excellence Awards (Various categories)

East African Business Council – East Africa’s Best

Media Company

Merck Foundation’s More than a Mother Recognition

Awards

26

2018 Group Highlights

Convergence optimisation

Growing the digital opportunity

Strategic partnerships

Debt mgt across gov’t agencies

MCL shareholding

NTV ClosureNew NTV programming

Roll out of Lit 360 Music

Growth of Kenya Buzz

FIFA World Cup

JuniorSpot

FY18 H1 DIVISIONAL RESULTS

FY18 H1 HIGHLIGHTS

FY18 H1 GROUP RESULTS

Q & A

28

307.9

16.9k

22.1

33.69.25

20.2k

24.3

DIVISION NND TEA BD MPL MCL

REVENUE 9% 0% 0% 3% 12%

DIRECT COSTS 8% 42% 7% 7% 24%

OPERATING RESULTS 13% >100% 10% 27% 48%

Print

Revenues

Direct Costs

Operating Results

29

307.9

16.9k

33.69.25

20.2k

24.3

Television

Revenues

Direct Costs

Operating Results

1%

42%

32%

10%

>100%

21%

30

307.9

16.9k

33.69.25

20.2k

Digital

Revenues

Direct Costs

Operating Results

6%

27%

20%

31

307.9

16.9k

22.1

33.69.25

20.2k

24.3

FY18 H1 HIGHLIGHTS

FY18 H1 DIVISIONAL RESULTS

FY18 H1 GROUP RESULTS

Q & A

32

307.9

16.9k

22.1

33.69.25

20.2k

24.3

Turnover Trend (Kshs m)

2012 2013 2014 2015 2016 2017 2018

6.7%

33

307.9

16.9k

22.1

33.69.25

20.2k

24.3

Cost of Sales (Kshs m)

2012 2013 2014 2015 2016 2017 2018

11%

34

307.9

16.9k

22.1

33.69.25

20.2k

24.3

Total Costs (Kshs m)

2012 2013 2014 2015 2016 2017 2018

1.4%

35

307.9

16.9k

22.1

33.69.25

20.2k

24.3

Consolidated Statement of Comprehensive Income ( Kshs m)

Turnover 4,923.1 5,274.2 (6.7)

Profit before income tax and exceptional items 1,103.1 1,190.9 (7.4)

Exceptional items:

Provision for overdue debts (291.6) (17.5)

Revaluation of financial assets (49.7) (2.2)

Income tax expense (232.6) (351.4)

Profit after income tax 529.2 819.8 (35.5)

Other comprehensive income (74.2) 5.8

Total comprehensive income 455.0 825.6 (44.9)

Jun-18 Jun-17 % Change

36

307.9

16.9k

22.1

33.69.25

20.2k

24.3

Statement of Financial Position ( Kshs m)

Capital and reserves

Share capital 471.4 471.4

Other reserves (142.0) (72.5)

Retained earnings 6,545.30 6,302.30

Proposed dividends 1,696.90 1,414.10

8,571.60 8,115.30

Non controlling interest 49.7 51

Total equity & Non-current liabilities 8,621.30 8,166.30

Non-current liabilities 25 25.9

8,646.30 8,192.20

Assets

Non-current assets 4,892.10 5,009.20

Working capital

Current assets 7,093.60 6,311.10

Current liabilities 3,339.40 3,128.10

Net working capital 3,754.20 3,183.00

Total Assets 8,646.30 8,192.20

30-Jun-18 30-Dec-17

37

307.9

16.9k

22.1

33.69.25

20.2k

24.3

Condensed Cash Flow Statement (Kshs m)

Cash generated from operations 1,231.5 2,282.6

Tax paid (411.4) (799.2)

Net cash from operating activities 820.1 1,483.4

Net cash used in investing activities (36.5) 147.0

Net cash from financing activities - -

Increase in cash and cash equivalents

783.6 1,630.4

At start of period 1,692.6 1,344.7

Exchange gains/(losses) on cash and cash equivalents (30.4) 0.1

At end of period 2,445.8 2,975.2

6 months ended

June 2018

6 months ended

June 2017

38

307.9

16.9k

22.1

33.69.25

20.2k

24.3

Earnings Per Share (Kshs)

0

1

2

3

4

5

6

7

2011 2012 2013 2014 2015 2016 2017 2018

45%

39

307.9

16.9k

22.1

33.69.25

20.2k

24.3

Dividends

40

307.9

16.9k

22.1

33.69.25

20.2k

24.3

Interim Dividend

1.50

2.50 2.50 2.50 2.50 2.50 2.50

1.50

0

1

1

2

2

3

3

2011 2012 2013 2014 2015 2016 2017 2018

Dividends per Share (Kshs)

41

7.9

16.9k

33.69.25

20.2k

24.3

Our Products

Tanzania Rwanda

Uganda

Mwananchi.co.tz

@MwananchiNews

MwananchiNews

@MwanaSpotiTZ

MwanaSpoti

Theeastafrican.co.ke

@TheEastAfrican

TheEastAfrican

Kenya

Citizen.co.tz

The Citizen TZ

The Citizen Tanzania

Nation.co.ke

@Daily Nation

Daily Nation

ntv.co.ke/live

@NTV Kenya

NTV Kenya

businessdailyafrica.com

@BusinessDailyAfrica

Taifaleo.nation.co.ke

@Taifa_Leo

Taifa Leo

Kenyabuzz.com

@KenyaBuzz

Kenya Buzz

Nariobinews.nation.co.ke

@nairobinews

Nairobi News@BD_Africa

Theeastafrican.co.ke

@TheEastAfrican

TheEastAfrican

@NTVUganda

NTVUganda

@DembeFM

Dembe FM

monitor.co.ug

933KFM

monitor.co.ug

@Daily Monitor

Daily Monitor

monitor.co.ug

@Daily Monitor

Daily Monitor

@SparkTVUganda

SparkTVUganda

Theeastafrican.co.ke

@TheEastAfrican

TheEastAfrican

Theeastafrican.co.ke

@TheEastAfrican

TheEastAfrican