investor briefing f18 hy results - nation media group · investor briefing f18 hy results 17th...
TRANSCRIPT
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%
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
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@Daily Nation
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ntv.co.ke/live
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businessdailyafrica.com
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Taifaleo.nation.co.ke
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