2018 FINANCIAL HALF YEAR RESULTS PRESENTATION 16 FEBRUARY 2018 BARCLAY NETTLEFOLD, GROUP CEO PETER CARGIN, GROUP CFO
AGENDA • HIGHLIGHTS • H1 FY18 OPERATIONAL REVIEW • H1 FY18 FINANCIAL RESULTS • FY18 STRATEGIC PRIORITIES • FY18 OUTLOOK • APPENDIX THE LEEDER | WA QMS Media Limited | H1 2018 Financial Year Results | 2
HIGHLIGHTS THE G | VIC QMS Media Limited | H1 2018 Financial Year Results | 3
H1 FY18 FINANCIAL HIGHLIGHTS DELIVERING ON RESULTS REVENUE NPAT NPATA UNDERLYING EBITDA UP 27% UP 25% UP 11% UP 20% to $22.7m to $8.3m to $99.0m to $12.4m FY18 UNDERLYING NET DEBT / CASH CONVERSION DIVIDEND UNDERLYING EBITDA EBITDA GUIDANCE 1.0 cps 70% 1.7x $44m-$46m QMS Media Limited | H1 2018 Financial Year Results | 4
H1 FY18 OPERATIONAL HIGHLIGHTS DELIVERING ON OUR STRATEGY • Continued consolidation of landmark digital footprint. DELIVERING ON DIGITAL • Targeted growth, premium quality, strategic locations. DEVELOPMENTS • Successful integration of Canberra Airport and delivery of additional small format digital across Gold Coast street furniture and Auckland Transport network. • Expansion of digital platform across multiple formats – Digital, Outdoor & Sport. • QMS Sport – securing FFA, NRL, and significant virtual opportunities. MULTI-PLATFORM • Canberra Airport. ENGAGEMENT • Digital Commons – extending online and mobile media audiences across digital outdoor. • Continued investment in the Datalab to drive audience understanding and enhance GROWING CAPABILITY IN DATA, data capabilities. TECHNOLOGY & ANALYTICS • Launch of industry first Digital Transaction Platform in New Zealand. QMS Media Limited | H1 2018 Financial Year Results | 5
H1 FY18 MARKET OVERVIEW H1 FY18 AUSTRALIAN MEDIA REVENUE H1 FY18 AUSTRALIAN BILLBOARDS REVENUE UP 15% | UP 6% UP 39% | UP 12% QMS OMAINDUSTRY QMS OMAINDUSTRY QMS GROUP DIGITAL MEDIA REVENUE H1 FY18 NEW ZEALAND MEDIA REVENUE 66% VS 43% UP 11% | UP 10% QMS H1 FY18 OMANZINDUSTRY H1 FY17 Source: OMA/OMANZ QMS Media Limited | H1 2018 Financial Year Results | 6
H1 FY18 OPERATIONAL REVIEW THE CAPITALS | ACT QMS Media Limited | H1 2018 Financial Year Results | 7
DIGITAL DEVELOPMENT Strong momentum in Australia and New Zealand digital GROWTH IN DIGITAL MEDIA REVENUE pipeline. AUSTRALIA • Extending geographic footprint in strategic markets. DIGITAL DEVELOPMENT • 24 landmark digital sites switched on in H1 FY18, includes 7 represented sites. PIPELINE • H2 FY18 target of 13+ new landmark digital sites. • FY18 guidance increased to 112+ landmark digital sites by 30 June 2018. • Average Australian digital lease tenure of 14 years. H1 FY17 H1 FY18 Committed to sustainable growth through strategic digital developments. NEW ZEALAND • Consolidating footprint in fastest growing outdoor category, roadside billboards. • Small format development complementing landmark digital presence. • Addition of Canberra Airport to digital portfolio, provides presence in high-value market. H1 FY17 H1 FY18 QMS Media Limited | H1 2018 Financial Year Results | 8
STRATEGIC DIGITAL DEVELOPMENT THE CAPITALS THE LAKES PARNELL ROAD THE QUEEN THE PALM THE VICTORIA COURTENAY PLACE QMS Media Limited | H1 2018 Financial Year Results | 9
AUSTRALIA PERFORMING AHEAD OF THE MARKET Solid performance across Australian media, well ahead of the market. • Successful integration and relaunch of Canberra Airport concession, delivering significant increase in revenue generation. • Gold Coast street furniture concession fully sold ahead of Commonwealth Games in April 2018, including additional digital rollout. Building QMS Sport into the largest sports media rights holder. • Strong platform of sports media rights for all major codes now secured: • Successful renewal of Football Federation Australia (FFA) signage services agreement; • Strategic alliance with Techfront Australia, providing exclusive sales media rights for all NRL games including finals and State of Origin Series; which • Complements existing media rights across Super Netball, Rugby Union, AFL and V8 Supercars. • 588 individual sporting events now represented – increase of 54% since acquisition. • Positive signs of growth across outdoor media and sports platforms. • Continue to look at opportunities to expand our Sports portfolio – virtual signage, international. Continued investment in the Datalab to drive audience understanding and enhance data capabilities. • Bespoke data and analytics tool in final testing and calibration stage. • Delivering unique dynamic audience insights, providing greater client targeting opportunities and ROI. • Additional advanced data projects in development, delivering further segmentation layers and convergence with other forms of digital media. QMS Media Limited | H1 2018 Financial Year Results | 10
NEW ZEALAND LEADING THE MARKET IN DATA AND TECHNOLOGY Continue to deliver strong digital signage growth. • Targeted landmark digital billboard growth across key areas and precincts, such as Wellington Airport and Britomart Plaza. • Solid sales and development growth across Auckland Transport. Successful launch of the Digital Transaction Platform (DTP). • New Zealand first for roadside digital billboards, providing advertisers with the ability to buy QMS’ premium digital inventory, on an audience impression basis. • Provides increased buying flexibility and efficiency for advertisers. • Significant opportunity for digital outdoor to be considered with, and compete for, online media investment. Expansion into digital verticals to provide additional skills and capabilities. • Strategic acquisition of a majority stake in Digital Commons, leading third party digital representation agency. DIGITAL • Specialise in online and mobile media and will be QMS’ primary sales channel partner for our DTP. TRANSACTION PLATFORM • Reinforces our strategic priority of connecting audiences through multi-platform engagement and customised content. QMS Media Limited | H1 2018 Financial Year Results | 11
H1 FY18 FINANCIAL RESULTS THE LAKES | NSW QMS Media Limited | H1 2018 Financial Year Results | 12
CONTINUED GROWTH DRIVEN BY DIGITAL ROLLOUT AND ACQUISITIONS • Continued strong revenue growth reflects strategic digital roll-out and QMS H1 FY18 H1 FY17 Sport acquisition, with particularly strong organic growth in Australia. Actual Actual Change • Underlying EBITDA up 27% to $22.7 million. ($ million) ($ million) % Revenue - statutory 99.0 79.0 25% • Underlying EBITDA margin of 23% consistent with same period last year. EBITDA 22.5 17.3 30% • Solid cash conversion in H1. Improved conversion expected in H2 due to seasonally higher revenues in Q2 converting to cash in Q3, and the EBITDA - underlying 22.7 17.9 27% additional lunar billing period. EBITDA Margin - underlying 23% 23% • Net debt increase in line with expectations, and well within banking NPAT 8.3 7.5 11% covenants. NPATA 12.4 10.3 20% • Interim dividend of 1.0 cent per share declared, consistent with payout ratio EPS (cents) 2.5 2.3 9% range. Operating Cash Conversion % 70% 90% Net Debt / Underlying EBITDA ratio¹ 1.7x 0.5x Interim dividend 1.0 cps 0.8 cps 1. Ratio based on last twelve months Underlying EBITDA. Note: NPATA defined as Net Profit After Tax, before Amortisation. Underlying numbers used throughout this presentation exclude non-underlying items as detailed in the Appendix on Slide 25 in order to provide a more meaningful comparison of the performance of the business. QMS Media Limited | H1 2018 Financial Year Results | 13
EXPANDED PLATFORM DELIVERING REVENUE AND EARNINGS GROWTH H1 FY18 H1 FY17 • Revenue up 25% on the pcp driven by organic growth and contribution Actual Actual Change from the QMS Sport acquisition. ($ million) ($ million) % Revenue 99.0 79.0 25% • Gross margins consistent with same period last year. Cost of sales (50.9) (40.3) 26% Gross profit 48.1 38.7 24% • Increase in operating expenses reflects planned ongoing investment in Gross profit margin 49% 49% systems, data and resources to support our growth. Operating expenses (25.6) (21.4) 20% EBITDA 22.5 17.3 30% • D&A increase driven by acquisitions and digital roll-out. Non-underlying costs¹ 0.2 0.6 Underlying EBITDA 22.7 17.9 27% • Excluding the impact of the capitalised borrowing costs written off in H1 Underlying EBITDA margin 23% 23% FY17, finance costs increased 39% reflecting the increased borrowings D&A (8.3) (5.5) 51% to fund growth. EBIT 14.2 11.8 20% Net finance costs (1.6) (1.7) -6% • Tax expense has increased in H1 FY18 reflecting the higher earnings Tax (4.3) (2.6) 65% and H1 FY17 included tax benefits from the absorption of prior year tax NPAT 8.3 7.5 11% losses and entry into a tax consolidated group. Amortisation 4.1 2.8 46% NPATA 12.4 10.3 20% 1. H1 FY18 non-underlying costs of $0.2m refers to: acquisition, restructuring and integration costs. QMS Media Limited | H1 2018 Financial Year Results | 14
Recommend
More recommend
