Group plc 2020 Interim Results Investor Presentation August 2020
Group plc 2020 Interim Results Investor Presentation August 2020 - - PowerPoint PPT Presentation
Group plc 2020 Interim Results Investor Presentation August 2020 - - PowerPoint PPT Presentation
Group plc 2020 Interim Results Investor Presentation August 2020 DISCLAIMER AND IMPORTANT NOTICE The information contained in this document (Presentation) has been prepared by Brave Bison Group plc (the Company). The Company is a UK
DISCLAIMER AND IMPORTANT NOTICE The information contained in this document (“Presentation”) has been prepared by Brave Bison Group plc (the “Company”). The Company is a UK company quoted on AIM, a market operated by London Stock Exchange plc. This Presentation has not been fully verified and is subject to material updating, revision and further verification and amendment without notice. This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 (as amended) (“FSMA”) and therefore it is being provided for information purposes only. While the information contained herein has been prepared in good faith, neither the Company nor any of its directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any
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Brave Bison is a Media Group for the New Era
Your Management Team
Oliver Green Philippa Norridge Theo Green Matt Law
Executive Chairman Chief Financial Officer Director of Growth Non-Executive Director Tangent University College London MullenLowe Profero (part of IPG) Albion Brand Communications University of Oxford Tangent Brockton Capital (Private Equity) Imperial College London Outlier Ventures Analog Folk Tribal Worldwide
About Brave Bison
A new chapter
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
A Brief History
Brave Bison (formerly known as Rightster) floats
- n AIM
Multiple CEOs and business models Early success as social publisher and branded content studio
2013 2013-2018 2019 July 2019
Tangent buys 19% stake in Brave Bison from Woodford Oliver Green joins Board as Chairman
December 2019
Philippa Norridge joins as Chief Financial Officer and Matt Law joins as NED Oliver Green becomes Executive Chairman Tangent increases stake twice, now totalling 27%
June 2020
We produce video content for our media brands. This content is distributed through our network on social media and is watched by millions, sometimes billions of people. Advertising is inserted into this content via programmatic exchanges, and we receive a commission on this revenue. Our advertising business is high growth, low margin (for now) and highly scaleable. Our creative and strategy teams work with clients directly, and through agencies, on social and digital-first campaigns. Our services range in scope from influencer marketing to branded content. We charge clients fees for services provided. Our creative services business is high margin and cash generative.
Advertising Creative Services
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
BB Shareholder Presentation 2020
Our Differentiated Business Model
Our Partners Our Clients
The Hook is a multiplatform youth entertainment brand enjoyed by an online community of more than 9 million global followers We create and share only the freshest, funniest and most innovative content to entertain and inspire audiences all over the world
GLOBAL FOLLOWERS
9M+
MONTHLY VIEWS
75M
MONTHLY ENGAGEMENTS
1.2M
VTRND V Satisfying
2.0m Subscribers
The most relaxing ASMR and oddly satisfying videos on the planet.
VTRND V Fit
330k Subscribers
The ultimate fitness routines, challenges and body
- transformations. Be the best you
can be.
Slick
1.4m Subscribers
The world’s best hair stylists and groomers transform the
- rdinary into the
extraordinary.
Our Presence on Snap
World Chase Tag
542k Subscribers
The best parkour athletes and Ninja Warrior competitors from around the globe.
Interim Results
Six months ended 30 June 2020
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
H1 2020 Results Summary
* This is EBITDA adjusted for restructuring costs, share based payments and IFRS 16 ((£0.4m) in 2020 prior to IFRS 16 adjustment) Small apparent errors due to rounding
Annualised cost savings of £1.1m made in H1, forecast EBITDA break-even for H2 2020
H1 2020 H1 2019 Revenue £5.5m £10.1 Advertising £4.6m £6.6m Creative Services £1.0m £3.6m Gross Profit £1.9m £3.4m Advertising £1.2m £1.7m Gross Margin 24% 27% Creative Services £0.7m £1.7m Gross Margin 70% 47% Adjusted EBITDA* (£0.6m) £0.2m Profit / (Loss) Before Tax (£1.4m) (£1.2m) Loss Before Tax is inclusive of Restructuring Costs of: (£0.6m) (£0.4m)
- Reduction in revenue to £5.5 million (H1 2019: £10.1 million) and loss before tax of £1.4 million (H1 2019:
£1.2 million) as the Group contended with the challenges of the COVID-19 pandemic
- Appropriate action has been taken swiftly, with annualised cost savings of £1.1 million implemented to
- date. One off restructuring costs of £0.6 million (H1 2019: £0.4 million) have been incurred
- EBITDA loss before restructuring costs of £0.4 million (H1 2019: £0.2 million profit).
- Improved outlook on the back of a better than anticipated recovery from June 2020, and given the cost
savings the Group is now forecasting to be breakeven on an EBITDA basis in the second half of the year
- Cash balance as at 30 June 2020 of £2.1 million (30 June 2019: £3.7 million) and no borrowings
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
Financial Highlights
- Group is now led by a new management team and Board following the appointment of Oliver Green as
Executive Chairman, Philippa Norridge as Chief Financial Officer and Matthew Law as Non-Executive Director
- Acquisition and successful integration of The Hook , one of the largest youth-focussed media groups
with over 14 million followers across social media including almost 1 million followers on TikTok
- Significant client wins during the period, including Panasonic, World Dodgeball Federation, IMV Box,
Media Star Maker and Viral Press
- Successful revenue diversification across social platforms with content now distributed across
Snapchat, TikTok, Facebook, Instagram and YouTube
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
Operational Highlights
Outlook
Our Strategy for Growth
Our Market Brave Bison’s Position $520bn
2020 Global advertising market(1)
50% (and growing)
2020 Digital advertising share (it was 25% in 2014)(1) We are a digital-first media group
- 2.4%
2020 YoY change in digital advertising spend (it was -20.7% for traditional media)(1) All our campaigns are social-led
33%
2018 % of all media time spent on mobile (it was 7% in 2010)(2) All our media brands are mobile-first
70%
Combined market share of Facebook and Google(2) Facebook and YouTube are our biggest advertising partners
90%
US 13-24 year olds reached by Snap(3) Snap is our fastest-growing content platform
$10bn
Forecast influencer marketing spend for 2020 (it was $1.7bn in 2016)(4) We are a partner of choice for influencer marketing campaigns in the UK and APAC
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
BB Shareholder Presentation 2020
Going Where the Growth Is
(1) GroupM via Financial Times, (2) MoffettNathanson / Bond Capital / eMarketer via The Economist, (3) Snap, Inc, (4) Influencer Marketing Hub (2) (2)
We believe there is an opportunity for a Buy & Build strategy across the digital media landscape. Our focus is on three core areas, all of which complement our existing business:
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
What?
- High-growth social publishers;
- Engaged audiences with a cross-platform
approach;
- Bonafide brands with multiple revenue
- pportunities across commerce,
subscription, sponsorship and events. How Much?
- 25%+ revenue growth;
- Break-even, or break-even within 12
months
- £5m to £15m purchase price
Buy & Build
Digital-First Services Content Production Media brands
What?
- Profitable digital marketing agencies
with 8-12% operating margins;
- Specific focus such as paid social,
influencer marketing, data, Amazon ads etc.;
- Ability to cross-sell and extend
campaigns. How Much?
- Profits of £0.5m to £2.0m;
- Buyable on 5-8x earnings;
- Synergies on project teams and
- verheads.
What?
- Profitable video production companies
and rights libraries with content that can be repurposed for social platforms such as Facebook, Snap, YouTube, TikTok and Quibi;
- Existing creative and production
infrastructure for Video on Demand (Netflix, Amazon, NowTV, Hulu) and Linear TV. How Much?
- Profits of £0.5m to £2.0m;
- Buyable on 8-10x earnings;
- Content libraries acquired significantly
below production cost
The high-growth nature of our market provides us will multiple opportunities for organic revenue growth. Some target areas are shown below:
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
Organic Revenue Growth
Advertising Growth Creative Services Growth
- Build on APAC success to launch comprehensive
UK branded content offering
- Expand influencer marketing proposition
- Give brands access to original series commissions
- Improve performance and conversion-led offering
- Increase quality and quantity of our content
- utput to restore Facebook revenues
- Commission new Snap shows
- Invest in content and product for our recently
acquired web offering
- Accelerate output on next-generation platforms
such as TikTok and Quibi
Work with a single client across creative services and advertising
Summary Investment Case
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
BB Shareholder Presentation 2020
Brave Bison Investment Case
- 1. Management Team
Refreshed management team has sector experience and ‘skin in the game’. Oliver and Theo Green have invested £1.9m for 27% of Brave Bison.
- 2. High-Growth Sector
Opportunity to capitalise on the growth of digital marketing and the proliferation of content across social media.
- 3. Global Presence
Brave Bison is represented across Europe and JAPAC, and has a global audience across its media brands.
- 4. Business Model
Diversified and differentiated revenue streams provide stable earnings and ability to invest free cashflow into growth.
- 5. Capitalisation
Brave Bison has a strong, debt-free balance sheet.
Q&A
Appendix
Financials & Shareholder Register
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
Income Statement
£m HY 2020 HY 2019 Revenue Advertising 4.6 6.6 Creative Services 1.0 3.6 Total 5.5 10.1 Gross Profit Advertising 1.2 1.7 Gross Margin 24% 27% Creative Services 0.7 1.7 Gross Margin 70% 47% Total 1.8 3.4 Gross Margin 33% 33% Administrative Expenses (2.6) (3.6) Adjusted Operating Loss (0.8) (0.2) Restructuring & Impairment (0.6) (1.0) Finance Costs & Other 0.0 0.0 Loss Before Tax (1.4) (1.2)
The business was restructured in H1 2020 and is anticipated to be EBITDA breakeven in H2 2020
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
Statement of Financial Position
£m 30 June 2020 30 June 2019 Intangible assets 1.0 1.3 Property, plant and equipment 0.6 0.0 Total non-current assets 1.5 1.4 Trade and other receivables 2.2 5.6 Cash and cash equivalents 2.1 3.7 Total current assets 4.3 9.3 Trade and other payables (3.6) (6.2) Lease liabilities (0.5)
- Total current liabilities
(4.1) (6.2) Deferred tax (0.1) (0.2) Lease Liabilities (0.1)
- Total non-current liabilities
(0.3) (0.2) Net assets 1.4 4.3
We entertain, inform and inspire a global fanbase with
- riginal social content
created around their passions
BB Shareholder Presentation 2020
Shareholder Register
Shareholder Description Ownership Tangent Marketing Services * Oliver and Theo Green 27.3% Vesuvius Limited* Gibraltar-based private family office 15.9% CIP Merchant Capital Investment fund 11.7% Simon Davies Private individual 7.0% MMC Ventures UK-based venture capital fund 5.1% Shareholders with less than 3% 33.0% Total 100.0%
* Includes shareholdings through associated companies and individuals