Interim Results For the six months Ended 30 th June 2014 16 th September 2014
Agenda • Highlights • Operational Review • Financial Review • Growth Strategy • Sales expansion • Case studies • Financial review • Outlook • Appendices 2
Presenting Team Mike Principe - CEO A co-Founder of TLA, Mike has been CEO since its inception and IPO in December 2011. He has over 15 years of experience in sports and entertainment deal making, operations and management. Prior to TLA, Mike was Managing Director of Blue Entertainment Sports Television (BEST), where he was responsible for day to day operations, acquisitions and growth strategy. BEST engaged in talent representation, television rights and production, event production and operation and sponsorship sales, Prior to BEST's sale to Lagadere Unlimited, under his leadership, BEST was was ranked as the top media company by Inc Magazine. A leading sports executive, Mike was honored as a Sports Business Journal's prestigious "Forty Under 40”. Bart Campbell – Executive Chairman A co-Founder of TLA, from 2009 until June 2013, Bart was the Group COO of Chime Communications plc (“Chime”) sports division, called CSM Sport & Entertainment which has 670+ staff, in 15 offices across 13 countries. During that period he was a member of the executive board of Chime. Prior to that, Bart was the Group CEO of the sports marketing and management business, Essentially Group plc (“Essentially”) which is part of Chime today, starting this role in 2006. During his tenure as CEO of Essentially, he led the IPO of the business and grew it from 20 to 120 professionals with offices in London, Australia, South Africa, New Zealand, India and Japan. Since June 2013 Bart has been a shareholder and Chairman of the Melbourne Storm, a premiership National Rugby League team in Australia. Don Malter - CFO Don joined TLA on 17 September 2013 as CFO. He was previously CFO (North America) for BMG Chrysalis since 2010, a joint venture between private equity firm, KKR and European media conglomerate, Bertelsmann. Prior to this he was CFO (North America) for Dimensional Music Publishing, LLC, a private equity backed music publishing house for 5 years. Don is an experienced CFO, having worked in the media and entertainment industry for over 20 years. 3
Financial Highlights • Headline EBITDA 2 grew by 11% to $4.1 million, reflecting headline EBITDA margin 3 of 40% (H1 2013: 39%) • Headline profit before tax increased by 12% to $3.9 million (H1 2013: $3.5 million) • Operating income 1 increased by 12% to $10 million (H1 2013: $8.9 million), reflecting strong growth in sports marketing • Statutory operating profit in sports marketing grew by 145%, all organic • Operating profit of $1.7 million (H1 2013: loss of $0.3 million) • Statutory profit before tax of $1.2 million (H1 2013: $1 million loss) • Reported revenues increased by 7% to $10 million (H1 2013: $9.3 million) • Headline fully diluted earnings per share up 20% to 2.97 cents (H1 2013: 2.47 cents) 1 Reported revenue less third party commissions, which is shown as gross profit. 2 Operating profit adjusted to add back depreciation, amortisation of acquired intangible assets and any acquisition related charges, share-based payment charges and exceptional items. 3 Headline EBITDA divided by Reported revenue 4
Operational Highlights • Contracted revenues increased by 27% on H1 2013 to $52 million • Total client base rose to 461 (H1 2013: 440) representing net client wins of 21 or 5% • Maintained top agency position in professional baseball in terms of total client roster with 260 clients (H1 2013: 228) • Clients in Major League Baseball increased by 12% and by 15% in Minor Leagues compared with H1 2013 • Sports Marketing operating income increased 37% to $3.6 million (H1 2013: $2.6 million), driven by organic expansion of client roster • Entered the global soccer industry by securing all commercial rights to the elite International Champions Cup in Asia Pacific for 2015-2018 • Appointed exclusive commercial agents for the USA Rugby v New Zealand All Blacks game in Chicago, 1 November 2014 • Golf clients Jim Furyk and Patrick Reed selected for the US Ryder Cup team 2014 5
Baseball Representation • Organic client acquisition rate of 14% compared to June 2013 MLB player cycle as 30 June 2014 • 260 clients (H1 2013 : 228) 35 • MLB 65 (H1 2013 : 58) up 12%, including 21 All Stars 2014 • MiLB 195 (H1 2013: 170) up 15%, including 64 All Stars 30 • Enhanced pipeline of young players moving into the key earning 2014 2013 25 2013 period of their careers 20 • Three TLA clients listed in the top 12 Rookie superstars “ Sports on Earth” (article in the Appendices) 15 2014 2013 10 5 0 Rookie (1-3 Years) Abrbitration (4-6 Free Agency 7+ years) years) 6
Sports Marketing • Organic client acquisition growth of 17.5% compared to June 2013 • Operating income up 37% • Statutory operating profit up 145% • Step change in the events business: • commercial agency to USA Rugby; • secured the Asia Pacific rights to ICC 2015-2018; and • healthy pipeline being converted into new business. 7
Growth Strategy Baseball: organic • Grow the current business by organic client acquisition - up 14% • Client retention as they move through their career into higher earning years • Continuing to maximise our clients earnings • Selective talent / staff and regional agency acquisitions to grow geographically Sports Marketing: organic • Continuing to increase client base and revenue per client: client base is up 17.5% year on year • Build up the events revenues (new and repeatable) both in the USA and Internationally • Further develop our recently established media and TV rights business • Look at new service offerings • Acquisition & key hires 8 8
Sales Expansion • The addition of industry veteran, Dave Bialek to TLA adds: • Sponsorship and In-Stadia expertise • Enhances our ability to monetise our events, such as Baseball City and the ICC and to create new properties • Additional inventory opportunities - Liga MX perimeter signage, 3D signage and virtual advertising rights • Strengthens our industry reach – most recently President of ANC Sports Marketing and prior to ANC, led Van Wagner’s stadia sponsorship and sales efforts • A continuation of our investment in Sports Marketing to build out future organic growth 9 9
Case Study – USA Rugby • Rugby World Cup Champions, the New Zealand All Blacks are playing the US Eagles in an international match, 1 November 2014 at Chicago’s Soldier Field • The match will be only the third official international between New Zealand’s All Blacks and the USA Eagles and the first in the United States since 1980 • The event marks a step forward for US rugby as it continues to increase its profile domestically • This event follows on the 2013 match between the Eagles and the second team New Zealand Maori All Blacks at PPL Park in Philadelphia • The 2013 match sold out • Soldier Field has capacity of 59,000 seats – nearing a sell out • Event will be carried live on NBC • Sell out and expected along with multi year opportunity with USA Rugby in discussion 10 10
Case Study – International Champions Cup • The inaugural Guinness International Champions Cup was held the summer of 2013, featuring eight top clubs – Real Madrid, Juventus, Chelsea, Inter Milan, A.C. Milan, Valencia, Everton and the L.A. Galaxy • 2014 was played in a total of 12 cities and 13 stadiums across the United States and Canada • 2 August 2014 – Real Madrid vs. Manchester United: 105,000 seat sell out at Ann Arbor, Michigan • TLA has secured the event rights for Asia Pacific for 4 years, starting in 2015 • Matches would be held in Australia and consist of 3 matches • Event will be a 50/50 JV with the Nine Entertainment Co., a $2 billion publically listed Australian entertainment company • Event sponsorship being provided by an Australian state government 11 11
Financial Review
Summary Headline Results Fi r st Ha l f Fi r st Ha l f % c ha nge 2 0 14 2 0 13 Operat ing Income ($m) 10.0 8.9 12% Headline EBITDA ($m) 4.1 3.7 11% Headline EBITDA Margin 40.5% 39.5% 2% Headline PBT ($m) 3.9 3.5 11% Headling f ully dilut esd EPS cent s 2.97 2.47 20% 13
Segmental Analysis Headline operating profit ($m) Operating Income ($m) 7.0 6.3 14.0 13.1 6.0 12.0 5.0 10.0 4.0 8.0 3.3 3.2 6.4 6.3 3.0 2.6 6.0 4.9 2.2 3.6 2.0 4.0 1.3 2.6 1.0 2.0 0.0 0.0 2014 2013 2013 - FY 2014 2013 2013 - FY Baseball Sports Marketing Baseball Sports Marketing • Baseball: • Operating income showed organic growth of 1% • Headline operating profit organic growth of 2% • Sports Marketing: • Operating income showed organic growth of 37% • Statutory operating profit organic growth of 145%, reflecting our investment in 2013 14
Historic Performance Operating Income ($m) Headline operating profit ($m) 7.0 6.3 13.1 14.0 6.0 12.0 5.0 10.0 4.0 8.0 6.4 3.3 6.3 3.2 4.9 6.0 2.6 3.0 3.6 2.2 2.6 4.0 2.0 1.3 2.0 0.0 1.0 2014 2013 2013 - FY 0.0 2014 2013 2013 - FY Baseball Sports Marketing Baseball Sports Marketing Headline EBITDA margin Headline EPS 48.0% 3.5 45.9% 2.97 46.0% 3 2.48 2.47 2.5 44.0% 2 42.0% 40.5% 1.5 39.5% 40.0% 1 38.0% 0.5 36.0% 0 FH - 2014 FH- 2013 FH - 2012 FH - 2014 FH- 2013 FH - 2012 15
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