1999 Full Year Results 29th March, 2000. Liam P Healy Group Chief Executive.
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Transcript of 1999 Full Year Results 29th March, 2000. Liam P Healy Group Chief Executive.
INDEPENDENT INDEPENDENT NEWS & MEDIA PLC.NEWS & MEDIA PLC.
INDEPENDENT INDEPENDENT NEWS & MEDIA PLC.NEWS & MEDIA PLC.
1999 Full Year Results1999 Full Year Results
29th March, 200029th March, 2000
INTRODUCTIONINTRODUCTIONINTRODUCTIONINTRODUCTIONLiam P HealyLiam P Healy
Group Chief ExecutiveGroup Chief Executive
• Strong performances in Ireland, Australia and New ZealandStrong performances in Ireland, Australia and New Zealand
• iTouch expands internationallyiTouch expands internationally
• Unison launches “internet on TV” initiative in IrelandUnison launches “internet on TV” initiative in Ireland
• UK Independent makes circulation gains - losses reducedUK Independent makes circulation gains - losses reduced
• South African economy set for recovery South African economy set for recovery
• E 200 million 10 year bond issued at coupon of 5.75%E 200 million 10 year bond issued at coupon of 5.75%
• Group restructuring plan substantially completedGroup restructuring plan substantially completed
• Successful bid for Belfast Telegraph since year endSuccessful bid for Belfast Telegraph since year end
HIGHLIGHTS FOR THE YEARHIGHLIGHTS FOR THE YEARHIGHLIGHTS FOR THE YEARHIGHLIGHTS FOR THE YEAR
GROUP PROFILEGROUP PROFILEGROUP PROFILEGROUP PROFILEJames J ParkinsonJames J Parkinson
Group Finance DirectorGroup Finance Director
• Listing InformationListing Information::PLC listed on the Irish, London and New Zealand Stock PLC listed on the Irish, London and New Zealand Stock
ExchangesExchanges
GROUP PROFILEGROUP PROFILEGROUP PROFILEGROUP PROFILE
• Current Shareholder ProfileCurrent Shareholder Profile::
Dr AJF O’ReillyDr AJF O’Reilly 28%28%Irish InstitutionsIrish Institutions 27%27%UK InstitutionsUK Institutions 18%18%US InstitutionsUS Institutions 12%12%European InstitutionsEuropean Institutions 6%6%PrivatePrivate 5%5%BoardBoard 4%4%
• Market CapitalisationMarket Capitalisation::E 2.7bnE 2.7bn IR£2.1bn IR£2.1bn STG£1.6bnSTG£1.6bn
South AfricaSouth Africa•No. 1 National Publisher No. 1 National Publisher
•No. 1 Regional PublisherNo. 1 Regional Publisher
•No. 1 Commercial PrinterNo. 1 Commercial Printer
New ZealandNew Zealand•No. 1 National PublisherNo. 1 National Publisher
•No. 1 Regional PublisherNo. 1 Regional Publisher
•No. 1 Radio OperatorNo. 1 Radio Operator
•No. 1 Commercial/ Magazine PrinterNo. 1 Commercial/ Magazine Printer
•No. 1 Security PrinterNo. 1 Security Printer
PortugalPortugal•No. 1 National PublisherNo. 1 National Publisher
Hong KongHong Kong•No. 2 Transport Adv.No. 2 Transport Adv.
United KingdomUnited Kingdom•The Independent, Independent on SundayThe Independent, Independent on Sunday
•No. 1 Recruitment Magazine PublisherNo. 1 Recruitment Magazine Publisher
•No. 2 Rugby/ No. 1 U.S. Football PublisherNo. 2 Rugby/ No. 1 U.S. Football Publisher
•No. 1 Paid-For Regional Publisher in LondonNo. 1 Paid-For Regional Publisher in London
IrelandIreland•No. 1 National Publisher No. 1 National Publisher
•No. 1 Regional PublisherNo. 1 Regional Publisher
•No. 1 Newspaper/ Magazine DistributorNo. 1 Newspaper/ Magazine Distributor
•No. 2 Cable/ MDS OperatorNo. 2 Cable/ MDS Operator
AustraliaAustralia•No. 1 Regional PublisherNo. 1 Regional Publisher
•No. 2 Radio OperatorNo. 2 Radio Operator
•No. 1 Outdoor/ Transport AdvNo. 1 Outdoor/ Transport Adv
• No. 1 Pay-TV MoviesNo. 1 Pay-TV Movies
LEADING MEDIA BRANDSLEADING MEDIA BRANDSLEADING MEDIA BRANDSLEADING MEDIA BRANDS
South AfricaSouth Africa•No. 1 National Publisher No. 1 National Publisher
•No. 1 Regional PublisherNo. 1 Regional Publisher
•No. 1 Commercial PrinterNo. 1 Commercial Printer
New ZealandNew Zealand•No. 1 National PublisherNo. 1 National Publisher
•No. 1 Regional PublisherNo. 1 Regional Publisher
•No. 1 Radio OperatorNo. 1 Radio Operator
•No. 1 Commercial/ Magazine PrinterNo. 1 Commercial/ Magazine Printer
•No. 1 Security PrinterNo. 1 Security Printer
PortugalPortugal•No. 1 National PublisherNo. 1 National Publisher
Hong KongHong Kong•No. 2 Transport Adv.No. 2 Transport Adv.
United KingdomUnited Kingdom•The Independent, Independent on SundayThe Independent, Independent on Sunday
•No. 1 Recruitment Magazine PublisherNo. 1 Recruitment Magazine Publisher
•No. 2 Rugby/ No. 1 U.S. Football PublisherNo. 2 Rugby/ No. 1 U.S. Football Publisher
•No. 1 Paid-For Regional Publisher in LondonNo. 1 Paid-For Regional Publisher in London
IrelandIreland•No. 1 National Publisher No. 1 National Publisher
•No. 1 Regional PublisherNo. 1 Regional Publisher
•No. 1 Newspaper/ Magazine DistributorNo. 1 Newspaper/ Magazine Distributor
•No. 2 Cable/ MDS OperatorNo. 2 Cable/ MDS Operator
AustraliaAustralia•No. 1 Regional PublisherNo. 1 Regional Publisher
•No. 1 Radio OperatorNo. 1 Radio Operator
•No. 1 Outdoor/ Transport AdvNo. 1 Outdoor/ Transport Adv
• No. 1 Pay-TV MoviesNo. 1 Pay-TV Movies
• Dominant media company in 4 of 5 marketsDominant media company in 4 of 5 markets• Market share > 50%Market share > 50%• 160 newspaper titles/ 45m readers per week160 newspaper titles/ 45m readers per week• Largest radio/outdoor operator in AustralasiaLargest radio/outdoor operator in Australasia• Fast-growing new media operatorFast-growing new media operator
LEADING MEDIA BRANDSLEADING MEDIA BRANDSLEADING MEDIA BRANDSLEADING MEDIA BRANDS
• Geographically diversifiedGeographically diversified
• Tight focus on CORE competenciesTight focus on CORE competencies
PublishingPublishing
OutdoorOutdoor
New Media / ElectronicNew Media / Electronic
• Brand market-leadership positionsBrand market-leadership positions
• Operating margin enhancements Operating margin enhancements
– Target + 20%Target + 20%
GROUP STRATEGYGROUP STRATEGYGROUP STRATEGYGROUP STRATEGY
• Primary content provider across diverse media platformsPrimary content provider across diverse media platforms
– Migrate into revenue enhancing new media platformsMigrate into revenue enhancing new media platforms
• Growth orientated through organic growth & earnings enhancing Growth orientated through organic growth & earnings enhancing
investmentsinvestments
• Deliver double-digit earnings growth & enhanced shareholder valueDeliver double-digit earnings growth & enhanced shareholder value
GROUP STRATEGYGROUP STRATEGYGROUP STRATEGYGROUP STRATEGY
1999 RESULTS1999 RESULTS1999 RESULTS1999 RESULTS
HEADLINE NUMBERSHEADLINE NUMBERSHEADLINE NUMBERSHEADLINE NUMBERS
19991999 1998 1998 Change Change E mE m E m E m % %
TurnoverTurnover 1,168.21,168.2 798.8 798.8 + 46.2+ 46.2
Operating Profit *Operating Profit * 192.4 192.4 138.7 138.7 + 38.7+ 38.7
Profit Before TaxProfit Before Tax 142.7 142.7 85.4 85.4 + 67.1+ 67.1
Net ProfitNet Profit 70.1 70.1 58.7 58.7 + 19.4+ 19.4
EPS **EPS ** 30.72c 30.72c 24.56c 24.56c + 25.1+ 25.1
DPSDPS 13.33c 13.33c 11.43c 11.43c + 16.7+ 16.7
* Continuing activities before exceptionals* Continuing activities before exceptionals** Before exceptional items and amortisation** Before exceptional items and amortisation
SUMMARY BALANCE SHEETSUMMARY BALANCE SHEETSUMMARY BALANCE SHEETSUMMARY BALANCE SHEET
19991999 1998 1998
E mE m E m E m
Fixed Assets *Fixed Assets * 2,1002,100 1,466 1,466
Other Net LiabilitiesOther Net Liabilities (15) (15) (54) (54)
Net DebtNet Debt (868) (868) (568) (568)
Total Shareholders’ Funds *Total Shareholders’ Funds * 1,2171,217 844 844
Interest CoverInterest Cover (EBITDA/Interest)(EBITDA/Interest) 4.8x 4.8x 3.3x 3.3x Net Debt to EBITDANet Debt to EBITDA 3.8x 3.8x 3.6x 3.6x* Including the revalued elements of mastheads* Including the revalued elements of mastheads
SUMMARY CASH FLOWSUMMARY CASH FLOWSUMMARY CASH FLOWSUMMARY CASH FLOW
19991999 1998 1998
E mE m E m E m
Operating ProfitOperating Profit 190.6190.6 86.9 86.9 Restructuring CostsRestructuring Costs - - 54.1 54.1 190.6190.6 141.0141.0
Share of Associates & JV’s ResultsShare of Associates & JV’s Results (5.8) (5.8) (15.3) (15.3) Depreciation & AmortisationDepreciation & Amortisation 43.2 43.2 32.5 32.5
EBITDAEBITDA 228.0228.0 158.2158.2 Working Capital MovementsWorking Capital Movements (41.5)(41.5) (28.8) (28.8) Operating cash flow Operating cash flow 186.5186.5 129.4129.4
Operating cash flow conversion (%)Operating cash flow conversion (%) 81.8% 81.8% 81.8% 81.8%
25.36
30.72
24.56
20.39
17.75
9.248.3
15.1614.04
10.72
0
5
10
15
20
25
30
35
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
TEN YEAR PERFORMANCETEN YEAR PERFORMANCETEN YEAR PERFORMANCETEN YEAR PERFORMANCE
10 Year C.A.G.R.10 Year C.A.G.R.• TurnoverTurnover
+22%+22%• Operating Profit Operating Profit +27%+27%• Pre-Tax ProfitPre-Tax Profit +31%+31%• Earnings Per ShareEarnings Per Share
+14%+14%• Dividends Per ShareDividends Per Share
+15%+15%
Earnings per Share (E)Earnings per Share (E)(Fully diluted before exceptionals & goodwill amortisation)(Fully diluted before exceptionals & goodwill amortisation)
• Recovery in key currenciesRecovery in key currencies
• Strong performance from Australian operations Strong performance from Australian operations
• Strong second half performance from New Zealand operationsStrong second half performance from New Zealand operations
• Return to double-digit growth in Irish operationsReturn to double-digit growth in Irish operations
• UK turnaround of UK turnaround of IndependentIndependent titles titles
• Efficient treasury and tax managementEfficient treasury and tax management
• Successful implementation of Successful implementation of EE 50m Group-wide restructuring 50m Group-wide restructuring
– > 80% of total planned headcount reductions achieved> 80% of total planned headcount reductions achieved
KEY OPERATIONAL DRIVERS: 1999KEY OPERATIONAL DRIVERS: 1999KEY OPERATIONAL DRIVERS: 1999KEY OPERATIONAL DRIVERS: 1999
• Acquired 100% of South African businessAcquired 100% of South African business
• Increased stake in Australia (APN) to 41%Increased stake in Australia (APN) to 41%
• Issued 10 year Issued 10 year EE 200m Eurobond at 5.75% 200m Eurobond at 5.75%
• New media activitiesNew media activities– i-Touch stake >70%i-Touch stake >70%
– Internet Ireland acquiredInternet Ireland acquired
• Post year endPost year end– Successful bid for Belfast TelegraphSuccessful bid for Belfast Telegraph
– Significant expansion of i-Touch activitySignificant expansion of i-Touch activity
CORPORATE ACTIVITY: 1999CORPORATE ACTIVITY: 1999CORPORATE ACTIVITY: 1999CORPORATE ACTIVITY: 1999
UK 13%UK 13%
Ireland Ireland 27%27%South AfricaSouth Africa
15%15%
Australia 23%Australia 23%New ZealandNew Zealand22%22%
GROUP TURNOVER BY MARKETGROUP TURNOVER BY MARKETGROUP TURNOVER BY MARKETGROUP TURNOVER BY MARKET
Turnover by Market -- 1999Turnover by Market -- 1999Total: E 1,168.2mTotal: E 1,168.2m
Ireland Ireland 32%32%
South AfricaSouth Africa 12%12%
Australia 31%Australia 31%New ZealandNew Zealand25%25%
GROUP PROFITS BY MARKETGROUP PROFITS BY MARKETGROUP PROFITS BY MARKETGROUP PROFITS BY MARKET
Operating Profit by Market -- 1999Operating Profit by Market -- 1999Total: E 190.6mTotal: E 190.6m
DIVISIONAL PERFORMANCEDIVISIONAL PERFORMANCEDIVISIONAL PERFORMANCEDIVISIONAL PERFORMANCEBrendan M. A. HopkinsBrendan M. A. Hopkins
Chief Executive - Independent News Chief Executive - Independent News
& Media (UK)& Media (UK)
NEW ZEALANDNEW ZEALANDNEW ZEALANDNEW ZEALAND
19991999 1998 1998 Change Change EE mm E E mm % %
TurnoverTurnover 253.2 253.2 208.4 208.4 + 21.5+ 21.5 EBITDAEBITDA 66.7 66.7 58.2 58.2 + 14.6+ 14.6 Operating Profit Operating Profit 50.0 50.0 42.9 42.9 + 16.6+ 16.6
Margin (%)Margin (%) 19.7% 19.7% 20.5% 20.5%
NEW ZEALANDNEW ZEALANDNEW ZEALANDNEW ZEALAND
• Largest publisher - Largest publisher - The New Zealand HeraldThe New Zealand Herald with 71% national with 71% national
market share and 83% recruitment market sharemarket share and 83% recruitment market share
• Largest regional publisher with 58% market shareLargest regional publisher with 58% market share
• Largest commercial/ magazine printerLargest commercial/ magazine printer
• Largest radio operator with 50% + market shareLargest radio operator with 50% + market share
PROSPECTSPROSPECTS
• GDP growth of + 3% forecast in 2000GDP growth of + 3% forecast in 2000
• Significant benefits from restructuringSignificant benefits from restructuring
• Growth in New Zealand Herald circulationsGrowth in New Zealand Herald circulations
• Strong start to 2000Strong start to 2000
19991999 1998 * 1998 * Change Change E mE m E m E m % %
TurnoverTurnover 275.7 275.7 243.5 243.5 + 13.2+ 13.2 EBITDAEBITDA 72.1 72.1 56.7 56.7 + 27.1+ 27.1 Operating Profit Operating Profit 60.8 60.8 49.6 49.6 + 22.5+ 22.5
Margin (%)Margin (%) 22.1% 22.1% 20.3% 20.3%
AUSTRALIAAUSTRALIAAUSTRALIAAUSTRALIA
* including 100% of ARN* including 100% of ARN
AUSTRALIAAUSTRALIAAUSTRALIAAUSTRALIA
• APN News & Media consolidated from 1999 APN News & Media consolidated from 1999
• Strongest performing media stock (EPS)Strongest performing media stock (EPS)
• Largest regional publisher with 60% + paid penetrationLargest regional publisher with 60% + paid penetration
• 2nd largest radio operator with 25% + market share2nd largest radio operator with 25% + market share
• Largest outdoor operator with 70% + market shareLargest outdoor operator with 70% + market sharePROSPECTSPROSPECTS
• GDP growth of + 3% forecast in 2000GDP growth of + 3% forecast in 2000
• Organic growth across all divisionsOrganic growth across all divisions
• Exciting developments in APN DigitalExciting developments in APN Digital
• Syndey OlympicsSyndey Olympics
• Strong start to 2000Strong start to 2000
SOUTH AFRICASOUTH AFRICASOUTH AFRICASOUTH AFRICA
19991999 1998 1998 Change Change E mE m E m E m % %
TurnoverTurnover 177.3 177.3 175.3 175.3 + 1.2+ 1.2 EBITDAEBITDA 28.2 28.2 31.1 31.1 - 9.3 - 9.3 Operating Profit Operating Profit 23.3 23.3 27.0 27.0 - 13.7 - 13.7
Margin (%)Margin (%) 13.1% 13.1% 15.4% 15.4%
SOUTH AFRICASOUTH AFRICASOUTH AFRICASOUTH AFRICA
• Largest publisher with 14 metropolitan titles achieving 54% Largest publisher with 14 metropolitan titles achieving 54% readership market share and 58% of total classified marketreadership market share and 58% of total classified market
• Ongoing circulation gains in Gauteng and CapeOngoing circulation gains in Gauteng and Cape
• New media R&D centre in CapeTown New media R&D centre in CapeTown
• www.iol.co.zawww.iol.co.za busiest newspaper site busiest newspaper site
• Successful magazine launches with Condé NastSuccessful magazine launches with Condé NastPROSPECTSPROSPECTS• GDP growth of + 3% forecast in 2000GDP growth of + 3% forecast in 2000• Interest rates down to 14% - Rand stableInterest rates down to 14% - Rand stable• Significant benefits from restructuringSignificant benefits from restructuring• Positive readership/ circulationsPositive readership/ circulations• Positive start to 2000Positive start to 2000
UNITED KINGDOMUNITED KINGDOMUNITED KINGDOMUNITED KINGDOM
19991999 1998 * 1998 * Change Change E mE m E m E m % %
TurnoverTurnover 151.5 151.5 142.9 142.9 + 6.0+ 6.0 EBITDAEBITDA (3.3) (3.3) (3.5) (3.5) Operating Profit Operating Profit (4.8) (4.8) (4.9) (4.9)
Margin (%)Margin (%) (3.1%) (3.1%) (3.4%) (3.4%)
* based on 100% of UK operation* based on 100% of UK operation
UNITED KINGDOMUNITED KINGDOMUNITED KINGDOMUNITED KINGDOM
PROSPECTSPROSPECTS
• Strong advertising/ circulations Strong advertising/ circulations
• Rapid growth in new media - Rapid growth in new media - www.independent.co.ukwww.independent.co.uk in top 20 content in top 20 content web sitesweb sites
• Belfast Telegraph integrationBelfast Telegraph integration
• Overall strong start to 2000Overall strong start to 2000
• Significant publisher in national, regional press and magazinesSignificant publisher in national, regional press and magazines• Regionals: operating margins at top end of UK peer groupRegionals: operating margins at top end of UK peer group• IndependentIndependent turnaround: turnaround:
– YOY volumes +4% and Circulation share up to 9.5%YOY volumes +4% and Circulation share up to 9.5%– Second-time Winner of “Editor of the Year”Second-time Winner of “Editor of the Year”– Losses significantly reducedLosses significantly reduced– Group synergies achievedGroup synergies achieved– Breakeven on track for 2001Breakeven on track for 2001
• The Belfast TelegraphThe Belfast Telegraph– Northern Ireland’s leading daily newspaperNorthern Ireland’s leading daily newspaper– Circulates 117,000 Monday-SaturdayCirculates 117,000 Monday-Saturday– More than 50% home delivered More than 50% home delivered
• The Sunday LifeThe Sunday Life– Northern Ireland's leading Sunday newspaperNorthern Ireland's leading Sunday newspaper– Circulates 95,000 every SundayCirculates 95,000 every Sunday
• Other TitlesOther Titles– Community Titles, Community Titles, Farm TraderFarm Trader
• Thriving new media businessThriving new media business
• Significant printing facilities and freeholdSignificant printing facilities and freehold
BELFAST TELEGRAPH ACQUISITIONBELFAST TELEGRAPH ACQUISITIONBELFAST TELEGRAPH ACQUISITIONBELFAST TELEGRAPH ACQUISITION
• Earnings enhancing in first yearEarnings enhancing in first year
• Unique metropolitan franchise with strong growth prospectsUnique metropolitan franchise with strong growth prospects
• Excellent track record with proven management/ editorial teamExcellent track record with proven management/ editorial team
• Dynamic new media resourceDynamic new media resource
• Automatic referral to UK Competition’s CommissionAutomatic referral to UK Competition’s Commission– Likely timing 4-6 monthsLikely timing 4-6 months
– Legal advice positiveLegal advice positive
– Trinity Mirror joint approachTrinity Mirror joint approach
• Acquisition price: £300m (less £5m debt)Acquisition price: £300m (less £5m debt)
BELFAST TELEGRAPH ACQUISITIONBELFAST TELEGRAPH ACQUISITIONBELFAST TELEGRAPH ACQUISITIONBELFAST TELEGRAPH ACQUISITION
IRELANDIRELANDIRELANDIRELAND
19991999 1998 * 1998 * Change Change E mE m E m E m % %
TurnoverTurnover 310.5 310.5 278.8 278.8 + 11.4+ 11.4 EBITDAEBITDA 69.4 69.4 59.4 59.4 + 16.8+ 16.8 Operating Profit Operating Profit 63.3 63.3 53.9 53.9 + 17.4+ 17.4
Margin (%)Margin (%) 20.4% 20.4% 19.3% 19.3%
IRELANDIRELANDIRELANDIRELAND
• Largest publisher with 50% market share and 72% readership penetrationLargest publisher with 50% market share and 72% readership penetration
• No. 1 title in all 5 newspaper categoriesNo. 1 title in all 5 newspaper categories– Readership/ circulations up Readership/ circulations up andand Advertising market share up Advertising market share up
• Largest regional publisher with 39% market shareLargest regional publisher with 39% market share
• 2nd largest cable/ MDS business (co-owned with TCI Liberty) 2nd largest cable/ MDS business (co-owned with TCI Liberty) – Managing >250,000 subscribersManaging >250,000 subscribers
PROSPECTSPROSPECTS
• Continued strong economic growth forecastContinued strong economic growth forecast
• Significant benefits from restructuringSignificant benefits from restructuring
• New “Citywest” production plant (Q42000)New “Citywest” production plant (Q42000)
• PHL - broadband network buildPHL - broadband network build
• Strong start to 2000Strong start to 2000
Gavin K. O’ReillyGavin K. O’Reilly
Chief Executive - Independent News Chief Executive - Independent News
& Media (Ireland)& Media (Ireland)
INDEPENDENT DIGITALINDEPENDENT DIGITALINDEPENDENT DIGITALINDEPENDENT DIGITAL
GROUP STRATEGYGROUP STRATEGYGROUP STRATEGYGROUP STRATEGY
TO OWN THE TO OWN THE ONLINE ONLINE
MEDIASPACEMEDIASPACECONTENTCONTENT CHANNELCHANNEL MARKETINGMARKETING
ENHANCE ENHANCE EXISTING EXISTING REVENUE REVENUE STREAMSSTREAMS
BUILD BUILD NEW NEW REVENUE REVENUE STREAMSSTREAMS
Australia
Ireland
New Zealand
South Africa
United Kingdom
INTERNETINTERNET
IrelandU.S.A.
Worldwide
EDUCATIONEDUCATION
• Premium Premium DatabaseDatabase
• Distance LearningDistance Learning
• Software Software DevelopmentDevelopment
Ireland
Ireland
Ireland
TELEPHONYTELEPHONY
• PrePaid CardsPrePaid Cards
• ResidentialResidential
• SMESME
• Network Network ProvisionProvision
• ISP - Commercial/ ConsumerISP - Commercial/ Consumer
INDEPENDENT DIGITALINDEPENDENT DIGITALINDEPENDENT DIGITALINDEPENDENT DIGITAL
WAP/ WAP/ SMSSMS CELLULARCELLULAR
AustraliaIsrael
Ireland New ZealandSouth Africa
United Kingdom
Worldwide
SOPRANO
• Content Content
AggregationAggregation
/ Packaging/ Packaging
• Software Software DevelopmeDevelopmentnt
• Proprietorial Proprietorial SoftwareSoftware
• Web “Back Office” SolutionsWeb “Back Office” Solutions
• E-Commerce Engines, Web E-Commerce Engines, Web Enabling, Web DesignEnabling, Web Design
• B2B Content SolutionsB2B Content Solutions
• Software DevelopmentSoftware Development
• Proprietorial SoftwareProprietorial Software
Worldwide
Ireland
Australasia
Worldwide
SOPRANO
B2BB2B
DIGITAL BRANDINGDIGITAL BRANDING
• Ireland’s largest consumer ISPIreland’s largest consumer ISP• Set Top Box = market USP and market Set Top Box = market USP and market
first.first.• ISP offering broadband multi-media ISP offering broadband multi-media • PHL’s exclusive “home page” portal for PHL’s exclusive “home page” portal for
their 250,000 existing subscriberstheir 250,000 existing subscribers• Building substantial phone/ data traffic Building substantial phone/ data traffic
for PHL fixed and wireless broadband for PHL fixed and wireless broadband (2MB) network(2MB) network
Independent contentIndependent contentYellow page directoryYellow page directoryIreland’s largest classifiedIreland’s largest classifiedShopping mallShopping mall27 non-group regional newspaper titles27 non-group regional newspaper titlesHoroscopes/ weather/ lifestyle/ entertainment/ chat...Horoscopes/ weather/ lifestyle/ entertainment/ chat...
… … CONTENTCONTENT
… … CHANNEL / MARKETINGCHANNEL / MARKETING
Initial 10,000 STB give-away Initial 10,000 STB give-away Annualised +£35m equivalent media spend in participating titlesAnnualised +£35m equivalent media spend in participating titlesChannel promotion to 250,000 subscribersChannel promotion to 250,000 subscribers
DIGITAL BRANDINGDIGITAL BRANDING
DeliveringDelivering • Earnings GrowthEarnings Growth• Capital ValuesCapital Values
Enhanced RevenuesEnhanced Revenues
New Revenue StreamsNew Revenue Streams
New MarketsNew Markets
Leading BrandsLeading Brands
Core ExpertiseCore Expertise
ContentContent
ChannelChannel
MarketingMarketing
… … powered by Independent Digitalpowered by Independent Digital… … powered by Independent Digitalpowered by Independent Digital
• Geographically diversified - with tight focus on core competenciesGeographically diversified - with tight focus on core competencies
• Brand leadership positions - dominant in 4 out of 5 marketsBrand leadership positions - dominant in 4 out of 5 markets
• Turnaround of UK Turnaround of UK IndependentIndependent
• Belfast Telegraph Belfast Telegraph - EPS enhancing- EPS enhancing
• Increasing value of Irish cable/ telephony businessIncreasing value of Irish cable/ telephony business
SUMMARY: INVESTMENT CASESUMMARY: INVESTMENT CASESUMMARY: INVESTMENT CASESUMMARY: INVESTMENT CASE
• Economic recovery in New Zealand and South AfricaEconomic recovery in New Zealand and South Africa
• Continuing strong growth in Australia, Ireland and United KingdomContinuing strong growth in Australia, Ireland and United Kingdom
• Returns enhanced through aggressive restructuringReturns enhanced through aggressive restructuring
• Revenue and profit enhancing new media strategyRevenue and profit enhancing new media strategy
Strong Double-Digit Earnings GrowthStrong Double-Digit Earnings GrowthStrong Double-Digit Earnings GrowthStrong Double-Digit Earnings Growth
SUMMARY: INVESTMENT CASESUMMARY: INVESTMENT CASESUMMARY: INVESTMENT CASESUMMARY: INVESTMENT CASE
TO DELIVERING TO DELIVERING DOUBLE-DIGITDOUBLE-DIGIT EARNINGS GROWTH... EARNINGS GROWTH...
• CORE operational strengthsCORE operational strengths• Unrivalled BRAND dominanceUnrivalled BRAND dominance• COST RestructuringCOST Restructuring• ExpansionistExpansionist
CREATING CREATING REALREAL SHAREHOLDER VALUE... SHAREHOLDER VALUE...• PHL cable/ telephony networkPHL cable/ telephony network• Prudent new media strategyPrudent new media strategy• iTouch iTouch
WE ARE COMMITTED TO...WE ARE COMMITTED TO...WE ARE COMMITTED TO...WE ARE COMMITTED TO...
Independent News & Media PLCIndependent News & Media PLC1999 Preliminary Results1999 Preliminary Results
29th March, 200029th March, 2000