investor briefing full year results 2016host.nationmedia.com/2016results-investorbriefing... ·...
TRANSCRIPT
![Page 1: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/1.jpg)
INVESTOR BRIEFINGFULL YEAR RESULTS 2016
5TH APRIL 2017
![Page 2: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/2.jpg)
2016 HIGHLIGHTS
DIVISIONAL UPDATES
2016 GROUP RESULTS
Q & A
F16 HighlightsF16 Divisional UpdatesF16 Group ResultsQ & A
![Page 3: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/3.jpg)
Business Objective
Grow current business & foster a strong digital foundation for a sustainable, profitable future
Protect & grow current business
Consumer
Developing a sustainable culture
Digital Focus
New revenue streams
![Page 4: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/4.jpg)
Our Objectives Growing the top lineMaintaining current revenuesGenerating new revenue streams
Managing costs to invest in growth Innovating to continuously meet
consumer needs Recruiting talent that matches new
media demands
![Page 5: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/5.jpg)
2016 HIGHLIGHTS
DIVISIONAL UPDATES
2016 GROUP RESULTS
Q & A
![Page 6: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/6.jpg)
2016 Group HighlightsF16 Highlights
Convergence journey Embedding the digital opportunity Opportunities on new press capabilities Closure of non-performing businesses Driving out costs (Efficiency & Effectiveness) Consolidated the TV into a bilingual brand
(NTV) Strategic partnerships with regional stations
(Star, Lolwe, Njata) Tough & challenging advertising environment Delays in payment especially from gov’t
![Page 7: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/7.jpg)
Growing Broadcasting into Profitability
• One strong bilingual TV station (NTV)
• Strategic partnerships• Strong programming to drive
audience growth• Strong Social Media Presence• Regional studios for better
brand quality
Regional Studios
Strategic Partnerships
Strong Bilingual Station
Strong Social Media PresenceCost reduction
New Programming
Drive for audience growth for sustainable profitability
![Page 8: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/8.jpg)
NTV Programming
![Page 9: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/9.jpg)
Business Daily Relaunch• More data on market reports
• More insights on business
• Deeper business analysis
• Metered content (Paywall)
• Grow online audiences
• Recruit younger business readers
![Page 10: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/10.jpg)
New Digital ChannelsAlerts, Newsletters
New shortcode PRSP
Snapchat, Twitter, Instagram, Facebook
News in Shots
SMS, Whatsapp, Telegraph
AGM Live
Kenya Buzz
Music Label
Jobs
News
plexPlus
Health & Wellness
Fashion & Lifestyle
Agriculture ElectionsEast
African Tourism
Special Focus Domains
Acquire/Create New Business
Business & Economic
Data
AGM Live
Kenya Buzz
Elections
NewsPlexPlus
Music LabelBusiness & Economic
Data
Health & Wellness
Driving the Digital Transition
![Page 11: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/11.jpg)
Elections Coverage
Issue based campaign highlights
Converged elections coverage
Impactful webpagewww.nation.co.ke/electionskenya
Fact check reporting
![Page 12: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/12.jpg)
Largest Digital Footprint in the Region
Digital footprint has grown 30% from 20m to 26.1m in 6 months
5,883,370
935,591
1,084,873
7,903,8347,142,372 3,779,47
4380,197
2,349,793 924,575
2,438,946 219,052
9,056 36,417
119,947
15,804
11,931,111 4,923,101
515,948
17,694,588 4,539,407 3,822,785
26.1 Million Users
488,269
216,954
48,600
746,369
![Page 13: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/13.jpg)
Acquisition Kenya Buzz
Acquired Kenya Buzz in February 2017 Online entertainment directory Ticketing solution; Advertising (Native & Traditional) Expanding our audiences with targeted & customised
experiences Audience: 18 – 35 years
![Page 14: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/14.jpg)
The Most Disruptive Device EverMap CinemaDoctorEncyclopediaAlbum
WalletPhone PATranslator TV
Book Library
AlarmInsurer
Video Library
Social Life Key Email Device Tutor Games Console Watch Timer
Music Player
Bank
Taxi ServiceScannerTravel GuideDiaryDictionary
Newspaper
UniversityNotebook Cinema
![Page 15: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/15.jpg)
Efficiency & Effectiveness
Operate with lean structures in an efficient and effective manner
New revenues from new press capability; Speed to market
Optimised route to market; Early market arrivals; Reduced return levels
Efficient press; distribution market intelligence; lean operations
Cost and Debt Management
Regional stations; Greater audience reach; Brand Equity
![Page 16: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/16.jpg)
Protecting Media Freedoms
NMG has taken leadership with other media players to shape our regulatory environment
Hostile/unpredictable environment:
• Government’s reduced advertising spend
• Media Services Act – New restriction on foreign media ownership
• Government has centralized advertising through GAA/ CAA
![Page 17: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/17.jpg)
Thought LeadershipSet the agenda for the narrative in the country
Building the brand to set the agenda in the country
![Page 18: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/18.jpg)
Culture Journey
Launched Corporate values to the team Ensure clear line of sight throughout the organisation on the deliverables Continue building the digital spectrum as a basic platform throughout the org’n as a clear
means to match consumer consumption Entrepreneurship – Acting like an owner not a tenant
![Page 19: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/19.jpg)
Our Values
Consumer FocusContinuous Improvement &
Innovation
Drive for Performance
Employer of Choice
Integrity & Trust
Inspiring leadership; Team work; Continuous improvement
![Page 20: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/20.jpg)
2016 DIVISIONAL UPDATES
2016 HIGHLIGHTS
2016 GROUP RESULTS
Q & A
![Page 21: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/21.jpg)
DIVISION NND TEA BD MPL MCL
REVENUE 6% 16% 1% 20% 23%
DIRECT COSTS 22% 42% 0.5% 17% 23%
OPERATING RESULTS 4% 61% 2% >100% 56%
![Page 22: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/22.jpg)
DIVISION
REVENUE 7% 29%
DIRECT COSTS
1% 22%
OPERATING RESULTS
>100% 74%
Television
![Page 23: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/23.jpg)
DIVISION KENYA
REVENUE 14%
DIRECT COSTS 13%
OPERATING RESULTS >100%
Digital
![Page 24: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/24.jpg)
2016 HIGHLIGHTS
2016 DIVISIONAL UPDATES
2016 GROUP RESULTS
Q & A
![Page 25: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/25.jpg)
10,000
10,500
11,000
11,500
12,000
12,500
13,000
13,500
2011 2012 2013 2014 2015 2016
11,246
12,347
13,374 13,351
12,340
11,325
8.2%
Turnover Trend (Kshs M)
![Page 26: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/26.jpg)
-
500
1,000
1,500
2,000
2,500
3,000
2010 2011 2012 2013 2014 2015 2016
2,057
2,861 2,660 2,699
2,539 2,452
2,000
18.4%
Cost of Sales (Kshs M)
![Page 27: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/27.jpg)
2016 2015% Change
Turnover 11,324.8 12,339.5 (8.2)
Profit before income tax 2,460.0 2,823.2 (12.9)
Income tax expense (771.1) (600.5) (28.4)
Other comprehensive income (54.2) (151.6) 64.2
Total Comprehensive Income for the year 1,634.7 2,071.1 (21.1)
Consolidated Statement of Comprehensive Income (Kshs M)
![Page 28: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/28.jpg)
2016 Group Results – Non-Recurrent Items
Non-Recurring/ Exceptional ItemsKshs.
Millions
Closure costs on QFM, QTV & KFM Rwanda 142.4
Start-up cost on new TV in Uganda- Spark TV 48.1
Staff Reorganisation costs 138.9
Goodwill impairment 13.5
Net non-recurring items 342.9
Others:
2015 New Press Investment deduction allowance Tax impact 274.0
![Page 29: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/29.jpg)
Consolidated Statement of Financial Position (Kshs M)2016 2015
Capital and Reserves
Share capital 471.4 471.4
Other reserves (89.1) (56.4)
Retained earnings 6,859.5 7,076.2
Proposed dividends 1,414.1 1,414.1
Minority interest 47.0 48.4
Total equity 8,702.9 8,953.7
Non-current liabilities 15.2 151.9
Total Equity & Non-current liabilities 8,718.1 9,105.6
Assets
Non-current assets 5,010.8 5,171.8
Working capital
Current assets 7,163.3 7,524.9
Current liabilities 3,456.0 3,591.1
Net working capital 3,707.3 3,933.8
Total Assets 8,718.1 9,105.6
![Page 30: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/30.jpg)
Condensed Cash Flow Statement (Kshs M)
2016 2015Cash generated from operations 2,525.8 3,376.6 Interest received 308.3 324.6 Interest paid (2.1) (8.3)Tax paid (93.4) (767.4)Net cash from operating activities 2,738.6 2,925.5 Net cash used in investing activities (428.7) (1,339.8)Net cash used in financing activities (1,923.5) (1,915.9)
Increase/(decrease) in cash and cash equivalents 386.4 (330.2)At start of period 3,063.3 3,451.7 Exchange gains on cash and cash equivalents (2.4) (58.2)At end of period 3,447.3 3,063.3
Growth in 2017: 12.5%
![Page 31: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/31.jpg)
9.8
12.713.3 13.4 13.1
11.8
8.9
2010 2011 2012 2013 2014 2015 2016
Earnings Per Share (Kshs)
![Page 32: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/32.jpg)
Dividends
![Page 33: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/33.jpg)
Dividend Trend
Total Dividend rate maintained at 10.00 per share
5.50 5.50
8.00 8.00
10.00 10.00 10.00 10.00 10.00
0
2
4
6
8
10
12
2008 2009 2010 2011 2012 2013 2014 2015 2016
Dividends per Share (Kshs)
![Page 34: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/34.jpg)
2016 HIGHLIGHTS
2016 DIVISIONAL UPDATES
2016 H1 GROUP RESULTS
Q & A
![Page 35: INVESTOR BRIEFING FULL YEAR RESULTS 2016host.nationmedia.com/2016Results-InvestorBriefing... · 2018-01-19 · 2016 HIGHLIGHTS DIVISIONAL UPDATES 2016 GROUP RESULTS Q & A F16 Highlights](https://reader034.vdocuments.mx/reader034/viewer/2022050523/5fa6729d3fe064477458b23f/html5/thumbnails/35.jpg)