______________________________________ John McCann Group Chief Executive Interim Results 2014 Scott Taunton Chief Operating Officer Norman McKeown Group Finance Director ____________________________________
______________________________________ Some statements in this presentation are forward looking. They represent expectations for UTV’s business and involve risks and uncertainties. UTV has based these forward-looking statements on current expectations and projections about future events. UTV believes that expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond UTV’s control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements. ____________________________________
______________________________________ Page 1 ❏ The UTV Group 2 ❏ Highlights ❏ Divisional Business Review - Radio GB 3 - Radio Ireland 5 - Television 7 11 ❏ Financial Overview 16 ❏ Conclusion & Outlook 17 ❏ Company Information ____________________________________
THE UTV GROUP ______________________________________ Operates the no.1 commercial national speech station The market leading televison station in Northern - talkSPORT, talkSPORT International,13 Independent Ireland and ITV franchise holder Local Radio (ILR) stations, a number of digital radio multiplexes throughout GB and Sport magazine - the Now incorporates Tibus and Simply Zesty UK’s biggest sports magazine. New television station in the Republic of Ireland. Largest operator of ILR stations in Ireland with Broadcasting commences January 2015. stations in Dublin (2), Cork (2), Belfast, Limerick and Dundalk/Drogheda. ____________________________________ 1
HIGHLIGHTS ______________________________________ ❏ Group revenue up 13% to £57.8m with strong results from all three divisions - Radio GB up 20% with talkSPORT up 33% after successful World Cup - Radio Ireland up 9% before adverse FX movements of 4% - Television up 7% with growth across all sales offices ❏ Strong audience performances with talkSPORT achieving a record 3.4 million listeners plus Radio Ireland and Television maintaining their market leading positions ❏ Group operating profit growth of 41% to £11.2m ❏ Net debt reduction of 14% to £43.5m with Net Debt/EBITDA ratio of 1.72x ❏ UTV Ireland on schedule to commence transmission on 1 January 2015 forecasting a 2015 operating loss of £2.0m - £3.0m due to start up trading in H1, moving into profit in H2 ❏ Strategic focus on radio and television - UTV Connect, PropertyPal, UTV Drive and Recruit NI now divested ❏ Interim dividend of 1.82p, to be paid on 15 October 2014, representing a 4% increase on 2013 interim dividend ____________________________________ 2
RADIO GB | Audience ______________________________________ ❏ Portfolio includes talkSPORT (one of three ❏ talkSPORT remains the most efficient broadcaster for Independent National Radio stations) and 13 ILR stations advertisers with the highest proportion of male throughout England and Wales audience of any UK broadcast media ❏ talkSPORT was listened to by 3.4m adults in Q2 2014 ❏ Domestic Premier League rights in place to 2015/16 for an average of 6.7 hours per week season ❏ Our local stations were listened to by 1.4m adults in ❏ talkSPORT International global rights partnership Q2 2014 for an average of 8.9 hours per week secured to 2018/19 ❏ Sport magazine, which had an ABC audited weekly ❏ Premier League matches now being broadcast in nine circulation of 304,000 in H1 2014 and readership of languages and in 25 countries 448,000, is the UK’s biggest sports magazine Broadcast Media Profiles National Radio Stations Weekly Reach 100% Q1 2006 - Q2 2014 175 75% 150 125 50% 100 25% 75 50 0% Q1 06 Q3 06 Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Q3 12 Q1 13 Q3 13 Q1 2014 Men ABC1 Men Men 16-34 talkSPORT Sky Sports BT Sport TalkSPORT All Commercial Total Absolute Radio Daily Telegraph Radio 5 Live ____________________________________ Radio 5 Live Classic Source: RAJAR Q2 2014 Source: RAJAR/IPSOS MORI/RSMB/Q2 2014, BARB Aug 2014, NRS Apr 2103-Mar 2014 3
RADIO GB | Results & Outlook ______________________________________ talkSPORT Local Radio (incl. talkSPORT International & Sport Magazine) ❏ The local market was up by 5% in H1 2014 ❏ National radio market was up by 10% in H1 2014 ❏ Our local radio airtime revenue increased by 6% ❏ talkSPORT revenue increased by 33% to £18.4m (2013: £13.8m) ❏ Total revenue increased by 2% to £10.1m (2013: £9.9m) ❏ Operating costs of £14.4m (2013: £13.3m) with ❏ Operating costs reduced by 1% to £8.0m (2013: £8.1m) increase largely due to World Cup ❏ Operating profit increased by 14% to £2.1m (2013: £1.8m) ❏ Operating profit increased by £3.5m to £4.0m (2013: £0.5m) Current Trading and Outlook Six months ended 30 J Six months ended 30 June 2014 2013 Change ❏ The total radio advertising market in Q3 is expected £m £m £m to be up by 5% Turnover talkSPORT 18.4 13.8 4.6 ❏ Radio GB revenue is forecast to be up by 5% in Q3 Local Radio 10.1 9.9 0.2 28.5 23.7 4.8 Operating costs ❏ Our local radio revenue is expected to be up 1% in talkSPORT 14.4 13.3 (1.1) Q3 Local Radio 8.0 8.1 0.1 22.4 21.4 (1.0) ❏ talkSPORT revenue is expected to be up by 7% in Q3 Operating profit talkSPORT 4.0 0.5 3.5 Local Radio 2.1 1.8 0.3 6.1 2.3 3.8 ____________________________________ 4
RADIO IRELAND | Audience ______________________________________ ❏ UTV has market leading stations in the major urban Group owned stations areas in Ireland 1. Q102 2. FM104 ❏ In 2014 UTV also sold airtime in two other major 3. 96FM urban areas, being Galway and Waterford 4. C103 5. Live95FM 6. LMFM ❏ Urban Access national daily reach was 736,000 at June 7. U105.8FM * 2014 Other Urban Access stations 8. Galway Bay FM ❏ U105 in Belfast, which broadcasts to a population of 9. Waterford City WLR 889,000, has a weekly reach of 179,000 adults * Not included in Urban Access Daily Reach v National Broadcasters Listener Listenership Data ship Data 1,000,000 Weekly Market Reach Share 750,000 FM104/Q102 Dublin 46% 19% 96FM/C103 Cork 66% 44% 500,000 Live 95FM Limerick 69% 39% 250,000 LMFM Drogheda 35% 30% U105.8FM Belfast 20% 10% Urban Access RTE Radio 1 2FM Today FM ____________________________________ Source: JNLR / Ipsos MR s MRBI 2014 - 2 / RAJ RAJAR Q2 2014 Source: JNLR / Ipsos MRBI 2014-2 5
RADIO IRELAND | Results & Outlook ______________________________________ ❏ Agency feedback suggests that the Irish Radio market ❏ Total turnover of £10.3m (2013: £9.8m) revenue was up by 2%-4% in H1 2014 - an increase of 8% at constant FX - an overall increase of 5% including FX loss of £0.3m ❏ Our Radio Ireland revenue up by 8% in local currency ❏ Operating costs were £7.8m (2013: £7.7m) - a 4% increase at constant FX - an overall increase of 1% including FX gain of £0.2m ❏ Our Urban Access package supported by our leading market positions in each of the key urban areas has ❏ Operating profit in the period increased to £2.5m been instrumental in our continuing strong market (2013: £2.1m) outperformance - an increase of 25% at constant FX - an increase of 22% including FX loss of £0.1m Six months ended 30 June Six months ended 30 J Current Trading and Outlook 2014 2013 Change ❏ Agency feedback suggests that the radio advertising £m £m £m market in Q3 is expected to be up 1%-2% Turnover Agency 6.4 6.2 0.2 ❏ In Q3 our radio advertising revenue is expected to Local 3.6 3.4 0.2 again outperform - increasing by 6% at constant FX 0.3 0.2 0.1 Other and flat including FX 10.3 9.8 0.5 Operating costs 7.8 7.7 (0.1) 2.5 2.1 0.4 Operating profit ____________________________________ 6
TELEVISION | Audience ______________________________________ ❏ UTV has continued to outperform the ITV Network and in H1 2014 had: ❏ With a 24.6% market share in Northern Ireland UTV is well placed in a recovering television market - 17% more viewership than ITV - 30% more viewership than BBC1 NI in peak-time ❏ UTV had a 4% peak-time share of commercial channels in Republic of Ireland in multi-channel homes - over 4 times the viewership of Channel 4, our nearest commercial competitor Viewership Viewership January - June January - June 2014 Peak-time (%) Peak-time (%) 40.9 37.9 30 40 27.1 25.7 25.1 25.1 24.6 22.7 22.7 21.7 21.7 21.3 30 24.6 20 22.5 21.3 18.8 20 10 10 7.6 6.2 5.7 5.4 4.6 4.5 0 0 UTV/ITV BBC1 BBC2 C4 Five Other 2010 2011 2012 2013 2014 ____________________________________ N. Ireland UK UTV ITV 1 Network Source: BARB/AdvantEdge Source: BARB/AdvantEdge 7
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