Naspers Limited Class N · JSE:NPN
Naspers Limited Class N — H1 2004 Earnings Presentation
26 slides from Naspers Limited Class N's earnings presentation, Nov 25, 2003
Slide 1: Interim Results Presentation
INTERIM RESULTS PRESENTATION For the six-months ended 30 September 2003 25 November 2003
Slide 2: Important information
Important information • This presentation contains forward-looking statements. While these forward-looking statements represent our judgements and future expectations, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from o
Slide 3: Agenda
Agenda 1. Highlights 2. Financials 3. Segmental performance review • MIH • Media24 • Nasboek & Educor 4. Conclusion 5. Q & A 3
Slide 4: Highlights
Highlights h Financial performance Key Consolidated Financial Results: h Strong Rand Sep ‘03 Sep ‘02 Revenue R5 593 m R5 445 m h Marginal revenue growth EBITDA 878 m 455 m Operating profit 596 m 78 m Headline earnings 148 m (143) m h Headline earnings sharply up Free cash flow 213 m (17) m h Operati
Slide 5: Financials
NASPERS Financials
Slide 6: Segmental revenue analysis
Segmental revenue analysis Int e rne t 8% 23% P rint me d ia 59 % P a y TV 10 % B o o k p ub lis hing & p riv a t e e d uc a t io n 6
Slide 7: Consolidated income statement
Consolidated income statement September 2003 2002 R'm R'm Revenue 5 593 5 445 EBITDA 878 455 Depreciation (282) (377) Operating profit before amortisation 596 78 Amortisation (171) (176) Impairment of programme rights - (148) Operating profit 425 (246) Finance costs (208) (168) Equity accounted earn
Slide 8: Reconciliation "Headline" to "Core Headline"
Reconciliation “Headline” to “Core Headline” 2003 2002 R 'm R 'm Headline earnings from continuing operations 148 (96) Adjusted for: - forex translation differences (25) (22) - creation of deferred tax assets 3 (6) - amortisation of intangible assets 33 20 - AC133 adjustments 100 - Core headline ear
Slide 9: Net Cash – 30 September 2003
Net Cash – 30 September 2003 Analysis of Sept 03 cash balances: Foreign Currency March '03 Sept '03 Rand pool pool R'm R'm R'm $'m Net cash balances 2 178 1 597 241 195 Interest-bearing debt* (1 039) ( 907) (733) (25) Net Cash 1 139 690 (492) 170 Movement in cash ( 449) 9
Slide 10: Cash movement April to Sept 2003
Cash movement April to Sept 2003 R millions Technical factors: Translation effect of strong Rand (163) Deconsolidation of QQ (169) (332) Dividend paid (82) Acquisitions (117) Net cash inflows 82 Net cash movement (449) 10
Slide 11: Segmental Performance Review
Segmental Performance Review
Slide 12: African Pay TV
African Pay TV h Mature SA market Sep ‘03 Sep ‘02 h Elsewhere in Africa - Digital subs 976 k 860 k Revenue R2 521m R2 484 m growth opportunities EBITDA 662 m 523 m Operating profit 555 m 397m h 74% of base now digital 1,500 Thousands h MultiChoice integrating with 1,000 internet operations 500 - Sep
Slide 13: Mediterranean Pay TV
Mediterranean Pay TV h Competition legacy: Sep ‘03 Sep ‘02 h Renegotiating TV rights - Digital subs 157 k 114 k overpriced Revenue R637 m R669 m EBITDA (10) m (147) m Operating loss (63) m (213) m h Recovering analogue subscribers 400 h Fixing local soccer 300 Thousands 200 h Summer churn 100 0 h Di
Slide 14: Thailand Pay TV (UBC)
Thailand Pay TV (UBC) h Leading pay TV operator Sep‘03 Sep ‘02 Digital subs 287 k 277 k Revenue R643 m R824 m h Subscribers flat EBITDA 146 m 191 m Operating profit 75 m 80 m h Provincial cable piracy 500 400 Thousands 300 h Digitising cable network 200 100 0 Sep '98 Sep '99 Sep '00 Sep '01 Sep '02
Slide 15: Internet
Internet h Growing segment: h Profitable for first time Sep ‘03 Sep ‘02 Revenue R 464 m R 421 m h M-Web SA: EBITDA 47 m (68) m Operating profit 5m (178) m h Dial-up market stagnated h Growing new revenue streams h China – Tencent (QQ) instant messaging h 22 million registered subscriptions h Revenue
Slide 16: Technology segment
Technology segment h Tough trading conditions Sep‘03 Sep‘02 Revenue R 135 m R 235 m EBITDA (11) m 3 m Operating profit (18) m (6) m h Strategic asset h Transition to software business CUSTOMERS: • 105 external customers worldwide h R&D investment • 28 customers in China • 20 new customers in 6 month
Slide 17: Media24 - Print Media
Media24 - Print Media h Many sectors overtraded Sep‘03 Sep ‘02 Revenue R 1 298 m R 1 124 m EBITDA 219 m 186 m h Solid core business Operating profit 163 m 135 m h Satisfactory financial performance: h Revenues increased 15% h Operating profits increased 21% h Margins improved 17
Slide 18: Media24 - Print Media
Media24 - Print Media h Newspapers: h Strong growth from new tabloids h Daily Sun rolled out to 3 provinces h Son in Western Cape - rolled out to Eastern Cape, Gauteng h Newspaper division gaining market share h New printing plants increased profitability h Magazines: h New magazines growing well h
Slide 19: Book Publishing & Private Education
Book Publishing & Private Education Sep ‘03 Sep ‘02 h Book Publishing: Revenue R 538 m R 516 m EBITDA 18 m 9 m Operating profit 2m (6) m h Trading improved h Private Education h Stable student enrolments Book publishing & private education h Flat revenues h Growth prospects Publishers & agents Trade
Slide 20: Conclusion
NASPERS Conclusion
Slide 21: Snapshot Summary
Snapshot Summary Positives: - Negatives: - h Greece pay TV much h Growth opportunities - financial improved impact h Tencent (QQ) growing h Irdeto tough trading conditions h “Core” businesses solid, h Risks remain in Greece pay TV profitable and cash generative h Currency volatility h Sound financia
Slide 22: Focus going forward
Focus going forward 1. Profit and free cash flows 2. Grow organically 3. Continuing improvements at Greece pay TV 4. Grow China internet 22
Slide 23: Q&A
NASPERS Q&A
Slide 24: Appendix: Consolidated Income Statement in US Dollars
Appendix: Consolidated Income Statement in US Dollars convenience translated 2003 2002 *$ 'm *$ 'm Revenue 806 517 EBITDA 126 43 Depreciation (40) (36) Operating profit before amortisation 86 7 Amortisation (25) (17) Impairment of programme rights - (14) Operating profit 61 (24) Finance costs (30) (
Slide 25: Corporate Structure
Corporate Structure Book Publishing and Pay TV Internet Print Media Private Education MultiChoice M-Web Africa Media24 Nasboek NetMed M-Web Thailand Educor UBC Tencent QQ M-Net / SuperSport Irdeto Access Entriq 30 Sep: 2003 2002 30 Sep: 2003 2002 30 Sep: 2003 2002 30 Sep: 2003 2002 Revenue 3 155 3 1
Slide 26: Interoperability
Online Gaming Mobile Gaming QQ Zing Dating Personals Entertainment IM Avatars Multimedia Premium Audio / Video Wireline IM Conference QQ Mobile Instant Messaging Information Wireless IM Broadcasting Enterprise IM Real-Time Communication Platform Chat Mobile Enterprise IM Interoperability QQ Business