Brave Bison Group Plc · LSE:BBSN
Brave Bison — Rightster Group — H1 2014 Earnings Presentation
20 slides from Brave Bison's earnings presentation, September 2014
Slide 1: Simplifying Delivery to TV Scale Audiences in the Complex Online Video Market
Simplifying Delivery to TV Scale Audiences in the Complex Online Video Market Interim Results Presentation – H1 2014 September 2014
Slide 2: Summary
Summary Market Context o Demand for online video still growing fast - accounting for over half of mobile traffic today and estimated to account for half of the global internet by 2016¹ o Online video is also the social currency of ‘Millennials’ – the first generation to prefer online video to televi
Slide 3: Overview of Business Model
Overview of Business Model e.g. SBTV, Barcroft or SNTV e.g. AFL e.g. Barclays 2GA o Rightster supports three distribution models: o Editorial Ad-funded, o Editorial Subscription and o Brand-funded content o The three content models are mutually reinforcing – quality attracts quality o Engage is Righ
Slide 4: IPO and Acquisitions
IPO and Acquisitions o On IPO in November 2013, we stated that acquisitions would be pursued where the Directors considered there to be clear value through the addition of expertise, customers, monetisation potential or geographic footprint o On 8 July 2014, we announced the acquisition of Viral Man
Slide 5: Mission is to be our clients "Trusted Guide"
Mission is to be our clients “Trusted Guide” Goal: Unified 360° Proposition o Scale o Technology Platform o Off YouTube Network o Premium Advertising o Independent o Software Innovation 360° Proposition o Global o Talent Expertise o 1000+ YT Partners o Iconic Social / Viral o Established Media Sales
Slide 6: Expected New Rightster MCN Ranking (US Comscore)
Expected New Rightster MCN Ranking (US Comscore) COMSCORE RANK YOUTUBE MCN TOTAL UNIQUE VIEWERS (MM) 1ST Fullscreen 26 2ND ZEFR 25 Combined entity 3RD Maker Studios 24 ranks as 4th biggest MCN by 4TH BroadbandTV 14 audience in the 5TH JukinMedia 13 US1 6TH T3Media 13 7TH Base79 12 8TH Defy Media 12
Slide 7: The combined business
The combined business 1.1bn + 1,950+ views Content Partners 3,400 YouTube channels 50m+ Subscribers Over 7 5 0 0 Enhanced Brand solution offering Publishers 12 Combined service offerings Greater scale & expertise improves Rightster service offering 7
Slide 8: Post-acquisition success
Post-acquisition success o The focus placed on integrating our sales organisation and consolidating our pipelines is producing results o In the six weeks since the acquisitions, the combined business has signed: o over 75 new Content Owners onto the Rightster network; and o advertising contracts to
Slide 9: Next Steps
Next Steps o Continue integration work across the combined business to ensure staff are completely aligned and working towards a central business plan o Launch a marketing campaign to firmly establish Rightster’s unique presence in this market and reinforce our desire to help brands and agencies rea
Slide 10: Interim Results H1 2014
Interim Results H1 2014 STRICTLY CONFIDENTIAL
Slide 11: Key Highlights
Key Highlights £5.1m | 84% £1.9m | 385% Total transaction value and growth rate Net revenue and growth rate (versus H1 2013 after adjusting for a terminated contract in (a growth rate of 385% versus H1 2013, after adjusting for a 2013) terminated contract in 2013) 371m | 131% £0.5m | 697% Increase i
Slide 12: New Agreements Across All Verticals
New Agreements Across All Verticals Partnership with Al Jazeera Agreement with Agence France- Media Network to syndicate up to Presse, one of the world’s 30 English language short-form leading news agencies, to international news clips per day syndicate a selection of its across new international in
Slide 13: Interim Results Summary
Interim Results Summary o 385% Net Revenue after commission growth (after adjusting for a terminated contract) to £1.9m from £0.4m in 2013 £1.9m | 385% o Gross Profit increased from £0.07m to £0.55m (697% increase) reflecting a 28% Net Revenue after commission growth GP percentage (after adjusting f
Slide 14: Revenue
Revenue 269% (£0.8m v £0.2m) Increase in advertising revenue streams versus 2013 (subscription & theatrical also up ) o Total Transaction Value of £5.1m reflects 84% growth on same period in 2013 (after adjusting for a terminated contract in 2013) o All main segment revenue streams (advertising, sub
Slide 15: Advertising revenue (video, display & sponsorship)
Advertising revenue (video, display & sponsorship) o Year on year revenue growth of 268% to £0.83m o Video views grew to average 371m per month from average 161m per month in 2013 o eCPM has been positively impacted by sell through rate increasing as new ad exchange deals concluded, but global ad CP
Slide 16: Subscription revenue
Subscription revenue o Year on year revenue growth of 28% to £0.52m o Driven primarily by improved AFL performance (both on unit prices and number of subscriptions) 28% o Other subscription deals including FIH, Year on year revenue growth (to £0.52m) AIBA still early stages o Subscription pipeline i
Slide 17: Theatrical
Theatrical o Year on year revenue growth of 84% to £0.57m o NB: H1 2013 only included 3 months of the theatrical business versus 6 months in H1 2014. 84% o Southern European film market continues to struggle and marketing budgets are Year on year revenue growth (to £0.57m) being cut, but Germany and
Slide 18: Operating costs – R&D (& solutions)
Operating costs – R&D (& solutions) o Year on year decrease in spend of 8% from £2.5m to £2.3m (before capitalisation of R&D) representing a decrease to an average 100 FTE during the period from 117 in 2013 o £1.8m of R&D spend was capitalised to the balance sheet (£0 in 2013) o Investment focused o
Slide 19: 2014 outlook
2014 outlook o Base79 and Viral Spiral acquisitions completed 1 August 2014 and 7 July 2014 respectively o These transformational acquisitions expected to take 3 months to bed down o Brand deals across the newly enlarged group have seen significantly increased activity - RFPs up to £3m o We have bee
Slide 20: @ightster
20 @ightster