For personal use only RESULTS COMMENTARY

Transcription

1 RESULTS COMMENTARY FOR THE SIX MONTHS ENDED 31 DECEMBER 2011

2 VRL GROUP DISCLAIMER Non IFRS Financial i Information The VRL group results are prepared under Australian Accounting Standards, and also comply with International Financial Reporting Standards ( IFRS ). This presentation includes certain non- IFRS measures including EBITDA and operating profit excluding material items of income and expense and discontinued operations. These measures are used internally by management to assess the performance of the business, make decisions on the allocation of resources and assess operational performance. Non-IFRS measures have not been subject to audit or review, however all items used to calculate l these non-ifrs measures have been derived d from information used in the preparation of the audited or audit-reviewed (as applicable) financial statements. Included d in the Half Year Financial i Report (page 4) is a Reconciliation of Results which h provides further detail on the Non-IFRS financial information contained in this presentation. 2

3 VRL GROUP RESULTS EBITDA from operations of $79.4 million up 9% Net Profit After Tax (continuing) of $28.3 million up 52% Attributable Net Profit After Tax of $28.3 million, prior year $33.7 million (including $15.2 million discontinued) Net cashflows from operating activities of $62.1 million Net on balance sheet debt of $267.0 million Refer to reconciliation of results on page 4 of the Half Year Financial Report for details of the basis of calculation of these measures 3

4 VRL GROUP RESULTS BY DIVISION For the 6 months ended Operating Results Reported EBIT Reported EBITDA 31 Dec 2011 $ m 31 Dec 2010 $ m 31 Dec 2011 $ m 31 Dec 2010 $ m 31 Dec 2011 $ m 31 Dec 2010 $ m THEME PARKS : GOLD COAST THEME PARKS : US WATER PARKS 0.2 (0.7) CINEMA EXHIBITION : AUST CINEMA EXHIBITION : OTHER FILM DISTRIBUTION CORPORATE/OTHER (10.2) (28.2) (15.8) (22.5) (14.7) (21.2) REPORTED RESULTS

5 VRL GROUP OPERATING CASHFLOW For the 6 months ended 31 December 2011 EBITDA $ m Movement in Working Capital $ m Interest/ Tax $ m Operating Cash Flow $ m Capital Expenditure $ m Free Cash Flow $ m THEME PARKS (12.5) 36.6 (22.0) 14.6 CINEMA EXHIBITION (2.1) 31.0 (4.0) 27.0 FILM DISTRIBUTION 31.1 (18.0) (3.7) 9.4 (0.8) 8.6 CORPORATE/OTHER (14.7) (8.6) 8.4 (14.9) (3.8) (18.7) TOTAL 79.4 (7.4) (9.9) 62.1 (30.6)

6 VRL GROUP VRL GROUP DEBT ON BALANCE SHEET Facility Expiry Calendar Year Total Debt Drawn ($m) 31 Dec 2011 Total Debt Drawn ($m) 30 Jun 2011 THEME PARKS : GOLD COAST 2 nd half THEME PARKS : US WATER PARKS 1 st half 2029/ 1 st half CINEMA EXHIBTION : AUST 2 nd half FILM DISTRIBUTION 1 st half CORPORATE / OTHER (note 1) 1 st half TOTAL ON BALANCE SHEET DEBT Cash on Hand (note 2) (194.8) (431.7) NET DEBT ON BALANCE SHEET Note 1: VRL has completed its negotiation on the reinstatement of a 3 year $100m corporate debt facility. This facility is currently undrawn. Note 2: Major cash outflow for six months includes $151.5m shareholder distribution, $12.1m final dividend and $62.1m tax payment resulting from the sale of Austereo 6

7 VRL GROUP VRL GROUP DEBT ON BALANCE SHEET DEBT CURRENT 31 December 2011 ($m) THEME PARKS 23.3 FILM DISTRIBUTION 14.4 CINEMA EXHIBTION : AUST (note 1) 59.4 CORPORATE/OTHER - Total Current Debt on Balance Sheet 97.1 ON BALANCE SHEET DEBT NON CURRENT 31 December 2011 ($m) THEME PARKS FILM DISTRIBUTION 87.2 CINEMA EXHIBTION : AUST 0.1 CORPORATE/OTHER 0.1 Total Non Current Debt on Balance Sheet Note 1: This facility is currently being re-negotiated and is expected to be completed by June

8 THEME PARKS 8

9 THEME PARKS SUMMARY OF RESULTS EBITDA is up on the prior year EBITDA NPBT RESULTS ANALYSIS For the 6 months ended 31 December 31 December 31 December 31 December ($m) ($m) ($m) ($m) Gold Coast Theme Parks USA Water Parks (0.7) TOTAL

10 THEME PARKS GOLD COAST RESULTS ANALYSIS 31 December December 2010 For the 6 months ended ($m) ($m) TOTAL ATTENDANCE (m) SALES REVENUE OTHER REVENUE TOTAL EXPENSES EBITDA DEPRECIATION AND AMORTISATION INTEREST (NET) NET PROFIT BEFORE TAX TOTAL CAPEX

11 THEME PARKS GOLD COAST Multi-Day, Multi-Park ticket sales, drive up pyields 6% Weather patterns have impacted attendances, cool summer, untimely rainfall periods attendance 5% High Australian dollar is a disincentive to both international and domestic visitors to the Gold Coast In park spend, increased revenue 2% Disciplined cost control, maintain EBITDA 4 days heavy rain latter part of January holidays - despite that EBITDA for January is up 6.5% on last year. 11

12 THEME PARKS GOLD COAST New Attractions Successfully bedded down new attractions that will generate attendances over many years Green Lantern Coaster at Warner Bros. Movie World Nickelodeon Parade at Sea World Spirit Of The Horse at Australian Outback Spectacular Nickelodeon Spray Ground at Sea World Resort & Water Park 12

13 THEME PARKS GOLD COAST New events opens up incremental evening revenues White Christmas Halloween Both events will be used as a promotional device to upgrade the consumer purchase to a higher yielding ticket and drive theme park ticket sales 13

14 THEME PARKS NEW OPPORTUNITIES Wet n Wild Wild Sydney World class water park located 35min Sydney CBD Development e e approval a obtained Targeted opening date late 2013 Village Roadshow will present the latest and best in attractions to create a world s best standard park that will be Sydney s theme park that just happens to be themed by water Expected capital budget $100m - $120m Chinese Theme e parks Negotiations continuing 14

15 THEME PARKS USA WATER PARKS RESULTS ANALYSIS For the 6 months ended 31 December 2011 ($m) 31 December 2010 ($m) TOTAL ATTENDANCE (m) SALES REVENUE OTHER REVENUE - - TOTAL EXPENSES EBITDA DEPRECIATION AND AMORTISATION INTEREST (NET) NET PROFIT BEFORE TAX 0.2 (0.7) TOTAL CAPEX

16 THEME PARKS USA WATER PARKS Wet n Wild Phoenix Strong season pass sales World premiere new Constrictor water slide New kids attraction to open in 2012 season to broaden demographic appeal Wet n Wild Hawaii Economic pressures impacting on results Some evidence of tourism recovery 16

17 CINEMA EXHIBITION 17

18 CINEMA EXHIBITION RESULTS ANALYSIS For the 6 months ended 31 December 2011 ($m) 31 December 2010 ($m) TOTAL PAID ADMISSIONS AUSTRALIA (m) SALES REVENUE OTHER REVENUE TOTAL EXPENSES EBITDA EBITDA EXHIBITION OTHER (note 1) EBITDA DEPRECIATION AND AMORTISATION INTEREST (NET) NET PROFIT BEFORE TAX TOTAL CAPEX Note 1: Exhibition other includes the overseas exhibition territories (USA, Singapore and UK) and the Intencity games business. 18

19 CINEMA EXHIBITION AUSTRALIA Business is driving higher yields from unique offerings; Gold Class, 3D, $max Increased spend per patron improved food offerings Upcoming strong titles: Hunger Games Dark Knight Rises Men In Black III 19

20 CINEMA EXHIBITION AUSTRALIA Continued digital projector rollout 361 digital projectors rolled out to sites as at December Additional 145 projectors to be rolled out to sites by end of August 2012 Strong alternative content screened in the last six months, the beginning of future new diversity to earnings Phantom Of The Opera Pearl Jam 20

21 CINEMA EXHIBITION OTHER US Gold Class Refurbishment program complete New site opening May 2012 Trading results improving Energy from local management and partner Singapore Strong trading driven by local product Admissions up on last year Belfast Loss making in very competitive sector 21

22 FILM DISTRIBUTION 22

23 FILM DISTRIBUTION RESULTS ANALYSIS For the 6 months ended 31 December 2011 ($m) 31 December 2010 ($m) SALES REVENUE OTHER REVENUE TOTAL EXPENSES EBITDA DEPRECIATION AND AMORTISATION INTEREST (NET) NET PROFIT BEFORE TAX

24 FILM DISTRIBUTION Leading theatrical distributor with market share of 22.2% Red Dog, outstanding performance, 8 th highest grossing Australian title of all time, Box Office $21.4 million, 3 rd biggest DVD of all time Solid line-up during the period: Harry Potter And The Deathly Hallows Part 2 Horrible Bosses Crazy Stupid Love New Years Eve Television continues to perform generating strong library revenues 24

25 FILM DISTRIBUTION OUTLOOK Sherlock Holmes 2 Number one summer film in competitive market Hunger Games The next big trilogy Australian titles Kath & Kim, Goddess and Baz Luhrmann s The Great Gatsby 25

26 FILM PRODUCTION & MUSIC 26

27 FILM PRODUCTION & MUSIC Portfolio Business overall strength and performance of product has been healthy Actively engaged in raising funding, exploring international IPO Tremendous results Sherlock Holmes 2, more than US$500 million world wide box office to date Happy Feet 2 3D released pre Christmas with world wide gross box office of approx US$155 million - below expectations 27

28 FILM PRODUCTION & MUSIC Continuation of a powerful line up of upcoming titles, further building the portfolio of exciting titles: Lucky One from Nicholas Sparks book, starring Zac Effron Dark Shadows Directed by Tim Burton, starring Johnny Depp Gangster Squad Ryan Gosling & Sean Penn The Great Gatsby 3D Directed by Baz Luhrmann, starring Leonardo De Caprio 28

29 FILM PRODUCTION & MUSIC Portfolio of Chinese Films Man Of Tai Chi Directed and starring Keanu Reeves My Lucky Star Produced and starring Zhang Ziyi Journey To The West Directed by Stephen Chow 29

30 VRL GROUP SUMMARY Stable underlying businesses Stable earnings and strong cashflows Low net debt and significant cash reserves Corporate cost reductions realised Dynamic Growth Strategy Wet n Wild Sydney China theme park opportunities Embrace the digital revolution Chinese film portfolio 30

31 VRL GROUP SUMMARY World class parks with new attractions completed weather law of averages Strong line up of International and Australian films benefiting Production; Distribution and Exhibition businesses In the business of show business and selling tickets 31