CSU and You ABN AMRO. June 2007

Transcription

1 CSU and You 1 1 ABN AMRO June 2007

2 Fairfax Media Strategy Defend and grow our newspapers Build a strong online business Build an integrated, digital media company 2 2

3 From metro publisher to leading multi-media company Unrivalled capability in digital content origination and aggregation Powerful multimedia brands extending audience reach Distributing and promoting content across multiple platforms Proven new media revenue models Strongly positioned for changing technologies and media consumption habits Driving sustained earnings per share growth 3 3

4 The fundamental drivers of success for a media company whatever the medium Compelling content creation, every minute, every hour, every day Innovative, creative advertising and content sales Reader, viewer, listener, community audience - connection and management Production and distribution excellence People development, leadership and support 4 4

5 The Benefits of a Strong Online Business It increases our profits We have grown audience and geographic reach It allows us to broaden our business model It supports print and an integrated media strategy It improves our competitive position in the media market 5 5

6 Fairfax Digital Fairfax Digital publishes more than 30 websites and reaches over 16 million unique browsers and 700 million page impressions per month (NNR- Site Census, Total Traffic, Nov07) 6 6

7 Key Business Drivers Content depth Credibility Sydney & Melbourne leadership Integration with print (and now radio) Network effects Broad portfolio of sites Classified profit upside Step out into Transaction businesses 7 7

8 We have learnt what works and have translated this into profits. 140 Early investment phase we learnt what worked, and what didn t Focused on business model and investment in Media, Classifieds and Transactions Revenue EBITDA 65 $'M FY01 FY02 FY03 FY04 FY05 FY06 FY07-60 Financial Year EBITDA Margin -69% -63% -6% 8% 12% 24% 28% 8 8

9 All businesses growing strongly 600 % g ro w th Since 2003 Display + 419% Classified + 544% Transaction + 126% since Display Classified Transaction 9 9

10 3 Efficient and Effective Divisions 3 very different businesses with different business drivers MEDIA CLASSIFIEDS TRANSACTIONS CORPORATE AD PLATFORMS Online Ad models of now and future Servicing agency and corporate advertisers Product driven by consumer segments News sites are traffic funnels at centre of footprint CLASSIFIEDS MARKET PLACES Common Brands with Papers National field sales teams Listing volume driven Consumer uptake reliant on local listing volumes Mass marketing must achieve top-of-mind saliency in cars, jobs, houses CONSUMER MARKET PLACES Consumer acquisition, transaction and retention models CRM, CPA and RPU driven National footprints 10 10

11 We continue to innovate New Homepage Digital Life thevine.com.au Video Essential Baby Cuisine Austereo Partnership InvestSmart League HQ & Real Footy Rural Press & Southern Cross brisbanetimes.com.au Business Day & Executive Style 11 11

12 MEDIA DIVISION 12 12

13 We are maintaining print reach while growing online Newspaper Readership and Internet Usage (Total) ,000 Reach in 000's ,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Total UB's in 000's 0 0 Dec-04 Dec-05 Dec-06 Dec-07 Jan-08 Feb-08 Mar SMH Print Age Print smh.com.au age.com.au 13 Source: Roy Morgan Research December Databases & Nielsen Netratings/Market Intelligence/Total December & Jan-Mar 08

14 Going online has more than doubled our reach Print Only Print and Online Online Only International The Sydney Morning Herald The Age smh.com.au reaches 482,000 people who do not read the print version and reaches over 1.3 million people internationally an increase in reach of 125% theage.com.au reaches 391,000 people who do not read the print version and reaches over 1 million people internationally an increase in reach of 120% 14 Roy Morgan Survey Sep07 Print average M-F av + Sa 14

15 Australian browsers spend 45% of their online news consumption time on FD sites 45% of Total Time spent by Australian Web Browsers consuming news online has been on FD sites. News & Weather Engagement Breakdown Fairfax Digital News Digital Ninemsn The Weather Co. Other Source: Nielsen/Netratings, MI, Australia, Mar 08

16 Market share of online display Trend of online display 35% 30% 30% 32% 31% 32% Rest of the market 25% 26% 24% 20% 15% 10% 5% 0% 17% 17% 14% 10% 10% 10% 9% 8% 8% 8% 7% 5% CY05 CY06 CY07 Fairfax Digital SOURCE: CESA 2007

17 Our Properties Are Strong Leaders in NSW & Victoria Reach of Online News Sites UB's 4,500,000 4,000,000 4,398,902 NSW VIC 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,505,927 2,974,734 1,929,311 QLD 1,000, , , , Sydney Morning Herald Daily Telegraph Source: NNR MI Monthly UBs Mar 08 The Age Herald Sun brisbanetimes.com.au Courier Mail 17

18 Media consumption trends have changed dramatically Media consumption has increased but the daily news cycle has fragmented. TV Newspaper Radio Radio Mobile MP3 Internet Radio Mobile MP3 TV Internet Monday Friday 6am 12am Newspaper Radio Newspaper Internet Mobile TV Internet Saturday Sunday 6am 12am 18 18

19 Lunch Time is the new Prime Time for news dominated by online smh/theage page impressions % Use the internet % Watch TV % Listen to the radio % Read a magazine % Read a newspaper 100% % % 70% % 50% 40% % of Population Page Impressions % 20% % % 0 00:00-00:59 01:00-01:59 02:00-02:59 03:00-03:59 04:00-04:59 05:00-05:59 06:00-06:59 07:00-07:59 08:00-08:59 09:00-09:59 10:00-10:59 11:00-11:59 12:00-12:59 13:00-13:59 14:00-14:59 15:00-15:59 16:00-16:59 17:00-17:59 18:00-18:59 19:00-19:59 20:00-20:59 21:00-21:59 22:00-22:59 23:00-23: Source: NNR SiteCensus hourly traffic agg. smh.com.au/theage.com.au (weekday) ; Roy Morgan Single Source March 2006

20 Extend Reach & Engagement How Will We Get There? Put in new WA Get more National Extend into new audiences Focus on engagement publishing and web 2.0 with DCDS comments, ratings 20 20

21 CLASSIFIEDS DIVISION 21 21

22 We have invested heavily in our classified businesses and will now drive higher profits Investment in sales has driven revenue growth Focus on growing profits through higher yields better efficiencies in marketing, technology and operations bundling with print 22 22

23 TRANSACTIONS DIVISION 23 23

24 Transactions Division: A Network of B-to-C Retailers Fairfax Digital s Next Horizon of Revenue Growth CURRENT PORTFOLIO Leaders in Niche Categories, leveraging our audience quality and volume No. 1 Dating No. 1 Independent Funds Broker No. 1 Holiday Rentals No. 1 Parenting FUTURE PORTFOLIO Building through targeted, bolt-on acquisitions in high-value, high-growth categories that match our audience and our brands. Financial Services Travel etail 24 24

25 Thank You 25 25