home | dmgt - 17% +3%/media/files/d/dmgt/ir 2pager/2019... · 2019-09-25 · 2017 | £(2)m dmgt...

2
©2019 DMGT plc. All rights reserved. No part of this document may be reproduced without prior permission of DMGT. B2B The B2B portfolio is comprised of five divisions: Insurance Risk, Property Information, EdTech, Energy Information and Events and Exhibitions. Revenue £773m 2017* | £881m Operating profit £128m 2017* | £133m Operating margin 17% 2017* | 15% Underlying revenue growth +3% 2017 * | +2% * 2017 figures exclude Euromoney, which became an associate in December 2016. Insurance Risk RMS’s solutions help insurers, reinsurers, brokers, financial markets and public agencies evaluate and manage catastrophe risks throughout the world. RMS leads the catastrophe risk modelling industry that it helped to pioneer, delivering models, data, data analytics and soſtware. Employees: 1,375 Revenue £229m 2017 | £233m Operating profit £35m 2017 | £33m Operating margin 15% 2017 | 14% Underlying revenue growth +5% 2017 | +2% Property Information Companies within the portfolio provide services that use technology, data and workflow to streamline and help reduce the risk associated with commercial and residential property transactions. Trepp, in the US, provides risk valuation and data solutions for the commercial mortgage-backed securities market. The focus of the US portfolio was increased during FY 2018. Employees: 1,055 Revenue £272m 2017 | £328m Operating profit £58m 2017 | £52m Operating margin 21% 2017 | 16% Underlying revenue growth (2)% 2017 | 0% EdTech Hobsons, a US business, offers college, career and life readiness tools to middle and high schools; student match and fit solutions for college admissions offices; and a student success platform for colleges and universities to help guide students through to degree completion. The business was restructured during 2017. Employees: 381 Revenue £68m 2017 | £115m Operating profit £7m 2017 | £16m Operating margin 11% 2017 | 14% Underlying revenue growth +9% 2017 | +9% Energy Information The disposal of Genscape for US $364m was announced in August 2019 and is expected to complete in the coming weeks. Genscape delivers fundamental data, intelligence and real-time alerts, workflow tools and predictive analytics across several asset classes including oil, power, natural gas, liquid natural gas and maritime. Employees: 398 Revenue £86m 2017 | £88m Operating profit £0m 2017 | £2m Operating margin 0% 2017 | 2% Underlying revenue growth +7% 2017 | +1% Events and Exhibitions dmg events is an organiser of B2B exhibitions with industry-leading events in the energy, construction, interiors, hotel, hospitality and leisure sectors. Over half the revenues are generated by the top three events. Employees: 395 Revenue £118m 2017 | £117m Operating profit £28m 2017 | £31m Operating margin 24% 2017 | 26% Underlying revenue growth +5% 2017 | +3% Consumer Media dmg media’s portfolio of news media businesses includes two of the UK’s most read paid-for newspapers, the UK’s highest circulation weekday newspaper and MailOnline, whose audience spends 145m minutes engaged with its content each day. Employees: 2,217 Revenue £654m 2017 | £683m Operating profit £64m 2017 | £77m Operating margin 10% 2017 | 11% Underlying revenue growth (4)% 2017 | +1% Joint ventures and associates Euromoney Institutional Investor PLC - c.49% A FTSE-250 global multi-brand B2B information business that provides critical data, price reporting, insight, analysis and events across three categories: asset management; pricing, data and market intelligence; and banking and finance. DMGT’s holding in Euromoney was distributed directly to DMGT’s shareholders in April 2019 and Euromoney ceased to be an associate. DMGT’s share of operating profit £56m 2017* | £56m * Restated on a pro forma basis, including c.49% of profits for the full year. Other DMGT holds minority stakes in early stage businesses. There was investment in the US DailyMailTV show in FY 2018, which became a subsidiary in Oct’18. Yopa, the hybrid estate agent, became an associate in Aug’18. DMGT’s share of operating profit £(5)m 2017 | £(2)m DMGT sold its c.30% stake in ZPG Plc in July 2018 for £642m. DMGT’s share of ZPG Plc’s operating profits was £23m in FY 2018. DMGT manages a portfolio of companies that provide businesses and consumers with compelling information, analysis, insights, events, news and entertainment. The Group takes a long-term approach to investment and has market-leading positions in consumer media, insurance risk, property information, education technology, energy information and events & exhibitions. In total, DMGT generates revenues of around £1.4bn. 24 22 20 18 16 14 12 10 8 6 4 2 0 Total dividend 1998 – 2018 1998 2018 Inflation Dividend 23.3p 9.7p 6.5p Why invest in DMGT? 1. A portfolio of businesses with leading positions in large, growing sectors that are benefiting from digitisation. 2. A strategy, based around clear portfolio roles, to deliver growth in revenues and profits, over the medium term, and improving cash generation. 3. A commitment to deliver continued real dividend growth, underpinned by a strong balance sheet, and sustained EPS growth. The shape of the business Revenue Operating profit Revenue by destination Operating profit by source Business to Business 54% Business to Business 67% UK 54% UK 46% Consumer 46% Consumer 33% N.America 29% N.America 38% Other 17% Other 16%

Upload: others

Post on 12-Aug-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Home | DMGT - 17% +3%/media/Files/D/DMGT/IR 2pager/2019... · 2019-09-25 · 2017 | £(2)m DMGT sold its c.30% stake in ZPG Plc in July 2018 for £642m. DMGT’s share of ZPG Plc’s

©2019 DMGT plc. All rights reserved. No part of this document may be reproduced without prior permission of DMGT.

B2BThe B2B portfolio is comprised of five divisions: Insurance Risk, Property Information, EdTech, Energy Information and Events and Exhibitions.

Revenue

£773m2017* | £881m

Operating profit

£128m2017* | £133m

Operating margin

17%2017* | 15%

Underlying revenue growth

+3%2017 * | +2%

* 2017 figures exclude Euromoney, which became an associate in December 2016.

Insurance RiskRMS’s solutions help insurers, reinsurers, brokers, financial markets and public agencies evaluate and manage catastrophe risks throughout the world. RMS leads the catastrophe risk modelling industry that it helped to pioneer, delivering models, data, data analytics and software.Employees: 1,375

Revenue

£229m2017 | £233m

Operating profit

£35m2017 | £33m

Operating margin

15%2017 | 14%

Underlying revenue growth

+5%2017 | +2%

Property InformationCompanies within the portfolio provide services that use technology, data and workflow to streamline and help reduce the risk associated with commercial and residential property transactions. Trepp, in the US, provides risk valuation and data solutions for the commercial mortgage-backed securities market. The focus of the US portfolio was increased during FY 2018.Employees: 1,055

Revenue

£272m2017 | £328m

Operating profit

£58m2017 | £52m

Operating margin

21%2017 | 16%

Underlying revenue growth

(2)%2017 | 0%

EdTechHobsons, a US business, offers college, career and life readiness tools to middle and high schools; student match and fit solutions for college admissions offices; and a student success platform for colleges and universities to help guide students through to degree completion. The business was restructured during 2017.Employees: 381

Revenue

£68m2017 | £115m

Operating profit

£7m2017 | £16m

Operating margin

11%2017 | 14%

Underlying revenue growth

+9%2017 | +9%

Energy InformationThe disposal of Genscape for US $364m was announced in August 2019 and is expected to complete in the coming weeks. Genscape delivers fundamental data, intelligence and real-time alerts, workflow tools and predictive analytics across several asset classes including oil, power, natural gas, liquid natural gas and maritime.Employees: 398

Revenue

£86m2017 | £88m

Operating profit

£0m2017 | £2m

Operating margin

0%2017 | 2%

Underlying revenue growth

+7%2017 | +1%

Events and Exhibitionsdmg events is an organiser of B2B exhibitions with industry-leading events in the energy, construction, interiors, hotel, hospitality and leisure sectors. Over half the revenues are generated by the top three events. Employees: 395

Revenue

£118m2017 | £117m

Operating profit

£28m2017 | £31m

Operating margin

24%2017 | 26%

Underlying revenue growth

+5%2017 | +3%

Consumer Mediadmg media’s portfolio of news media businesses includes two of the UK’s most read paid-for newspapers, the UK’s highest circulation weekday newspaper and MailOnline, whose audience spends 145m minutes engaged with its content each day.Employees: 2,217

Revenue

£654m2017 | £683m

Operating profit

£64m2017 | £77m

Operating margin

10%2017 | 11%

Underlying revenue growth

(4)%2017 | +1%

Joint ventures and associates

Euromoney Institutional Investor PLC - c.49% A FTSE-250 global multi-brand B2B information business that provides critical data, price reporting, insight, analysis and events across three categories: asset management; pricing, data and market intelligence; and banking and finance. DMGT’s holding in Euromoney was distributed directly to DMGT’s shareholders in April 2019 and Euromoney ceased to be an associate.

DMGT’s share of operating profit

£56m2017* | £56m

* Restated on a pro forma basis, including c.49% of profits for the full year.

OtherDMGT holds minority stakes in early stage businesses. There was investment in the US DailyMailTV show in FY 2018, which became a subsidiary in Oct’18. Yopa, the hybrid estate agent, became an associate in Aug’18.

DMGT’s share of operating profit

£(5)m2017 | £(2)m

DMGT sold its c.30% stake in ZPG Plc in July 2018 for £642m. DMGT’s share of ZPG Plc’s operating profits was £23m in FY 2018.

DMGT manages a portfolio of companies that provide businesses and consumers with compelling information, analysis, insights, events, news and entertainment. The Group takes a long-term approach to investment and has market-leading positions in consumer media, insurance risk, property information, education technology, energy information and events & exhibitions. In total, DMGT generates revenues of around £1.4bn.

242220181614121086420

Total dividend 1998 – 2018

1998 2018

Inflation Dividend

23.3p

9.7p6.5p

Why invest in DMGT?

1. A portfolio of businesses with leading positions in large, growing sectors that are benefiting from digitisation.

2. A strategy, based around clear portfolio roles, to deliver growth in revenues and profits, over the medium term, and improving cash generation.

3. A commitment to deliver continued real dividend growth, underpinned by a strong balance sheet, and sustained EPS growth.

The shape of the business

Revenue

Operating profit

Revenue by destination

Operating profit by source

Business to Business 54%

Business to Business 67%

UK 54%

UK 46%

Consumer 46%

Consumer 33%

N.America 29%

N.America 38%

Other 17%

Other 16%

Page 2: Home | DMGT - 17% +3%/media/Files/D/DMGT/IR 2pager/2019... · 2019-09-25 · 2017 | £(2)m DMGT sold its c.30% stake in ZPG Plc in July 2018 for £642m. DMGT’s share of ZPG Plc’s

Net cash / (debt)£233m 2013 | £(573)m

The numbers that count: 5 years of progress

Dividend per share 23.3 pence2013 | 19.2p

Revenue£1,426m 2013 | £1,802m

All figures relate to FY2018 and FY2013.

Our Strategy Diverse revenue streams

Ordinary shares

(Voting)‘A’ shares*

(Non-voting) Total*

As at 30 Apr’19 20m 210m 230mFamily 100% 30% 36%Others – 70% 64%

• Many businesses operating in high potential markets with long-term growth characteristics.

• Content and proprietary data developed by businesses that constantly push the bar with their ‘product first’ mentality.

• A home for entrepreneurs who are encouraged to innovate with support and oversight from the centre.

• Diversified portfolio by sector, geography and type of revenue stream, built on strong brands and market-leading positions.

• Long-term perspective provides foundation for investments to generate significant value over time, whilst retaining focus on short-term execution.

Our strengthsClear portfolio roles

Clear capital allocation framework underpinned by strong balance sheet

Family controlled with split share structure

*Excludes shares held in Treasury

Operating profit£145m2013 | £300m

Operating margin10%2013 | 17%

Earnings per share42.2 pence2013 | 53.0p

Pension scheme surplus / (deficit)£244m2013 | £(208)m

Print advertising share of revenue13%2013 | 20%

Operating margin12%2013 | 17%

Cash operating income £155m2013 | £263m

Businesses for the futureOption value for future, tomorrow’s Growing and delivering businesses

Balanced and flexible approach to uses of capital

U/L growth: +28%

Cash OI margin: (8)%

Revenue share: 44%

U/L growth: +5%

Cash OI margin: 13%

Revenue share: 56%

U/L growth: (5)%

Cash OI margin: 17%

Investing through the cycle

Initiatives aligned with portfolio roles

Focus on growth opportunities and disruptive technologies

Commitment to dividend policy: real dividend growth

Acquisitions approach: structured & disciplined – no ‘deal fever’

Maintaining financial flexibility

Shareholder returns

Growing and deliveringRevenue growth and margin improvement driving value creation

Dividend

Predictable performers Predictable profit and cash to meet DMGT’s obligations, fund investment and incubate Businesses for the future

Prioritise organic opportunities

Incr

easin

g p

ortfolio focus

Improving operational execution

Maintaining �nancial �exibility

Satis�ng the need to know

Clear portfolio roles

Revenue by type and underlying growth rates FY2018

Subscriptions +4% Digital Advertising +6%Circulation (5)% Print Advertising (5)%Events +5% Transactions & Other +0%

Enabling balanced and flexible capital allocation

Performance Improvement Programme (PIP)

Excludes disposals and closures. 1 DailyMailTV became a subsidiary in Oct 2018. DMGT also holds minority stakes in growth businesses, such as Yopa.

1 1

28%21%

20%

13%

8%10%