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1. A portfolio of content-led businesses with leading positions in large, growing sectors that are benefitting 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. B2B The B2B portfolio is now comprised of four sectors: Insurance Risk, Property Information, EdTech and Events and Exhibitions. This follows the sale of Genscape, its Energy Information business, for US$364m in November 2019. In FY 2019, Genscape’s revenue, cash OI and operating profit were £74m, £12m and £8m respectively. Revenue £738m 2018 | £773m Cash OI* £126m 2018 | £131m Operating profit £117m 2018 | £128m Underlying revenue growth +2% 2018 | +3% Cash OI margin* 17% 2018 | 17% Operating margin 16% 2018 | 17% Insurance Risk - Employees: 1,522 RMS is the global market leader in catastrophe risk modelling. The business is investing in soſtware, data, data analytics and applications. In 2019, RMS launched its Risk Intelligence soſtware platform, which will aid its expansion into the high-growth Insurance Analytics market. Revenue £244m 2018 | £229m Cash OI* £41m 2018 | £50m Operating profit £40m 2018 | £35m Underlying revenue growth +1% 2018 | +5% Cash OI margin* 17% 2018 | 22% Operating margin 17% 2018 | 15% Property Information - Employees: 920 In the UK, Landmark Information Group provides 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 as well as tools, analytics and models for commercial real estate investors and lenders. The focus of the portfolio was increased during FY 2018 and FY 2019. Revenue £222m 2018 | £272m Cash OI* £44m 2018 | £48m Operating profit £41m 2018 | £58m Underlying revenue growth (1)% 2018 | (2)% Cash OI margin* 20% 2018 | 18% Operating margin 19% 2018 | 21% EdTech - Employees: 390 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 from enrolment through degree completion. Its Naviance product is available to over 13 million students. Revenue £80m 2018 | £68m Cash OI* £8m 2018 | £2m Operating profit £4m 2018 | £7m Underlying revenue growth +12% 2018 | +9% Cash OI margin* 10% 2018 | 3% Operating margin 6% 2018 | 11% Events and Exhibitions - Employees: 396 dmg events is an organiser of B2B exhibitions and conferences with industy-leading events in the energy, construction, interiors, hotel, hospitality and leisure sectors. Over 60% of revenues are generated by the top three events. Revenue £119m 2018 | £118m Cash OI* £22m 2018 | £28m Operating profit £22m 2018 | £28m Underlying revenue growth +4% 2018 | +5% Cash OI margin* 19% 2018 | 24% Operating margin 19% 2018 | 24% Consumer Media - Employees: 2,301 dmg media’s portfolio of news media businesses includes two of the UK’s most read paid-for newspapers, the Daily Mail and The Mail on Sunday; Metro, its free newspaper, which is the UK’s highest circulation weekday newspaper; and MailOnline, whose audience spends c.140m minutes engaged with its content each day. In November 2019, DMGT acquired the ‘i’, the UK national newspaper and website. Revenue £672m 2018 | £654m Cash OI* £78m 2018 | £77m Operating profit £67m 2018 | £64m Underlying revenue growth +2% 2018 | (4)% Cash OI margin* 12% 2018 | 12% Operating margin 10% 2018 | 10% *Cash OI is cash operating income. This is EBITDA less capital expenditure and is considered a good guide to underlying cash generation. Joint ventures, associates and investments Euromoney Institutional Investor PLC 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 £23m 2018 | £56m Other DMGT holds minority stakes in early stage businesses. DMGT owns c.45% of Yopa, the UK hybrid estate agent, and c.23% of Cazoo, which aims to change the way people buy used cars in the UK. DMGT’s share of operating profit £(10)m 2018 | £(5)m DMGT manages a portfolio of companies that provide businesses and consumers with compelling information, analysis, insight, 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 and events & exhibitions. In total, DMGT generates revenues of around £1.3bn. Total dividend 1989 – 2019 1 Inflation Dividend Why invest in DMGT? The shape of the business Revenue Operating profit Revenue by destination Operating profit by source Business to Business 52% Business to Business 64% UK 53% UK 48% Consumer 48% Consumer 36% N.America 30% N.America 36% Other 16% Other 16% 1 Dividend excludes £200m cash and £662m Euromoney distribution in Apr’19 24 22 20 18 16 14 12 10 8 6 4 2 0 1989 2019 2.5p 5.1p 23.9p
Transcript
Page 1: 23.9 pence - dmgt.com/media/Files/D/DMGT/IR 2pager... · RMS is the global market leader in catastrophe risk modelling. The business is investing in software, data, data analytics

1. A portfolio of content-led businesses with leading positions in large, growing sectors that are benefitting 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.

B2BThe B2B portfolio is now comprised of four sectors: Insurance Risk, Property Information, EdTech and Events and Exhibitions.This follows the sale of Genscape, its Energy Information business, for US$364m in November 2019. In FY 2019, Genscape’s revenue, cash OI and operating profit were £74m, £12m and £8m respectively.

Revenue£738m2018 | £773m

Cash OI*£126m2018 | £131m

Operating profit£117m2018 | £128m

Underlying revenue growth+2%2018 | +3%

Cash OI margin*17%2018 | 17%

Operating margin16%2018 | 17%

Insurance Risk - Employees: 1,522RMS is the global market leader in catastrophe risk modelling. The business is investing in software, data, data analytics and applications. In 2019, RMS launched its Risk Intelligence software platform, which will aid its expansion into the high-growth Insurance Analytics market.

Revenue£244m2018 | £229m

Cash OI*£41m2018 | £50m

Operating profit£40m2018 | £35m

Underlying revenue growth+1%2018 | +5%

Cash OI margin*17%2018 | 22%

Operating margin17%2018 | 15%

Property Information - Employees: 920 In the UK, Landmark Information Group provides 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 as well as tools, analytics and models for commercial real estate investors and lenders. The focus of the portfolio was increased during FY 2018 and FY 2019.

Revenue£222m2018 | £272m

Cash OI*£44m2018 | £48m

Operating profit£41m2018 | £58m

Underlying revenue growth(1)%2018 | (2)%

Cash OI margin*20%2018 | 18%

Operating margin19%2018 | 21%

EdTech - Employees: 390Hobsons, 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 from enrolment through degree completion. Its Naviance product is available to over 13 million students.

Revenue£80m2018 | £68m

Cash OI*£8m2018 | £2m

Operating profit£4m2018 | £7m

Underlying revenue growth+12%2018 | +9%

Cash OI margin*10%2018 | 3%

Operating margin6%2018 | 11%

Events and Exhibitions - Employees: 396dmg events is an organiser of B2B exhibitions and conferences with industy-leading events in the energy, construction, interiors, hotel, hospitality and leisure sectors. Over 60% of revenues are generated by the top three events.

Revenue£119m2018 | £118m

Cash OI*£22m2018 | £28m

Operating profit£22m2018 | £28m

Underlying revenue growth+4%2018 | +5%

Cash OI margin*19%2018 | 24%

Operating margin19%2018 | 24%

Consumer Media - Employees: 2,301dmg media’s portfolio of news media businesses includes two of the UK’s most read paid-for newspapers, the Daily Mail and The Mail on Sunday; Metro, its free newspaper, which is the UK’s highest circulation weekday newspaper; and MailOnline, whose audience spends c.140m minutes engaged with its content each day. In November 2019, DMGT acquired the ‘i’, the UK national newspaper and website.

Revenue£672m2018 | £654m

Cash OI*£78m2018 | £77m

Operating profit£67m2018 | £64m

Underlying revenue growth+2%2018 | (4)%

Cash OI margin*12%2018 | 12%

Operating margin10%2018 | 10%

*Cash OI is cash operating income. This is EBITDA less capital expenditure and is considered a good guide to underlying cash generation.Joint ventures, associates and investmentsEuromoney Institutional Investor PLC 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£23m2018 | £56m

OtherDMGT holds minority stakes in early stage businesses. DMGT owns c.45% of Yopa, the UK hybrid estate agent, and c.23% of Cazoo, which aims to change the way people buy used cars in the UK.

DMGT’s share of operating profit

£(10)m2018 | £(5)m

DMGT manages a portfolio of companies that provide businesses and consumers with compelling information, analysis, insight, 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 and events & exhibitions. In total, DMGT generates revenues of around £1.3bn.

Total dividend 1989 – 20191 Inflation DividendWhy invest in DMGT?The shape of the business

Revenue

Operating profit

Revenue by destination

Operating profit by source

Business to Business 52%

Business to Business 64%

UK 53%

UK 48%

Consumer 48%

Consumer 36%

N.America 30%

N.America 36%

Other 16%

Other 16%

1 Dividend excludes £200m cash and £662m Euromoney distribution in Apr’19

2422201816141210864201989 2019

2.5p5.1p

23.9p

Page 2: 23.9 pence - dmgt.com/media/Files/D/DMGT/IR 2pager... · RMS is the global market leader in catastrophe risk modelling. The business is investing in software, data, data analytics

Net cash / (debt)£247m* 2016 | £(679)m

The numbers that count: 3 years of progress

Dividend per share 23.9 pence2016 | 22.0p

Revenue£1,411m 2016 | £1,917m

* Net cash includes $364m gross proceeds on Nov’19 disposal of Genscape and excludes £117m which is being made available to pension schemes. Pension scheme surplus includes the £117m.All figures relate to FY 2019 and FY 2016.

Underlying revenue growth+2%2016 | 0%

Pension scheme surplus / (deficit)£332m*

2016 | £(246)m

Operating profit£144m2016 | £277m

Earnings per share38.6 pence2016 | 56.0p

Operating margin10%2016 | 14%

Cash operating income £162m2016 | £252m

Our Strategy Diverse revenue streams

Ordinary shares

(Voting)‘A’ shares*

(Non-voting) Total*

As at 30 Sep’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

Businesses for the future1

Option value for future, tomorrow’s Growing and delivering businesses

Balanced and flexible approach to uses of capital

Revenue share: 1%

U/L growth: +61%

Cash OI margin: (19)%

Revenue share: 44%

U/L growth: +6%

Cash OI margin: 14%

Revenue share: 55%

U/L growth: (2)%

Cash OI margin: 16%

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

Satisfyingthe need to know

Clear portfolio roles

Revenue by type and underlying growth rates FY 2019

Enabling balanced and flexible capital allocation

Performance management culture

Excludes Genscape and other 2019 disposals. 1 DMGT holds minority stakes in growth businesses, such as Yopa and Cazoo but these are not subsidiaries and are not included in revenue or Cash OI. The FY 2019 figures relate to DailyMailTV.

Subscriptions +4% Digital Advertising +11%Circulation (3)% Print Advertising (1)%Events +4% Transactions & Other (1)%

31%18%

20%

13%

8%

10%

©2020 DMGT plc. All rights reserved. No part of this document may be reproduced without prior permission of DMGT.

Over three years, DMGT has returned £1.1 billion to shareholders, including c.430m of cash and c.£660m of Euromoney shares.The focus of the portfolio has been significantly increased (sectors: 10→5 / companies: 40→8) and the Group’s financial flexibility substantially enhanced.


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