PR Newswire Processing - Investis Digitalfiles.investis.com/ubm/downloads/investor_prn.pdf · PR...

UBM Investor Day 27 September 2007

2

Corporate - $

Agencies - $

Government - $

Others - $

Sources Content PR Newswire Processing Recipients

Text:• Mandatory News• Publicity News

Broadcast PR/Multimedia:• Photos• Video News Releases• Streaming Video

Individual Targets (MEDIAtlas)

Media Institutions

Online Databases & Portals

Financial Networks

Aggregators

• Factiva • Lexis-Nexis • Yahoo!

• Thomson • Bloomberg • Reuters

• AP • Marketwatch • Reuters

• AP • Bloomberg • Reuters

• Consumer Media • Trades • Broadcast

PR Newswire Business Model

$

$

$

•Coding•Formatting •Delivery Into News Systems•Credibility•Protection Against Hoax Sources•Worldwide Network•Simultaneity

PR Newswire’s Supporting USPs — Measurement & Monitoring Services

•First Call • SEO • Access Reports • ProfNet Experts • MediaSense• US1 Media Monitoring

$ - Revenue Generating

$ $


3

PR Newswire – a global online growth business• Key skills: distribution, attribution, service •IR Strategy – moving beyond the earnings release• PR Strategy – providing solutions for communications professionals•PR becomes marketing


4

Global capital and media markets drive growth opportunity

• Strong historic growth, highly profitable businesses with leading positions in attractive global markets•Substantial growth opportunities domestic and international, acquisitions and organic•Increasing yield through product innovation•Leader in understanding multimedia online distribution•Brand recognition


5

Volume (as %) of Premium Newslines

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2003 2004 2005 2006 YTD 2007

Year

Premium Reporting

US1 + Photo

US1 Industry Newsline

First Call Access Reports

SEO Added to US1

StreetEvents

US1 Media Monitoring

Media Access Report Upgrade

Innovation in core product drives yield


6

Growth by organic expansion leveraging the strength of the brand

($m) 2003 2004 2005 2006 2007Full year Full year Full year Full year Half year

Revenue

USA 142.1 157.9 172.6 185.1 106.4

Canada* 28.6 35.3 40.9 45.8 24.6

Europe 23.4 22.3 22.9 24.7 14.6

Asia 0.2 0.5 0.8 1.3 1.4

Intercompany trading (15.5) (12.6) (13.5) (17.0) (8.8)

178.8 203.4 223.7 239.9 138.2

* 50% owned directly, UBM owns 17% of Press Association which owns the other 50%.


7

Consistent improvement in performance reflecting revenue growth and cost reductions


EBIT

USA 22.1 38.8 44.8 59.1 35.0

Canada* 9.2 11.2 12.0 13.8 7.4

Europe (5.0) 0.3 3.3 5.4 3.1

Asia (0.2) - - 0.1 0.6

26.1 50.3 60.1 78.4 46.1

EBITDA 39.8 57.4 65.9 83.6 48.9 EBIT Margin 14.6% 24.7% 26.9% 32.7% 33.4%* 50% owned directly, UBM owns 17% of Press Association which owns the other 50%. Excludes share based payments ($1m in FY'06, $0.5m in HY'07)


8

Multiple sources of revenue growthUS Revenue by Product Group


Distribution revenue 114.9 125.0 135.3 144.8 78.6

MultiVu 8.0 10.5 11.5 13.9 8.0

MEDIAtlas 2.9 4.0 5.2 5.6 3.2

ProfNet 3.2 3.6 4.1 4.5 2.3

e Watch 2.8 2.8 3.1 4.2 2.1

Other* 10.3 12.0 13.4 12.1 12.2

142.1 157.9 172.6 185.1 106.4

*Includes Vintage acquisition in 2007 Half year


9

Europe’s profitability has been transformed – well poised for growth

•Exit marginal businesses, re-engineer cost base (’03-’05)• Multi local footprint, leading brand, centralised back office, partnering (’06-’07)• Broadening customer business and geographic experience


Revenue 23.4 22.3 22.9 24.7 14.6

EBIT (5.0) 0.3 3.3 5.4 3.1


10

We Tell Your Story to the World• Historically, PR Newswire was a U.S.-centric business.• Canada, Asia and Europe are now growing and profitable

200380% of revenue

84% of profitfrom U.S.

200677% of revenue

75% of profitfrom U.S.


11

The number and size of international growth opportunities is increasing• Further expansion into Europe and Middle East• China revenues growing at 50% plus per annum• Latin America revenues growing at 35% (Brazil ownership 30%, Argentina ownership 90%)• Further opportunities in Asia


12

Investment in the business

•$63.0m in acquisitions in 11 months•$7.0m in new editorial centres•Further capital investment of more than $7m across the business


13

U.S. editorial restructuring: member service centres created

•Formerly occupied 20+ offices •Three new centers created:

- Cleveland, Ohio- Albuquerque, New Mexico- Washington, D.C.

•Designed to provide better service, eliminate inconsistency, reduce staff turnover•Reduced operating costs•$7m of investment in new centres•Some teething/implementation issues


14

Growth through acquisitions and innovative new products• Acquisitions (BUY) – $63m in just 11 months - achieve cost of capital in first full year after acquisition

– US Newswire (Sept ’06, $21m plus earn out) – distribution for Public Sector – Washington DC based

– Vintage Filings (Apr ’07, $38m plus earn out): Edgar filing, 2,400 customers, ’06 revenue $16m

– Notilog (Jul ‘07, $4m plus earn out) – Spanish/Portuguese monitoring/analysis for PR clients

• Organics (BUILD)– MultiVu: Multimedia news references and corporate messaging,

achieving 20% plus growth– MEDIAtlas: global web-based database and distribution system

providing contact details for journalists, achieving double digit growth – MediaSense: comprehensive analysis of customers’ media coverage


15


16


17


18


19

Organic Growth in PR: MEDIAtlas

Media data embedded into customer’s workflow


20

Organic Growth in PR: MultiVu

•H1 ’07 revenue increased 22%, Bookings increased 27% •Multimedia News Release revenue doubled


21

The Internet and the rapid expansion of broadband, wireless technology, and cable and satellite media are helping transform traditional broadcast PR services into multifaceted marketing and communications tools.

Influencing Beyond Broadcast

These changes are taking place as more and more people seek their news and information from the Internet and other new media formats.


22

Multimedia News Release


23

Online Video Distribution


24

Audio or Video: Up to 15 minutes encoded video or audio; Windows MP and Real Player; stored for one yearImages: Logos, graphics & screen grabs.Text: 400 words includedLinks: Five links to support content from your site including HTML and PDF files.Wire & Web Distribution:Including US1 with SEO, PR Newswire for Journalists, HTML Email: targeted media, plus up to 200 contacts from client list

Multimedia News Release


25


26


27


28

Mobile Video Distribution


30

Acquisition in PR: US NewswireYTD ’07 policy revenue increased 13%, sales of non-wire

products climbed 21%, average spend per account rose 10%


31

Acquisition in Latin America: Notilog•Formed three sales regions: Mexico, Caribbean & Central America; South America; and Brazil•Developed PR Newswire Spanish sites •Bundled services with PR Newswire-Notilogofferings•Moved media relations, sales out of Miami


32

Acquisition in IR: Vintage Filings

•Fastest growing EDGAR filer•Revenue grew 51% April-June 2007 vs. same period in 2006•More than $2m in sales in August, largest month ever •On Aug. 4, Vintage surpassed No. 3 filer, Merrill, by 100 filings


33

Driving Growth in PR Sector•H1 ’07 ($23.1m) up 18.9% on H1 ’06 ($19.4m)


34

Looking forward •Enhanced U.S. service levels•Further acquisitions and launches•International expansion•Positioned to benefit as PR outpaces advertising spend•Opportunities with both disclosure and promotional messaging


35

PR Newswire Processing - Investis Digitalfiles.investis.com/ubm/downloads/investor_prn.pdf · PR...

Documents

Transcript of PR Newswire Processing - Investis Digitalfiles.investis.com/ubm/downloads/investor_prn.pdf · PR...