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Midyear Media ReviewJune 24, 2003 New YorkMidyear Media ReviewJune 24, 2003 New York
Business is SolidBusiness is Solid
Consolidated revenue grewnearly 6% in May
Publishing +3%TV +12%
Positive trends continue Publishing: improving in JuneTV: Q2 on plan
Consolidated revenue grewnearly 6% in May
Publishing +3%TV +12%
Positive trends continue Publishing: improving in JuneTV: Q2 on plan
Cash flow: $1.6B
Free cash flow: $800M
Debt: $2.5B by the end of year
Debt/operating cash flow: 1.5X
Cash flow: $1.6B
Free cash flow: $800M
Debt: $2.5B by the end of year
Debt/operating cash flow: 1.5X
2003: Financially Well-positioned2003: Financially Well-positioned
June 2nd FCC RulingJune 2nd FCC Ruling
Cross-ownership ban effectively eliminated
TV ownership cap now 45%
Restrictions on two-station clusters loosened
TRB in compliance in all our markets
Cross-ownership ban effectively eliminated
TV ownership cap now 45%
Restrictions on two-station clusters loosened
TRB in compliance in all our markets
Simple Consistent StrategySimple Consistent Strategy
Operate strong mass-media franchises in major markets
Extend existing brands, developnew products
Share content, cross promote brands, cross sell advertising among our businesses
Operate strong mass-media franchises in major markets
Extend existing brands, developnew products
Share content, cross promote brands, cross sell advertising among our businesses
Value of Local Mass MediaValue of Local Mass Media
Major Market Local Mass MediaMajor Market Local Mass Media
Top 3 Markets: 16% total U.S. population25% HH incomes $150,000+
Jack FullerPresident, Tribune PublishingJack FullerPresident, Tribune Publishing
Tribune PublishingTribune Publishing
Well positioned for return of Help Wanted advertising
Success of preprint strategy
New product development
Well positioned for return of Help Wanted advertising
Success of preprint strategy
New product development
Impact of Economic DownturnImpact of Economic Downturn
Tribune Newspaper Help Wanted RevenuesTribune Newspaper Help Wanted Revenues
$300M
$600M
20002000 20022002
Jun-90Jun-89 Jun-91 Jun-91
90 -91 Recession Current trend remains below 1991 recovery
Job Creation: YOY ChangeJob Creation: YOY Change
Current Recession
Mar-01Mar-00 Mar-02 Mar-03
-2%
-1%
0%
1%
2%
3%
Labor Force Demand Labor Force Demand
Labor Available
Labor Needed Shortageof 3 millionemployees
2002 2004 2006
140
150
160
Million
2008
Print + Online = Powerful ComboPrint + Online = Powerful Combo
Source: 2002 Gallup Poll of Media Usage & Consumer BehaviorSource: 2002 Gallup Poll of Media Usage & Consumer Behavior
Neither9%
Print and Online38%
Online Only6% Print
Only47%
85% of job seekers would use a newspaper intheir job search
CareerBuilder FlexAdsCareerBuilder FlexAdsIntegrated print and online solution
Tremendous local reach
Monster & HotJobs can’t compete
25% conversion rate
Consumer Promotion WorksConsumer Promotion Works
+46%
Q4 – Q1
+46%
Q4 – Q1
Unique VisitorsUnique Visitors
Sources: The Media Audit Dec ‘02-Jan ‘03; CareerBuilder net audience estimated with print sectional audience from Gallup Poll of Media Usage 2001 and online internal Sage measurement; Chicago job counts from 3/24/03, jobs posted in past seven days; CareerBuilder online jobs include newspaper upsells.
Chicago ComparisonChicago Comparison
1.6M
.8M
Twice as manyjob seekers
MonsterCareerBuilderPrint/Online
Chicago ComparisonChicago Comparison
Advertisers get BOTH print and online for only $55 more
$360Print
&Online
$305Onlin
e Only
MonsterCareerBuilderPrint/Online
Sources: The Media Audit Dec ‘02-Jan ‘03; CareerBuilder net audience estimated with print sectional audience from Gallup Poll of Media Usage 2001 and online internal Sage measurement; Chicago job counts from 3/24/03, jobs posted in past seven days; CareerBuilder online jobs include newspaper upsells.
Blue Collar Job CountBlue Collar Job CountOver 75% of U.S. jobs
MonsterCareerBuilderPrint/Online
2,508
1,385
Blue Collar postingsin Chicago
Corzen, Inc. job counts for the week of 6/15/03
Blue Collar Job SegmentBlue Collar Job SegmentOver 75% of U.S. jobs
Continued Preprint GrowthContinued Preprint Growth
Preprint revenue up 31% past 5 years
$550M in 2002
+70% market share in many markets
Preprint revenue up 31% past 5 years
$550M in 2002
+70% market share in many markets
Continued Preprint GrowthContinued Preprint Growth
Market shareup 2% to 33%
Market shareup 4% to 71%
$227M Market $400M Market
New products – LA DistinctionNew products – LA Distinction
Luxury magazine targeting affluentLos Angelenos
September launch
Newsday DistinctionNewsday Distinction
Launched in 1996
High-end lifestyle magazine
Controlled circulation
Highly targeted: $150,000+
New products – RedEyeNew products – RedEye
RedEye on TargetRedEye on Target
Average reader is younger, more affluent than readers of Sun Timesor Chicago Reader
Over 170 new local accounts
Average reader is younger, more affluent than readers of Sun Timesor Chicago Reader
Over 170 new local accounts
Success in New YorkSuccess in New York
Success in New YorkSuccess in New York
#1 Spanish-language daily in New York
Daily circulation up 21%
91,000 daily circulation
#1 Spanish-language daily in New York
Daily circulation up 21%
91,000 daily circulation
Positioned for GrowthPositioned for Growth
Integrated print/online Help-Wanted products
Preprint investments paying off
Cost-efficient & demographically targeted new products
Integrated print/online Help-Wanted products
Preprint investments paying off
Cost-efficient & demographically targeted new products
Patrick MullenPresident, Tribune BroadcastingPatrick MullenPresident, Tribune Broadcasting
1991: 6 Stations
Building ScaleBuilding Scale
Building ScaleBuilding Scale 2003: 26 Stations in 22 top markets
8 of Top 10 Markets40% of U.S. Households
Tribune TV:Tribune TV:DistributionDistribution
Los Angeles
Chicago
Dallas
New York
Boston
PhiladelphiaWashington, D.C.
AtlantaSan Diego
Sacramento IndianapolisDenver
Miami
Houston
Hartford
Seattle
St. Louis
PortlandGrandRapids
Harrisburg
Albany
New Orleans
18 of Top 30
Growth Strategies Growth StrategiesTribune TV:Tribune TV:
Focus on Top 30 Markets
•54% of all TV households
•64% of spot revenue
Acquisitions
Tribune TV:Tribune TV: Growth Strategies Growth Strategies
Build 2-station Clusters
Existing markets
Focus on Top 30 Markets
St. LouisSt. Louis#22#22
IndianapolisIndianapolis#25#25
PortlandPortland#23#23
Television Group ExpansionTelevision Group Expansion
Growth Strategies Growth StrategiesTribune TV:Tribune TV:
Superstation WGN
National cable channel
Build 2-station Clusters
Focus on Top 30 Markets
Build 2-station Clusters
Growth Strategies Growth StrategiesTribune TV:Tribune TV:
Tribune Entertainment
Focus on Top 30 Markets
Superstation WGN
Barter Syndication
Leading Program BuyerLeading Program BuyerAccess to best syndicated Access to best syndicated showsshowsFlexible licensingFlexible licensing
Early & late fringe account for Early & late fringe account for over 40% of station revenueover 40% of station revenue
Benefits of ScaleBenefits of Scale5th Largest Station Group
Television Network Television Network
CPMCPMincreasesincreases
overover20%20%
BestBestof ANYof ANY
networknetwork
Year to dateYear to date
+17% Adults 18-34+17% Adults 18-34
+13% Adults 18-49+13% Adults 18-49
$710M in upfront sales$710M in upfront sales
Fastest growing network in November, Fastest growing network in November, February and May Sweeps! February and May Sweeps!
Tribune delivers over 50% ofTribune delivers over 50% of network’s prime-time audience network’s prime-time audience
Two-Station ClustersTwo-Station Clusters
SeattleSeattle New OrleansNew Orleans
HartfordHartfordIndianapolisIndianapolis
Two-Station Cluster AdvantagesTwo-Station Cluster Advantages
Shared facilitiesShared facilities
Backroom operationsBackroom operations
Cross-promotionCross-promotion
Coordinated sellingCoordinated selling
Two-Station Cluster AdvantagesTwo-Station Cluster Advantages
“Market Licenses”Provides flexibility to airProvides flexibility to airshows on either or both stationsshows on either or both stations
25%
35%
45%
'95 '96 '97 '98 '99 '00 '01 '02 '03
TV Group Cash Flow MarginsTV Group Cash Flow Margins
+ 8 pts. Since 1995
34%34%
42%42%
Valuable National AssetsValuable National Assets
57+ million homes57+ million homes
Dual revenue streamDual revenue stream
Valuable National AssetsValuable National Assets
Cross-selling Content Sharing Cross-promotion
$70M incremental revenue – over HALFfrom cross-media advertising sales in 2002
Creating Cross-media ValueCreating Cross-media Value
Dennis FitzSimonsPresident and CEODennis FitzSimonsPresident and CEO
Be a leader in TV consolidationExpand national footprintContinue to build two-station clustersGrow market share
Grow our newspaper businessLeverage brands, infrastructureWin in Classifieds: print and onlineCreate value with interactive
Continued financial discipline
Be a leader in TV consolidationExpand national footprintContinue to build two-station clustersGrow market share
Grow our newspaper businessLeverage brands, infrastructureWin in Classifieds: print and onlineCreate value with interactive
Continued financial discipline
Tribune StrategiesTribune Strategies
Ad Recovery PotentialAd Recovery Potential
Midyear Media ReviewJune 24, 2003 N e w Y o r kMidyear Media ReviewJune 24, 2003 N e w Y o r k