DMGT INVESTOR BRIEFING 1 February 2018

Transcription

1 DMGT INVESTOR BRIEFING 1 February 2018 Martin Clarke, Publisher Rich Caccappolo, COO Katherine Thomson, US Editor Deborah Arthurs, Metro.co.uk Editor 1

2 Ten years on, MailOnline has grown tremendously Today 15M readers daily on the site 1,500 articles posted daily c.800 employees 4 offices globally 119m revenue 560 videos posted daily 250M video views monthly 10M Snapchat readers daily Revenue refers to FY Traffic and content figures refer to the MailOnline website. Snapchat figure refers to readers of MailOnline s content on Snapchat (source: Snapchat). Employees show full time equivalents. Absolute number of individuals is higher, including part-time staff. 2

3 Evolution of the site over 10 years 3

4 Our Home Page on Smartphones Users are offered choice; 80% choose Classic Home page 4

5 Millions MailOnline and Metro.co.uk growing audience MailOnline and Metro.co.uk Combined average daily unique visitors October-December 15.7m 15.8m Traffic source: Omniture unique browsers

6 Direct traffic daily homepage entry and app UK US Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec Australia 0.2 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec Visits (Millions) Unique visitors (Millions) Shows average daily unique visitors and visits direct to the homepage or using the app Traffic source: Omniture, December 2014-January

7 Average daily UK direct homepage and app visits 6.87M Combined average weekday visits 3.58M 3.28M Homepage App UK revenue generated from direct to homepage and app traffic is 6X revenue via traffic from Google and 14X revenue via traffic from Facebook Traffic source: Omniture, October-December Revenue statistic refers to FY 2017; direct traffic includes visitors from search engines who search MailOnline or DailyMail specifically. 7

8 Millions Homepage visits to UK sites 300 Total minutes per month spent visiting the UK homepage Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 MailOnline BBC The Sun The Guardian Source: comscore. Note comscore only reports on Guardian UK News page. No comscore data available for The Sun for Jul 17 and Aug 17. 8

9 Millions Total minutes spent on UK sites 1,400 1,200 1, MailOnline The Sun Online The Guardian Mirror Online Telegraph.co.uk Times Online Source: Press Gazette, December Note: Includes traffic to all pages of the site, not just the homepage, and includes time spent on apps. 9

10 Great editorial content... readers are loyal and addicted Need screenshot from video 10

11 Real-time proprietary metrics systems 11

12 Millions Facebook: c.1 billion video views monthly 1,800 Total views of MailOnline videos on Facebook 1,600 1,400 1,200 1, Source: Facebook Partners Insight Dashboard 12

13 Millions Global revenue growth FY 2008 FY M 80 93M 60 62M 73M M 28M 16M 6M 7M 10M FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 13

14 Increasing revenue per page despite move to programmatic MailOnline embraced programmatic Opportunity: stop running unsold or low priced ad space Impact: both revenue and overall yield per page have increased, despite shift to mobile, with fewer ads and less targeting capability Revenue per page MailOnline US 20% p.a. Average growth by adapting our infrastructure and processes Increasing the competition for ads Speeding up auctions and load times, winning bidders presented faster Using data to identify buying trends, raising minimum prices accordingly Jan'16 Apr'16 Jul'16 Oct'16 Jan'17 Apr'17 Jul'17 Oct'17Dec'17 Note: Page views include all platforms and page types includes homepages, channel landing pages, articles and galleries (excluding App image page views) 14

15 Revenue growth through partners: Snapchat 15

16 Revenue growth through partners: Snapchat DailyMail is the leading global title on Snapchat and the most-read title in the US, UK and Australia Daily, limited selection of stories Targets a younger demographic than website Stories and videos re-edited and aggregated by dedicated team of subeditors and designers Average daily readership >10M Just under 33% of Snapchat Discover s total daily audience consumes the DailyMail story daily; 50% over the course of a month Average daily Snapchat unique visitors and Top Snap views Top Snap views (Millions) Unique visitors (Millions) Jun'16 Sep'16 Dec'16 Mar'17 Jun'17 Sep'17 Jan'18 Source: Snapchat. Note: Top Snap s are animated images that attract readers to read a story. Users swipe up on Top Snap s to view attached articles 16

17 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Millions Daily homepage entry, App and Snapchat traffic Snapchat impact Shows total daily average unique visitors globally (Homepage entry & App unique browsers + Snapchat unique viewers). 17

18 DailyMailTV Sizzle Reel 18

19 DailyMailTV Exclusives 19

20 DailyMailTV behind the scenes 20

21 Strong TV ratings since launch 1.50 Household Ratings (Millions) Source: Nielsen combined weighted averages.. 21

22 Discount codes: strong traffic and revenue momentum shows MailOnline can be used to launch digital businesses 4 3 November 2017 >540 retailers signed up >300k transactions generating 25m in sales for retailers c. 0.7m in total commission earnt; c. 0.3m revenue for MOL On track to generate 2M revenue in FY18 * 2 Organic search 1 Launch 0 * Traffic (Millions of Sessions) From MOL / Metro 22

23 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Average daily unique visitors (Millions) Total time spent per month (Millions of minutes) Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Average daily unique visitors (Thousands) Metro.co.uk is now Britain s fastest growing news website Traffic direct to Metro.co.uk Audience primarily millennial, dominated by mobile and growing fast! Increased investment in editorial in FY18 Leverages the same programmatic stacks as MOL with identical ad formats Total Metro.co.uk traffic Source: Omniture.. 23

24 24

25 Growth will come through our commitment to market-leading content, new channels and brand extension c.600 digital-only journalists globally writing 24/7, publishing content that delivers 92% of page impressions Expand to new content areas to fill gaps during content recession, including sport & travel Leverage our scale to populate content of sub-brands, including Metro Data and analytics are key Licensing agreements with Dr Phil, MSN and partners E-commerce, including discount codes In the future proprietary, special interest content could sit behind a paywall, or generate subscription revenue 25

26 Millions Global revenue growth FY 2008 FY M 80 93M 60 62M 73M M 28M 16M 6M 7M 10M FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 26

27 QUESTIONS? 27

28 APPENDIX 28

29 Success through consistent application of core principles Create addictive & timely content; use data and analytics to tell us what is working 1,500 new stories/day Home page refresh 96/day Make front door traffic & engagement our #1 priority 4.8M+ direct readers per day globally averaging 12 minutes per visit, 2x per day, across desktop & mobile Pursue scalable, profitable growth Reinforce core DailyMail brand across channels 29

30 A disciplined, selective approach to investment in trends TRENDS WE AVOIDED MOL INVESTMENT multi-million dollar video production to summarise content podcasts scaled native ad team site redesign to accommodate mobile for Google / new platforms (Flipboard) over-reliance on 3 rd parties for distribution or traffic intrusive ad formats and aggressive viewability demands unprofitable JVs and partnerships paywall for general interest content cheap, scalable video that tells stories originally content to drive direct traffic to desktop & mobile home pages programmatic ad team scalable, commercially attractive JVs & partnerships discount codes 30

31 Growing engagement 23 Global average page views per month per unique visitor Source: Omniture.. 31

32 Monetisation through licensing DailyMail TV Launched in September / 50 JV with Dr Phil Jesse Palmer of Good Morning America presenting Top-rated rookie show of 2017 season Viewed by 1.5M Americans per day; available to 99% of US public Pre-emptively renewed for 2 nd season by stations representing 85% of the US...leveraging DailyMail brand, content and analytics Represents core DailyMail product and is fully integrated into DailyMail.com Leverages same analytics & metrics for content selection as web properties Hold back our biggest US exclusives to break them on the air Web editorial staff directly contributes to daily TV segments 32

33 MailOnline is well-positioned to continue to expand into new areas and grow profitably Market-leading traffic and engagement with plenty of growth runway in the US, Australia and rest-ofworld Strong and growing direct traffic while garnering a healthy share of partners advertising dollars (Google, Facebook) Revenue diversification leveraging core DailyMail brand & proprietary content, promoting brand into new mediums such as TV Disciplined investment approach prioritises large, scalable opportunities; avoids distraction from passing fads Partnership strategy to work with many, but depend on none; direct traffic and engagement takes priority 33