30 Aug 2021

FY21 RESULTS ANNOUNCEMENT

Sports Entertainment Group Limited | ABN 20 009 221 630 | P (03) 8 825 6600 | sportsentertainmentnetwork.com.au Level 5, 111 Coventry Street, SOUTHBANK VIC 3006 FY 2 1 FINANCIAL RESU LT S Sports Entertainment Group Limited ( SEG ) today announced its financial results for the fiscal year end ed 30 June 20 2 1 ( FY 2 1 ) . A summary of the results and outlook c ommentary is provided below . For further detail please refer to the Appendix 4E. 1. FY 2 1 Result Commentary FY 2 1 revenue 1 of $ 73 . 7 million was up 10. 4 % and underlying EBITDA 2 of $ 9 . 4 m illion was up 109.6 % on the prior corresponding period ( pcp ), respectively. The table below reconcil es FY 2 1 underlying EBITDA 3 to the pcp . ($ million) FY21 FY20 Variance ($) Variance (%) Total Revenue 73. 7 66.8 6.9 10. 4 % Operating Expenses 6 2 . 6 65.9 - 3 . 3 - 5 . 0 % EBITDA 1 1 . 1 0.9 10. 2 11 34 . 3 % + Restructuring costs / abnormal items - 0.7 0.3 - 1.0 - 325.7% + Non - cash impairment of intangibles (COVID - 19 impact) 0.0 3.4 - 3.4 - 100.0% + Non - cash loss on disposal of intangibles (Nine Radio Syndication) 0.0 1.6 - 1.6 - 100.0% + Non - cash loss on disposal of intangibles (1377AM) 0.7 0.0 0.7 n/a Underlying EBITDA 1 1 . 1 6.2 4. 9 7 9 . 4 % Underlying EBITDA (pre AASB16) 9.4 4.5 4.9 109.6% Totals may not reflect ar ithmetic addition due to rounding Media revenue was 24% up on the pcp reflecting positive returns from recent investment s in organic and acquisitive growth initiatives , while Commercial Radio Australia reported a 2.4% decline in metropolitan radio advertising revenues on the pcp. The graph below illustrates the strength of SEG’s recovery from the acute impacts of the COVID - 19 pandemic experienced last year compared to SEG’s industry peers. Radio remains highly relevant for people, and its resilience particularly in and around sport, where Australians have again been starved of the opportunity to follow their teams and experience their sporting passions live at stadiums and venues. 1 From continuing operations 2 Pre - AASB16 from continuing operations and excluding restructuring, transaction, and abnormal costs 3 Excluding restructuring, transaction, and abnormal costs 40 50 60 70 80 90 100 110 120 Jul - Dec 2019 Jan - Jun 2020 Jul - Dec 2020 Jan - Jun 2021 Revenue Performance (Index rebased to 100) Peer 1 Peer 2 Peer 3 Peer 4 SEG (media) Sports Entertainment Group Limited | ABN 20 009 221 630 | P (03) 8 825 6600 | sportsentertainmentnetwork.com.au Level 5, 111 Coventry Street, SOUTHBANK VIC 3006 Complementary services revenue was down 48% on the pcp, hampered by the continual disruption of the lockdowns across Australia. SEG received $3.3 million of government JobKeeper support funding in the first half of FY21 and pleasingly did not meet the eligibility criteria in the second half of the year. Operating costs were down $3.3 million on the pcp, reflecting operational cost efficiencies identified during the year while also allowing for continued investmen t in strategic growth initiatives. FY 2 1 cash flow from operating activities was $ 6.6 m illion and underlying EBITDA to ungeared pre - tax operating cash flow 4 conversion was 92 .8 % . FY 2 1 n et debt was $ 11.2 million , up from $ 7 . 1 million in the pcp and represented underlying EBITDA 5 leverage of 1 . 2 x. During the period, SEG : - funded $ 3.5 million of office , broadcast studio fit - out and transmitter site capital expenditure ; - acquired a $1.8 million state - of - the - art TV broadcast truck, further enhancing its Rainmaker division’s service capabilities; - funded acquisitions totaling $ 9.7 m illion of radio licences including 1170AM 2CH Sydney, 1539AM Sydney, 1593AM Melbourne and 90.7FM Darwin , partially offset by the divestment of 1377AM 3MP Melbourne for $4.5 million ; and - successful ly raised $1.5 m illion through a pro - rata non - renounceable rights offer to eligible shareholders at $0.225 per share. SEG has renewed its existing financing facility of $ 28.6 million with the Commonwealth Bank of Australia for a further three - year term expiring in August 2024 . $ 12.0 m illion of undrawn financing facilities were available as at 30 June 20 2 1 . 2. Strateg ic Initiatives Update In the last 18 months , SEG has expanded from a two owned - station network in Melbourne to a 24 owned - station network spanning all capital cities and key regional towns across Australia. The national footprint of SEG’s owned station network now consists of: - 8 SEN branded stations – Sports/Talk - 1 6 SENTrack branded stations – Racing, Chasing and Pacing - 5 SEN branded app channels - SEN Spirit – Sports/Music/Talk - 2CH DAB+ - Classic Hits music Subsequent to FY2 1 , SEG: - has launched SENZ – New Zealand’s Home of Sport which can be heard on 28 stations across the North and South island regions ; and - signed an agreement on 1 July, 2021 to acquire 100% the Perth Wildcats basketball team and the transaction was completed on 9 August, 2021. The acquisition aligns with SEG’s “Whole of Sport” strategy and provides a significant revenue contribution and positive earnings to the Group. Over the last three years, SEG has now invested in $42.3 million in strategic acquisitions , largely funded by o perating cashflows and divested non - core assets of $6.9 million creating a suite of operating assets with long - term growth in strategic value. SEG will c ontinue t o identify opportunities to build a unique multi - national sports media and entertainment business across multi - media platforms (radio, TV, print, digital), sports team ownership and complementary services. 4 Pre - AASB16 from continuing operations and excluding restructuring, transaction, and abnormal costs 5 Pre - AASB16 from continuing operations and excluding restructuring, transaction, and abnormal costs Sports Entertainment Group Limited | ABN 20 009 221 630 | P (03) 8 825 6600 | sportsentertainmentnetwork.com.au Level 5, 111 Coventry Street, SOUTHBANK VIC 3006 Sports Entertainment Group Limited | ABN 20 009 221 630 | P (03) 8 825 6600 | sportsentertainmentnetwork.com.au Level 5, 111 Coventry Street, SOUTHBANK VIC 3006 3. Trading Update and Outlook Commentary Revenue for July and August 202 1 was up approximately 50 % on pcp (excluding any government funding support). The media segment performed strongly with 4 0% growth on pcp (versus industry growth of 19.3%) and complementary services also improved by 1 17 % on pcp as a result of capitalizing on opportunities in jurisdictions that have been impacted less significantly by lockdown restrictions across Australia. SEG is budgeting to continue the strong revenue recovery and positive EBITDA achieved in FY21 whilst continuing to invest in future growth in FY2 2 . Management will closely monitor the continued volatility of the COVID - 19 pandemic and associated impact on economic conditions both in Australia and New Zealand . For more details please contact: Craig Hutchison Chris Tan Managing Director Chief Financial Officer Sports Entertainment Group Limited Sports Entertainment Group Limited (03) 8825 6600 (03) 8825 6600 E - mail: info@ sportsentertainmentgroup .com.au Internet: http://www.sportsentertainmentnetwork.com.au About Sports Entertainment Group Limited Sports Entertainment Group Limited is a sports media content and entertainment business, which through its other complementary business units, has capabilities to deliver “Whole of Sport” solutions for brands to national, metropolitan and regional audiences with unique and exclusive content via multiple plat forms including radio, print, television, online, in - stadium and events.

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