Viaplay Group Ab Class A · OMXSTO:VPLAY_A
Viaplay Group Ab Class A — Nordic Entertainment Group (NENT Group) — Q1 2019 Earnings Presentation
14 slides from Viaplay Group Ab Class A's earnings presentation, 2019
Slide 1: Results presentation Q1 2019
Results presentation Q1 2019 nentgroup
Slide 2: Q1 highlights
Q1 highlights 6% organic sales growth and 11% EBIT growth Organic sales growth for our business segments +6% EBIT before IAC also up when including higher central costs as being a separate and listed company Segmental EBIT growth +11% The strong Viaplay subscriber intake from Q4 continued into Q1 Vi
Slide 3: Consistent delivery - annual
consistent delivery - annual Net sales (SEKm) EBIT for combined business segments (SEKm) * 14,568 14,843 1,706 1,737 13,688 1,617 12,897 1,427 2016 2017 2018 LTM 2016 2017 2018 LTM studios advertising subscription & other broadcasting & streaming studios * Before central operations & IAC 3
Slide 4: Broadcasting & streaming
broadcasting & streaming SEKm Q1 2019 Q1 2018 Change Highlights Net sales 3,337 3,120 7% • Organic sales up 5% o/w advertising 964 946 2% • Driven by Viaplay, Swedish Radio as well as content o/w subscriptions 2,373 2,174 9% sublicensing deals Organic growth 5.2% 6.2% • Subscriptions & Other account
Slide 5: Subscription - performance
5 subscription - performance Total subscriber base Comments 2 310 • Viaplay added 99k subscribers vs Q418 and 155k vs 2 173 2 217 1 967 463 Q118 – strong intake and low churn 466 466 Viasat 3rd party 455 • Viaplay now represents 59% (55) of total base 490 505 493 Viasat DTC 512 • Additional 375k act
Slide 6: Advertising - performance
6 advertising - performance Key highlights Advertising revenues • Combined TV & Radio ad markets: All three Price Volume Revenues markets are estimated to have been down Up Down Down free-TV • TV advertising revenues down slightly with prices up but volumes down Price Volume Revenues • Viafree reven
Slide 7: Selected content highlights
selected content highlights Originals Acquired Sports 3 titles premiered in 2019 and 27 in total 14 more announced, of which 9 in 2019 20+ titles to be premiered each year 7
Slide 8: NENT Studios
NENT Studios SEKm Q1 2019 Q1 2018 Change Highlights Net sales 451 352 28% • Organic sales up 23% Organic growth 22.9% -0.6% • Internal sales accounted for 10% vs. 6% in Q118 EBIT -14 -24 42% • Double-digit growth for scripted drama, distribution EBIT margin -3.1% -6.8% +370 bps and for Splay One • E
Slide 9: Sales performance
sales performance Sales split Q119 Sales bridge Q119 NENT Studios 11% 41 3 727 Advertising 99 26% 199 3 452 18 63% Subscription & Others Q1 ’18 Advertising Subscriptions NENT Studios Central & Elims Q1 ’19 9
Slide 10: Financial overview
financial overview SEKm Q1 2019 Q1 2018 Change Comments Net sales 3,727 3,452 8% • 11% EBIT growth for combined business segments B&S EBIT 331 310 7% • EBIT before IAC up marginally Studios EBIT -14 -24 42% • Higher central costs from being a standalone and Segmental EBIT 317 286 11% listed company,
Slide 11: Cash flow and leverage
cash flow and leverage SEKm Q119 Q118 2018 SEKm Pre IFRS 16 Post IFRS 16 Cash flow from operations 245 292 1,496 LTM EBIT before IAC 1,548 1,562 Change in working capital -402 -650 -380 LTM D&A 238 315 Net operating cash flow -157 -358 1,116 LTM EBITDA before IAC 1,786 1,877 CapEx * -33 -55 -185 Net
Slide 12: Business outlook for 2019+
business outlook for 2019+ outlook organic growth positive segmental EBIT positive central operations EBIT approx. SEK -250m EBIT incl. central operations positive beyond 2019 transactional FX impact negative (approx. SEK 100m) normalised tax rate approx. 20% working capital outflow approximately in
Slide 13: Our investor proposition
our investor proposition a unique play on the Nordic streaming market a Nordic content champion with global appeal a successful track record & a winning team a clear capital allocation strategy 13
Slide 14: Follow us
ft nordic ‘entertainment gfoue Follow us t £ Yo in} @nentgroup iv) @nent_group _nentgroup.com
Nordic Entertainment Group (NENT Group) — Q1 2019 Earnings Presentation on 6ix