Prosiebensat.1 Media Se · XETR:PSM
Prosiebensat.1 Media — Q2 2021 Earnings Presentation
34 slides from Prosiebensat.1 Media's earnings presentation, Aug 8, 2021
Slide 1: Q2 2021 results presentation
q2 2021 results presentation August 5, 2021
Slide 2: Agenda
AGENDA 1. Key Messages 2. Financial Overview 3. Operational Review 4. Strategy & Outlook © ProSieben/Willi Weber © ProSieben/Stefan Gegorowius 2
Slide 3: ProSiebenSat.1's business has recovered strongly in Q2 2021
PROSIEBENSAT.1’S BUSINESS HAS RECOVERED STRONGLY IN Q2 2021 Diversified strategy based on three strong segments continues to pay off: Dynamic Group revenue growth of 48% to EUR 1,048m in Q2 2021 vs. Q2 2020. Record LTM Q2 2021 Group revenues of EUR 4,399m. Entertainment segment with significant reco
Slide 4: COVID-19 and macro indicators reveal strong market recovery
COVID-19 AND MACRO INDICATORS REVEAL STRONG MARKET RECOVERY, ESPECIALLY IN Q2 2021 COVID-19 KPIS ARE IMPROVING RAPIDLY, WHILE MACRO INDICES INCREASED Completed COVID-19 vaccinations, Germany New COVID-19 cases, Germany In % In million 60 0.8 0.6 40 0.4 20 0.2 0 0.0 01/21 03/21 05/21 07/21 01/20 07/2
Slide 5: Dynamic Group revenue increase of +48% to EUR 1,048m in Q2 2021
DYNAMIC GROUP REVENUE INCREASE OF +48% TO EUR 1,048M IN Q2 2021 VS. Q2 2020 - ADVERTISING BUSINESS BIGGEST GROWTH CONTRIBUTOR External Revenues +48% +55% >+100% -2% Growth YoY [in EUR m] 1,048 709 736 476 139 176 172 58 External Revenues [in EUR m] Q2 2020 Q2 2021 Group revenues Q2 2020 Q2 2021 Ente
Slide 6: Agenda
AGENDA 1. Key Messages 2. Financial Overview 3. Operational Review 4. Strategy & Outlook © ProSieben/Willi Weber © ProSieben/Stefan Gegorowius 6
Slide 7: Strong Group revenue growth driven by recovery of advertising business
STRONG GROUP REVENUE GROWTH DRIVEN BY RECOVERY OF ADVERTISING BUSINESS IN Q2 2021 EXTERNAL REVENUES: GROUP & SEGMENTS [in EUR m] Comments • Strong recovery of Group revenues, Q2 2021 Q2 2020 YoY H1 2021 H1 2020 YoY highest second-quarter revenues in Group history. Group 1,048 709 +48% 1,986 1,634 +2
Slide 8: Adjusted EBITDA increased more than sevenfold in Q2 2021
ADJUSTED EBITDA INCREASED MORE THAN SEVENFOLD IN Q2 2021 ADJUSTED EBITDA: GROUP & SEGMENTS [in EUR m] Comments • Group adjusted EBITDA increases more Q2 2021 Q2 2020 YoY H1 2021 H1 2020 YoY than sevenfold to EUR 166m. • Profitability of Entertainment segment Group 166 23 >+100% 308 180 +71% strongly
Slide 9: Group net earnings up along with operating profitability
GROUP NET EARNINGS UP ALONG WITH OPERATING PROFITABILITY – POSITIVE IMPACT FROM ABOUT YOU EBITDA EBIT, NET INCOME, ADJ. NET INCOME, ADJ. OPERATING FCF [in EUR m] Comments • Reported EBITDA also increases more Q2 2021 Q2 2020 YoY H1 2021 H1 2020 YoY than sevenfold – about in line with adjusted EBITDA
Slide 10: We are on track to reach our financial leverage target
WE ARE ON TRACK TO REACH OUR FINANCIAL LEVERAGE TARGET NET FINANCIAL DEBT [in EUR m] Debt profile [in EUR m] 06/21 12/20 06/20 Maturity Senior Notes n/a 600 600 Jan-21 -197 Term Loan 151 151 151 Apr-23 RCF (74m of 750m) 35 Apr-23 3.6x1) 2.8x1) Promissory Loans 275 275 275 Dec-23 2,353 2.6x1) Term Lo
Slide 11: Agenda
AGENDA 1. Key Messages 2. Financial Overview 3. Operational Review 4. Strategy & Outlook © ProSieben/Willi Weber © ProSieben/Stefan Gegorowius 11
Slide 12: Entertainment | TV advertising market rapidly recovering from the pandemic
ENTERTAINMENT | TV ADVERTISING MARKET RAPIDLY RECOVERING FROM THE PANDEMIC NIELSEN GROSS ADVERTISING REVENUES BY MEDIUM, GERMANY H1 2021 spend in EUR bn Q2 2021 vs. PY H1 2021 vs. PY TV 7.4 27% 10% Print 3.9 6% -4% Online 2.1 16% 6% OOH 1.0 25% 1% Radio 0.8 16% -6% Cinema 0.1 -95% -100% Source: The
Slide 13: Entertainment | Significant improvement in most German TV advertising industries
ENTERTAINMENT | SIGNIFICANT IMPROVEMENT IN MOST GERMAN TV ADVERTISING INDUSTRIES TOP 15 TV ADVERTISING INDUSTRIES, YOY CHANGE IN GROSS AD SPEND1) H1 2021 spend in EUR bn Q2 2021 vs. PY H1 2021 vs. PY Cosmetics + Toiletries 1.0 64% 33% Services 0.9 -8% -10% Food 0.9 67% 22% Retail + Mail-Order 0.6 50
Slide 14: Entertainment | Strong catch-up effect of advertising revenues in Q2 2021
ENTERTAINMENT | STRONG CATCH-UP EFFECT OF P7S1’S ADVERTISING REVENUES IN Q2 2021 ENTERTAINMENT DACH ADVERTISING REVENUES, CHANGE YOY IN %1) +80% +60% +57% +40% +20% +3% 0% -5% -6% -20% -16% -40% -37% -60% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 • Strong improvement of Entertainment advertisi
Slide 15: Entertainment | ProSiebenSat.1 is leading the German TV market
ENTERTAINMENT | PROSIEBENSAT.1 IS LEADING THE GERMAN TV MARKET NIELSEN GROSS ADVERTISING AUDIENCE SHARE REVENUE SHARE, LTM Q2 20211) A 14-49, LTM Q2 20212) ProSiebenSat.1 Group: 37.6% ProSiebenSat.1 Group: 26.2% Other ARD/ZDF Seven.One Other 7.8% Media 10.1% Sky 3.5% 19.9% 4.1% 7.7% Discovery 6.3% 3
Slide 16: Entertainment | Continuing consistent local content strategy
ENTERTAINMENT | CONTINUING CONSISTENT LOCAL CONTENT STRATEGY TO MAINTAIN LONG-TERM REACH MAIN ACHIEVEMENTS IN Q2 2021 We further invest in attractive and relevant content to strengthen our reach across all platforms: • Focus on live content e.g., German First and Second soccer league Bundesliga, For
Slide 17: Entertainment | TV is getting more digital
ENTERTAINMENT | TV IS GETTING MORE DIGITAL – UNIQUE COMBINATION OF PROPRIETARY INVENTORY, TECH & DATA CONVERGENT LINEAR AND DIGITAL INVENTORIES Addressable TV / VoD Linear TV Convergent video HbbTV Digital video 61m 12m 11m Convergent video advertising products TV devices1) TV devices2) Unique Users
Slide 18: Dating | Successful vPaaS commercialization
DATING | SUCCESSFUL VPAAS COMMERCIALIZATION TO SUPPORT FUTURE SEGMENT DEVELOPMENT VIDEO-PLATFORM-AS-A-SERVICE (VPAAS) RAISES GROWING INTEREST vPaaS used or in Technology Moderation Talent development by eight Continued 500+ human Management brands, including: investments in moderators 30-person soft
Slide 19: Commerce & Ventures | Strong recovery driven by rebound of corona-impacted businesses
COMMERCE & VENTURES | STRONG RECOVERY DRIVEN BY REBOUND OF CORONA-IMPACTED BUSINESSES COMMERCE & VENTURES ORGANIC REVENUES, CHANGE YOY IN %1) +20% +18% +10% +10% +9% +7% 0% -1% -5% -10% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 • Improved double-digit % organic revenue growth of Commerce & Ven
Slide 20: Commerce & Ventures | Four successful investments in Q2 2021
COMMERCE & VENTURES | FOUR SUCCESSFUL INVESTMENTS IN Q2 2021 SEED & EARLY STAGE EARLY & GROWTH STRATEGIC GROWTH follow-on follow-on new deal M4E and M4R Follow-on deal with leading Follow-on M4E deal with Cash and M4E deal with provider of children’s leading marketplace for leading European sports s
Slide 21: Agenda
AGENDA 1. Key Messages 2. Financial Overview 3. Operational Review 4. Strategy & Outlook © ProSieben/Willi Weber © ProSieben/Stefan Gegorowius 21
Slide 22: Strategy | Group profile increasingly determined by structurally growing businesses
STRATEGY | GROUP PROFILE INCREASINGLY DETERMINED BY STRUCTURALLY GROWING BUSINESSES - DEPENDENCY ON TV AD BUSINESS REDUCED FURTHER ENTERTAINMENT Group revenues, Group revenue split ENTERTAINMENT • Operates leading Entertainment platforms LTM Q2 2021, in % COMMERCE & in linear and digital by leveragi
Slide 23: Strategy | Revenues and adj. EBITDA of Dating and Commerce & Ventures steadily increased
STRATEGY| REVENUES AND ADJ. EBITDA OF DATING AND COMMERCE & VENTURES BUSINESS HAD STEADILY INCREASED – ENTERTAINMENT WITH CATCH-UP POTENTIAL GROUP AND SEGMENT REVENUES IN EUR M GROUP AND SEGMENT ADJUSTED EBITDA IN EUR M CAGR: +4% CAGR: +18% 4,399 4,135 4,047 872 9271) 834 9101) 1162) 9451) 44 882) 2
Slide 24: Financial outlook | We have increased our financial targets for FY 2021
FINANCIAL OUTLOOK | WE HAVE INCREASED OUR FINANCIAL TARGETS FOR FY 2021 FY 2020 FY 2021 target Comment • Target takes DACH advertising revenue development in the range of +3% (previously: -2%) to +7% (previously: +4%) in 2021 into account EUR 4,400 – 4,500m • Portfolio- and currency-adjusted revenue
Slide 25: Summary | ProSiebenSat.1 will continue its path towards profitable growth
SUMMARY | PROSIEBENSAT.1 WILL CONTINUE TO FOLLOW ITS PATH TOWARDS PROFITABLE GROWTH ProSiebenSat.1 has a unique business model and is much more than a pure media company by combining Entertainment, Dating and Commerce assets that together deliver above-average growth. All segments are set for furthe
Slide 26: Appendix
Appendix
Slide 27: Group P&L
GROUP P&L [in EUR m] Q2 2021 Q2 2020 YoY H1 2021 H1 2020 YoY Revenues 1,048 709 +48% 1,986 1,634 +22% Adjusted EBITDA 166 23 >+100% 308 180 +71% Reconciling items -15 -2 >+100% -19 -14 +41% EBITDA 151 21 >+100% 289 166 +74% Depreciation, amortization and -68 -57 +19% -126 -121 +4% impairments Thereo
Slide 28: Entertainment business has benefited greatly from recovery in the advertising market
ENTERTAINMENT BUSINESS HAS BENEFITED GREATLY FROM RECOVERY IN THE ADVERTISING MARKET EXTERNAL REVENUES AND ADJUSTED EBITDA [in EUR m] Comments • Advertising business both in DACH region Q2 2021 Q2 2020 YoY H1 2021 H1 2020 YoY as well as globally benefited from significant recovery following pronounc
Slide 29: Dating segment benefits from first-time consolidation of TMG
DATING SEGMENT BENEFITS FROM FIRST-TIME CONSOLIDATION OF TMG AND ITS LIVE VIDEO BUSINESS EXTERNAL REVENUES AND ADJUSTED EBITDA [in EUR m] Comments • Dating segment revenues primarily Q2 2021 Q2 2020 YoY H1 2021 H1 2020 YoY increase due to first-time consolidation effect resulting from The Meet Group
Slide 30: Commerce & Ventures segment with strong organic growth of +18% in Q2
COMMERCE & VENTURES SEGMENT WITH STRONG ORGANIC GROWTH OF +18% IN Q2 EXTERNAL REVENUES AND ADJUSTED EBITDA [in EUR m] Comments • Commerce & Ventures segment delivered Q2 2021 Q2 2020 YoY H1 2021 H1 2020 YoY stable revenue performance in Q2 2021. This takes into account deconsolidation of External Re
Slide 31: Group and segment revenue breakdown Q2 2021 vs. Q2 2020
GROUP AND SEGMENT REVENUE BREAKDOWN Q2 2021 VS. Q2 2020 EXTERNAL REVENUES [in EUR m] Entertainment Dating Commerce & Ventures Total Group Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Advertising 542 350 34 24 576 374 DACH1) 483 308 34 24 517 332 Rest of the World 59 42 59 42 Distr
Slide 32: Group and segment revenue breakdown H1 2021 vs. H1 2020
GROUP AND SEGMENT REVENUE BREAKDOWN H1 2021 VS. H1 2020 EXTERNAL REVENUES [in EUR m] Entertainment Dating Commerce & Ventures Total Group H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Advertising 983 860 65 56 1,047 916 DACH1) 874 773 65 56 939 829 Rest of the World 108 87 108 87 D
Slide 33: Disclaimer
DISCLAIMER This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media SE ("ProSiebenSat.1") or ProSiebenSat.1 Group, including opinions, estimates and projections regarding ProSiebenSat.1's or ProSiebenSat.1 Group's financial position, business strategy, plans and objecti
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Prosieben Sat 1 Media — Q2 2021 Earnings Presentation on 6ix