Viaplay Group Ab Class A · OMXSTO:VPLAY_A
Viaplay Group Ab Class A — Q1 2024 Earnings Presentation
25 slides from Viaplay Group Ab Class A's earnings presentation, Apr 23, 2024
Slide 1: Q1 2024 Results Presentation
Q1 2024 Results PRESENTATION 1
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER Important notice This presentation has been prepared for information purposes only. The presentation is not intended to form the basis of any investment activity or decision. The presentation should not be considered as a recommendation in relation to an investment in Viaplay Group,
Slide 3: Today's Speakers
Today’s Speakers Jørgen Madsen Enrique Patrickson Matthew Hooper Lindemann EVP, CFO, Head Of EVP and Chief Corporate President and CEO Strategy and M&A Affairs Officer 3
Slide 4: New reporting structure introduced
New reporting structure introduced UPDATED REPORTING STRUCTURE OLD REPORTING STRUCTURE CORE NON-CORE NORDICS INTERNATIONAL -Viaplay streaming subscription sales Total Net Sales -Viaplay subscription sales Viaplay subscription sales -Linear channel subscription sales -Linear subscription & other sale
Slide 5: Core operations performance
CORE OPERATIONS PERFORMANCE SALES BY CATEGORY 5.6% organic sales growth 11% 19% 44% EBIT (ex ACI & IAC) of SEK -270m 27% 4,850k Viaplay subscribers Viaplay streaming subscription sales Linear channel subscription sales Advertising sales Sublicensing & Other sales 5
Slide 6: Viaplay streaming subscription sales
VIAPLAY STREAMING SUBSCRIPTION SALES FORWARD FOCUS • -3.6% organic sales growth year-on- year (stable quarter-on-quarter) Actions to limit account sharing/piracy • Represents 44% of Core net sales • Price increases and growth in B2B offset by decline in D2C Partnership model development • Quarter-on
Slide 7: Actions on DTC package pricing
Actions on DTC package pricing (Converted to SEK) SEK Price dec 2022 Price increase Q1 2023 Price increase Q4 2023/2024 778 756 78 0 699 0 101 523 150 0 0 58 399 403 700 0 20 655 0 270 51 549 465 39 232 23 160 151 209 149 379 31 16 352 20 0 23 0 0 208 20 20 61 23 186 151 8 163 129 140 8 46 TM TMS TM
Slide 8: Linear channel subscription sales
LINEAR CHANNEL SUBSCRIPTION SALES FORWARD FOCUS • 3.0% organic sales growth • Represents 27% of Core net sales Launch of Sports News channels • Growth driven by extension of existing agreements at somewhat improved Product performance evaluation with terms distribution partners • Linear TV partnersh
Slide 9: Advertising sales
ADVERTISING SALES FORWARD FOCUS • -3.6% organic sales growth • Represents 19% of Core net sales Launch of HVOD ad funded tier • Growth within Digital advertising offset by continued decline in TV and Radio advertising Increase digital ad inventory • CSOV SE: 23.3% (24.6%) NO: 21.6% (20.3%) DK: 18.9%
Slide 10: Sublicensing & other sales
SUBLICENSING & OTHER SALES FORWARD FOCUS • 177% organic sales growth • Represents 11% of Core net sales Maximise ROI • Growth within both Sports- and Non- sports content distribution Showcase content portfolio • Strategic deals with Netflix & Amazon Strategic collaborations 10 RONJA – THE ROBBER’S D
Slide 11: Non-core operations performance
NON-CORE OPERATIONS PERFORMANCE • Transfer of Baltic subscriber base to TV3 Group Net sales of SEK 298m • Closed down D2C operations in the US and Canada in March EBIT of SEK -47m • UK transaction approved and closed on 4 April 1,624k subscribers • Poland to be closed-down in mid 2025 11
Slide 12: A unique content offer
A UNIQUE CONTENT OFFER Original content Scripted original drama Non-scripted series, movies and original series documentaries Yuichi Yamazaki/AFP/Ritzau Scanpix Live sports Scripted original drama series, movies and documentaries Acquired Acquired series movies © 2023 Sony Pictures Entertainment. Al
Slide 13: World class sports rights
WORLD CLASS SPORTS RIGHTS UEFA Europa Ice Internatio National League & FA Cup & Hockey nal Ultimate Internatio Soccer Women's UEFA Conferen English UEFA National World National Handball Fighting nal Ski National Frauen Gjensidig Premier Champion ce Champion Bundeslig European African Hockey Champion
Slide 14: Sports content: Q1 highlights and upcoming in Q2
SPORTS CONTENT Q1 highlights and upcoming in Q2 Q1 highlights Upcoming in Q2 14 Q1 HIGHLIGHTS AND UPCOMING IN Q2
Slide 15: Non-sports content: Q1 highlights and upcoming in Q2
NON-SPORTS CONTENT Q1 highlits and upcoming in Q2 Q1 highlights Upcoming in Q2 Note: Not in prioritized order 15 Q1 HIGHLIGHTS AND UPCOMING IN Q2
Slide 16: The Nordic region's leading entertainment provider
The Nordic region’s leading entertainment provider 1 2 3 • Re-focus top-line drivers • Improve return on content • Organisational restructuring investment ‒ Value over volume ‒ Sell/partner/close Baltics, ‒ Focus on commercially & Poland, UK, US & Canada, ‒ Increase D2C pricing to locally relevant c
Slide 17: What we want to achieve post 2024
What we want to achieve post 2024 Levers to enhance profitability and cash flow Long-term ambitions for Core Price increases Low to mid-single digit percentage revenue growth Content cost rationalisation Double-digit operating profit margins in five years Sports rights renewals and sublicensing Posi
Slide 18: Group income statement
Net Sales 4,757 4,537 18,567 Cost of Sales -4,460 -4,129 -17,265 SG&A -605 -747 -2,639 Other operating income & expenses -9 48 222 Operating Income (ex ACI & IAC) -317 -291 -1,115 Associated company income 32 10 63 Items affecting comparability -188 -44 -9,224 Operating Income -473 -325 -10,276 Net
Slide 19: Resetting the cost base
Resetting the cost base OpEx overview Indicative share of Group OpEx (%) Other 1 Sports: Tech 10% Majority of contracts locked in over multi-year periods Sales & Marketing 5% 5% Acquired content: Largest deals are locked in until 2025 Content 80% Originals: High visibility as amortised over 6 years
Slide 20: Allente results
SEKm Q1 2024 Q1 2023 FY 2023 Sales 1,649 1,646 6,610 • Solid start to 2024 with visible EBITDA before IAC 243 182 874 effects from efficiency initiatives Depreciation & amortisation -127 -131 -513 EBIT before IAC 116 51 361 • Revenues stable supported by Items affecting comparability -8 -1 -30 price
Slide 21: Group free cashflow
Group Free cashflow SEKm Non core 3) 3) Core EBIT Core WC cash drag Other net Group FCF -270 1) -900 Includes approx. SEK 1.2bn of total working capital swing 2) -376 16 -1.530 1) Includes SEK ~300m cash out related to IACs in 2023 2) Comprises EBIT of SEK -47m with balance being working capital eff
Slide 22: Cash flow and net debt
Cash flow from operations -764 -329 -1,442 • 100m dividend from Allente Change in working capital -757 -649 -1,906 Net operating cash flow -1,521 -978 -3,348 • Seasonal sports and non-sports payments typically for Q1 Capital expenditure -11 -58 -159 Other cash flow from • Net proceeds from the share
Slide 23: Free cash flow profile
Free Cash flow profile Free cashflow 2023 total operations 2024 total operations International exit markets 2024-2028 Neg. ~SEK 0.6-0.8bn Neg. ~SEK 0.6-0.8bn Neg. ~SEK 1.1-1.4bn Neg. ~SEK 1.4-1.6bn Neg. SEK ~1.7-2.2bn Neg. SEK ~2.2bn Neg. SEK -3.5bn 2023 cash flow 2024 international exit markets 202
Slide 24: 2024 outlook
Group Sales SEK 17.2-17.8 billion Group EBIT (ex IAC & ACI) Between loss of SEK 250 million and profit of SEK 50 million Negative SEK 1.7-2.2 billion, including Group free cash flow* negative SEK 0.6-0.8 billion for non-core operations *Cash flow from operating activities plus cash flow from investi
Slide 25: Q&A
25 Q&A Q1 2024 Results VIAPLAY SERIES: ALL AND EVA