Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Investor Presentation (2017)
52 slides from Modern Times Group Mtg Ab Class A's investor presentation, 2017
Slide 1: Nordic Entertainment
Nordic | Entertainment
Slide 2: Today's agenda
Today’s agenda Recap from last year Today and our position going forward Future growth drivers Our content Future outlook
Slide 3: Recap from last year
Recap from last year: Strong VOD growth to continue Strong Viaplay customer momentum Viaplay loyalty increasing VOD platforms at industry forefront More VOD exclusive content than ever The power of a Nordic media house Digital innovation This is just the beginning… Recap from last year Our position
Slide 4: Today's agenda
Today’s agenda Recap from last year Today and our position going forward Future growth drivers Our content Future outlook
Slide 5: Video entertainment spending is rising
Video entertainment spending is rising Nordic TV market (BSEK) +8% CAGR 62.2 58.4 53.8 49.8 EST TVOD AVOD SVOD Free TV Pay TV 2014 2015 2016 2017 Source: Mediavision, Zenith, IHS, PwC, IRM, Ovum, MTG analysis Recap from last year Our position going forward Future growth drivers Our content Future ou
Slide 6: And on-demand is the driver
And on-demand is the driver 12.8 Nordic video-on-demand market (BSEK) +34% CAGR 10.2 7.4 TVOD EST 5.3 AVOD SVOD 2014 2015 2016 2017 Source: Mediavision; Annual & industry reports Recap from last year Our position going forward Future growth drivers Our content Future outlook 6
Slide 7: 2017 has been a great year
2017 has been a great year Revenue EBIT MSEK MSEK +11% +15% +13% +3% +22% +38% 2016 2016 2017 2017 Q1 Q2 Q3 Q1 Q2 Q3 Recap from last year Our position going forward Future growth drivers Our content Future outlook 7
Slide 8: How is this possible?
How is this possible? Recap from last year Our position going forward Future growth drivers Our content Future outlook 8
Slide 9: Strong underlying performance
Strong underlying performance Financial performance Financial performance Revenue (MSEK) EBIT (MSEK) +10% 9.6% +4% CAGR +21% CAGR +1% CAGR 11,846 CAGR 11,138 11,139 10,487 10,807 10,260 5 065 4 866 4 762 4 600 4 656 1 565 1 339 1 405 1 370 1 299 6 272 6 781 5 660 5 831 6 045 2014 2015 2016 R12M 16 R
Slide 10: Rapid digital growth
Rapid digital growth Started streams Started streams BTV subs +25% +25.1% +42% +46.5% +46% +46.4% +4% +3.8% +68% +68.2% +53% +54.0% 2015 2016 R12M R12M 2015 2016 R12M R12M 2015 2016 R12M R12M 16 17 16 17 16 17 Recap from last year Our position going forward Future growth drivers Our content Future o
Slide 11: But, there is no lack of challenges
But, there is no lack of challenges Recap from last year Our position going forward Future growth drivers Our content Future outlook 11
Slide 12: Decline of linear viewing
Decline of linear viewing Indexed PUT and market price PUT Price 140 120 100 80 60 40 20 0 2012 2013 2014 2015 2016 2017 H1 Note: Commercial PUT 3+ Recap from last year Our position going forward Future growth drivers Our content Future outlook 12
Slide 13: Satellite erosion?
Satellite erosion? PTV subscribers PTV revenues (excl. Viaplay) (incl. Viaplay) -3% CAGR +9% CAGR 2015 Q3 2016 Q3 2017 Q3 2015 Q3 2016 Q3 2017 Q3 Recap from last year Our position going forward Future growth drivers Our content Future outlook 13
Slide 14: Sports remain paramount but high cost inflation
Sports remain paramount but high cost inflation Recap from last year Our position going forward Future growth drivers Our content Future outlook 14
Slide 15: Our sports rights portfolio is unique
Our sports rights portfolio is unique National National Soccer Hockey Leagues Leagues 2021 2019 2024 2018 2018 2018 2018 2021 2022 2018 2018 2021 2024 2022 2026 2024 2021 2019 2024 2018 2018 2018 2018 2021 2022 2018 2018 2021 2024 2021 2021 2019 2024 2018 2018 2018 2018 2021 2022 2018 2018 2021 2024
Slide 16: 25 year relationship with UCL is the model
25 year relationship with UCL is the model Engaging content Promotional clips Use of host, Engaging content commentators and experts profiles All 8 games broadcasted Instant highlight feed 1 Game on Free-TV with pre- and post studio All 8 games Creative sales/ broadcasted Editorial integration Insta
Slide 17: Today's agenda
Today’s agenda Recap from last year Today and our position going forward Future growth drivers Our content Future outlook
Slide 18: Benefits of being a unique Nordic Power House
Benefits of being a unique Nordic Power House Norway Sweden Pay TV XVOD Pay TV XVOD Free TV AVOD Free TV AVOD Radio Radio Denmark Finland Pay TV XVOD Pay TV XVOD Free TV AVOD AVOD Recap from last year Our position going forward Future growth drivers Our content Future outlook 18
Slide 19: Utilisation case 1
Utilisation case 1 Familien fra Bryggen (Unique viewers) +55% Viaplay Viafree Free TV 2013 2016 Season 3 Season 9 Recap from last year Our position going forward Future growth drivers Our content Future outlook 19
Slide 20: Utilization case 2
Utilization case 2 15 hours pre-talk live nonstop on TV3 2.25 million views on Viasport.se All time high record sales Number of sold PPV +227.2% +227% 499 SEK/PPV 299 SEK/PPV The Nordic Rumble MayMac 24 Feb 2017 26 Aug 2017 Recap from last year Our position going forward Future growth drivers Our co
Slide 21: Utilization case 3
Utilization case 3 Swedish Dicks Produced by Nice’s Brain Academy Season 2 First window launch on premiere on Viaplay Viaplay (Sep 2016) Re-run of Season 1 on FTV Second window ahead of Season 2 premiere on TV3 launch on (May 2017) Viaplay Sold to Pop Sold to Networks in US Lionsgate (80M households
Slide 22: Viaplay video
Viaplay video
Slide 23: Unique offering through all digital windows
Unique offering through all digital windows SVOD Cinema EST TVOD SVOD TVE Sports Local players iTunes iTunes Telcos & PayTV operators Local players Local players Local players Local players Recap from last year Our position going forward Future growth drivers Our content Future outlook 23
Slide 24: Cutting edge technology & enhanced user experience
Cutting edge technology & enhanced user experience Best in class software development practise (200 in-house engineers) 1,500+ product updates in 2017 Latest video platform supporting 4K content Europe’s premier live platform with 15,000 live events/year Maximum reach across consumer electronic devi
Slide 25: 5x growth in 4 years
5x growth in 4 years Viaplay revenue and subs growth (indexed from 2013Q3, based on subs outgoing balance) 500 Revenue 400 Subs 300 x5.0 200 x3.2 100 0 2013 Q3 2017 Q3 Recap from last year Our position going forward Future growth drivers Our content Future outlook 25
Slide 26: Subscribers are watching more & more
Subscribers are watching more & more Number of started streams per quarter (indexed) +8x 2013 Q3 2017 Q3 Recap from last year Our position going forward Future growth drivers Our content Future outlook 26
Slide 27: With lower churn & higher satisfaction
With lower churn & higher satisfaction Annual Churn NPS (indexed from 2013Q1, TM only) (weighted per country and indexed from 2016Q1) 100 30 TM Sport 25 80 20 15 60 10 40 5 0 20 -5 0 -10 2017Q2 2016Q2 2016Q4 2017Q3 2016Q1 2016Q3 2017Q1 2017Q2 2013Q2 2015Q2 2013Q4 2015Q4 2016Q2 2014Q2 2016Q4 2014Q4 2
Slide 28: Viafree video
Viafree video
Slide 29: Viafree is millennial TV
Viafree is millennial TV Recap from last year Our position going forward Future growth drivers Our content Future outlook 29
Slide 30: Sales outgrowing streams as pricing adjusts
Sales outgrowing streams as pricing adjusts Started streams Revenue +25% +31% +4% +12% 2015 2016 R12M R12M 2015 2016 R12M R12M 2016 2017 2016 2017 Recap from last year Our position going forward Future growth drivers Our content Future outlook 30
Slide 31: Viafree is the natural evolution of Free-TV
Viafree is the natural evolution of Free-TV 96% Completed 91% Viewable 100% Impression Bundled with Free TV Outstanding online viewability Programmatic Recap from last year Our position going forward Future growth drivers Our content Future outlook 31
Slide 32: Enabling new high-potential partnerships
Enabling new high-potential partnerships Distribution partners Sales/content partners Recap from last year Our position going forward Future growth drivers Our content Future outlook 32
Slide 33: A powerful combination
A powerful combination completes the customer journey A15-35 “Power Family” “Characters & personalities” Film Kids Upsell Entertainment & Premium Engagement TV series Sports Reality Subscription-based Advertising-based Viaplay originals & Mobile-first exclusives Recap from last year Our position goi
Slide 34: Radio 2.0
Radio 2.0 Switch from FM to DAB National Radio Licenses Current RIX New national FM coverage license coverage 82% 68% Recap from last year Our position going forward Future growth drivers Our content Future outlook 34
Slide 35: Future is bright for audio
Future is bright for audio Radio ad market MSEK +13% 15% Growing New digital CAGR 963 848 760 consumption opportunities 2015 2016 2017 Recap from last year Our position going forward Future growth drivers Our content Future outlook 35
Slide 36: Distribution remains key
Distribution remains key 36 Recap from last year Our position going forward Future growth drivers Our content Future outlook 36
Slide 37: Today's agenda
Today’s agenda Recap from last year Today and our position going forward Future growth drivers Our content Future outlook
Slide 38: Content video
Content video
Slide 39: Multi-layered partnerships with Hollywood majors
Multi-layered partnerships with Hollywood majors Platform offering Studio deal Multi-layered solution Each platform requires Facilitating all MTG Layering acquired content specific content platform needs in one across platforms to ensure studio deals platform fit & enable strong profitability Recap
Slide 40: Utilizing strong partnerships to drive nextgen TV viewing
Utilizing strong partnerships to drive nextgen TV viewing Strong Secure Viaplay viewing content performance Increase sales across kids, revenues TV-series & movies Secure exclusive content Partner or channel carriage Co-operate on ad sales Generate revenues from USP against Increase sales AVOD conte
Slide 41: Maximizing the value across multiple windows
Maximizing the value across multiple windows Past Now Free-TV Free-TV • US network • US network • Niched cable content • Vintage TV-series Pay-TV & SVOD • Niched cable content AVOD • Vintage TV series Recap from last year Our position going forward Future growth drivers Our content Future outlook 41
Slide 42: And now we develop our own content
And now we develop our own content Simultaneous Premiere 7 days catch-up 6 months after premiere Premiere 8 months after 7 days catch-up 12 months after Simultaneous Premiere Build & hold 6 months after premiere Simultaneous Premiere Build & hold 6 months after premiere Premiere – – 6 months after P
Slide 43: With more than 50 original productions
With more than 50 original productions MTG will be the leading Nordic drama producer 13 19 22 Titles Titles in Titles in Premiered Production Development 2016 2017 2018 2019 2020 2021 Recap from last year Our position going forward Future growth drivers Our content Future outlook 43
Slide 44: Creating a unique value chain & ecosystem
Creating a unique value chain & ecosystem Platform Multi-screen Free TV Catch-up Value Chain Production Distribution SVOD broadcaster AVOD Produces Free TV Provides Acquires Acquires titles with co-invests & minimum Description exclusive exclusive Viaplay & Free attains Free guarantee & SVOD license
Slide 45: That is attracting international interest
That is attracting international interest Recap from last year Our position going forward Future growth drivers Our content Future outlook 45
Slide 46: Competitively positioned to win
Competitively positioned to win Pay TV Pay TV Free TV SVOD AVOD TVOD Pan-Nordic platform channels channels Recap from last year Our position going forward Future growth drivers Our content Future outlook 46
Slide 47: Today's agenda
Today’s agenda Recap from last year Today and our position going forward Future growth drivers Our content Future outlook
Slide 48: Our concept is working
Our concept is working Sports Series Movies Kids OP IP Advertising, Subscription & Distribution revenues DTH Cable BTV VOD DTT Mobile Recap from last year Our position going forward Future growth drivers Our content Future outlook 48
Slide 49: We have solid growth drivers
We have solid growth drivers Recap from last year Our position going forward Future growth drivers Our content Future outlook 49
Slide 50: We will continue to develop
We will continue to develop Strict cost control Shift investments to online New co-ops Multi-layered relationships New revenue streams Recap from last year Our position going forward Future growth drivers Our content Future outlook 50
Slide 51: The people behind our success
The people behind our success 94% Are willing to 87% 87% make an extra effort to make 90% Think it is fun 85% Response rate Are proud of to go to work Are motivated their company successful working for in their work their company Recap from last year Our position going forward Future growth drivers
Slide 52: We will deliver topline growth and higher profits!
We will deliver topline growth and higher profits! #weareMTG Recap from last year Our position going forward Future growth drivers Our content Future outlook 52
Modern Times Group MTG — Investor Presentation (2017) on 6ix