Viaplay Group Ab Class A · OMXSTO:VPLAY_A
Viaplay Group Ab Class A — Q4 2023 Earnings Presentation
24 slides from Viaplay Group Ab Class A's earnings presentation, Oct 29, 2024
Slide 1: Q4 2023 Results Presentation
Q4 2023 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 Enrique Patrickson Matthew Hooper Jørgen Madsen Lindemann EVP, CFO, Head Of Strategy EVP and Chief Corporate President and CEO and M&A Affairs Officer 3
Slide 4: This is Viaplay Group
This is Viaplay Group Viaplay Linear Subscription & other Advertising • Online video streaming service focused on • Family of leading Scandinavian Free-TV and • Advertising and sponsorship revenues Nordics and Netherlands and currently Nordic Pay-TV channels generated by the Group’s TV channels, ope
Slide 5: Group performance
Group performance Organic sales growth Sales categories Viaplay subscribers 35% 9,000 International 8,000 Nordics 30% 21% 7,000 25% 48% 6,000 20% 5,000 31% 4,000 15% 3,000 10% 2,000 5% Viaplay 1,000 Linear subscription & other 0% 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Advertising Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20
Slide 6: Segmental performance: Nordics
Segmental performance: NORDICS Organic sales growth Sales categories Viaplay subscribers 18% 5,000 16% 4,500 14% 4,000 3,500 12% 25% 3,000 10% 39% 2,500 8% 2,000 6% 36% 1,500 4% 1,000 2% 500 0% 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Viaplay Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2022 2022 2022 2023 2023 2023 20
Slide 7: Nordics: performance by business line
NORDICS: performance by business line 2.0% organic sales growth | EBIT of SEK 165m | 4,106k Viaplay subscribers Viaplay Linear Subscription & other Advertising • -0.3% organic sales growth • 9.1% organic sales growth • -3.4% organic sales decline • Represents 39% of Nordic net sales • Represents 36%
Slide 8: Segmental performance: International
Segmental performance: INTERNATIONAL Net Sales Viaplay subscribers Viaplay Select markets SEK m M Subs 900 3,500 23 markets 800 3,000 700 2,500 600 500 2,000 400 1,500 300 1,000 200 500 100 Launch 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q2 Q3 Q4 Q2 2021 2022 2022 2022 2022
Slide 9: International: performance by business line
INTERNATIONAL: performance by business line 12.4% organic sales growth | EBIT of SEK -395m | 2,396k Viaplay subscribers Viaplay Viaplay Select • 12.4% organic sales growth driven by • Continued focus on content price increases and content distribution sales distribution sales • Viaplay select presen
Slide 10: Group performance
Group performance SEKm Q4 2023 Q4 2022 FY 2023 FY 2022 Net Sales 4,903 4,670 18,567 15,691 Cost of Sales -4,601 -4,202 -17,265 -13,048 SG&A -639 -840 -2,639 -3,163 Other operating income & expenses 107 88 222 148 Operating Income (ex ACI & IAC) -230 -284 -1,115 413 Associated company income 15 76 63
Slide 11: FY 2023 Items Affecting Comparability (IAC)
FY 2023 ITEMS AFFECTING COMPARABILITY (IAC) Total IAC of SEK 9.2bn o/w cash of ~ SEK 4.9bn Estimated phasing (SEK; % of total) (SEK; % of total) SEKm Impairments, 1600 Impairments, Restructuring Restructuring & other & other 0.3bn 1400 0.9bn (10%) (5%) 1200 700 1000 Exit markets Nordic Sports 2.7bn
Slide 12: 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 13: Allente update
Allente update SEKm Q4 2023 Q4 2022 FY 2023 FY 2022 Sales 1,643 1,735 6,610 6,808 EBITDA before IAC 242 362 874 1264 Depreciation & amortisation -127 -139 -513 -463 EBIT before IAC 115 223 361 801 Items affecting comparability - -1 -30 -22 EBIT 115 222 331 779 Net Income 28 156 134 564 Viaplay Group
Slide 14: Cash flow & financial position
Cash flow & financial position SEKm Q4 23 Q4 22 FY23 FY 222 Cash flow from operations -401 -102 -1,442 304 • No further dividends received Change in working capital -1,224 -345 -1,906 -3,305 from Allente Net operating cash flow -1,625 -447 -3,348 -3,001 • Change in w/c reflected higher Capital expen
Slide 15: Pro forma year end financial net debt
Pro forma year end financial net debt 2023 Q3 Net debt FCF Q4 2023 2023 FY Net Debt Recapitalisation 2023 FY Pro Forma Comments SEKbn • Gross equity raise proceeds of SEK ~Neg. 1.7bn ~4.7bn 4.0bn combined with debt write- down and conversion of SEK 2.0bn • Recapitalisation decreased financial net de
Slide 16: Debt maturity profile
Debt maturity profile Q4 2023 Post recapitalisation SEK 7,250m excl. guarantee facilities SEK 5,250m excl. guarantee facilities 6,000 6,000 5,350 4,216 5,000 5,000 2,500 Undrawn RCF 4,000 4,000 3,392 3,000 3,000 Drawn RCF 1,034 2,000 1,500 2,000 900 1,000 700 650 1,000 300 824 600 700 700 300 300 0
Slide 17: 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 18: Financial Targets
Financial Targets 2024 – Updated targets 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 negative SEK 0.6-0.8 billion for Group free cash flow* non-core International operations *Cash flow
Slide 19: New reporting structure from Q1 2024
New reporting structure from Q1 2024 CURRENT SEGMENTAL REPORTING STRUCTURE FUTURE SEGMENTAL REPORTING STRUCTURE* NORDICS INTERNATIONAL CORE NON-CORE -Viaplay subscription sales Viaplay subscription sales -Viaplay streaming subscription sales Total Net Sales -Linear subscription & other sales -Linear
Slide 20: Transformation initiatives
Transformation initiatives The Nordic region’s leading entertainment provider 1 2 3 • Re-focus top-line • Improve return on • Organisational drivers content investment restructuring ‒ Value over volume ‒ Focus on commercially & ‒ Sell/partner/close locally relevant content Baltics, Poland, UK, US &
Slide 21: Our proposition is unique
Our proposition is unique Original content Scripted original drama Non-scripted series, movies and original series documentaries Live sports Acquired series Acquired movies 21
Slide 22: Sports Rights
Sports Rights - Nordics National UEFA Europa FA Cup & Ice Hockey Internatio Ultimate Soccer UEFA League & English UEFA National World National nal Fighting Internatio National Women's Leagues Premier Champion Conferenc Champion European African Hockey Champion Football European Handball Champion nal
Slide 23: 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 Free
Slide 24: Q4 2023 Results Presentation
Q4 2023 Results PRESENTATION 24