ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Q3 2015 Earnings Presentation
35 slides from ProSiebenSat.1 Media's earnings presentation, Oct 29, 2015
Slide 1: Q3 2015 Press Presentation
October 29, 2015 Q3 2015 Press Presentation | October 29, 2015 | | Page 1
Slide 2: Q3 2015 At a Glance
October 29, 2015 Q3 2015 At a Glance Thomas Ebeling Chief Executive Officer | October 29, 2015 | | Page 2
Slide 3: Key financials – Q3 2015
1 2 3 4 Q3 2015 – At a Glance Key financials – Q3 2015 [Q3 2015 vs. Q3 2014, in EURm] Revenues 747.1 +17.2% ✔ Recurring EBITDA 177.8 +9.1% ✔ Underlying net income 78.3 +4.8% ✔ | October 29, 2015 | Continuing operations | Page 3
Slide 4: Continued dynamic growth across all three business segments
1 2 3 4 Q3 2015 – At a Glance Continued dynamic growth across all three business segments Broadcasting Content Production Digital & Adjacent German-speaking & Global Sales Ventures & Digital TV advertising Distribution Commerce Entertainment Adjacent Revenue growth vs. Q3 2014 +5.2% +7.5% +40.4% +26
Slide 5: Major operational highlights
1 2 3 4 Q3 2015 – At a Glance Major operational highlights Best 9M TV ratings performance in the last ten years ✔ ProSiebenSat.1 with positive TV ad performance in Q3 2015 ✔ Leading Nordic online travel agency Etraveli acquired ✔ Sports ecosystem initiated with 90MIN and Eversports ✔ Powerful US add
Slide 6: Degree of achievement of new 2018 targets
1 2 3 4 Q3 2015 – At a Glance Degree of achievement of new 2018 targets 2012-18 revenue growth target, degree of achievement Current CMD 2018 target [achievement based on 9M 2015, in EUR m] Achievement by 9M 2015 X% Target achievement in % 56% 33% 67% 42% 1,850 1,200 46% Linear extrapolation of new
Slide 7: We confirm our 2015 segment revenue growth assumptions…
1 2 3 4 Q3 2015 – At a Glance We confirm our 2015 segment revenue growth assumptions… Broadcasting Content Production 1 German-speaking 2 Digital & Adjacent 3 & Global Sales Revenues vs. Low to mid single- double-digit low double- FY 2014 digit growth growth digit growth | October 29, 2015 | Continu
Slide 8: … and raise our positive full-year guidance
1 2 3 4 Q3 2015 – At a Glance … and raise our positive full-year guidance Low double-digit Group revenue growth ✔ Ad performance at least in line with positive net TV ad market ✔ Digital & Adjacent with double-digit revenue growth ✔ Recurring EBITDA and underlying net income above prior year ✔ | Oct
Slide 9: Q3/9M 2015 Financial Performance Review
October 29, 2015 Q3/9M 2015 Financial Performance Review Dr. Gunnar Wiedenfels Chief Financial Officer | October 29, 2015 | | Page 9
Slide 10: Q3 2015: continued high single-digit recurring EBITDA increase
1 2 3 4 Q3/9M 2015 – Financial Performance Review Q3 2015: continued high single-digit recurring EBITDA increase Consolidated revenues Recurring EBITDA [in EUR m] [in EUR m] +17.2% 800 747.1 300 637.5 +9.1% 600 200 162.9 177.8 400 100 200 0 0 Q3 2014 Q3 2015 Q3 2014 Q3 2015 Recurring EBITDA margin:
Slide 11: 9M 2015: strong revenue and recurring EBITDA improvement
1 2 3 4 Q3/9M 2015 – Financial Performance Review 9M 2015: strong revenue and recurring EBITDA improvement Consolidated revenues Recurring EBITDA [in EUR m] [in EUR m] +13.8% +8.8% 2,500 800 2,174.2 1,909.7 2,000 600 522.2 568.1 1,500 400 1,000 200 500 0 0 9M 2014 9M 2015 9M 2014 9M 2015 Recurring E
Slide 12: Q3/9M 2015: Group P&L – improvement of all key metrics
1 2 3 4 Q3/9M 2015 – Financial Performance Review Q3/9M 2015: Group P&L – improvement of all key metrics [in EUR m] Q3 2015 Q3 2014 y-o-y 9M 2015 9M 2014 y-o-y Revenues 747.1 637.5 +17.2% 2,174.2 1,909.7 +13.8% Recurring EBITDA 177.8 162.9 +9.1% 568.1 522.2 +8.8% Non-recurring items -11.4 -6.0 +89.4
Slide 13: Updated financial targets for 2015
1 2 3 4 Q3/9M 2015 – Financial Performance Review Updated financial targets for 2015 Group revenue growth low double-digit1) Recurring EBITDA above prior year Underlying net income above prior year Financial leverage 1.5x – 2.5x | October 29, 2015 | Continuing operations 1) previously “high single-d
Slide 14: Broadcasting German-speaking: TV Performance
October 29, 2015 Broadcasting German-speaking TV Performance Thomas Ebeling Chief Executive Officer | October 29, 2015 | | Page 14
Slide 15: Strong ratings growth across German-speaking markets
1 2 3 4 Broadcasting German-speaking / TV Performance Strong ratings growth across German-speaking markets Audience share (A14-49) [in %] Q3 2014 Q3 2015 Germany 29.3% 30.1% Austria 22.1% 23.5% Switzerland 17.7% 17.9% Basis for GER: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, fu
Slide 16: Best 9 months ratings performance in the last ten years
1 2 3 4 Broadcasting German-speaking / TV Performance Best 9 months ratings performance in the last ten years Audience share (A14-49) [9M, in %] 29.5 28.6 28.6 28.6 28.3 28.4 27.9 27.9 27.7 27.6 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Basis: All German TV households (Germany + EU), A 14-49
Slide 17: New Disney volume deal fortifies access to top license supply
1 2 3 4 Broadcasting German-speaking / TV Performance New Disney volume deal fortifies access to top license supply Examples NEW Features Series (sitcoms) Multi-year volume deals with 6 out of 8 US major studios with key TV program secured well beyond 2019 | October 29, 2015 | | Page 17
Slide 18: Broadcasting German-speaking: Ad Market Performance
October 29, 2015 Broadcasting German-speaking Ad Market Performance Thomas Ebeling Chief Executive Officer | October 29, 2015 | | Page 18
Slide 19: Positive development 9M 2015
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Positive development 9M 2015 ✔ 9M German net TV ad market growth in line with full year expectation of 2-3% ✔ German-speaking TV advertising revenue growth of 3.9% y-o-y with Q3 accelerated growth of 5.2% y-o-y ✔ P7S1 gained advertising sh
Slide 20: Advertising share gains in all German-speaking markets
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Advertising share gains in all German-speaking markets ProSiebenSat.1 gross TV advertising market share [in %] Q3 2014 Q3 2015 Germany 43.8% 45.5% Austria 36.7% 37.5% Switzerland 24.4% 28.1% | October 29, 2015 | Q3: Jul-Sep | Source: Niels
Slide 21: Sales outlook 2015
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Sales outlook 2015 1 German net TV advertising market growth of 2-3% 2 P7S1 to grow above market 3 Continued increase of TV share in media mix 4 Net CPTs to further increase due to increased value of reach | October 29, 2015 | | Page 21
Slide 22: Digital & Adjacent
October 29, 2015 Digital & Adjacent Thomas Ebeling Chief Executive Officer | October 29, 2015 | | Page 22
Slide 23: We delivered double-digit growth in revenues and rec. EBITDA …
1 2 3 4 Digital & Adjacent We delivered double-digit growth in revenues and rec. EBITDA … Ext. revenues Rec. EBITDA [in EURm] [in EURm] +31% 207.9 +17% 200 40 37.7 32.2 150 158.7 30 ~18% EBITDA 100 20 margin1) 50 10 0 0 Q3 2014 Q3 2015 Q3 2014 Q3 2015 | October 29, 2015 | 1) Entity rec. EBITDA / Ext
Slide 24: … driven by strong performance of Commerce and Entertainment
1 2 3 4 Digital & Adjacent … driven by strong performance of Commerce and Entertainment Ventures & Digital Adjacent Commerce Entertainment EUR EUR EUR Revenues [Q3 2015] 125.2m 67.3m 15.4m Revenue growth [Q3 2015 vs. Q3 2014] +40% +26% -5% | October 29, 2015 | | Page 24 54
Slide 25: We have leading market positions across all our D&A pillars
1 2 3 4 Digital & Adjacent We have leading market positions across all our D&A pillars Market position A Ventures & Commerce B Digital Entertainment C Adjacent Travel New Music, Artist Mgmt., Ventures AdVoD PayVoD Games vertical verticals Live, Licensing Beauty & Accessories Top Top #1 #1 33) 34) #1
Slide 26: In Travel, we acquired the leading Nordics online travel agency
1 2 3 4 Digital & Adjacent A In Travel, we acquired the leading Nordics online travel agency What Etraveli is 100%1) Etraveli is a leading online travel agency for flights in the Nordics with 12 brands in 40 countries Services include airline ticketing and hotel bookings 40 1.6m ~1bn ~70m trips EUR
Slide 27: Etraveli closes the blank spot ‘flights’ in our 7Travel value chain
1 2 3 4 Digital & Adjacent A Etraveli closes the blank spot ‘flights’ in our 7Travel value chain Why we acquired Customer journey Inspiration We complement our online travel vertical and close the blank spot In Destination “flight search” in our customer journey NEW Etraveli enables a profitable, lo
Slide 28: In Digital Entertainment, we have seen great achievements
1 2 3 4 Digital & Adjacent B In Digital Entertainment, we have seen great achievements Market leading in New ad tech #1 MCN in Germany Premium Video profit center #1 #1 Building knowledge in Maxdome with strong video innovation growth in all dimensions | October 29, 2015 | | Page 28
Slide 29: maxdome has grown strongly in all dimensions
1 2 3 4 Digital & Adjacent B maxdome has grown strongly in all dimensions +95% +65% +35% SVoD Total Total subscribers1) video views2) user base3) | October 29, 2015 | 1) End of period Q3 2015 vs. PY. 2) Q3 2015 vs. PY. 3) Ø of period Q3 2015 vs. PY. | Page 29
Slide 30: We complement our sports ecosystem with digital platforms
1 2 3 4 Digital & Adjacent C We complement our sports ecosystem with digital platforms Sports management, Digital Video TV/Rights + events and ticketing + platforms/products We leverage synergies with our commerce assets around sports, e.g. Note: Sportdeutschland is a majority investment, Eversport
Slide 31: Digital & Adjacent – outlook
1 2 3 4 Digital & Adjacent Digital & Adjacent – outlook 1 Deliver double-digit revenue growth in FY 2015 2 Build new digital verticals 3 Further internationalize with innovative imports and exports | October 29, 2015 | | Page 31
Slide 32: Q3 2015 Summary & Outlook
October 29, 2015 Q3 2015 Summary & Outlook Thomas Ebeling Chief Executive Officer | October 29, 2015 | | Page 32
Slide 33: We raise our positive full-year guidance
1 2 3 4 Summary & Outlook We raise our positive full-year guidance Low double-digit Group revenue growth ✔ Ad performance at least in line with positive net TV ad market ✔ Digital & Adjacent with double-digit revenue growth ✔ Recurring EBITDA and underlying net income above prior year ✔ | October 29
Slide 34: 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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