Viaplay Group Ab Class A · OMXSTO:VPLAY_A
Viaplay Group Ab Class A — Q3 2024 Earnings Presentation
22 slides from Viaplay Group Ab Class A's earnings presentation, Oct 22, 2024
Slide 1: Q3 2024 Results Presentation
Q3 2024 Results PRESENTATION 1
Slide 2: Important notice
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, nor does it cons
Slide 3: Speakers
SPEAKERS Jørgen Madsen Johan Johansson Matthew Hooper Lindemann CFO and Co-CEO EVP and Chief Corporate President and CEO Sweden Affairs Officer
Slide 4: Core operations performance
CORE OPERATIONS PERFORMANCE SALES BY CATEGORY 9% 5.9% organic sales growth 18% 45% EBIT (ex ACI & IAC) of SEK -49m With stronger underlying YoY improvement in EBIT when excluding the significant negative FX impacts on sales and content costs. 28% 4,764k Viaplay subscribers D2C ARPU up YoY in each of
Slide 5: Core operations performance by revenue line
CORE OPERATIONS PERFORMANCE BY REVENUE LINE VIAPLAY LINEAR CHANNEL SUBSCRIPTIONS SUBSCRIPTIONS -1% organic sales growth 3% organic sales growth FORWARD FOCUS 45% of Core net sales 28% of Core net sales YoY reflects price increases introduced during the year offset by decline in the • Partnership mod
Slide 6: Actions on DTC package pricing (Converted to SEK)
Actions on DTC package pricing (Converted to SEK) Price at launch / price increase Q3 2024 Price increase Q1 2023 SEK Price increase Q4 2023 / H1 2024 Price end of 2022 760 731 699 76 98 150 523 11 57 399 390 20 49 684 634 549 266 227 454 38 204 169 30 159 23 23 379 15 151 155 341 23 20 20 20 106 11
Slide 7: Non-core operations update
NON-CORE OPERATIONS UPDATE Net sales of SEK 203m EBIT of SEK -7m • Exit continues according to plan • Poland to be closed down in mid 2025 1,545k subscribers SEK 38m Free cash flow 7
Slide 8: A unique content offer
A UNIQUE CONTENT OFFER Original content Scripted original drama Non-scripted series, movies and original series documentaries Live sports Scripted original drama series, movies and documentaries Acquired Acquired series movies © 2023 Sony Pictures Entertainment. All Rights Reserved. Irland © 2023 Fa
Slide 9: World class sports rights
WORLD CLASS SPORTS RIGHTS CORE MARKETS *Starting from the 24/25 season 9
Slide 10: Q3 sports highlights and upcoming in Q4
Q3 SPORTS HIGHLIGHTS AND UPCOMING IN Q4 Q3 highlights Upcoming in Q4 O N G O I N G 10
Slide 11: Q3 film and series highlights and upcoming in Q4
Q3 FILM AND SERIES HIGHLIGHTS AND UPCOMING IN Q4 Q3 highlights Upcoming in Q4 11
Slide 12: 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 13: 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 14: Group performance
GROUP PERFORMANCE SEKm Q3 2024 Q3 2023 FY2023 Core Net Sales 4,209 4,206 17,332 Core Operating expenses -4,258 -4,318 -17,243 Core operating income (ex ACI & IAC) -49 -112 89 Non-core Operating Income (ex ACI & IAC) -7 -209 -1,204 Group Operating income (ex ACI & IAC) -56 -321 -1,115 Associated comp
Slide 15: 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: Focus on popular non-scripted formats Note
Slide 16: Allente update
ALLENTE UPDATE SEKm Q3 2024 Q3 2023 FY 2023 Net sales 1,645 1,695 6,610 • Customer base development in line with expectations. EBITDA before IAC 285 255 874 • Net sales -3% YoY (-1% adjusted Depreciation & amortisation -125 -129 -513 for FX) driven by volume decline EBIT before IAC 160 126 361 and p
Slide 17: Group free cash flow Q3
GROUP FREE CASH FLOW Q3 1) Various other items, incl. finance net, tax, capex 17
Slide 18: Cash flow and financial position
CASH FLOW AND FINANCIAL POSITION SEKm Q3 24 Q3 23 FY23 Cash flow from operations -152 -514 -1,442 • Changes in working capital of SEK Change in working capital -1,365 -539 -1,906 -1,365m reflected a return to the Net operating cash flow -1,517 -1,053 -3,348 normal seasonal timing of sports content p
Slide 19: 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, Impairments, 1600 Restructuring & other Restructuring 0.9bn (10%) & other 0.3bn 1400 (5%) 1200 700 Exit markets 1000 Nordic Sports 2.7bn
Slide 20: Debt maturity profile
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 2 000 1 500 1,034 2 000 900 1 000 700 650 1 000 600 300
Slide 21: Financial targets 2024
FINANCIAL TARGETS 2024 –targets Core operations Net Sales SEK 17.2-17.8 billion Core operations 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 fl
Slide 22: Q&A
Q&A Q3 2024 Results INVESTORS@VIAPLAYGROUP.COM