Rtl Group S.a. · LUXSE:RTLL
Rtl — H1 2023 Earnings Presentation
28 slides from Rtl's earnings presentation, Aug 8, 2023
Slide 1: RTL Group Interim results H1/2023
8 August 2023 RTL Group Interim results H1/2023
Slide 2: Agenda
Agenda 01 02 03 04 Highlights Financials Operations Strategy & Outlook RTL Group Interim results 2023 2
Slide 3: Highlights
01 Highlights
Slide 4: Highlights
Highlights ꟷ Streaming: paying subscribers +34% to >6.0 million ꟷ Continued high investments in content, streaming, tech & data ꟷ Germany: renewal of Uefa Europa League rights ꟷ Continued international rollout of success format The Traitors: strong ratings in France and the Netherlands; launch in Ge
Slide 5: Financials
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Slide 6: Key financials
Key financials in € million Organic growth/ decrease1 -4.3% Change -5.1% Margin 15.3% 8.0% 3,276 3,109 -50.1% 501 304 250 132 H1/2022 H1/2023 H1/2022 H1/2023 H1/2022 H1/2023 Group revenue Adjusted EBITA2 Group profit Note: 1. For definition, see slide 27; 2. For definition, see slide 25 RTL Group In
Slide 7: Quarterly development
Quarterly development in € million -5% 3,276 Group revenue 3,109 -2% -9% 1,714 1,687 1,562 1,422 H1/2022 H1/2023 Q1/2022 Q1/2023 Q2/2022 Q2/2023 TV advertising revenue development vs. 2022 -13% -17% -9% Note: Revenue, TV advertising revenue and Adjusted EBITA include scope effects RTL Group Interim
Slide 8: Group profit
Group profit in € million H1/2023 H1/2022 Adjusted EBITA 250 501 Significant special items (78) (23) EBITA 172 478 Impairment and reversals of investments accounted for using the equity method - - Impairment of goodwill and amortisation and impairment of fair value adjustments on acquisitions of sub
Slide 9: Operating free cash flow
Operating free cash flow in € million H1/2023 H1/2022 Net cash from operating activities (24) 84 Adjusted by: Income taxes paid 77 170 Transaction-related costs - 3 Acquisitions of and proceeds from sale of programme rights and other intangible and tangible assets (86) (91) Operating free cash flow
Slide 10: Operations
03 Operations
Slide 11: RTL Deutschland
RTL Deutschland Key financials Family of channels Highlights in € million Audience shares, in % 14 to 59, H1/2023 4.489 million paying subscribers 1% margin 27.6% at 30 June 2023: +31% yoy In the process of launching the RTL+ multimedia app -6% 9.8 1,242 1,172 Others 24.8 6.9 RTL and Vox now the no.
Slide 12: Groupe M6
Groupe M6 Key financials Family of channels Highlights in € million Audience shares, in % Women < 50 responsible for purchases, H1/2023 22% margin 22.1% DTT license for main channel M6 renewed for the next 10 years -6% 664 14.0 622 Others 32.4 8.1 149 Attractive sports rights to strengthen 138 Stron
Slide 13: RTL Nederland
RTL Nederland Key financials Family of channels Highlights in € million Audience shares, in % Adults 25 to 54, prime time, H1/2023 1.268 million paying subscribers 24% margin 34.3% at 30 June 2023: +18% yoy Successful migration to Bedrock tech platform -5% Others 303 17.9 288 20.7 86 Market 69 leade
Slide 14: Fremantle
Fremantle Key financials Highlights in € million 4% Entertainment Drama & Film Documentaries margin +2% 1,007 983 60 The Farm (2023) Adolfo (2023) The Good Mothers (2023) Jimmy Savile: A British Horror story (2023) 36 In total, Fremantle won 60 awards in the first half of 2023 H1/2022 H1/2023 H1/202
Slide 15: Strategy & Outlook
04 Strategy & Outlook 15
Slide 16: Strategy framework unchanged
Strategy framework unchanged Alliances & Core Growth partnerships Portfolio transformation Creativity & Communications & People Regulation Entrepreneurship Marketing Enabler RTL Group Interim results 2023 16
Slide 17: Strategy update – Alternative paths to scale
Strategy update – Alternative paths to scale Initial consolidation plans Need to scale, Main vehicles/ blocked by regulators alternative paths defined partner examples 01 National advertising sales/subscription management ~€250-350m run-rate synergies to be 02 International advertising sales fully r
Slide 18: Strategy update – Core
Strategy update – Core RTL Deutschland: Reorganisation of publishing business Focus on core brands and titles Cost reduction Significant investments Proportion of sold copies per year (in %) Investments in € million 80 ꟷ Cost reduction of €70m per annum until 2025, Stern+ primarily in corporate 30 f
Slide 19: Strategy update – Growth
Strategy update – Growth Build national streaming champions Targets by 2026 Paying subscribers +34% in million 6.04 1.27 10m €1bn 4.51 paying streaming 1.08 Videoland 0.90 subscribers revenue 0.65 4.49 RTL+ DE 3.43 0.78 ~ €600m Profitability RTL+ HU 0.29 Key figures 30 June 2022 30 June 2023 in € mi
Slide 20: Strategy update – Growth
Strategy update – Growth Streaming and linear TV address ... providing RTL Group with an important complementary viewer groups ... competitive edge Example: viewer group demographics on linear TV and streaming Broadcasting and streaming operating under 01 one established brand: RTL & RTL+ 100% men 9
Slide 21: Strategy update – Growth
Strategy update – Growth Expand global content business Content pillar Strategy Deep dive Entertainment ― Remain leading producer & distributor of quality entertainment shows Growth Launch of new label ― Invest in new formats & expand client base 18 labels in 12 territories New premium with global s
Slide 22: Outlook 2023
Outlook 2023 2022e 2022 2023e old 2023e new €7.3bn to €7.3bn to ~€7.0bn Revenue €7.2bn €7.5bn €7.4bn €1.05bn to €1.0bn to ~€950m Adjusted EBITA €1.08bn €1.15bn €1.05bn Streaming start-up Just below ~€200m ~€0.25bn €0.23bn losses €0.2bn Adjusted EBITA €1.3bn to €1.2bn to ~€1.15bn before streaming €1.
Slide 23: #RTLresults
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Slide 24: Financial calendar 2023
Financial calendar 2023 January RTL Group Financial Results 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 16 March 2023 February at 08:00 CET 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Full-Year Results: January to December 2022 M
Slide 25: Definitions
Definitions Alternative performance measure Explanation Adjusted EBITA represents a recurring operating result and excludes significant special items. RTL Group management has established an ‘Adjusted EBITA’ that neutralises the impacts of structural distortions for the sake of transparency. Based o
Slide 26: Definitions
Definitions Alternative performance measure Explanation In accordance with RTL Group’s strategy, the company continued to invest heavily in its streaming services, RTL+ in Germany and Hungary and Videoland in the Netherlands, all of which have seen a rapid increase in the number of paying subscriber
Slide 27: Definitions
Definitions Alternative performance measure Explanation Operating cash conversion rate Operating cash conversion rate means operating free cash flow divided by EBITA. The net cash/(debt) is the gross balance sheet financial debt adjusted for ‘Cash and cash equivalents’; current deposits with Net cas
Slide 28: Disclaimer
Disclaimer This presentation is not an offer or solicitation of an offer to buy or sell securities. It is furnished to you solely for your information and use at this meeting. It contains summary information only and does not purport to be comprehensive or complete, and it is not intended to be (and