Viaplay Group Ab Class A · OMXSTO:VPLAY_A
Viaplay Group Ab Class A — Q2 2024 Earnings Presentation
23 slides from Viaplay Group Ab Class A's earnings presentation, Jul 18, 2024
Slide 1: Q2 2024 Results Presentation
Q2 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 Lindemann Matthew Hooper President and CEO EVP and Chief Corporate Affairs Officer
Slide 4: Core operations performance
CORE OPERATIONS PERFORMANCE SALES BY CATEGORY 4% 2.6% organic sales growth 21% 47% EBIT (ex ACI & IAC) of SEK -72m 28% 4,710k Viaplay subscribers Viaplay streaming subscription sales Linear channel subscription sales Advertising sales Sublicensing & Other sales 4
Slide 5: Core operations performance by revenue line
CORE OPERATIONS PERFORMANCE BY REVENUE LINE VIAPLAY SUBSCRIPTIONS LINEAR CHANNEL SUBSCRIPTIONS -1% organic sales growth 7% organic sales growth FORWARD FOCUS 47% of Core net sales 28% of Core net sales Fall in subscriber base and negative mix Growth driven by uplifts in agreements • Partnership mode
Slide 6: Actions on DTC package pricing
Actions on DTC package pricing (Converted to SEK) Price at end of 2022 SEK Price increase Q1 2023 Price increase Q4 2023/H1 2024 778 756 78 0 699 0 101 523 150 0 0 58 399 403 700 0 20 655 0 270 51 549 465 39 232 23 160 151 209 149 379 31 16 352 20 00 23 0 61 208 23 20 20 186 151 8 163 129 140 8 46 T
Slide 7: Non-core operations update
NON-CORE OPERATIONS UPDATE Net sales of SEK 193m • UK transaction approved and closed on 4 April • Poland to be closed down in mid 2025 EBIT of SEK 2m • EBIT includes release of Polish provision 1,484k subscribers 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: Sports Rights - Nordics; Netherlands and Poland
Sports Rights - Nordics National UEFA Ice Internatio Soccer Europa FA Cup & Hockey nal Ultimate Internatio Leagues Gjensidig Women's Women’s UEFA League & English UEFA National World National Handball Fighting nal Ski National Frauen e Premier Champio Conferenc Champio Bundeslig European African Hoc
Slide 10: Q2 sports highlights and upcoming in Q3
Q2 SPORTS HIGHLIGHTS AND UPCOMING IN Q3 Q2 highlights Upcoming in Q3 10
Slide 11: Q2 film and series highlights and upcoming in Q3
Q2 FILM AND SERIES HIGHLIGHTS AND UPCOMING IN Q3 Q2 highlights Upcoming in Q3 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, Poland, ‒ Focus on commercially & locally UK, US & Canada, Studios ‒ Increase D2C pricing to re
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 Q2 2024 Q2 2023 FY2023 Core Net Sales 4,292 4,282 17,332 Core Operating expenses -4,364 -4,200 -17,243 Core operating income (ex ACI & IAC) -72 82 89 Non-core Operating Income (ex ACI & IAC) 2 -355 -1204 Group Operating income (ex ACI & IAC) -70 -273 -1115 Associated company i
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: High visibility as amortised over 6 years
Slide 16: Allente update
ALLENTE UPDATE SEKm Q2 2024 Q2 2023 FY 2023 Sales 1,656 1,626 6,610 EBITDA before IAC 249 194 874 • Revenues grew 2% supported by strong ARPU growth Depreciation & amortisation -126 -126 -513 EBIT before IAC 123 69 361 • EBITDA before IAC improvement as an effect of gross profit increase and opex It
Slide 17: Group free cash flow Q2
GROUP FREE CASH FLOW Q2 Non core Core EBIT Core WC cash drag Other net 1) Group FCF 1 -116 606 793 2) -72 1) Various other items, incl. finance net, tax, capex 17
Slide 18: Cash flow and financial position
CASH FLOW AND FINANCIAL POSITION SEKm Q2 24 Q2 23 FY23 Cash flow from operations -180 -198 -1,442 Change in working capital 794 506 -1,906 Net operating cash flow 614 308 -3,348 Capital expenditure -13 -46 -159 Other cash flow from investing • Positive free cash flow driven by activities 5 1 17 posi
Slide 19: 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 20: 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 21: 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 22: Financial targets
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 23: Q2 2024 Results
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