Atresmedia Corporacion De Medios De Comunicacion Sa · BME:A3M
Atresmedia Corporacion De Medios De Comunicacion Sa — Q1 2018 Earnings Presentation
36 slides from Atresmedia Corporacion De Medios De Comunicacion Sa's earnings presentation, Apr 19, 2018
Slide 1: Q1 18 Results
Q1 18 Results April 19th, 2018 www.atresmediacorporacion.com Q1 18 Results 1
Slide 2: Q1 18 Highlights
Q1 18 Highlights According to internal estimates, Total Ad market declined by -3% with TV down by 4.7% and Radio flat (0%) Atresmedia achieved 26.8% audience share in Total Individuals and 28.8% in Commercial Target Atresmedia TV’s market share reached 42.9% (power ratio of 1.6x) Atresmedia Radio re
Slide 3: Q1 18 Financial Summary
1 Q1 18 Financial Summary Q1 18 Results 3
Slide 4: Advertising market in Spain
Advertising market in Spain According to internal estimates, Total Ad market was 3% down in Q1 18 TV was negative by near 5% yoy and Radio just flat yoy Media Internal TV -4.7% Radio 0.0% Internet +8.5% Newspapers -8.7% Magazines -6.5% Sunday suppl. -10.0% Outdoor +1.0% Cinema +4.0% Total -3.0% Sour
Slide 5: Atresmedia P&L
Atresmedia Q1 18 Results in € mill: P&L Ex-Smartclip * Q1 18 Q1 17 YoY Q1 18 YoY Net Revenues 252.2 259.1 << -2.7% 246.1 -5.0% OPEX 219.0 217.9 +0.5% <<<<<<<<<<<<<<<<< 213.1 -2.2% EBITDA 33.2 41.2 -19.4% 33.0 -19.9% EBITDA Margin 13.2% <<< 15.9% 13.4% EBIT 28.4 36.9 -23.0% 28.2 -23.5% EBIT Margin 11
Slide 6: Atresmedia: Net revenues by segment
Atresmedia: Net revenues by segment Total Net Revenues stood at €252.2 million, -2.7% yoy Audiovisual revenues were 236.2 (-2.6% yoy) Radio revenues totalled €18.7 mill (-3.2% yoy) Net Revenues In € mill -2.7% -2.6% 259 252 243 236 -3.2% 19 19 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Total Group Audiovis
Slide 7: Atresmedia: OPEX by segment
Atresmedia: OPEX by segment Total OPEX was €219.0 million, +0.5% yoy Audiovisual expenses reached 205.3 (+1.1% yoy) Radio expenses: €16.4 mill (-6.8% yoy) OPEX In € mill +0.5% +1.1% 218 219 203 205 -6.8% 18 16 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Total Group Audiovisual Radio Source: Atresmedia’s fin
Slide 8: Atresmedia: EBITDA
Atresmedia: EBITDA EBITDA mostly declined due to Audiovisual EBITDA evolution In € mill 41.2 +0.6 33.2 -8.6 Q1 17 EBITDA Audiovisual Radio Q1 18 EBITDA Source: Atresmedia’s financial statements Q1 18 Results 8
Slide 9: Atresmedia: Cash flow & Debt position
Atresmedia: Cash flow & Debt position Total net debt reached €187 million (-€53 mill vs Dec-2017) Total net debt/last 12 months EBITDA = 1x High cash conversion Cash flow Credit facilities In €mill In € mill 458 Undrawn -184 53% +74 29 Cash Drawn -18 -3 -187 47% 187 Net Debt -240 2017 Net Operating
Slide 10: Atresmedia: Revenues breakdown
Atresmedia: Revenues breakdown Near 13% of revenues are non dependent on TV or Radio Advertising Net revenues split Audiovisual 93% TV NAR 80% Radio NAR 7% 2% Others 7% Content 4% Digital NAR Q1 18 Total Net Revenues €252 mill Q1 18 Results 10
Slide 11: Atresmedia Audiovisual
Atresmedia Audiovisual Q1 18 Results in € mill: P&L Q1 18 Q1 17 YoY Total Net Rev. 236.2 242.6 -2.6% OPEX 205.3 203.1 +1.1% EBITDA 30.9 39.5 -21.7% EBITDA Margin 13.1% 16.3% EBIT 26.6 35.7 -25.3% EBIT Margin 11.3% 14.7% Source: Atresmedia`s financial statements Q1 18 Results 11
Slide 12: Audiovisual: Breakdown
Audiovisual: Breakdown Audiovisual Net Revenues down by 2.6%, mainly affected by TV (-5.2%) OPEX up by 1.1% with lower Programming costs (-2.8%) offset by Smartclip’s consolidation impact in Personnel and Variable costs Net Revenue breakdown OPEX breakdown In € mill In € mill 243 -2.6% 236 203 +1.1%
Slide 13: TV Advertising market
TV Advertising market Difficult quarter affected by the Easter impact Gross Total TV Advertising by quarter (yoy growth) 22% 13% 12% 11% 8% 8% 6% 6% 3% 3% 3% 3% 4% 3% 1% 1% -3% -3% -5% FY14=+11% FY15=+6% FY16=+6% FY17=+1% -10% -16% FY13=-6% Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
Slide 14: TV Advertising market by category
TV Advertising market by category Weak performance in most of categories TV Ad market by category TV Ad market by Q1 18 Market share Q1 18 Market = -4.7% Beauty Beauty & Hygiene 4% 11% Others -4% Food 25% Food Automotive 4% 13% Telecom -9% Beverages Retail -8% 4% Finance 4% Health Autos 6% 15% Healt
Slide 15: Atresmedia market positioning
Atresmedia market positioning Market share stood at 42.9 % according to internal estimates Best power ratio in the industry Ad share positioning In % x1.6 x1.6 Power ratio TV ad market 43.1% -0.2pp 42.9% MSE A3M 43% 43% Market share Pay TV Other Forta 5% FTAs 5% Q117 Q118 4% Source: Internal estimat
Slide 16: Television: Ad revenues breakdown in Q1 18
Television: Ad revenues breakdown in Q1 18 Q1 18 Key factors ∆ GRPs ∆ GRPs ∆ Price 5% 1% -1% -5% -6% ∆ ∆ ∆ Audience Inventory TV viewing* * Includes new metrics on guests ∆ Gross Ad. Revenue -5% Source: Internal estimates Q1 18 Results 16
Slide 17: Atresmedia Radio
Atresmedia Radio Q1 18 Results in € mill: P&L Q1 18 Q1 17 YoY Net Revenues 18.7 19.4 -3.2% OPEX 16.4 17.6 -6.8% EBITDA 2.3 1.7 +34.0% EBITDA Margin 12.3% 8.9% EBIT 1.8 1.2 +45.4% EBIT Margin 9.4% 6.3% Source: Atresmedia’s financial statements Q1 18 Results 17
Slide 18: Atresmedia Radio
Atresmedia Radio Atresmedia Radio’s revenues declined by 3% yoy OPEX was reduced by 7% improving EBITDA by +34% Atresmedia Radio vs Radio market Revenues breakdown in Q1 18 FY17 yoy growth Music Radio market Revenues Local (internal estimates) 0% 27% 43% Revenues OPEX Talk -7% National -3% 73% 57% E
Slide 19: Q1 18 Audiovisual business summary
2 Q1 18 AUDIOVISUAL business summary Q1 18 Results 19
Slide 20: Television: TV viewing
Television: TV viewing TV viewing remains at high levels (4h 06 min/day) Avg daily TV viewing In hours 4h 27’ 4h 16’ 4h 21’ 4h 23’ 4h 20’ 4h 12’ 4h 12’ 4h 04’ 4h 07’ 4h 06’ 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 Source: Kantar Media. Includes linear and, as of 2015, non- linear (+7 days v
Slide 21: Television: Atresmedia audience share
Television: Atresmedia audience share Atresmedia’s audience dropped by 30 bps yoy Audience group 27,1 26,8 In % Q1 17 Q1 18 13,3 12,5 6,4 6,7 2,4 2,4 2,2 2,4 1,8 1,6 0,9 1,2 -0.8 +0.3 0.0 +0.2 -0.2 +0.3 -0.3 Source: Kantar Media. Total Individuals (4y+) Q1 18 Results 21
Slide 22: Television: Groups audience share
Television: Groups audience share Atresmedia achieved 26.8% audience share in Total Individuals and 28.8% in Commercial Target Audience Share Total Individuals Aud. Share by Commercial Target In % In % 29,7 29,9 30,9 28,8 28,8 29,9 29,4 29,3 27,5 27,9 29,4 28,9 28,8 27,1 27,2 26,8 28,2 27,5 26,2 25,
Slide 23: Television: Core channels audience share
Television: Core channels audience share Antena 3 achieved 12.5% in Total Individuals and 12.3% in Commercial Target Audience Share Total Individuals Aud. Share by Commercial Target In % In % 14,1 13,6 13,0 13,2 13,2 13,0 12,5 12,3 12,0 12,1 13,3 12,4 12,5 12,4 12,2 12,3 11,9 11,5 11,6 11,0 11,2 10,
Slide 24: Television: Tier II channels audience share
Television: Tier II channels audience share La Sexta outperformed again its main commercial competitor Audience Share Total Individuals Aud. Share by Commercial Target In % In % 8,4 7,9 8,0 7,4 7,2 7,4 7,0 7,2 7,8 6,7 7,2 7,1 7,3 6,4 6,3 6,4 7,2 7,2 7,0 7,0 6,3 6,2 6,3 6,0 6,0 6,2 6,1 5,7 5,5 5,4 Q1
Slide 25: Television: Complementary channels audience share
Television: Complementary channels audience share Q1 18 yoy audiences: Atresmedia’s complementary channels keep positive trend, best among commercial channels (+0.2pp yoy) Complementary channels’ audience share In % Q1 18 Channels Q1 17 A3M 7,6 7,4 +0.2 8,7 * MSE 9,0 -0.3 TVE 6,0 +0.2 5,8 2,9 Net 2,
Slide 26: Digital: Unique Users
Digital: Unique Users Monthly unique users increased by 9% up to 26 mill in Q1 18 Atresmedia: Leading in unique users among TV broadcasters Unique Users yoy Monthly average in mill users 16.6 25,6 +9% 23,6 11.0 10.9 10.6 8.7 Q1 18 7.6 Q1 17 Jan 16 Jan 17 Feb 18 Source: Adobe Analytics Source: Comsco
Slide 27: Digital: Atresplayer & Flooxer
Digital: Atresplayer & Flooxer Atresplayer achieves 2.5 mill users in monthly average Flooxer nearly reaches 1.0 mill users /month KPIs KPIs Long form video Short form video platform platform Videoplayers 2.5 Users mill (Mar 18) Videoplayers 0.9 Apps 11 Users (Feb 18) mill Downloads mill (Mar 18) Re
Slide 28: Production & Content sales: Series Atresmedia
Production & Content sales: Series Atresmedia Series Atresmedia: Worldwide-acclaimed top quality contents Best-seller contents in Q1 18 1 2 3 4 5 EL LA CASA DE VELVET FARIÑA GRAN HOTEL SECRETO PAPEL DE PUENTE VIEJO Most-watched non-english series in Netflix ever! Q1 18 Results 28
Slide 29: Production & Content sales: Atresmedia International
Production & Content sales: Atresmedia International Up to 50 mill subscribers in our international channels New channel launching, Atrescine, to complement current offer In mill suscribers ≈50 x3 vs 2013 19 22 9 New channel launched in March 2018 Q1 18 Results 29
Slide 30: Production & Content sales: Atresmedia Cinema
Production & Content sales: Atresmedia Cinema Atresmedia Films accounted for near 35% of total revenues generated by Spanish films in 2017 Atresmedia Cinema in Q1 18 Q1 18 Results 30
Slide 31: Q1 18 Radio business summary
2 Q1 18 RADIO business summary Q1 18 Results 31
Slide 32: Atresmedia Radio
Atresmedia Radio Atresmedia Radio retains near to 4 mill listeners/day New programming is bearing fruit in Onda Cero Listeners evolution In thousand of listerners 4.319 4.119 4.153 4.106 4.091 4.012 3.947 2.136 1.943 1.947 1.912 1.961 1.922 1.898 1.943 1.902 1.920 1.910 1.871 1.805 1.713 240 274 286
Slide 33: Back up
Back up Q1 18 Results 33
Slide 34: 2017 Consolidated statements: New reporting
2017 Consolidated statements: New reporting Euros (in thousands) NET REVENUE 1Q17 2Q17 3Q17 4Q17 12M17 Audiovisual 242.6 271.2 188.1 276.1 978.0 Television advertising 215.2 240.7 163.6 234.2 853.7 Digital advertising 2.9 3.4 5.0 15.8 27.1 Content production and distribution 17.1 15.2 14.9 19.0 66.2
Slide 35: 2016 Consolidated statements: New reporting
2016 Consolidated statements: New reporting Euros (in thousands) NET REVENUE 1Q16 2Q16 3Q16 4Q16 12M16 Audiovisual 230.3 276.9 180.7 260.2 948.2 Television advertising 209.2 251.5 159.2 235.7 855.6 Digital advertising 2.3 3.1 2.9 2.9 11.2 Content production and distribution 13.1 12.9 13.1 12.9 52.0
Slide 36: Additional information, Investor Relations, Legal Notice
Additional information Investor Relations Department Phone: +34 91 623 46 14 E-mail: ir@atresmedia.com Web: www.atresmediacorporacion.com Legal Notice The information contained in this presentation has not been independently verified and is, in any case, subject to negotiation, changes and modificat
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