ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Q3 2022 Earnings Presentation
25 slides from ProSiebenSat.1 Media's earnings presentation, Nov 15, 2022
Slide 1: Results Presentation Q3 2022
Results Presentation November 15, 2022 Q3 2022 © ProSieben/SAT.1 / André Kowalski
Slide 2: Summary
© ProSieben / Willi Weber © ProSieben / Benjamin Kis © ProSieben / Willi Weber © ProSieben / Ralf Wilschewski 01 Summary
Slide 3: Summary
SUMMARY ProSiebenSat.1 Group recorded almost stable portfolio- and currency-adjusted revenue development in 9M 2022, Q3 2022 down -9% reflecting demanding macroeconomic environment and strong prior-year figures German-speaking advertising business currently in focus as it is cyclical and reflects we
Slide 4: Financials
© ProSieben / Willi Weber © ProSieben / Benjamin Kis © ProSieben / Willi Weber © ProSieben / Ralf Wilschewski 02 Financials
Slide 5: More difficult economic environment and deconsolidation effects determine revenue and earnings development
MORE DIFFICULT ECONOMIC ENVIRONMENT AND DECONSOLIDATION EFFECTS DETERMINE REVENUE AND EARNINGS DEVELOPMENT IN Q3 AND 9M 2022 EARNINGS AND CASH FLOW KPIS [IN EUR M] COMMENTS Q3 Q3 9M 9M 2022 2021 YoY 2022 2021 YoY • Q3 and 9M 2022 revenues, earnings and cashflow reflect deterioration of the macro- Gr
Slide 6: Entertainment external revenues and adjusted EBITDA
FLAT ADVERTISING REVENUES IN FIRST NINE MONTHS – HOWEVER, MID-SINGLE-DIGIT % DECLINE IN Q3 2022 AGAINST BACKDROP OF RECORD PRIOR YEAR’S QUARTER ENTERTAINMENT EXTERNAL REVENUES AND ADJUSTED EBITDA [IN EUR M] COMMENTS Q3 Q3 9M 9M 2022 2021 YoY 2022 2021 YoY • Stable portfolio- and currency-adjusted re
Slide 7: Dating & Video on prior-year's level in Q3 2022
DATING & VIDEO ON PRIOR-YEAR’S LEVEL IN Q3 2022, SUPPORTED BY CURRENCY EFFECTS DATING & VIDEO EXTERNAL REVENUES AND ADJUSTED EBITDA [IN EUR M] COMMENTS Q3 Q3 9M 9M 2022 2021 YoY 2022 2021 YoY • Slight revenue and adjusted EBITDA growth in Q3 2022 as comparable figures of External Revenues 129 129 +1
Slide 8: Commerce & Ventures external revenues and adjusted EBITDA
Q3 2022 IMPACTED BY WEAKER MACROECONOMIC ENVIRONMENT – REPORTED REVENUES ALSO REFLECT DECONSOLIDATION OF AMORELIE AND MOEBEL.DE COMMERCE & VENTURES EXTERNAL REVENUES AND ADJUSTED EBITDA [IN EUR M] COMMENTS Q3 Q3 9M 9M 2022 2021 YoY 2022 2021 YoY • Commerce & Ventures segment almost on prior year’s l
Slide 9: Gross debt reduction through pre-payment of EUR 275m promissory notes
GROSS DEBT REDUCTION THROUGH PRE-PAYMENT OF EUR 275M PROMISSORY NOTES IN DECEMBER 2022 – NO REPAYMENT/REFINANCING OBLIGATION BEFORE THE YEAR 2025 Net financial debt in EUR m Debt maturity profile in EUR m -372 SSD 2016 SSD 2021 Term Loan RCF Option for extension 2.5x1) 2.2x1) 2.2x1) Term Loan 1,200
Slide 10: Operational Update
© ProSieben / Willi Weber © ProSieben / Benjamin Kis © ProSieben / Willi Weber © ProSieben / Ralf Wilschewski 03 Operational Update
Slide 11: Entertainment | German GDP and private consumption likely to be burdened until Q2 2023
ENTERTAINMENT | GERMAN GDP AND PRIVATE CONSUMPTION LIKELY TO BE BURDENED UNTIL Q2 2023 – JOINT ECONOMIC FORECAST SUGGESTS RECOVERY FROM Q3 2023 Joint Economic Forecast Autumn 2022, Real GDP Comments Change vs. previous quarter in %1) 0.8 0.8 0.8 • Crisis on gas markets weighs heavily on German econo
Slide 12: Entertainment | Advertising business in DACH region highly correlated with macro environment
ENTERTAINMENT | ADVERTISING BUSINESS IN DACH REGION HIGHLY CORRELATED WITH MACRO ENVIRONMENT ENT advertising DACH revenues vs. IFO Business Expectations COMMENTS • Continuing high correlation of DACH EUR 2,200m 105 advertising revenues with macroeconomic environment 100 • Limited or no impact from s
Slide 13: Entertainment | Most German TV advertising industries affected by macroeconomic situation
ENTERTAINMENT | MOST GERMAN TV ADVERTISING INDUSTRIES AFFECTED BY OVERALL MACROECONOMIC SITUATION IN Q3, CONTINUED SOLID GROWTH OF TOURISM SECTOR TOP 15 TV ADVERTISING INDUSTRIES, YOY CHANGE IN GROSS AD SPEND1), IN EUR M Q3 2022 SPEND vs. PY 9M 2022 SPEND vs. PY FOOD 551 -5% FOOD 1,447 0% COSMETICS
Slide 14: Entertainment | ProSiebenSat.1 leading player in German audience market
ENTERTAINMENT | PROSIEBENSAT.1 IS THE LEADING PLAYER IN THE GERMAN AUDIENCE MARKET OUTPERFORMING ITS PEERS WITH STRONG LOCAL CONTENT Prime Time Audience share, A14-491) Local highlights 27.6% Lighthouse formats: New seasons of “The Masked Singer”, “Stealing the Show” and “Beat the Star” reaching ove
Slide 15: Entertainment | Full ownership of Joyn
ENTERTAINMENT | WITH THE FULL OWNERSHIP OF JOYN, WE ARE PLACING JOYN AT THE CENTER OF OUR DIGITAL ENTERTAINMENT PRESENCE Transaction closed October 31, 2022 Shareholding structure post full takeover Strategic rationale CONTENT: ProSiebenSat.1 Media SE 1 Increase flexibility in content windowing and
Slide 16: Entertainment | Free & local content strategy for Joyn
ENTERTAINMENT | WITH OUR UNIQUE COMBINATION OF FREE & LOCAL CONTENT, WE HAVE THE RIGHT STRATEGY – ALSO IN LIGHT OF LATEST VOD MARKET DEVELOPMENTS Unique positioning of joyn COMMENTS ON JOYN • Unique positioning of Joyn with free & local content in fast-growing digital video ad market FREE 3) • In ad
Slide 17: Entertainment | New live interaction app JoynMe
ENTERTAINMENT | NEW LIVE INTERACTION APP JOYNME OFFERS A NEW WAY OF ENTERTAINMENT TO OUR USERS AND UTILIZES COMPANY WIDE SYNERGIES USER What it is: New live interaction app combining TV GENERATED interactions with user generated live streams; users LIVE STREAMS become part of TV-Brand communities th
Slide 18: Dating & Video | eharmony largest brand in dating portfolio
DATING & VIDEO | EHARMONY HAS SOLIDIFIED ITS POSITION AS THE LARGEST BRAND IN THE GROUP’S DATING PORTFOLIO Chronological evolution of eharmony since External Revenues eharmony in EUR m acquisition CAGR +22%1) Q1 2019 Q3 2022 October 2018 2019 November 2019 FY 2019 FY 2020 2021 FY 2021 9M 2022 Acquis
Slide 19: Commerce & Ventures | Current market conditions affecting our portfolio
COMMERCE & VENTURES | CURRENT MARKET CONDITIONS AFFECTING OUR PORTFOLIO, BUT COMMERCE & VENTURES CONTINUES TO CONTRIBUTE TO THE GROUP Despite current market environment Commerce & Ventures continues to contribute to our entertainment business with media usage and ongoing leverage of further synergie
Slide 20: Outlook
© ProSieben / Willi Weber © ProSieben / Benjamin Kis © ProSieben / Willi Weber © ProSieben / Ralf Wilschewski 04 Outlook
Slide 21: Full-year outlook as communicated on October 27, 2022
FULL-YEAR OUTLOOK AS COMMUNICATED ON OCTOBER 27, 2022: P7S1 EXPECTS GROUP REVENUES OF ~EUR 4.15BN AND ADJUSTED EBITDA OF ~EUR 650M FOR THE FULL-YEAR PREVIOUS TARGET NEW TARGET COMMENTS FY 2022 FY 2022 (per September 13, 2022) (per October 27, 2022) Group EUR 4,375m Group revenues to reflect weaker o
Slide 22: Appendix Q3 2022
Appendix Q3 2022 © ProSieben/SAT.1 / André Kowalski
Slide 23: P&L [in EUR m] Q3 2022
P&L [in EUR m] Q3 2022 Q3 2021 YoY 9M 2022 9M 2021 YoY Revenues 921 1,055 -13% 2,930 3,041 -4% Adjusted EBITDA 118 162 -27% 407 470 -13% Reconciling items 15 -6 n/a -4 -25 -82% EBITDA 133 156 -15% 403 445 -9% Depreciation, amortization and impairments -360 -59 >+100% -517 -185 >+100% Thereof PPA -22
Slide 24: 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
Slide 25: Slide 25