Vocento, S.a. · BME:VOC
Vocento — H1 2018 Earnings Presentation
23 slides from Vocento's earnings presentation, Jul 27, 2018
Slide 1: 1H18 Results
1H18 RESULTS 27 July 2018 1 Resultados Results1H18 1H18
Slide 2: Main Highlights 1H18
MAIN HIGHLIGHTS 1H18 REVENUES • Advertising revenues 1H18 -1.5% in a stagnant advertising market (+0.3%) • VOCENTO local advertising increases +2.0%; local offline resilience at VOCENTO +0.1% leads to market share gains offline, with local online growth of +14.1% • Slowdown in decline in circulation
Slide 3: Stagnant Advertising Market
STAGNANT ADVERTISING MARKET Euro and World Cup World Cup Olympics Household consumption +1.4% +2.6% +4.6% +3.8% 3.8% 1.8% +0.3% -1.0% -1.8% -1.5% -2.5% -3.6% 1H14 1H16 1H17 1H18 Vocento Total market2 3 Note 1: source INE. Gross nominal data. Last data for 1H18 Jan-March. Note 2: market source i2p ex
Slide 4: Vocento Brands Increase Share Thanks to Local Strength
VOCENTO BRANDS INCREASE SHARE THANKS TO LOCAL STRENGTH VOCENTO brands improve their share in offline market YoY % 11.1% 6.2%3 0.3% -1.5% -4.7%2 -6.3% Total market Offline Online Market1 VOCENTO Local advertising outperforms national at VOCENTO Composition of advertising revenues4 % and €m Local €44.
Slide 5: Slowdown in Decrease of Circulation
S L O WD O WN I N D E C R E A S E O F C I R C UL A TI O N Circulation and revenues at Regional Press Circulation and revenues at ABC YoY % YoY % 75% of VOC 25% of VOC total total circulation -19.6% circulation -10.1% -8.9% -7.7% -7.6% -7.4% -14.4% -11.4% -6.7% -8.9% -8.4% -8.1% -7.1% -6.3% -5.4% -5.
Slide 6: Regional: Stability in the EBITDA Margin
REGIONAL: STABILITY IN THE EBITDA MARGIN Comparable EBITDA, Regional Variation 1H17 vs 1H18 except comparable EBITDA €m and comparable EBITDA margin % EBITDA margin1 15.5% 15.1% 17.9 0.7 -1.3 -0.6 0.5 17.1 1H171 Local National Margin Personnel costs3 1H181 advertising2 advertising2 on circulation an
Slide 7: ABC: Advertising Fall Offset with Cost Cuts
A B C : A D V E R T I S I N G F A L L O F F S E T WI T H C O S T C UT S Comparable EBITDA, ABC Variation 1H17 vs 1H18 except comparable EBITDA €m and comparable EBITDA margin % EBITDA margin1 3.2% 3.2% 1.5 -0.7 1.4 0.5 0.2 1H171 Advertising2 Margin Personnel 1H181 on circulation costs and others3 7
Slide 8: Focus on Diversification
F O C US O N D I V E R S I F I C A T I O N Gastronomy Factor Moka Success of Madrid Fusión • Established in 2017, offering integrated communications and marketing services for 1st edition organised by VOCENTO: third parties • Revenues 1H18 €2.9m • Portfolio of clients: leading brands in banking, con
Slide 9: Investment in Other Businesses
INVERSIÓN EN OTROS NEGOCIOS INVESTMENT IN START-UPS VOC 40,0% VOC 50,0% VOC 16,0% VOC 18,5% VOC 8,1% Digitalisation of pharmacies and e-commerce for Musical shows medicines Spanish cross-media fund dedicated to M4E Crowdfunding platform for musical events Digital coupons app 9 Results1H18
Slide 10: Impact of Weak Advertising Market on EBITDA
I M P A C T O F WE A K A D V E R T I S I N G M A R K E T O N E B I T D A A third of the fall in EBITDA is the result Comparable EBITDA at VOCENTO of changes to the perimeter Variation 1H17 vs 1H18 except comparable EBITDA €m Other New Press online + off : €-1.0m businesses businesses €-0.3m €0.7m 20
Slide 11: Ordinary Cash Generation Reduces Leverage
O R D I N A R Y C A S H G E N E R A T I O N R E D UC E S L E V E R A G E Performance of net financial debt at VOCENTO €m Ordinary cash generation of €20.6m1 NFD/comparable NFD/Comparable LTM EBITDA 1.1x EBITDA 0.8x 56.2 19.9 -5.2 1.4 39.3 9.1 -3.1 35.5 -5.4 NFD Comp. EBITDA Working Capex Financials
Slide 12: Consolidated P&L
CONSOLIDATED P&L IFRS €m 1H17 1H18 Var% 1H17 (IFRS15) Operating revenues 191.1 199.1 -4.0% 213.3 Comparable operating expenses ex. depreciation1 -171.1 -178.4 4.1% -192.7 Comparable EBITDA1 19.9 20.6 -3.4% 20.6 Personnel adjustment measures and one-offs -5.6 -11.1 49.4% -11.1 EBITDA 14.3 9.6 50.0% 9
Slide 13: Appendices
APPENDICES 13 Resultados Results1H18 1H18
Slide 14: ABC Strengthens in Madrid and Online
ABC STRENGTHENS IN MADRID AND ONLINE Share of ordinary circulation in Madrid Total online audience Share % Million unique users 16.3 19.9 19.9 1H18 22.0% 14.8% 22.4% 14.5% 22.7% 27.7% 35.1% 1H17 5M18 13.4 17.3 16.2 Exclusive mobile access 5M17 Million unique users 15.3% 22.5% 27.2% 35.0% 12.1 12.7 1
Slide 15: Audiovisual: Decrease Because of Content
A UD I O V I S UA L : D E C R E A S E B E C A US E O F C O N T E N T Comparable EBITDA1 at Audiovisual €m • Equity-accounting of Content business -11.3% • Lower profitability of film distribution 6.7 5.9 2.6 1.5 Content 1.3 1.3 Radio 2.8 3.1 DTT 1H17 1H18 15 Note 1: excluding personnel adjustment me
Slide 16: Advertising Growth at Classifieds
A D V E R T I S I N G G R O WT H A T C L A S S I F I E D S Performance of advertising Performance of comparable EBITDA €m €m Good advertising performance +7.6% +52.3% 9.2 1.3 8.5 0.9 1S17 1S18 1S17 1S18 16 Results1H18
Slide 17: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET IFRS 1H18 2017 €m Non-current assets 324.2 330.9 Current assets 117.4 136.3 Assets maintained for sale 1.0 0.5 Total assets 442.6 467.7 Equity 251.7 252.0 Financial debt 57.1 79.6 Other non-current liabilities 36.8 38.9 Otros current liabilities 97.1 97.2 Total liabilities
Slide 18: Variation in Net Financial Debt 1H18
VARIATION IN NET FINANCIAL DEBT 1H18 IFRS 1H18 1H17 €m Comparable EBITDA1 19.9 20.6 Variation in working capital 9.1 -3.5 Capex -5.4 -4.4 Other items2 2.7 5.8 Cash flow from recurring activities 26.4 18.6 Dividends and interest received 0.2 0.1 Dividends and interest paid3 -6.0 -4.8 Total ordinary c
Slide 19: Revenues by Business Area
R E V E N UE S B Y B US I N E S S A R E A Newspapers (€m) Audiovisual (€m) 165.9 160.8 25.5 18.4 12.8 12.1 Sup. & Mags. 10.4 1.9 Content 46.8 44.1 ABC 2.1 1.7 Radio 115.4 113.3 Regional 15.0 DTT 13.2 Elimin. Elimin. -9.2 -8.6 -0.1 -0.1 1H17 1H18 1H17 1H18 Classifieds (€m) Gastronomy and Others (€m)
Slide 20: Comparable EBITDA by Business Area
C O M P A R A B L E E B I T D A 1 B Y B US I N E S S A R E A Newspapers (€m) Audiovisual (€m) 19.0 18.0 6.7 5.9 1.5 1.4 Sup. & Mag. 2.6 Content 1.5 ABC 1.3 1.3 Radio 17.9 17.1 Regional 3.1 DTT 2.8 -0.4 -0.6 1H17 1H18 1H17 1H18 Classifieds (€m) Gastronomy and Others (€m) 0.9 1.3 0 0.7 Others Classifi
Slide 21: Alternative Performance Measures (APM)
A L T E R N A T I V E P E R F O R M A N C E M E A S UR E S (A P M ) The definitions and calculation of Alternative Performance Measures (APM) have not changed since the publication of the results for 1Q 2018. The 1H18 results report includes, as well as the definitions and calculation methods for th
Slide 22: Disclaimer
DISCLAIMER This document contains forward-looking Company and, in particular, by the analysts who statements regarding intention, expectations or handle this document. All are invited to consult estimates of the Company or its management at the documentation and information published or the date of
Slide 23: Investor and Shareholder Relations
Relación con Inversores y Accionistas C/ Pintor Losada, 7. 48007 Bilbao (Bizkaia) Tel.: 902 404 073 | e-mail: ir@vocento.com 23 Results Results1H18 1H18