Viaplay Group Ab Class A · OMXSTO:VPLAY_A
Viaplay Group Ab Class A — Nordic Entertainment Group — Q2 2019 Earnings Presentation
14 slides from Viaplay Group Ab Class A's earnings presentation, 2019
Slide 1: Results presentation Q2 2019
Results presentation Q2 2019 nentgroup.com
Slide 2: Q2 highlights
Q2 highlights 6% organic sales growth and 5% EBIT growth Organic sales growth for business segments +6% EBIT before IAC down when including higher Segmental EBIT growth central costs due to extraordinary investments in branding, culture and values +5% Viaplay subscribers up 65k QoQ and up 244k Viapl
Slide 3: consistent delivery
consistent delivery Net sales (SEKm) EBIT for combined business segments (SEKm) * 14,568 15,100 1,765 1,706 13,688 1,617 12,897 1,427 2016 2017 2018 LTM 2016 2017 2018 LTM studios advertising subscription & other broadcasting & streaming studios * Before central operations & IAC. LTM = last twelve m
Slide 4: broadcasting & streaming
broadcasting & streaming SEKm Q2 2019 Q2 2018 Change Highlights Net sales 3,438 3,292 4% • Organic sales up 4% o/w advertising 1,047 1,078 -3% • Viaplay continued to be the key driver o/w subscriptions 2,391 2,214 8% • Subscriptions & Other account for 70% and Organic growth 4% 7% advertising for 30
Slide 5: subscriptions - performance
5 subscriptions - performance Total subscriber base Comments 2 310 2 377 • Viaplay added 65k subscribers QoQ and grew total 2 173 2 218 2 130 2 111 base by over 20% YoY - driven by high gross intake 463 465 Viasat 3rd party 466 455 449 466 and low churn 490 491 Viasat DTC 505 498 496 493 • Viaplay n
Slide 6: advertising - performance
6 advertising - performance Comments Advertising revenues • Combined TV & Radio ad markets: All three Price Volume Sales markets are estimated to have been down Up Down Down free-TV • TV ad revenues down with prices up but volumes down. YoY performance impacted by the fact that we did not have the I
Slide 7: Selected tech & content highlights
Selected tech & content highlights Originals Tech Sports 29 titles premiered including 5 in Q2 2019 20+ titles to be premiered each year 7
Slide 8: NENT Studios
NENT Studios SEKm Q2 2019 Q2 2018 Change Comments Net sales 652 476 27% • Organic sales up 35% Organic growth 35% -10% • Internal sales accounted for 18% vs. 13% in Q218 EBIT 26 9 180% • Double-digit growth for scripted drama and digital EBIT margin 4.0% 1.9% +210 bps first content • EBIT improved b
Slide 9: sales performance
sales performance Sales split Q219 Sales bridge Q219 NENT Studios 14% 66 3 975 Advertising 176 26% 177 3 719 31 60% Subscription & Others Q2 ’18 Advertising Subscriptions NENT Studios Central & Elims Q2 ’19 9
Slide 10: financial overview
financial overview SEKm Q2 2019 Q2 2018 Change Comments Net sales 3,975 3,719 7% • 6% organic sales growth B&S EBIT 509 498 2% • 5% EBIT growth for combined business segments Studios EBIT 26 9 180% • Higher central costs as anticipated including Segmental EBIT 535 508 5% extraordinary costs relating
Slide 11: cash flow and leverage
cash flow and leverage SEKm Q119 Q118 H119 H118 2018 SEKm SEKm Cash flow from operations 391 351 634 545 1,496 LTM EBITDA before IAC 1,871 Change in working capital 175 276 -227 -374 -380 Net debt 4,210 Net operating cash flow 566 627 407 270 1,116 Net debt / EBITDA before IAC 2.3 CapEx * -45 -56 -7
Slide 12: business outlook for 2019+
business outlook for 2019+ outlook organic growth positive segmental EBIT positive central operations EBIT approx. SEK -250m EBIT incl. central operations positive beyond 2019 transactional FX impact approx. SEK -100m for 2019 normalised tax rate approx. 20% working capital 2019 outflow approx. in l
Slide 13: our investor proposition
our investor proposition a unique play on the Nordic streaming market a Nordic content champion with global appeal a successful track record & a winning team a clear capital allocation strategy 13
Slide 14: Follow us
ft nordic ‘entertainment gfoue Follow us t £ Yo in} @nentgroup iv) @nent_group _nentgroup.com
Nordic Entertainment Group — Q2 2019 Earnings Presentation on 6ix