ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Q1 2017 Earnings Presentation
39 slides from ProSiebenSat.1 Media's earnings presentation, May 11, 2017
Slide 1: Q1 2017 Press Presentation
May 11, 2017 Q1 2017 Press Presentation
Slide 2: Q1 2017 – At a Glance
May 11, 2017 Q1 2017 – At a Glance Thomas Ebeling Chief Executive Officer
Slide 3: Our recent major operational highlights
1 2 3 4 At a Glance Our recent major operational highlights Partnership with Discovery for aggregated OTT platform1) Acquisition of ATV in Austria and integration into ProSiebenSat.1 PULS 42) Continued dynamic growth of Digital Ventures & Commerce – driven by all Commerce verticals | May 11, 2017 |
Slide 4: Key financials in Q1 2017
1 2 3 4 At a Glance Key financials in Q1 2017 [Q1 2017 vs. Q1 2016; in EUR m] Revenues 910 +13% Adjusted EBITDA 188 +10% Adjusted net income 88 +10% | May 11, 2017 | Continuing operations. 4
Slide 5: Q1 2017: all segments contribute to Group revenue growth
1 2 3 4 At a Glance Q1 2017: all segments contribute to Group revenue growth Ext. segment revenues [in EUR m; growth rates in %] Broadcasting German- Content Production & Global Digital Entertainment Digital Ventures & Commerce speaking Sales +2% +2% +53% +24% 502 229 493 +14% organic growth of digi
Slide 6: Well on track to achieve our 2018 target
1 2 3 4 At a Glance Well on track to achieve our 2018 target Ext. segment and Group revenues Degree of [in EUR m; FY 2012-Q1 2017 (LTM); 2018 target] achievement1) Target 2018: EUR 4,506m 72% 470 3,799 3,907 75% 362 377 3,261 1,172 70% 2,876 262 768 848 2,605 2,356 124 202 465 65% 563 95 611 371 442
Slide 7: Q1 2017 – Financial Performance
May 11, 2017 Q1 2017 – Financial Performance Ralf Gierig Deputy Chief Financial Officer
Slide 8: Q1 2017: double-digit revenue and adjusted EBITDA increase
1 2 3 4 Financial Performance Q1 2017: double-digit revenue and adjusted EBITDA increase Consolidated revenues Adjusted EBITDA [in EUR m] [in EUR m] +13% +10% 1,000 910 200 188 802 170 750 150 500 100 250 50 0 0 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2017: Adjusted EBITDA margin of 21% | May 11, 2017 |
Slide 9: Q1 2017: continued strong adjusted net income growth
1 2 3 4 Financial Performance Q1 2017: continued strong adjusted net income growth Financial result Adjusted net income [in EUR m] [in EUR m] -53% +10% 25 100 88 80 75 0 50 -11 -25 -24 25 0 -50 Q1 2016 Q1 2017 Q1 2016 Q1 2017 | May 11, 2017 | 9
Slide 10: Financial leverage of 1.8x well within target range
1 2 3 4 Financial Performance Financial leverage of 1.8x well within financial leverage target range Net financial debt Net debt [in EUR m] 2.1x 1.8x 2,500 -65 2,000 1,500 1,000 1,953 1,889 500 0 31/03/2016 Change 31/03/2017 Financial leverage1) | May 11, 2017 | 1) Net financial debt to LTM adjusted
Slide 11: 2016 dividend proposal
1 2 3 4 Financial Performance 2016 dividend proposal 2016 dividend proposal 2013-16 underlying EPS and DPS in Euro 2.50 2.372) Dividend • Dividend per share: EUR 1.90 2.18 yield 1.96 3) 2.00 1.78 1.80 1.90 5.2% • Total dividend pay-out1): EUR 435m 1.47 1.60 1.50 • Pay-out ratio: 84.7% 1.00 • AGM on
Slide 12: We confirm our 2017 financial outlook
1 2 3 4 Financial Performance We confirm our 2017 financial outlook at least high single-digit Group revenue growth increase (%) Adjusted EBITDA above prior year Adjusted net income above prior year Financial leverage 1.5x – 2.5x Dividend pay-out ratio 80 – 90%1) | May 11, 2017 | 1) Based on adjuste
Slide 13: Q1 2017 – Operational Performance
May 11, 2017 Q1 2017 – Operational Performance Thomas Ebeling Chief Executive Officer
Slide 14: Broadcasting German-speaking: our recent key highlights
1 2 3 4 Broadcasting German-speaking & Red Arrow Broadcasting German-speaking: our recent key highlights Maintained the leading position in the German TV market Achieved top ratings with our premium formats (e.g., 18.3%1) with GNTM) Partnered with Scripps Networks to launch thematic branded windows
Slide 15: We are the leader in the German TV market
1 2 3 4 Broadcasting German-speaking & Red Arrow We are the leader in the German TV market Audience share (A 14-49)1) Share of advertising2) [Q1 2017, in %] [Q1 2017, in %] Others 26.8% 24.3% 41.4% Others 46.6% 26.6% 34.3% 1) Basis: all German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h
Slide 16: We launched thematic windows with Scripps Networks
1 2 3 4 Broadcasting German-speaking & Red Arrow We launched 2 out of 4 thematic windows with Scripps Networks Since Since Planned Planned February March in May in May Channel Multi-year license agreement: branded windows to be launched on 3 TV channels in H1 2017 Rationale Exclusive volume of >1,20
Slide 17: We plan to establish an aggregated OTT platform with Discovery
1 2 3 4 Broadcasting German-speaking & Red Arrow We plan to establish an aggregated OTT platform with Discovery Aggregated OTT platform for the German market Objective to build an aggregated OTT platform including premium content from P7S1 and Discovery & New joint technology development based on 7T
Slide 18: We extend our leadership in the Austrian TV market with ATV
1 2 3 4 Broadcasting German-speaking & Red Arrow We extend our leadership in the Austrian TV market with ATV Audience share (A 12-49)1) Share of advertising2) [Q1 2017; in %] [Q1 2017; in %] 25.7% 42.1% Others 5.8% Others 22.0% 33.7% 20.7%3) 36.1% 3.7% 13.9%3) 26.7% 6.0% 31.4% 1) Basis: all Austrian
Slide 19: TV stable despite high PayVoD penetration in 14-49 target group
1 2 3 4 Broadcasting German-speaking & Red Arrow TV stable despite high PayVoD penetration in 14-49 target group Broadest user universe (A 14-49)1) Video consumption (A 14-49)2) [in %; usage at least rarely or more often] [in minutes; viewing time rolling last 4 quarters] TV consumption stable despi
Slide 20: Red Arrow successfully improved its KPIs
1 2 3 4 Broadcasting German-speaking & Red Arrow Red Arrow successfully improved its KPIs Number of Number of Number of hours Number of Returning Shows in the international productions1) produced2) returning shows3) shows’ rate4) catalogue5) sales clients5) 340+ 1,300+ 130+ 66% 930+ 340+ vs. vs. vs.
Slide 21: Q1 2017 with stable TV ad performance
1 2 3 4 Broadcasting German-speaking – Ad Market Performance Q1 2017 with stable TV ad performance Net TV advertising market in Q1 2017 slightly negative to stable and in line with expectations P7S1 German-speaking TV advertising revenues stable vs. prior year Further increase of TV share in media m
Slide 22: We now expect backloading of 2017 net TV ad market growth into H2
1 2 3 4 Broadcasting German-speaking – Ad Market Performance We now expect backloading of 2017 net TV ad market growth into H2 Estimated 2017 German net TV ad market growth Comments Market growth rate estimate 2017 [in %] Q1 2017 market slightly negative to stable due to very strong prior Ø year gro
Slide 23: TV is the leading medium to deliver reach and increase brand awareness
1 2 3 4 Broadcasting German-speaking – Ad Market Performance TV is the leading medium to deliver reach and increase brand awareness TV delivers by far the highest reach impact TV increases brand awareness Reach Impact Score: monthly net reach multiplied by viewing duration of users1) Recall: adverti
Slide 24: We expect German TV ad market to grow in line with industry estimates
1 2 3 4 Broadcasting German-speaking – Ad Market Performance We expect German TV ad market to grow in line with industry analyst estimates German net TV ad market estimates 2017 +2.9% +2.5% +1.0% +1.5% to +2.5% P7S1 internal market estimate Source: Warc International Ad Forecast 2017 (September 2016
Slide 25: 7.4m HD subscribers in Q1 2017: well on track to reach 2018 target
1 2 3 4 Broadcasting German-speaking – Distribution 7.4m HD subscribers in Q1 2017: well on track to reach 2018 target HD FTA subscriber development [in m] +14% 9.2 +0.9m vs. 1.8 7.4 Q1 2016 6.5 5.6 4.6 3.3 1.2 Q1 Q1 Q1 Q1 Q1 Q1 CMD 2012 2013 2014 2015 2016 2017 target 2018 HD 3.0% 8.3% 11.6% 14.1%
Slide 26: Successful launch of new DVB-T2 as subsequent platform of DVB-T
1 2 3 4 Broadcasting German-speaking – Distribution Successful launch of new DVB-T2 as subsequent platform of DVB-T ~1.8m >1.7m households DVB-T2 affected from devices sold2) DVB-T abandon- ment1) >160k paying subscribers3) Abandonment of DVB-T service on Successful launch of new DVB-T2 with 160k 29
Slide 27: Digital Entertainment: our recent key highlights
1 2 3 4 Digital Entertainment Digital Entertainment: our recent key highlights SevenOne Media is the no. 1 in instream premium market Studio71 improved market position to no. 3 global MCN Commercial roll-out of our content marketplace glomex Maxdome sustains top 3 market position as local partner of
Slide 28: We further strengthened our AdVoD business in Germany
1 2 3 4 Digital Entertainment We further strengthened our AdVoD business in Germany ProSiebenSat.1 AdVoD revenues, Germany1) Successful TV channel apps [in EURm] 14m +22% #1 apps installed2) in instream premium market Multi-channel network +67% +52% video views video views in Germany3) in US3) Q1 20
Slide 29: Continued positive development of our major assets
1 2 3 4 Digital Entertainment Continued positive development of our major assets Protection of top 3 position as local partner of choice with +29% SVoD continued dynamic subscriber growth subscriber growth1) Improved market position to no. 3 Global MCN while +54% preparing roll-out with our new part
Slide 30: Digital Ventures & Commerce
May 11, 2017 Digital Ventures & Commerce Thomas Ebeling Chief Executive Officer
Slide 31: Digital Ventures & Commerce: our recent key highlights
1 2 3 4 Digital Ventures & Commerce Digital Ventures & Commerce: our recent key highlights Digital Ventures & Commerce with dynamic 53% YoY revenue growth Strong Q1 performance of our key DV&C assets Integration of Preis24 into Verivox to leverage synergies Our Lifestyle Commerce ecosystem around We
Slide 32: We continue our active portfolio management
1 2 3 4 Digital Ventures & Commerce We continue our active portfolio management M&A focus to expand our portfolio Selection We have comprehensive investment criteria only Online Price Online Attractive • Structural growth market Comparison Dating market financials • Attractive revenue and EBITDA Lif
Slide 33: Verivox is key growth driver of our Online Price Comparison vertical
1 2 3 4 Digital Ventures & Commerce Verivox is key growth driver of our Online Price Comparison vertical OPC external revenues1) Key highlights [in EUR m] +10% 33 Verivox integrates Preis24 to leverage synergies and 30 strengthen position in Telco New Mario Barth Verivox campaign with highest ad eff
Slide 34: Parship Elite Group continues its growth within targeted range
1 2 3 4 Digital Ventures & Commerce Parship Elite Group continues its growth within targeted range Online Dating ext. revenues Key highlights [in EUR m] +6%2) 31 Customer Lifetime Value at new record level 30 due to successful ElitePartner brand repositioning Profitability of ElitePartner notably im
Slide 35: Our Commerce assets support our TV business to win new customers
1 2 3 4 Digital Ventures & Commerce Our Commerce assets support our TV business to win new customers Integrated J.P. Boden products Created co-branded Sold ad targeting and advertorials on Stylight TV campaign product PEP (Zalando coop)1) | May 11, 2017 | 1) Targeting product PEP (Prominent Engageme
Slide 36: Q1 2017 – Summary & Outlook
May 11, 2017 Q1 2017– Summary & Outlook Thomas Ebeling Chief Executive Officer
Slide 37: We confirm our revenue and earnings outlook for 2017
1 2 3 4 Outlook We confirm our revenue and earnings outlook for 2017 At least high single-digit Group revenue growth German TV ad market to grow +1.5% to +2.5% ProSiebenSat.1 TV ad revenues to grow broadly in line with market Digital Entertainment and Digital Ventures & Commerce with double-digit re
Slide 38: 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
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ProSiebenSamr wet May 11,2017 |