Atresmedia Corporacion De Medios De Comunicacion Sa · BME:A3M
Atresmedia Corporacion De Medios De Comunicacion Sa — FY2020 Earnings Presentation
34 slides from Atresmedia Corporacion De Medios De Comunicacion Sa's earnings presentation, Feb 25, 2021
Slide 1: FY 2020 Results
FY 2020 Results February 25th, 2021 www.atresmediacorporacion.com “We believe in the power of reflection and emotion” 2020 Results 1
Slide 2: 2020 Highlights
2020 Highlights According to external sources, Total Ad market, impacted by Covid-19, decreased by -18%. Regarding Atresmedia’s main ad markets: Radio was down by -23%, TV near -18% and Digital mid single digit. Within Atresmedia’s Audiovisual division: Atresmedia TV roughly maintained market
Slide 3: 2020 Financial Summary
1 2020 Financial Summary 2020 Results 3
Slide 4: Atresmedia: Consolidated P&L
Atresmedia: Consolidated P&L 2020 Results in € mill: P&L 2020 2019 YoY Net Revenues << 866.3 1,039.4 -16.7% OPEX 792.0 855.5 -7.4% OPEX proforma* <<<<<<<<<<<<<<<<< 755.5 855.5 -11.7% EBITDA 74.3 183.9 -59.6% EBITDA Margin 8.6% 17.7% <<< EBITDA proforma* 110.8 183.9 -39.8% EBITDA proforma Margin 12.8
Slide 5: Atresmedia: Net revenues by segment
Atresmedia: Net revenues by segment Total Net Revenues stood at €866.3 mill, -16.7% yoy Audiovisual revenues were €807.9 mill (-16.3% yoy) Radio revenues totaled €67.0 mill (-19.4% yoy) Net Revenues -16.7% In € mill -16.3% 1,039 965 866 808 -19.4% 83 67 2019 2020 2019 2020 2019 2020 Total Grou
Slide 6: Atresmedia: Total revenue
Atresmedia: Total revenue Total revenue mostly affected by Covid-19’s impact in the ad market In € mill Total revenue yoy breakdown 1,039 866 -121 +3 -21 -18 -16 FY19 Total TV NAR Digital NAR Content Others Radio FY20 Total Rev Rev Audiovisual Source: Atresmedia’s financial statements Eliminations
Slide 7: Atresmedia: OPEX by segment
Atresmedia: OPEX by segment Total OPEX was €792.0 million (-7.4% yoy) Audiovisual expenses reached €736.1 mill (-7.8% yoy) Radio expenses: €64.6 mill (-1.9% yoy) OPEX In € mill -7.4% -7.8% Provision for 855 voluntary severance scheme 792 798 37 736 32 755 704 -1.9% 66 65 5 60 2019 2020 2019 20
Slide 8: Atresmedia: Total OPEX
Atresmedia: Total OPEX €100 million OPEX adjustment, fully in line with the company’s guidance Total OPEX yoy breakdown In € mill -100 855 37 792 755 -43 -1 -10 -46 FY19 Total Programming Personnel Overheads Variable FY20 Total Provision for FY20 Total OPEX (excl. OPEX prof. severance OPEX Severan
Slide 9: Atresmedia: Cash flow & Debt position
Atresmedia: Cash flow & Debt position Total net debt reached €117 million (€76 million less than in Dec 19) Operating Cash Flow at €105 million Cash Flow Credit facilities In €mill In € mill 554 Undrawn +105 48% -22 -7 -117 Drawn 173 Cash 52% -193 117 Net Debt Total available FY19 Net Operating
Slide 10: Atresmedia Audiovisual
Atresmedia Audiovisual 2020 results in € mill: P&L 2020 2019 YoY Total Net Rev. 807.9 965.1 -16.3% OPEX 736.1 798.4 -7.8% OPEX proforma* 704.5 798.4 -11.8% EBITDA 71.9 166.7 -56.9% EBITDA Margin 8.9% 17.3% EBITDA proforma* 103.5 166.7 -37.9% EBITDA proforma Margin 12.8% 17.3% EBIT 55.5 150.0 -63.0%
Slide 11: Audiovisual: Breakdown
Audiovisual: Breakdown Audiovisual Net Revenue decreased by -16.3%, due to the Covid-19 impact OPEX down by -7.8% to offset the fall in revenues Net Revenue breakdown OPEX breakdown In € mill 965 -16.3% In € mill 808 798 Others 39 -45.7% -7.8% 736 Content 96 -22.2% 21 Severance scheme n.a. Digit
Slide 12: Atresmedia Radio
Atresmedia Radio 2020 Results in € mill: P&L 2020 2019 YoY Net Revenues 67.0 83.1 -19.4% OPEX 64.6 65.9 -1.9% OPEX proforma* 59.7 65.9 -9.4% EBITDA 2.4 17.2 -86.1% EBITDA Margin 3.6% 20.7% EBITDA proforma* 7.3 17.2 -57.4% EBITDA proforma Margin 11.0% 20.7% EBIT -0.2 14.4 n/a EBIT Margin n/a 17.4% EB
Slide 13: Atresmedia: Market positioning
Atresmedia: Market positioning TV Net Ad Revenue 75% of total Revenues by division Revenues by origin Non ad revenues Others Radio NAR Content 8% 2% 11% 9% Digital NAR 2020 2020 Net Ad revenues 6% Net Revenues Revenues € 866m € 866m 75% 89% TV NAR Source: Infoadex & internal estimates 2020 Results 1
Slide 14: 2020 Operational Summary
2 2020 Operational Summary 2020 Results 14
Slide 15: Advertising market in Spain
Advertising market in Spain According to external sources, Total Ad market fell around -18% yoy. TV Ad market decreased by -18%, Radio -23% and Digital at mid single-digit Sources Media I2p Infoadex TV -17.9% -18.4% Radio -23.3% -22.9% Digital -8.9% -5.3% Newspapers -26.4% -30.8% Magazines -43.2
Slide 16: TV Advertising market
TV Advertising market Q4 20: still negative but better than previous quarters Gross Total TV Advertising by quarter (yoy growth) 12% 11% 8% 6% FY20=-18% 3% 3% 3% 4% 3% 1% 1% 2% 1% -2% -1% -3% -4% -5% -4% -4% -9% -8% -12% FY15=+6% FY16=+6% FY17=+1% FY18=-1% FY19=-6% -50% Q115 Q215 Q315 Q415 Q116 Q2
Slide 17: TV Advertising market by category
TV Advertising market by category Negative performance at every category due to Covid-19 2020 TV Ad market share by category 2020 TV Ad market evolution TV Market = -18.4% Autos 11% Autos -34% Others* 26% Food -9% Food 12% Beauty & Hygiene -23% Telecom -1% Beverages Beauty & Finance -10% 5% Hygien
Slide 18: TV Advertising market by category: Quarterly evolution
TV Advertising market by category: Quarterly evolution Severe falls across the board due to Covid-19, especially in Q2 Quarterly evolution by category 31% 27% Q1 Q2 Q3 Q4 11% 7% 7% 5% 2% 2% 0% -2% -1% -2% -5% -8% -8% -8% -7% -5% -12% -12%-10% -14% -12% -18% -19% -23% -28% -34% -37% -43% -45% -47%
Slide 19: TV Ad market: Competitive position
TV Ad market: Competitive position Atresmedia’s market share stood at 41% according to internal estimates Ad share positioning TV ad market Power ratio 1.6x 1.6x MSE +0.2 pp 43% 41.1% 40.9% A3M 41% Market share Other 16% FY19 FY20 Source: Internal estimates 2020 Results 19
Slide 20: TV viewing
TV viewing Total TV viewing (4h 00’) is close to all-time record TV viewing increased in all age groups Average daily TV viewing Average daily TV viewing Average daily TV viewing In hours In hours by age group 6h 27’ >65 4h06’ 4h04’ 5h 54’ 3h59’ 3h59’ 4h00’ 3h54’ 4h00’ 3h46’ 3h54’ 3h57’ 3h53’ 3h
Slide 21: Television: Groups audience share
Television: Groups audience share Atresmedia achieved 26.3% audience share in Total Individuals and 27.8% in Commercial Target in 2020. Reducing the gap with its main competitor Audience Share Total Individuals Aud. Share by Commercial Target 33.3 33.6 31.4 31.0 30.7 31.0 30.0 30.5 30.4 29.0 30.
Slide 22: Atresmedia Television: Ad revenues breakdown in 2020
Atresmedia Television: Ad revenues breakdown in 2020 Prices are explained by the exceptionality of the ad market due to Covid-19 2020 Key factors Price GRPs -8% -9% Net Ad Revenue -16% Source: Internal estimates 2020 Results 22
Slide 23: Atresmedia Digital
Atresmedia Digital In #7th position among most visited sites in Spain Atresplayer Premium (Atresmedia’s SVOD) reached 452K subscribers ATRESMEDIA VOD & SITES Latam Videoplayer users Influencer Marketing Agency (Dec 20) Sales 2020 Registrations (Dec 20) 30% 32% Non Video Programmatic SVOD Subscri
Slide 24: Content Production & Distribution: SVOD
Content Production & Distribution: SVOD Outstanding performance of Atresplayer Premium (Atresmedia’s SVOD platform): 3.6x in number of subscribers in 2020. Successful strategy based on Originals, Exclusive & Pre-TV releases. Subscribers In thousands Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 2020
Slide 25: Production & Content sales: Atresmedia International
Production & Content sales: Atresmedia International 54 mill subscribers in our international channels Subscribers In millions *Affected by the closure of Direct TV’s operations in Venezuela due to USA restrictions to the country. Atresmedia’s TV channels were distributed via Direct TV. On proform
Slide 26: Content Production & Distribution: Cinema & Studios
Content Production & Distribution: Cinema & Studios Atresmedia Films accounted for 52% of total revenues generated by Spanish films in FY20 In Q3, Atresmedia Studios delivered its largest production to date: “La templanza” Atresmedia Cinema in 2020 Atresmedia Studios in 2020 2020 Results 26
Slide 27: Atresmedia Radio
Atresmedia Radio Atresmedia Radio’s revenue fell by 19%, outperforming the Total Radio ad market (-23%) Atresmedia Radio vs Radio market Revenues breakdown in FY20 FY20 growth Music Radio market Revenues Local (Infoadex) -23% 23% 43% Revenues Talk OPEX National -19% 77% -2% 57% EBITDA +2.4 M€ By f
Slide 28: Atresmedia Radio
Atresmedia Radio Atresmedia Radio reached near 3.2 mill listeners/day in the last survey Listeners evolution Thousand of listeners 3,568 3,470 3,445 3,345 3,165 1,908 1,926 1,948 1,887 1,815 1,410 1,310 1,300 1,287 1,192 250 234 197 171 158 1st 19 2nd 19 3rd 19 1st 20 3rd 20 Source: EGM Surveys Mo
Slide 29: Back up
Back up 2020 Results 29
Slide 30: Atresmedia Q4 Results P&L
Atresmedia Q4 20 Results in € mill: P&L Q4 20 Q4 19 YoY Total Net Rev. 286.2 315.7 -9.4% OPEX 285.1 258.2 +10.4% OPEX proforma* 248.6 258.2 -3.7% EBITDA 1.1 57.6 -98.0% EBITDA Margin 0.4% 18.2% EBITDA proforma* 37.7 57.6 -34.6% EBITDA proforma Margin 13.2% 18.2% EBIT -18.6 52.6 n.a. EBIT Margin n.a.
Slide 31: Atresmedia Audiovisual Q4
Atresmedia Audiovisual Q4 20 Results in € mill: P&L Q4 20 Q4 19 YoY Total Net Rev. 265.5 293.5 -9.5% OPEX 265.8 243.4 +9.2% OPEX proforma* 234.2 243.4 -3.8% EBITDA -0.2 50.1 n.a. EBITDA Margin n.a. 17.1% EBITDA proforma* 31.4 50.1 -37.3% EBITDA proforma Margin 11.8% 17.1% EBIT -4.2 45.9 n.a. EBIT Ma
Slide 32: Television: Ad revenues breakdown in Q4 20
Television: Ad revenues breakdown in Q4 20 Q4 20 Key factors Price GRPs 5% -4% Net Ad Revenue 2% Source: Internal estimates 2020 Results 32
Slide 33: Atresmedia Radio Q4
Atresmedia Radio Q4 20 Results in € mill: P&L Q4 20 Q4 19 YoY Net Revenues 22.4 24.0 -6.6% OPEX 21.1 16.5 +27.4% OPEX proforma* 16.1 16.5 -2.4% EBITDA 1.4 7.5 -81.9% EBITDA Margin 6.0% 31.1% EBITDA proforma* 6.3 7.5 -15.8% EBITDA proforma Margin 28.1% 31.1% EBIT 0.7 6.8 -88.9% EBIT Margin 3.3% 28.2%
Slide 34: Additional information
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
Atresmedia Corporación de Medios de Comunicación — FY2020 Earnings Presentation on 6ix