Viaplay Group Ab Class A · OMXSTO:VPLAY_A
Viaplay Group Ab Class A — Nordic Entertainment Group (NENT Group) — Q3 2019 Earnings Presentation
15 slides from Viaplay Group Ab Class A's earnings presentation, 2019
Slide 1: Results presentation Q3 2019
Results presentation Q3 2019 nentgroup.com
Slide 2: Viasat Consumer & Canal Digital merger highlights
Viasat Consumer & Canal Digital merger highlights • Combination of NENT Group´s Viasat Consumer (satellite TV + BTV) with Telenor’s Canal Digital (satellite TV) into new JV • Complete ownership alignment based on equal valuation of each business Structure • Parties will commit to content supply & sa
Slide 3: Q3 highlights
Q3 highlights 10% organic sales growth and 3% EBIT growth Organic sales growth for combined business segments +10% EBIT before IAC up slightly to SEK 302m despite transactional FX headwind and M&A advisory costs Segmental EBIT growth +3% Viaplay subscribers up 37k QoQ and up over 25% YoY as momentum
Slide 4: Consistent delivery
Consistent delivery Net sales (SEKm) EBIT for combined business segments (SEKm) * 15,460 1,777 14,568 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 5: Broadcasting & streaming
Broadcasting & streaming SEKm Q3 2019 Q3 2018 Change Highlights Net sales 3,235 2,985 8% • Organic sales up 8% o/w advertising 835 823 2% • Viaplay continued to be key driver o/w subscriptions 2,400 2,162 11% • Subscriptions & Other accounted for 74%, and Organic growth 8% 2% advertising for 26%, of
Slide 6: Subscriptions - performance
6 Subscriptions - performance Total subscriber base Comments 2 377 2 400 • Viaplay added 37k subscribers QoQ compared to a 2 310 2 173 2 130 2 218 decline of 11k in Q3’18 2 111 451 463 465 • Viaplay base up over 25% YoY - driven by high gross Viasat 3rd party 466 466 455 449 intake and low churn 491
Slide 7: Advertising - performance
7 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 slightly down as higher prices and higher CSOV in all markets was offset by lower linear viewing leve
Slide 8: Selected tech & content highlights
Selected tech & content highlights Originals Tech Sports 33 titles premiered including 3 in Q3 2019 20+ titles to be premiered each year 7
Slide 9: NENT Studios
NENT Studios SEKm Q3 2019 Q3 2018 Change Comments Net sales 640 480 33% • Organic sales up 32% Organic growth 32% -20% • Continued high growth in number of scripted drama EBIT 37 34 9% productions EBIT margin 5.8% 7.1% -130 bps • Double-digit growth in non-scripted genre • EBIT up 9% despite investm
Slide 10: Sales performance
Sales performance Sales split Q319 Sales bridge Q319 NENT Studios Advertising 50 3 799 15% 160 22% 238 3 439 12 63% Subscription & Others Q3 ’18 Advertising Subscriptions NENT Studios Central & Elims Q3 ’19 9
Slide 11: Financial overview
Financial overview SEKm Q3 2019 Q3 2018 Change Comments Net sales 3,799 3,439 10% • 10% organic sales growth B&S EBIT 330 321 3% • 3% EBIT growth for combined business segments, Studios EBIT 37 34 9% including SEK 20m USD transactional headwind Segmental EBIT 367 355 3% • Central operations included
Slide 12: Cash flow and leverage
Cash flow and leverage Nine Nine months months SEKm Q319 Q318 19 18 2018 SEKm SEKm Cash flow from operations 316 302 950 945 1,496 LTM EBITDA before IAC 1,877 Change in working capital -879 -185 -1,044 -559 -380 Net debt 4,756 Net operating cash flow -562 117 -93 386 1,116 Net debt / EBITDA before I
Slide 13: Business outlook for 2019
Business outlook for 2019 outlook organic growth positive segmental EBIT positive approx. SEK -250m excluding transaction costs central operations EBIT related to the Canal Digital deal transactional FX impact on EBIT approx. SEK -75m for 2019 (included in the above) tax rate to be slightly above th
Slide 14: 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 15: Follow us
ft nordic ‘entertainment gfoue Follow us t £ Yo in} @nentgroup iv) @nent_group _nentgroup.com
Nordic Entertainment Group (NENT Group) — Q3 2019 Earnings Presentation on 6ix