Prosiebensat.1 Media Se · XETR:PSM
Prosiebensat.1 Media — Q3 2021 Earnings Presentation
39 slides from Prosiebensat.1 Media's earnings presentation, Nov 4, 2021
Slide 1: Q3 2021 results presentation
q3 2021 results presentation November 4, 2021
Slide 2: Agenda
AGENDA 1. Key Messages 2. Operational Review 3. Financial Overview 4. Outlook & Summary © ProSieben / Marc Rehbeck © ProSieben / Willi Weber 2
Slide 3: ProSiebenSat.1 again raises full-year outlook 2021 after strong third quarter
PROSIEBENSAT.1 AGAIN RAISES FULL-YEAR OUTLOOK 2021 AFTER STRONG THIRD QUARTER Dynamic Group revenue growth of +15% to EUR 1,055m and further increase of adjusted EBITDA by +9% to EUR 162m in Q3 2021. Record third quarter revenues in Group history. Entertainment segment with significant revenue and e
Slide 4: Highest third quarter revenues in Group history
HIGHEST THIRD QUARTER REVENUES IN GROUP HISTORY – REVENUES INCREASED BY EUR 134M COMPARED TO PRIOR YEAR External Revenues +15% +15% +53% -3% Growth YoY [in EUR m] 1,055 921 728 633 204 198 84 129 External Revenues [in EUR m] Q3Group 2020 revenues Q3 2021 Q3 Entertainment 2020 Q3 2021 Q3 2020Dating Q
Slide 5: Agenda
AGENDA 1. Key Messages 2. Operational Review 3. Financial Overview 4. Outlook & Summary © ProSieben / Marc Rehbeck © ProSieben / Willi Weber 5
Slide 6: Entertainment: significant improvement in most German TV advertising industries
ENTERTAINMENT | SIGNIFICANT IMPROVEMENT IN MOST GERMAN TV ADVERTISING INDUSTRIES TOP 15 TV ADVERTISING INDUSTRIES, YOY CHANGE IN GROSS AD SPEND1) 9M 2021 spend in EUR bn Q3 2021 vs. PY 9M 2021 vs. PY Cosmetics + Toiletries 1.6 31% 33% Food 1.4 28% 24% Services 1.4 11% -4% Retail + Mail-Order 0.9 28%
Slide 7: Entertainment: sustained recovery drives double-digit DACH ad revenue growth
ENTERTAINMENT | SUSTAINED RECOVERY DRIVES DOUBLE-DIGIT PERCENT DACH AD REVENUE GROWTH ENTERTAINMENT DACH1) ADVERTISING REPORTED REVENUES2), IN EUR M +16% -3% +21% +13% 1,401 1,353 1,170 423 479 398 Q3 2019 Q3 2020 Q3 2021 9M 2019 9M 2020 9M 2021 • Q3 2021 DACH advertising revenues both above Q3 2020
Slide 8: Entertainment: leading player in the German TV market
ENTERTAINMENT | PROSIEBENSAT.1 IS THE LEADING PLAYER IN THE GERMAN TV MARKET NIELSEN GROSS ADVERTISING AUDIENCE SHARE REVENUE SHARE, LTM Q3 20211) A 14-49, LTM Q3 20212) ProSiebenSat.1 Group: 37.7% ProSiebenSat.1 Group: 25.6% Other Sky Seven.One Other Discovery 4.4% 4.0% Media 9.8% 6.2% 19.9% ARD/ZD
Slide 9: Entertainment: consistent local content strategy to maximize long-term reach
ENTERTAINMENT | CONTINUING CONSISTENT LOCAL CONTENT STRATEGY TO MAXIMIZE LONG-TERM REACH MAIN ACHIEVEMENTS IN Q3 2021 We further invested in attractive and relevant content to strengthen our reach across all platforms: • Focus on live content e.g., German First & Second soccer league Local & live Bu
Slide 10: Entertainment: strong Bundesliga performance and monetization ecosystem
ENTERTAINMENT | STRONG BUNDESLIGA PERFORMANCE AND MONETIZATION ECOSYSTEM BUNDESLIGA SEASON 2021/2022 FREE TV TV EXTENSIONS Opening game of first league Weekend TV show on with 27.7% market share and P7MAXX, Bundesliga Flash DFL Supercup with 22.7%1) on S1, P7, P7MAXX and K1 SALES LIVE STREAMS Five t
Slide 11: Dating: revenues benefiting from first-time consolidation of The Meet Group
DATING | DATING REVENUES SIGNIFICANTLY BENEFITING FROM FIRST-TIME CONSOLIDATION OF THE MEET GROUP DATING REPORTED REVENUES1), IN EUR M >+100% >+100% +53% >+100% 409 201 129 156 52 84 Q3 2019 Q3 2020 Q3 2021 9M 2019 9M 2020 9M 2021 • 3 additional vPaaS brand launches in Q3 2021, with 5 further launch
Slide 12: Commerce & Ventures: solid underlying segment revenue performance
COMMERCE & VENTURES | SOLID UNDERLYING SEGMENT REVENUE PERFORMANCE ALSO IN Q3 2021 COMMERCE & VENTURES ORGANIC REVENUES1), IN EUR M +14% +11% +15% +10% 500 558 490 179 172 198 2) Q3 2019 Q3 2020 Q3 2021 9M 2019 9M 2020 9M 2021 • Ongoing rebound of Corona-impacted companies compared to previous year,
Slide 13: Commerce & Ventures: successful closing of four investments in Q3 2021
COMMERCE & VENTURES | SUCCESSFUL CLOSING OF FOUR INVESTMENTS IN Q3 2021 SEED & EARLY STAGE EARLY & GROWTH STRATEGIC GROWTH follow-on new deal campaign launch M4E convertible with M4E deal with leading shipment & logistics service European consumer tech platform in ecommerce subscription platform Lau
Slide 14: Agenda
AGENDA 1. Key Messages 2. Operational Review 3. Financial Overview 4. Outlook & Summary © ProSieben / Marc Rehbeck © ProSieben / Willi Weber 14
Slide 15: Dynamic group revenue growth reflecting favorable development in Entertainment
DYNAMIC GROUP REVENUE GROWTH REFLECTING FAVORABLE DEVELOPMENT IN ENTERTAINMENT EXTERNAL REVENUES: GROUP & SEGMENTS [in EUR m] Comments • Dynamic revenue growth of +15% to EUR Q3 2021 Q3 2020 YoY 9M 2021 9M2020 YoY 1,055m in Q3 2021 mainly driven by continuing advertising recovery. Group 1,055 921 +1
Slide 16: High-margin advertising business drives adjusted EBITDA increase
HIGH-MARGIN ADVERTISING BUSINESS DRIVES ADJUSTED EBITDA INCREASE IN BOTH Q3 AND 9M 2021 ADJUSTED EBITDA: GROUP & SEGMENTS [in EUR m] Comments • Group adjusted EBITDA increased by +9% Q3 2021 Q3 2020 YoY 9M 2021 9M 2020 YoY in Q3 2021. On a nine-month basis, it improved by +43% to EUR 470m, reflectin
Slide 17: Strong operating profits translate into substantial adjusted net income increase
STRONG OPERATING PROFITS TRANSLATE INTO SUBSTANTIAL ADJUSTED NET INCOME INCREASE EARNINGS AND CASHFLOW KPIS [in EUR m] Comments • Adjusted EBITDA improvement also drives Q3 2021 Q3 2020 YoY 9M 2021 9M 2020 YoY strong increase in adjusted net income by +98% in Q3 2021 and >+100% in 9M 2021, respectiv
Slide 18: Significant reduction of net and gross debt
SIGNIFICANT REDUCTION OF NET AND GROSS DEBT BY EUR 377M AND EUR 950M RESPECTIVELY AS OF SEPTEMBER 30, 2021 VS. PRIOR YEAR NET FINANCIAL DEBT Debt profile [in EUR m] 09/21 12/20 09/20 Maturity [in EUR m] Senior Notes - 600 600 Jan-21 Term Loan 151 151 151 Apr-23 Term Loan 1,949 1,949 1,949 Apr-24 -37
Slide 19: Proceeds of new EUR 700m promissory loans used for EUR 900m term loan prepayment
PROSIEBENSAT.1 USES PROCEEDS OF NEW EUR 700M PROMISSORY LOANS (SCHULDSCHEINDARLEHEN) FOR A EUR 900M PREPAYMENT OF TERM LOANS DEBT MATURITY PROFILE DEBT MATURITY PROFILE PRE REFINANCING1) POST REFINANCING1) [in EUR m] [in EUR m] 1,949 1,114 275 275 346 151 225 226 225 86 80 48 Apr-23 Dec-23 Apr-24 De
Slide 20: Agenda
AGENDA 1. Key Messages 2. Operational Review 3. Financial Overview 4. Outlook & Summary © ProSieben / Marc Rehbeck © ProSieben / Willi Weber 20
Slide 21: Financial outlook: LTM figures lay foundation to again increase FY 2021 targets
FINANCIAL OUTLOOK | LAST TWELVE MONTHS FIGURES LAY FOUNDATION TO AGAIN INCREASE FULL-YEAR 2021 FINANCIAL TARGETS GROUP AND SEGMENT REVENUES IN EUR M GROUP AND SEGMENT ADJUSTED EBITDA IN EUR M CAGR: CAGR: +16% +5% 4,533 872 4,135 4,047 9211) 847 1162) 9101) 9451) 832) 44 541 706 209 116 333 842) 3,01
Slide 22: Financial outlook: on track to exceed mid-term ROCE target
FINANCIAL OUTLOOK | ON TRACK TO EXCEED MID-TERM ROCE TARGET AHEAD OF EXPECTATIONS DUE TO SUCCESSFUL STRATEGY IMPLEMENTATION FY 2020 LTM Q3 2021 FY 2021 target Comment • Target takes DACH advertising revenue development in the range of +9% (previously: +3%) to +11% (previously: +7%) in 2021 EUR 4,500
Slide 23: Summary: six key project guidelines for sustainable growth
SUMMARY | ACROSS ALL SEGMENTS, WE WILL CONTINUE TO FOCUS ON SUSTAINABLE GROWTH BY FOLLOWING SIX KEY PROJECT GUIDELINES Our 6 criteria to promote sustainable growth Return At least 18% IRR for growth and change projects1) Payback period of less than 3 years Payback For strategic projects, however, up
Slide 24: Summary: leading player in the TV market, which dominates media consumption
SUMMARY | PROSIEBENSAT.1 IS THE LEADING PLAYER IN THE TV MARKET, WHICH CONTINUES TO DOMINATE MEDIA CONSUMPTION AVERAGE DAILY MEDIA USAGE IN GERMANY, 20211) COMMENTS 37% • In 2021, media usage in Germany has continued to Our core media markets TV 2) grow, reaching 13 hours a day (including parallel u
Slide 25: Summary: ProSiebenSat.1 further progresses on its profitable growth path
SUMMARY | PROSIEBENSAT.1 FURTHER PROGRESSES ON ITS PROFITABLE GROWTH PATH Based on our strong results for the first nine months, we have increased our FY 2021 targets again, proving that we have successfully and independently left behind the Corona crisis. We are on track to exceed our mid-term ROCE
Slide 26: Appendix
Appendix
Slide 27: Group P&L
GROUP P&L [in EUR m] Q3 2021 Q3 2020 YoY 9M 2021 9M 2020 YoY Revenues 1,055 921 +15% 3,041 2,555 +19% Adjusted EBITDA 162 149 +9% 470 328 +43% Reconciling items -6 25 n/a -25 12 n/a EBITDA 156 174 -10% 445 340 +31% Depreciation, amortization and -59 -60 -2% -185 -181 +2% impairments Thereof PPA -14
Slide 28: Entertainment segment benefited strongly from recovery of advertising business
ENTERTAINMENT SEGMENT BENEFITED STRONGLY FROM RECOVERY OF ADVERTISING BUSINESS ENTERTAINMENT EXTERNAL REVENUES AND ADJUSTED EBITDA [in EUR m] Comments • The Entertainment advertising business Q3 2021 Q3 2020 YoY 9M 2021 9M 2020 YoY benefited strongly from the ad market recovery both in the DACH regi
Slide 29: Dating segment revenue growth driven by consolidation of The Meet Group
DATING SEGMENT REVENUE GROWTH DRIVEN BY CONSOLIDATION OF THE MEET GROUP DATING EXTERNAL REVENUES AND ADJUSTED EBITDA [in EUR m] Comments • Dating segment with strong double-digit Q3 2021 Q3 2020 YoY 9M 2021 9M 2020 YoY % revenue growth due to first-time consolidation of The Meet Group in September 2
Slide 30: Commerce & Ventures revenues almost at prior year's level
COMMERCE & VENTURES REVENUES ALMOST AT PRIOR YEAR’S LEVEL DESPITE DECONSOLIDATION EFFECTS COMMERCE & VENTURES EXTERNAL REVENUES AND ADJUSTED EBITDA [in EUR m] Comments • Commerce & Ventures segment revenues Q3 2021 Q3 2020 YoY 9M 2021 9M 2020 YoY in Q3 2021 almost at prior year’s level despite decon
Slide 31: Group and segment revenue breakdown Q3 2021 vs. Q3 2020
GROUP AND SEGMENT REVENUE BREAKDOWN Q3 2021 VS. Q3 2020 EXTERNAL REVENUES [in EUR m] Entertainment Dating Commerce & Ventures Total Group Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Advertising 535 455 39 31 574 486 DACH1) 479 398 39 31 518 429 Rest of the World 56 57 56 57 Distr
Slide 32: Group and segment revenue breakdown 9M 2021 vs. 9M 2020
GROUP AND SEGMENT REVENUE BREAKDOWN 9M 2021 VS. 9M 2020 EXTERNAL REVENUES [in EUR m] Entertainment Dating Commerce & Ventures Total Group 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 Advertising 1,518 1,315 104 88 1,622 1,402 DACH1) 1,353 1,170 104 88 1,457 1,258 Rest of the World
Slide 33: Linear TV continues to dominate video usage
LINEAR TV CONTINUES TO DOMINATE VIDEO USAGE WITH ADDITIONAL POSITIVE IMPACT OF COVID-19 Ø DAILY VIEWING TIME OF VIDEO CONTENT (ROLLING AVERAGE), IN MINUTES ROLLING CALCULATIONS 228 230 231 232 233 231 228 228 227 228 226 225 223 220 218 215 219 219 217 212 212 217 216 The “ViewTime Report” has been
Slide 34: Pay-VoD usage still growing but slowdown among youngest target group
PAY-VOD USAGE STILL GROWING BUT SLOWDOWN AMONG THE YOUNGEST TARGET GROUP CONSUMPTION PAY-VOD (ROLLING AVERAGE) Ø DAILY VIEWING TIME PAY-VOD (ROLLING AVERAGE) IN %, AT LEAST RARELY IN MINUTES 63 60 61 62 62 80 82 82 84 84 84 76 78 51 54 69 72 69 70 71 47 48 50 65 68 67 64 66 43 45 46 62 60 61 41 43 3
Slide 35: Netflix captures majority of viewing time but share declining
NETFLIX CAPTURES MAJORITY OF VIEWING TIME BUT ITS SHARE HAS BEEN DECLINING LARGELY BECAUSE OF INCREASED COMPETITION MARKET SHARE PAY-VOD-PROVIDER, IN % OF DAILY VIEWING TIME (ROLLING AVERAGE) 75 77 75 73 65 67 66 68 70 65 65 60 61 6464 10% 55 5% 20% Amazon Prime Video 51 50 52 47 Netflix 41 Netflix
Slide 36: TV screen dominates video usage thanks to live TV
TV SCREEN DOMINATES VIDEO USAGE THANKS TO LIVE-TV ACCOUNTING FOR 87% OF ITS TOTAL VIEWING TIME Ø DAILY VIDEO USAGE BY DEVICE, IN MINUTES (Q2 2021, ROLLING AVERAGE) Live-TV share (by device) TV-Screen 210 11 19 3 242 87% PC/Laptop 3 9 6 1 19 18% Smartphone 2 10 4 17 14% Tablet 122 5.68 24% Live-TV Fr
Slide 37: TV is a significant driver for online searches and online shopping
TV IS A SIGNIFICANT DRIVER FOR ONLINE SEARCHES AND ONLINE SHOPPING PARALLEL USE: TV AND INTERNET ACTIVITIES WITH PARALLEL USE OF TV AND INTERNET IN % IN % 2021 vs. 2020 Frequently in % pts. Occasionally A 14-69 Rarely Search for information about the 16 20 28 64 -1% 83 81 current TV programme A 14-4
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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Prosieben Sat 1 Media — Q3 2021 Earnings Presentation on 6ix