ProSiebenSat.1 Media SE · XETR:PSM

ProSiebenSat.1 Media — Q3 2023 Earnings Presentation

24 slides from ProSiebenSat.1 Media's earnings presentation, Nov 14, 2023

  1. Slide 1: Q3 2023 Results Presentation

    Q3 2023 Results Presentation November 14, 2023 © SAT.1 / Jens Hartmann

  2. Slide 2: Summary, Financials, Operational Update, Outlook

    © ProSieben / SAT.1 / André Kowalski © ProSieben / Benjamin Kis © ProSieben / Richard Hübner © SAT.1 / Claudius Pflug 01 02 03 04 Summary Financials Operational Outlook Update

  3. Slide 3: Summary

    01 Summary © ProSieben / SAT.1 / André Kowalski

  4. Slide 4: Summary

    SUMMARY Organic Group revenue development almost stable (Q3 2023: -1% YoY) despite continued challenging macroeconomic environment, Group adjusted EBITDA increased for first time since Q3 2021 (Q3 2023: +2% YoY) Entertainment advertising DACH revenues continued to decline year-on-year. Decline in TV

  5. Slide 5: Financials

    02 Financials © ProSieben / Benjamin Kis

  6. Slide 6: Stable group adjusted EBITDA in still demanding market environment in Q3 2023

    STABLE GROUP ADJUSTED EBITDA IN STILL DEMANDING MARKET ENVIRONMENT IN Q3 2023 COMMENTS • Group revenue development in first nine REVENUES, EARNINGS AND CASH FLOW KPIS [IN EUR M] months of -11% reflects negative impact on advertising business resulting from difficult macroeconomic environment in H1 2

  7. Slide 7: Entertainment still affected by decline in ad revenues - digital shows double-digit growth

    ENTERTAINMENT STILL AFFECTED BY DECLINE IN AD REVENUES - DIGITAL SHOWS DOUBLE-DIGIT % GROWTH COMMENTS • Entertainment advertising DACH revenues ENTERTAINMENT EXTERNAL REVENUES AND ADJ. EBITDA [IN EUR M] declined by -5% in Q3 2023, an improvement from -10% in H1 2023 (+5%pts), leading to -9% decline

  8. Slide 8: Commerce & Ventures segment revenues and adjusted EBITDA well above prior year levels

    COMMERCE & VENTURES SEGMENT REVENUES AND ADJUSTED EBITDA WELL ABOVE PRIOR YEAR LEVELS COMMENTS • Commerce & Ventures segment revenues COMMERCE & VENTURES EXTERNAL REVENUES AND ADJ. EBITDA [IN EUR M] grew +14% in Q3 and +11% in 9M 2023. On an organic basis, revenue growth was +16% in Q3 2023 and +12%

  9. Slide 9: Dating & Video still impacted by consumer restraint and regulatory headwinds

    DATING & VIDEO STILL IMPACTED BY CONSUMER RESTRAINT AND REGULATORY HEADWINDS COMMENTS • Dating & Video revenues declined by -17% DATING & VIDEO EXTERNAL REVENUES AND ADJ. EBITDA [IN EUR M] in Q3 2023 and -15% in 9M 2023, respectively. Sequentially, i.e., compared to previous quarter, segment revenue

  10. Slide 10: Financial leverage at end of Q3 2023 above target range as expected

    FINANCIAL LEVERAGE AT END OF Q3 2023 ABOVE TARGET RANGE AS EXPECTED – REDUCTION TO 2.5-3X UNTIL YEAR-END DUE TO FCF GENERATION IN Q4 2023 NET FINANCIAL DEBT IN EUR M DEBT MATURITY PROFILE IN EUR M +37 SSD2) 2016 SSD2) 2021 Term Loan RCF Option for extension Term Loan 1,200 & (undrawn) RCF 500 2.3x1)

  11. Slide 11: Operational Update

    03 Operational Update © ProSieben / Richard Hübner

  12. Slide 12: Significantly improved monetization of Joyn

    SIGNIFICANTLY IMPROVED MONETIZATION OF JOYN Start of first FAST channels (e.g., NARUTO, CRACTION), already generating 1m marketable video views in Q3 2023 3.8m Monthly Video Continuously broadening our content Users (avg.) Q3 20231) offering, e.g., through creator content (+13% vs. PY) (e.g., “Real

  13. Slide 13: German TV advertising market hit harder by effects of Ukraine war

    GERMAN TV ADVERTISING MARKET HIT HARDER BY EFFECTS OF UKRAINE WAR NET TV ADVERTISING MARKET DEVELOPMENT (INDEXED) Gap between net TV advertising markets 105 in Germany vs. simple average of other European countries (U.K., Spain, France and Italy) currently c. 11%pts. 100 In contrast to European aver

  14. Slide 14: Example automotive sector: gross ad spend still around 40% below pre-pandemic level

    EXAMPLE AUTOMOTIVE SECTOR: GROSS AD SPEND STILL AROUND 40% BELOW PRE- PANDEMIC LEVEL – SELECTED DIGITAL AND TV AUTOMOTIVE BUDGETS SECURED GROSS ADVERTISING SPEND, AUTOMOTIVE IN EUR M 3,000 -40% Automotive sector has significantly cut 2,500 advertising budgets in past four years. However, YTD develop

  15. Slide 15: Strong revenue growth of Verivox and Flaconi main driver of positive Commerce & Ventures

    STRONG REVENUE GROWTH OF VERIVOX AND FLACONI MAIN DRIVER OF POSITIVE COMMERCE & VENTURES SEGMENT PERFORMANCE VERIVOX REVENUES FLACONI REVENUES +17% +17% +102% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 20

  16. Slide 16: Outlook

    04 Outlook © SAT.1 / Claudius Pflug

  17. Slide 17: For FY 2023, we expect group adjusted EBITDA at lower end of target range

    FOR FY 2023, WE EXPECT GROUP ADJUSTED EBITDA TO BE AT LOWER END OF TARGET RANGE AND GROUP REVENUES TO BE SLIGHTLY BELOW TARGET RANGE FY 2022 FY 2023 TARGET COMMENT EUR 4,163m Group (adjusted for currency ~EUR 4.10bn Group revenues expected to be revenues and portfolio effects: (+/- EUR 150m) slightl

  18. Slide 18: Appendix

    Appendix Results Presentation November 14, 2023 © SAT.1 / Jens Hartmann

  19. Slide 19: Group P&L

    GROUP P&L [in EUR m] Q3 2023 Q3 20221) YoY 9M 2023 9M 20221) YoY Revenues 888 911 -3% 2,571 2,894 -11% Adjusted EBITDA 110 108 +2% 243 376 -35% Reconciling items -17 15 n/a -105 -4 >+100% Thereof reorganization expenses -13 0 >+100% -82 -3 >+100% EBITDA 93 123 -24% 138 371 -63% Depreciation, amortiz

  20. Slide 20: Group and segment revenue breakdown

    GROUP AND SEGMENT REVENUE BREAKDOWN Entertainment Commerce & Ventures Dating & Video Total Group External revenues [in EUR m] Q3 2023 Q3 2022 Q3 2023 Q3 20221) Q3 2023 Q3 2022 Q3 2023 Q3 20221) Advertising revenues 477 506 24 30 500 536 DACH 408 430 24 30 431 460 Rest of the world 69 77 69 77 Distri

  21. Slide 21: Group and segment revenue breakdown

    GROUP AND SEGMENT REVENUE BREAKDOWN Entertainment Commerce & Ventures Dating & Video Total Group External revenues [in EUR m] 9M 2023 9M 2022 9M 2023 9M 20221) 9M 2023 9M 2022 9M 2023 9M 20221) Advertising revenues 1,392 1,524 72 109 1,465 1,633 DACH 1,204 1,318 72 109 1,276 1,427 Rest of the world

  22. Slide 22: Operational KPIs

    OPERATIONAL KPIS Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Linear TV Audience Share A 14-491) 25.2% 25.1% 24.0% 24.1% 26.1% 24.6% Joyn (DE+AT)2) Monthly Video Users3) 3.8m 3.4m 4.2m 4.2m 4.2m 3.8m Video Viewtime in minutes3) 6.6bn 6.1bn 7.6bn 7.6bn 7.1bn 6.2bn AVoD Revenues (YoY) n/a n/a n/a +

  23. Slide 23: 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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