Slide 1: The leading European entertainment network
The leading European entertainment network
Slide 2: Agenda
Agenda ● Q3 2011 RESULTS ○ Business Review ○ Strategy update 1
Slide 3: RTL Group Q3 2011 highlights
RTL Group Q3 2011 highlights EBITA MARGIN REVENUE REPORTED EBITA 17.6% continuing operations EUR 3.99 billion EUR 701 million Underlying cost base up less than 1% NET CASH POSITION Portfolio strengthened: Strong audience shares EUR 970 million acquisition of minorities; in major markets creation of
Slide 4: Agenda: Business Review
Agenda ○ Q3 2011 results ● BUSINESS REVIEW ○ Strategy update 3
Slide 5: Germany & France Results 2011
Germany & France Results 2011 NET ADVERTISING MARKET DEVELOPMENT (in %) NET ADVERTISING MARKET DEVELOPMENT (in %) 10 months 2011 vs 2010 9 months 2011 vs 2010 Market RTL P7S1 Market M6 TF1 1,8 3,9 1,2 1,9 0,3 -1,6 AUDIENCE SHARE 14-49 (in %) AUDIENCE SHARE – FAMILY OF CHANNELS HOUSEWIVES <50 ALL DAY
Slide 6: FremantleMedia Half year Results 2011
FremantleMedia Half year Results 2011 KEY FACTS 2011 KEY FINANCIALS (in EUR million) ● Continues to produce the highest rated 621 entertainment shows around the world 596 o In the US, season ten of American Idol was once again the most watched prime time entertainment series ROS ROS o In the UK, ser
Slide 7: FremantleMedia is known for…
FremantleMedia is known for… 6
Slide 8: …but FremantleMedia also has a global expertise in other parts of the value chain
…but FremantleMedia also has a global expertise in other parts of the value chain Drama Sponsors Live Event Online Social hip Networks Licensing 7
Slide 9: FremantleMedia's evolution
FremantleMedia’s evolution TV Production and 21st Century Rights Company Entertainment Company Distribution TV Production Kids Distribution Branded Ent. Home Video Licensing Gaming idea Licensing Home Live Video Events Digital Retail TBA 8
Slide 10: Netherlands & Belgium Results 2011
Netherlands & Belgium Results 2011 NET TV ADVERTISING MARKET DEVELOPMENT (in %) NET TV ADVERTISING MARKET DEVELOPMENT (in %) 10 months 2011 vs 2010 10 months 2011 vs 2010 Market RTL SBS Market RTL RTBF 17,2 5,5 4,3 6,1 6,1 -0,2 Source : RTL Group estimates Source : RTL Group estimates TV AUDIENCE SH
Slide 11: Agenda: Strategy Update
Agenda ○ Q3 2011 results ○ Business Review ● STRATEGY UPDATE 10
Slide 12: What are the challenges of 'digital'
1 2 3 WHAT ARE THE WHAT IS OUR DIGITAL FACT vs CHALLENGES OF STRATEGIC DIGITAL FICTION ‘DIGITAL’ RESPONSE? 11
Slide 13: What Are The Challenges of Digital?
What Are The Challenges of Digital? 1 2 3 Increasing Technological Shift in Consumer Competition Change Behaviour Non-linear TV viewing More “TV” than ever Merged TV and online world TV goes mobile • New and traditional players • Abuse of TV signal • Further fragmentation of competing for business •
Slide 14: What is our strategic response?
1 2 3 WHAT ARE THE WHAT IS OUR DIGITAL FACT vs CHALLENGES OF STRATEGIC DIGITAL FICTION ‘DIGITAL’ RESPONSE? 13
Slide 15: What Is Our Strategic Response? Invest and Experiment
What Is Our Strategic Response? SALES Invest and Experiment COST PRO- CONTROL GRAM TV & More Over 928 million video views in 1st HY 2ND REVENUE STREAM CONTENT NON- DIVERSIFI- LINEAR CATION OFFERS ONLINE & MOBILE Figures based on 2010A 14
Slide 16: What Is Our Strategic Response? Invest and Experiment
What Is Our Strategic Response? SALES Invest and Experiment COST PRO- CONTROL GRAM TV & More Apps already Total App 2ND REVENUE Launched Downloads STREAM CONTENT NON- DIVERSIFI- LINEAR CATION OFFERS ONLINE & MOBILE 15
Slide 17: What Is Our Strategic Response? Goal: Top 10 player
What Is Our Strategic Response? SALES Goal: Top 10 player COST PRO- CONTROL GRAM TV & More 2ND REVENUE STREAM CONTENT Total Page impressions 1st HY 2011 NON- DIVERSIFI- LINEAR CATION OFFERS ONLINE & MOBILE 16
Slide 18: What Is Our Strategic Response?
What Is Our Strategic Response? SALES Use marketing power and brands to build sustainable and profitable businesses COST PRO- CONTROL GRAM EXAMPLES : TV & More 2ND REVENUE STREAM CONTENT NON- DIVERSIFI- LINEAR CATION OFFERS ONLINE & MOBILE 17
Slide 19: Digital fact vs digital fiction
1 2 3 WHAT ARE THE WHAT IS OUR DIGITAL FACT vs CHALLENGES OF STRATEGIC DIGITAL FICTION ‘DIGITAL’ RESPONSE? 18
Slide 20: Digital Fact versus Digital Fiction
Digital Fact versus Digital Fiction Linear TV Usage (in minutes/day) 279 Fragmentation: North +37 min ‘Audiences are moving away 242 Source: Eurodata TV Worldwide from TV and spreading thinly America across thousands of 228 destinations.’ +25 min Europe 203 2000 2010 Targeting: ‘Advertisers are dema
Slide 21: New Content, New Distribution, New Models
New Content, New Distribution, New Models Qualities that define a successful ‘digital’ entertainment company remain the same: • Great Content CONTROL content rights, user data and monetisation • Strong Brands • Massive Reach DEVELOP new business models 20
Slide 22: The leading European entertainment network
The leading European entertainment network