Investor presentation

Transcription

1 Investor presentation May 2007

2 REVIEW OF 2006: REVENUE AND PROFIT CONTRIBUTORS Revenue structure EBIT structure Outdoor +20 mln Internet Radio 50-7 mln Metro Radio Outdoor 40 Agora Group Magazines +10 mln -10 mln Other incl. premises Magazines Gazeta 30 Books Books 20 PLN 40 mln Newspapers* +22 mln +5 mln 10 0 EBIT 2006 Newspaper segment excl. books Books Magazines Outdoor Radio Other 2 Source: consolidated financial statements according to IFRS, 2006; segment data include inter-segment transactions * include: Gazeta Wyborcza, Metro, Internet and overhead cost of the Agora Group

3 ADVERTISING MARKET: TRENDS IN 1Q07 AND PREVIEW OF 2007 Ad spend growth in 1Q07 Ad spend growth in % % 2007 vs 2006 % change 2006 vs 2005 % change % % 4000 TV % 1Q06 1Q % 5% Magazines Dailies Radio % 3% Outdoor Internet % 5% 5% 6% 55% TOTAL TV Dailies Magazines Radio Outdoor Internet % 10% 10% 12% 59% 42% E 3 Source: the estimates are adjusted for average discount rate; 2006: Starlink estimates (TV and Internet), IGRZ (outdoor), Agora s estimates based on Expert Monitor and monitoring of Agora (press and radio); 2007 estimates: Agora

4 REVIEW OF 1Q07: FINANCIAL PERFORMANCE Agora Group (selected figures) 1Q07 1Q06 Gazeta reduces cover price to PLN 1.5 in April 06 Revenues % - copy sales % - advertising % - other incl. collections % Operating cost: % - materials % - staff cost % - non-cash stock incentive comp % - promotion and marketing % EBITDA Operating EBITDA* EBIT % 44.4% 469.7% Cost cutting program implemented e/o 2006 Net profit % Operating cash flow % Employment (at the end of term) % 4 * excluding non-cash cost of share-based payments Source: consolidated financial statements according to IFRS, 1Q 2007

5 NEWSPAPERS MARKET PERFORMANCE thou. copies Gazeta s copy sales versus Dziennik and Rzeczpospolita Dual-pricing strategy in 1Q07 revenues from copy sales down only PLN 0.9 mln Weekly readership reach in 1Q07 % reach 25% 20.0% 20% 19.3% Just announced Friday cover price increase to PLN 2 Gazeta 15% Gazeta 43% 0.3pp Dziennik Rzeczpospolita May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr % 5% 0% Gazeta yoy pp change Metro Fakt 3% 6% Dziennik 0.8pp 1.8pp 4% Rzeczpospolita 8% 0.2pp Super Express 3% 0.3pp Fakt Dailies ad market in 1Q07 Dailies +2% Gazeta +3% no. of readers 6.0 mln 5.8 mln Other 11% 2.9pp Super Expres s 9.4% 2.8 mln Dziennik 8.3% 2.5 mln Re czpospolita 5.7% 1.7 mln Premier brand and franchise Strong national and local presence (content and ads) Proven promo strategies Advertising breadth and innovations High circulation Copy price strategies Protect ad share Improve profitability and enhance sales Leverage synergies with Metro and online Orkla 7% 0.2pp Polskapresse 15% 0.6pp 5 Source: ad market: Agora s estimates adjusted for average discount rate (data in current prices), 1Q07; copy sales: ZKDP (Circulation Audit Office); readership: Polskie Badania Czytelnictwa, MillwardBrown SMG/KRC, Jan-Mar 2007, N=12 068, CCS index (weekly readership)

6 BOOKS: FINANCIAL AND MARKET PERFORMANCE 1Q07 yoy change Revenues % Maintain scale Operating margin 15.2% -7.5pp Market innovator; ahead on the learning curve Leverages brand and franchise strength Continue innovating new collections 4 new collections 3 continuations 4 one-off projects 3 million books sold Ongoing innovation based on reader input Brand extensions in other media Increase margins 6 Source: consolidated financial statements according to IFRS, 1Q07

7 METRO: FINANCIAL AND MARKET PERFORMANCE 60% 40% 20% 0% % reach 5% Ad spend growth vs the market 50% 2% Newspaper ad spend Metro Readership reach in 1Q07 4.5% 1.4 mln readers Shut down in Jan 2007 Now the only national free daily in the market* #3 most read overall** Tested formula: innovative editorial and marketing approach Leverage leadership position grow ad sales Introduce innovative advertising forms and new supplements (Metro City) Improve distribution efficiency Reach break-even in % Metro 7 Source: readership: Polskie Badania Czytelnictwa, MillwardBrown SMG/KRC, Jan-Mar 2007, N=12 068, CPW index (daily readership); ad market: Agora s estimates adjusted for average discount rate (data in current prices), 1Q07

8 INTERNET: FINANCIAL AND MARKET PERFORMANCE Member of Online Publishers Association Europe 80% 60% Ad spend growth vs the market 55% 65%* 40% 20% 0% Internet ad spend Gazeta.pl Gazeta.pl reach vs market leader #3 player in reach and ad share in two years Revenue growth 3 times in 2 years 10 8 mln real users % 70% 15% 7% 39% 39% 29% Gazeta.pl Onet.pl 19% Attractive target group Strong brands Rich content: editorial and classifieds Commitment and resources to invest Leadership in classifieds New internet-based businesses, including advanced audiovisual content mln real users 1,0 0,8 0,6 0,4 0 January 2007 February 2007 Real estate services Recruitment services 109% 92% 113% 87% mln real users 1,4 1,2 110% 99% 105% 36% 1,0 0,8 0,6 Accelerated investments in 2007: growth of revenue and cost 0,2 0,4 0,2 0,0 8 0,0 January 2007 February 2007 GazetaDom.pl Gratka.pl/dom January 2007 February 2007 GazetaPraca.pl Pracuj.pl * excluding the Internet ads in vortals, consolidated financial statements according to IFRS, 1Q07 Source: Megapanel PBI/Gemius; ad market: Starlink estimates

9 OUTDOOR: FINANCIAL AND MARKET PERFORMANCE Revenues 1Q yoy change 24.5% Operating cost % Operating EBITDA* EBIT % Number of panels % Outdoor ad market in 1Q07 AMS 28.7% 2.1pp #1 outdoor company in Poland Solid profitability Committed to market innovations and investments Maintain leadership position revenue enhancements Further network investments Protect margin during investment phase Other 71.3% 9 * excluding non-cash cost of share-based payments Source: financials: consolidated financial statements according to IFRS, 1Q07; number of panels: AMS; advertising: IGRZ monitoring

10 MAGAZINES: FINANCIAL AND MARKET PERFORMANCE Revenues - copy sales - advertising Operating cost Operating EBITDA* EBIT Average copy sales monthlies (thou copies) Agora 5.4% 0.7pp AW-R Wprost 5.6% Polityka SP 6.2% Gruner+Jahr 11.8% Other 26.8% 1Q National magazine ad market in 1Q07 Market +8.4% Agora +24.1% Bauer 17.5% 10.3% 0.0% 19.4% -5.6% % % Small but profitable business Successful launches Rich source of content Strong brands Maintain copy sales and readership position of the leading titles Continue improving their financial parameters Seek new growth opportunities: new titles Axel Springer 12.2% Edipresse 14.5% 10 * excluding non-cash cost of share-based payments Source: financials: consolidated financial statements according to IFRS, 1Q07; ad market: Agora monitoring, rate card data; average copy sales: Agora

11 RADIO: FINANCIAL AND MARKET PERFORMANCE Revenues 1Q 07* % Operating cost Operating EBITDA* % 90.9% Key priority: financial performance EBIT Audience share PR 12.3% % Radio ad market in 1Q07 Other 9.7% 64.9% -2.0pp Clear brand strategy Revamped operating structure TOK FM s brand takes off Roxy FM: keep growing audience Golden Oldies: target new audiences yoy pp change Eska 16.9% TOK FM 1.0% 0.3pp Market +4.6% Agora +6.3% RMF FM 25.6% TOK FM: leverage audience results Agora 10.2% 0.2pp ZET 24.3% TOK FM audience share up to 3.5% (6.1% in Warsaw) 11 Source: financials: consolidated financial statements according to IFRS, 1Q07; audience share: MillwardBrown SMG/KRC, Jan-Mar 2007, +15 years of age, cities of broadcasting, local stations N=11 430, TOK FM N=7 840, TOK FM in Warsaw N=1 501, ad market: Agora s estimates based on Expert Monitor, 1Q07

12 PRIORITIES FOR GROWTH: TOPLINE AND SCALE EXPANSION Strong brands National/local franchises Rich multimedia content Proved promo strategies Innovative ad forms Comprehensive sales approach Apply new tech perspective to leverage equities and build new activities Core business Online business New activities on/off line