GRUPO ANTENA 3 PRESENTATION TO INVESTORS. TMT Bank of America Merryl Lynch. June 2010

Transcription

1 GRUPO ANTENA 3 PRESENTATION TO INVESTORS TMT Bank of America Merryl Lynch June 2010

2 Changes in the Spanish TV landscape Key changes in the Spanish TV market throughout last year 1 2 Market 3 State-owned TV s role Analogue switch off 4 New Audiovisual Law 5 Consolidation process Market structure + 2 Antena 3 TMT_Bank of America Merryll Lynch June 2010

3 1 Advertising market in Spain After two years of dropping trend, advertising market is expected to bottom out Conventional Advertising Market In million CAGR: +8% 6,720 7,300 7,985 7,100 CAGR: -16% OTHERS 5,400 5,575 6,150 5,620-2% 5,500* INTERNET PRESS RADIO TV 2,172 2,317 2,677 2,951 3,180 CAGR: +10% 3,469 3,082 2,368-1% CAGR: -17% 2, e Source: Infoadex. *2010: Zenith Vigía (may 2010) 3 Antena 3 TMT_Bank of America Merryll Lynch June 2010

4 1 Advertising market in Spain:1Q10 Slight growth in 1Q10, with Internet and TV as main drivers TV stood for 50% of the conventional market Growth evolution by media in 1Q10 Market share by media in 1Q10 TOTAL -27% 1% OTHERS INTERNET +1% 1,191 M 1,198 M 7.3% +0.1pc 7.4% 4.3% +0.7pc 5.0% TV -26% 2% PRESS 30.4% -1.3pc 29.1% RADIO -19% -1% RADIO 9.9% -0.2pc 9.7% PRESS -33% -4% OTHERS -28% 2% 48.2% +0.6pc 48.8% INTERNET 2% 18% TV 1Q09 yoy 1Q10 yoy 1Q09 1Q10 Source: Infoadex 1Q10 Source: Infoadex 1Q10 4 Antena 3 TMT_Bank of America Merryll Lynch June 2010

5 1 TV Advertising market in Spain in 1Q10 1Q10, first positive quarter in the last two years, mainly activated by automotive TV Advertising by quarter yoy TV Advertising Market by sector 1Q10e vs 1Q09 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Sector Share 2% Beauty 18% Food 15% Share +0 pp +0 pp YoYe +1% +0% -3% -6% -17% -23% -26% -19% -11% Automotive 14% Telecom&Internet 10% Retail distribution 10% +3 pp -1 pp 0 pp +22% -8% -4% FY08= -11% -34% Finance 8% Culture 6% 0 pp -1 pp +3% -11% FY09=-23% Others 19% -1 pp +2% Source: Infoadex and Internal estimates A3 Source: Internal Estimates A3 5 Antena 3 TMT_Bank of America Merryll Lynch June 2010

6 2 Changes in the sector: TVE New role for the state-owned television (TVE): ,100 M 1,200 M Public Budget 55% Public Budget+ Radiowave toll 60% Others 5% Others 5% Advertising Revenues 40% 420 M Freed up to the market Tax on revenues 35% 0.9% on telecoms 1.5% on pay TVs 3.0% on FTA TVs 6 Antena 3 TMT_Bank of America Merryll Lynch June 2010

7 2 Changes in the sector: TVE TVE, key data in 2009: GRPs Prices Revenues 2,800k % 2,300 M k 420 M 22.0% 18.4% FTA TVs FTA TVs FTA TVs A3 A3 T5 T5 LA S EXTA LA S EXTA Source: Infoadex 1Q10 + Kantar Media 7 Antena 3 TMT_Bank of America Merryll Lynch June 2010

8 2 TV, leading position among the media In 2009, prices dropped to 2004 levels with volumes relatively high, especially in 2H09 Prices evolution Inventory in = Full inventory Q09 2Q09 3Q09 4Q09 Source: Internal estimates. Prices in conventional advertising 2009 Inventory level for the sector excluding TVE 8 Antena 3 TMT_Bank of America Merryll Lynch June 2010

9 2 Antena 3: Market share & power ratio New market structure without TVE boosted market share and power ratio Market share & Power ratio 1.9x Antena 3 s adv. revenues in 1Q10 1.5x +31% 13.0% In % pc % OTHERS pc 71 GRPs Prices Revenues +20% A3 1Q09 T5 1Q10 Source: Infoadex 1Q10 + Kantar Media Antena 3 s power ratio 9 Antena 3 TMT_Bank of America Merryll Lynch June 2010

10 3 Analogue switch off Analogue switch off successfully completed by April 2010 Fragmentation has increased thematic channels audience share Penetration & Audience by distribution Audience by type of channel In % In % Others (cable,sat,.) Pay TV Others Thematics 6 2 Analogue Generalist Digital J a n -09 J u n- 0 9 D e c M a y-10 J a n- 0 9 J u n -09 D e c -09 M a y-10 DTT Penetration Source : Kantar Media 10 Antena 3 TMT_Bank of America Merryll Lynch June 2010

11 3 Audience share evolution among FTA commercial TVs Audience erosion in core channels offset by complementary channels In % Total individuals Q09 2Q09 3Q09 4Q09 1Q10 2Q10 In % A3 s audience by type of channel 1Q09 2Q09 3Q09 4Q09 1Q10 2Q Source: Kantar Media 24h Total individuals: 4+ Commercial Target: yrs. Up to 10,000 inhabitants 11 Antena 3 TMT_Bank of America Merryll Lynch June 2010

12 3 Antena 3 s commercial strategy: Advertising bundling Unique simultaneous advertising across the three channels, as of 1st February 2009 No bundling Bundling 15.1% 15.1% Low audience Low prices 2.9 More attractive for advertisers (+GRPs) High audience High prices Wider coverage Higher frequency Better Day part mix Premium prices Jan-May 10 Jan-May 10 Source: Kantar Media. 24h, Total individuals Antena 3 TMT_Bank of America Merryll Lynch June 2010

13 4 New audiovisual law New audiovisual law has created stable framework for the sector + New licences from 10 to 15 years Advertising time confirmed at Product placement allowed Better conditions on 5% obligatory investment in Spanish production - Creation of a Council for Audiovisual Media (CEMA) Additional restrictions to specific advertisers 13 Antena 3 TMT_Bank of America Merryll Lynch June 2010

14 5 Changes in the sector: Consolidation Number of players reduced by two in one year MAIN COMPETITORS 4 Commercial FTA TV players 2 State-owned TV players MAIN COMPETITORS 2 or 3 Commercial FTA TV players? 48% 36% Audience share 48% 36% 70% 30% Market share 88% 12% 1.5x 0.8x Power ratio 1.8x 0.3x Source: Audience share: Kantar Media. Total Individuals: / Market share: Infoadex 14 Antena 3 TMT_Bank of America Merryll Lynch June 2010

15 5 Changes in the sector: Consolidation Spanish future outlook similar to other European markets Private Public Private Public 1.5x 0.9x Power ratio 1.3x 0.5x Private Public Private Public 1.9x 0.1x Power ratio 1.5x 0.8x Source: Internal estimates from several sources 15 Antena 3 TMT_Bank of America Merryll Lynch June 2010

16 Changes in the Spanish TV landscape Low visibility beyond 2010, but?? Structural changes onwards Audiences? Market Antena 3 TMT_Bank of America Merryll Lynch June 2010

17 ? Advertising market in Spain Expected recovery of TV Ad market compared to GDP trend Perfect correlation GDP growth = TV Ad growth Overreaction GDP growth > TV Ad growth Closing the gap TV Ad growth > GDP growth Nominal GDP CAGR in index terms Nominal TV Ad Market CAGR in index terms 17 Antena 3 TMT_Bank of America Merryll Lynch June 2010

18 ? TV, clear competitive position among the media TV is the leading media both in coverage and prices 89 Coverage by media In % TV Radio Magaz. Newsp. Internet 13.3 CPT by media In Antena 3 TMT_Bank of America Merryll Lynch June 2010 TV Radio Newsp. Internet Magaz. Source: Coverage: EGM 1st survey 2010 / Prices: Internal estimates

19 ? Advertising market in Spain Despite cyclical and structural changes, TV has maintained its appeal and leadership throughout the years Press and Magazines have lost market share in favour of Internet Market share by media TELEVISION 40.1% 42.1% 28.3% PRESS 20.9% 10.9% 9.0% 1.3% MAGAZINES RADIO INTERNET 11.7% 7.1% 9.5% Source: Infoadex 19 Antena 3 TMT_Bank of America Merryll Lynch June 2010

20 ? Audiences: facing fragmentation Antena 3 currently sells advertising not only for its own family of channels but also for third player s channels In % Jan-May 10 Total Individuals by channel A3 advertising sales (17.8%) 16.9 Antena 3 (15.1%) + Veo (0.7%) + Disney Channel (2.0%) % Source : Kantar Media: 24h, Total individuals Antena 3 TMT_Bank of America Merryll Lynch June 2010

21 ? Structural changes in the sector Facing structural changes: INCREASING COST FLEXIBILITY ANTENA 3.0 MULTIPLATFORM STRATEGY FAMILY OF CHANNELS CONCEPT MULTIMEDIA GROUP 21 Antena 3 TMT_Bank of America Merryll Lynch June 2010

22 Flexibility in costs Changes in the industrial area of the business A3 s TV business in 2009 Product definition Content purchase A3 s TV business in 2010 Product definition Content purchase Programming Service externalization ( 400 emp.) Programming Production services Make-up & Hairdressing News Cameras Storage Scenography Production Archives 22 Antena 3 TMT_Bank of America Merryll Lynch June 2010

23 Family of channels Providing a unique full spectrum of targets which will be reinforced with a new complementary channel in 2H10 Age > º Male Female 23 Antena 3 TMT_Bank of America Merryll Lynch June 2010

24 Antena 3.0: A Three-screen model Antena 3.0: Launched May 2009 Antena3.com Previews and catch-ups Watch and chat Exclusive contents (making of, deleted scenes, ) Multiplexation DTT: Previews and re-runs El Internado : 1st episode Simultaneous emission Antena3.mobi Live contents on the mobile phone ( FoQ ) Exclusive contents (making of, deleted scenes) Mobile games Navigator 3.0: Graphic tools informing on the three-screen offer Presenter 3.0: Continuity presenter informs on the most interesting events on the three screens 24 Antena 3 TMT_Bank of America Merryll Lynch June 2010

25 Multimedia group Using cross-media promotion capabilities TV RADIO INTERNET CINEMA Coverage Frequency Segmentation Exclusivity MULTIMEDIA GROUP 25 Antena 3 TMT_Bank of America Merryll Lynch June 2010

26 26 Antena 3 TMT_Bank of America Merryll Lynch June 2010 Back Up Slides

27 Consolidated Group (IFRS) 1Q10 Results in mill. 1Q10 1Q09 YoY Net Revenues % OPEX % EBITDA EBITDA Margin 13.0% 13.0% Net profit Net profit Margin 8.2% 4.6% +10.0% +95.8% 27 Antena 3 TMT_Bank of America Merryll Lynch June 2010

28 Television (IFRS) 1Q10 Results in mill. 1Q10 1Q09 YoY Net Revenues % OPEX % EBITDA EBITDA Margin 14.3% 13.0% Net profit Net profit Margin 8.3% 5.2% +25.0% +80.4% 28 Antena 3 TMT_Bank of America Merryll Lynch June 2010

29 Radio (IFRS) 1Q10 Results in mill. 1Q10 1Q09 YoY Net Revenues % OPEX % EBITDA EBITDA Margin 23.9% 20.6% Net profit Net profit Margin 14.2% 11.9% +15.8% +19.2% 29 Antena 3 TMT_Bank of America Merryll Lynch June 2010

30 Additional information Investor Relations Department Phone: Web: Legal Notice The information contained in this presentation has not been independently verified and is, in any case, subject to negotiation, changes and modifications. None of the Company, its shareholders or any of their respective affiliates shall be liable for the accuracy or completeness of the information or statements included in this presentation, and in no event may its content be construed as any type of explicit or implicit representation or warranty made by the Company, its shareholders or any other such person. Likewise, none of the Company, its shareholders or any of their respective affiliates shall be liable in any respect whatsoever (whether in negligence or otherwise) for any loss or damage that may arise from the use of this presentation or of any content therein or otherwise arising in connection with the information contained in this presentation. You may not copy or distribute this presentation to any person. The Company does not undertake to publish any possible modifications or revisions of the information, data or statements contained herein should there be any change in the strategy or intentions of the Company, or occurrence of unforeseeable facts or events that affect the Company s strategy or intentions. This presentation may contain forward-looking statements with respect to the business, investments, financial condition, results of operations, dividends, strategy, plans and objectives of the Company. By their nature, forward-looking statements involve risk and uncertainty because they reflect the Company s current expectations and assumptions as to future events and circumstances that may not prove accurate. A number of factors, including political, economic and regulatory developments in Spain and the European Union, could cause actual results and developments to differ materially from those expressed or implied in any forward-looking statements contained herein. The information contained in this presentation does not constitute an offer or invitation to purchase or subscribe for any ordinary shares, and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. 30 Antena 3 TMT_Bank of America Merryll Lynch June 2010