ATRESMEDIA

Transcription

1 ATRESMEDIA Presentation to investors April

2 Advertising market in Spain FY17 Total Ad market: Slight growth Gross Ad market Yoy growth +12.6% +10.0% +5.5% +1.0% +1.7% +0.8% -1.9% +1.7% -5.1% -7.2% Total Ad market +4.3% +2.3% Source: Infoadex 2

3 Advertising market in Spain TV: Clear leadership Spanish Ad spending by medium Share 41.2% 40.1% -0.1pp 40.0% -25.5pp 28.9% 9.0% +27.6pp -0.3pp 15.7% 8.7% 8.4% 6.7% -1.5pp 1.3% Source: Infoadex 3

4 Advertising market in Spain Total & TV marketvs GDP issteadilybouncingback Total & TV ad intensity (vs GDP) Total Ad market 0.72% 0.74% TV Ad market 0.32% 0.29% avg= 0.24% (All-time average= 0.29%) 0.54% 0.23% avg=0.58% (All-time average= 0.73%) 0.46% 0.41% 0.16% 0.19% Source: Infoadex and Bank of Spain 4

5 Advertising market in Spain Spanish TV: Best cost-coverage mix Cost-coverage by medium In /1,000 impacts & % penetration % 85% % 24% Coverage CPT Source: Internal estimates& EGM data 5

6 Spanish TV industry: Main drivers Positive outlook for household consumption& GDP Household Consumption & GDP Yoy growth Forecast Consumption GDP 3.7% 3.6% 4.2% 4.2% 3.8% 1.4% 2.6% 3.0% 4.1% 3.7% 3.3% -0.5% -1.1% 1.0% -1.9% -2.1% e 2018e Source: Funcas(Mar 18). In current prices 6

7 Spanish TV industry: Ad market Sustainable recovery from very low historical levels Gross TV Ad market In mill 3,469 % yoy Gross TV Ad market -38% 2,317 2,378 2,472 Average: 2,430 1,890 2,011 2,122 2,143 1,703-12% 16% 10% 8% 9% 4% 11% 6% 6% 1% -6% -11% -10% -19% -23% Source: Infoadex 7

8 Spanish TV industry: Ad market SpanishTV Ad market: Flat marketin 2017 Gross TV Ad market Yoy growth FY14=+11% 22% FY15=+6% FY16=+6% 1% 6% 3% 8% 13% 12% 8% 3% 3% 6% 11% 1% 3% 4% FY17=+1% 3% 1% -8% -10% -3% -4% -14% FY11=-10% -15% -15% -18% -21% -24% -16% FY13=-6% FY12=-19% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Source: Infoadex. 8

9 Spanish TV industry: Ad market 2017: High dispersion among sectors Ad spending by sectors % 2017 yoy 13% 1% 7% 3% 8% 3% 2017=+1% -8% -7% -4% Beauty & Hygiene Food Autos Telcos Retail Finance Health Beverages Others (Energy, Cleaning, Home, Sports& leisure ) 12% 11% 13% 9% 10% 9% 5% 5% 25% Weight Source: Internal Estimates 9

10 Spanish TV industry: Prices and volumes Steady growth in prices and volumes TV Ad market In million+ Market Prices& Volumes in index terms 3,469 2, ,703 2,1222,143 2,011 1, TV ad market Nominal Prices Volumes Source: TV Market: Infoadex Prices: Internal estimates. Conventional advertising. Volumes: Internal estimates. Commercial hours: 13h-25h. Conventional advertising excluding TVE. 10

11 Advertising market in Spain Stable market shares by player Market share evolution by player Ad Share Pay TVs Other FTAs Forta 2.6% 3.2% 3.6% 3.8% 4.4% 4.0% 4.3% 4.3% 4.8% 5.5% 7.1% 6.8% 6.6% 6.0% 5.3% 42.6% 41.5% 42.1% 42.1% 41.4% 43.2% 44.2% 43.4% 43.3% 43.3% Source: Infoadex 11

12 Spanish TV industry: Commercial FTA landscape Atresmediahas a keyposition in a widecommercialfta TV offer CommercialFTA TV landscape(2017) Channels Mkt share Audience Power ratio 41.4% 26.6% 1.6x 43.3% 28.7% 1.5x Net TV 3.1% Veo TV 2.7% 13TV Secuoya Real Madrid TV Kiss TV 2.1% 5.5% 0.6x 0.4% 0.4% 0.9% Source: Kantar Media, Infoadex 12

13 SpanishTV industry: PayTV PayTV position in Spain FTA TV vs Pay TV in Spain 2017 Penetration (% of households) Audience (%) 100% 92% 35%* 8% Source: Kantar Media, Infoadex& CNMC * Penetrationas of 3Q17 13

14 SpanishTV industry: PayTV PayTV position in Spain Pay TV sector in Spain 26.8% 26.7% 24.5% 23.1% 29.5% 30.8% 33.5% 34.5%* Pay TV penetration (by CNMC) 7.0% 7.8% 7.0% 6.8% 6.2% 5.6% 6.2% 6.8% 2.6% 2.7% 2.4% 3.1% 3.6% 3.8% 4.4% 2.6% Audience % Total Individuals 4+ Ad market share % Total TV ad market Source: Kantar Media, Infoadex& CNMC * Penetrationas of 3Q17 14

15 SpanishTV industry: PayTV PayTV byplatformtypeand player Pay TV sector in Q317 % Total connections (6.4 mill) Others 5% Satellite 13% Orange 9% Others 11% Cable 23% IPTV 59% Vodafone 21% Telefonica 59% Source: CNMC 15

16 SpanishTV industry: OTT TV OTT consumption is marginal TV on demand Q217 of which: of which: 18.4 mill households OTT 15.9 mill households internet connected 4 mill households consume OTT 2.0 mill 1.2 mill 0.4 mill 0.2 mill 0.2 mill 0.1 mill Source: Household panels. CNMC 2Q 17 16

17 TV viewing Linear TV viewing remains very strong Average daily TV viewing In hours Average daily viewing In % Linear + Non linear Linear 3h 46 4h 06 3h 57 3h 54 3h 49 3h 45 Online video VoD 1%2% Time shift 12% 4h 25min % Linear TV Source: Kantar Media. Non linear TV viewing includes +7 days viewing through TV set (TV viewing on desktops, tablet or mobile devices not included) Source: Kantar Media & Comscore 17

18 Spanish TV industry: Audiences TV viewing remains at very high levels Average daily viewing In hours 5h 02 4h 13 3h 33 3h 11 2h 26 2h 23 5h 52 4h 35 3h 49 3h 45 2h 52 2h 1h 46 Age groups >65 45 to64 Ind4+ (+7 days) Ind4+ 25 to44 4 to12 13 to24 Source: Kantar Media 18

19 TV habitsin Spain TV viewing pattern changes by age group Average daily consumption in min h35 4h13 5h02 5h h26 2h23 2h 1h46 3h11 2h yrs yrs yrs yrs +65 yrs Source: Kantar Media 19

20 Spanish TV vs Online Video Audiences TV isbyfarthebestmedia toreachbrandawareness Avg coverage in mill viewers Avg coverage in mill viewers In 1day 33.8 In 1month 30.2 In 1minute TV Top 5 online video platforms TV Video online Source: Kantar Media & Comscore Jan 17 20

21 Atresmedia: A leading communication group Solid and clear group structure OTHERS Market share 41% Market share 18% ADVERTISING Total Ad market share 19% Source: Infoadex

22 Atresmedia: Market positioning TV & Radio as mainsourceof revenues Revenues by division Revenues by origin Atresmedia Cine Atresmedia Digital Atresmedia Diversification Others Non ad revenues Onda Cero Europa FM Onda Melodía Radio 8% 4% 9% ANTENA 3 LA SEXTA NEOX NOVA MEGA ATRESERIES TV 2017 Net Revenues 1,052m 88% 2017 Net Revenues 1,052m 91% Ad revenues Planeta-De Agostini: RTL: Imagina: Treasury stock: Free-float: 41.7% 18.7% 4.1% 0.4% 35.2% Source: Infoadex& internal estimates 22

23 Atresmedia: Revenues& OPEX evolution Midsingle digitgrowthin Revwhilelowsingle digitin OPEX In euros REVENUE ,021 1,052 CAGR +6% EBITDA x2.5 CAGR +3% OPEX

24 Atresmedia: OPEX Programming costs, the bulk of Atresmedia s OPEX OPEX breakdown 850mill Others 4% 8% Personnel& Overheads 40% Total OPEX 88% Programming 60%

25 Atresmedia TV: Programming costs 2/3 of programming is in-house production Programming hours by format (weighted average based on channels audience) In % Films & Series 3rd party content 1/3 Sports News & Current affairs 30% In-house production 2/3 Entertainment 60% Scripted 10% Total Programming 25

26 Atresmedia: Operating leverage 55% of rev drops at the EBITDA Atresmedia s operating leverage In mill +222 mill rev 1, % operating leverage +122 mill EBITDA Revenue 2013 EBITDA 2017 EBITDA 2017 Revenue 26

27 AtresmediaTelevision: Competitiveperformance Atresmedia Television: A success story 42.6% 41.5% 42.0%42.1% 41.4% Ad market share Audience share 30.5% 35.2% 28.3% 27.9% 1.7x 26.2% 26.3% 24.1% 24.6% 28.8% 27.7%26.8% 22.4% 1.8x 27.1% 1.3x 26.6% 1.3x 1.3x 1.4x 1.8x 1.5x 20.8% 21.3% 1.3x 20.5% 19.6% 17.8% 17.0%16.6%15.8% 17.1% 1.5x 1.5x 1.5x 1.6x 1.6x Source: Infoadex+ Kantar Media. 27

28 Atresmedia Television: Positioning Wide and inclusive TV offer 26.6% % 1.8% 2.2% 2.5% Age 6.8% 12.3% 4-12 FY2017 Male Female 28

29 Atresmedia Television: Programming grid at a glance Balanced and varied programming grid 8h 14h M F S S News Current affaires Cooking Gameshow Entertainment (re-run) News Current affaires US series Current affaires Investigation (rep) Kids Sitcoms US series Kids Soap operas Factuals Sport magazine US series Factuals Factuals Scripted (rep) Factuals 14h 21h M F S S News Scripted fictions Game shows News US Films News Entertainment Current affairs News US Films / Series Sitcoms US series US films = +Entertain. Soap operas Factuals US series Factual Entertain. (rep) US series Scripted (rep) = 21h 24h M F S S Audience shares 2017 News Entertaiment Scripted Sports US Films News US Films News Entertainment Investigation US films News Debates/ Investigation Sitcoms US series Entertain. (rep) US series US Films US series Factual US Films Factual (rep) US series = +Scripted (rep) 12.3% 6.8% 2.5% 2.2% 1.8% 1.1% In-house production in bold 29

30 Atresmedia Television: TV audiences by core channel Antena 3: Stable audience ratings Total Individuals 24h Commercial Target 24h Q Q118 Source: Kantar Media. Total Individuals (4y+) Source: Kantar Media : Commercial Target (16-54 y) As of 2016: Commercial Target (25-59 y) 30

31 Atresmedia Television: TV audiences by second channel La Sexta: Leading Commercial Target Total Individuals 24h Commercial Target 24h Q Q118 Source: Kantar Media. Total Individuals (4y+) Source: Kantar Media : Commercial Target (16-54 y) *As of 2016: Commercial Target (25-59 y) 31

32 Atresmedia Television: TV group audiences Atresmedia TV: Reducing the gap with its main competitor Total Individuals 24h Commercial Target 24h Q Q118 Source: Kantar Media. Total Individuals (4y+) Source: Kantar Media : Commercial Target (16-54 y) As of 2016: Commercial Target (25-59 y) 32

33 Audience: In-house vs external production 94% of most viewed contents are in-house, excl. sports In-house vs external Top 50 programmes (2017) Including sports Excluding sports In-house 64% 3rd parties 36% Inhouse 94% 3rd parties 6% 33

34 Programming costs: In-house vs external production 2/3 of the programming costs are internally produced In-house vs external programming costs In broadcasting hours Inhouse 75% 3rd parties 25% Weighted average (based on audience per channel) 3rd parties 36% Inhouse 25% Inhouse 64% 3rd parties 75% 34

35 Programming costs: In-house production In-house production: A solid strategy FTA TV Atresmedia s Pay TV channels Online Directsales to Broadcasters 35

36 Atresmedia Radio: Positioning& Strategy Atresmedia Radio: 18% market share #3 radio playerin Spain 4.1 million listeners 18% market share # 3 talk radio 1.9 mill listeners # 3 musicradio 1.9 mill listeners New music radio 309k listeners Source: EGM Q3 17 yearly average Market Share: Infoadex& internal estimates 36

37 Spanish Radio industry: Ad market Sound recovery from 2013 levels but still far behind from average and peak levels Gross Radio Ad market In mill % yoy Gross Radio Ad market Average: % -31% 6% 13% 4% 7% 2% 4% 8% 1% 2% -5% -16% -4% -14% -11% Source: Infoadex 37

38 4,954 4,837 4,552 Atresmedia Radio: Audiences Atresmedia Radio: 4.0 million listeners Thousand of listeners 4,319 4,119 4,153 4,106 4,091 4,012 2,662 2,603 2,368 2,136 1,943 1,947 1,912 1,922 1,898 2,024 1,981 1,954 1,943 1,902 1,920 1,910 1,871 1, st 15 2nd 15 3rd 15 1st 16 2nd 16 3rd 16 1st 17 2nd 17 3rd 17 Source: EGM Surveys Mondayto Friday (.000) ( Movingaverage). 38

39 Atresmedia Digital: Positioning& Strategy Present in any possible source of audience & revenues Websites & Verticals ATRESPLAYER MCNs TV/Radio/News > 15 millunique users/month 8 verticals Long formvideo platform 2.4 mill videoplayers users/ month 10.5 millapp downloads 5.2 mill registered users AVoDand SVoD Short formvideo platform Flooxer(0.9 mill videoplayer users / month) Source: ComScore 39

40 Atresmedia Digital Sound growth in unique users yoy Unique users (Monthly avg) Top 100 Spain Ranking (Mill unique users. Monthly avg) x #17th #11th #11th 15.8 #10th 4.3 #29th Source: ComScore Source: ComScore 100 top properties MPMMX 40

41 Atresmedia Digital: Atresplayer Atresplayer: Atresmedia s OTT offer Source: Adobe Analytics 41

42 Atresmedia Diversification: Positioning& Strategy Developing new non ad-based media initiatives 42

43 Atresmedia Diversification: International International division increased penetration by x3 in 4 years 19 In mill suscribers x

44 Atresmedia Diversification: Media for Equity Media for Equity: Exploring new business models Exitin 2016 Media for Equity 44

45 Medium termgoals: TV & Radio Clear improve in margins from operating leverage MarketGrossAd revenues( mill) & EBITDA Margin(%) 2, ,703 1,890 7% 15% 2,011 17% 2,122 2,143 19% 19% 25% % 22% 24% 24% 20% 27% Source: Infoadex& Atresmedia s financial results 45

46 Medium term goals: Other revenues Other non-ad based revenues to double Non-Ad TV & Radio revenues as % of Total Revenues 5% % 2015 x2 8% %

47 Medium term goals: Financials Debt at target level and dividend policy according to plan Total Net DebtTarget ( mill) Dividend policy Payout ratio 80% Long term target mill dividend: 0.20 /sh 96% payout ratio 2015 dividend: 0.36 /sh 82% payout ratio 2016 dividend: 0.92 /sh 82% payout ratio + special Ordinary: 0.47 /sh Special: 0.45 /sh 2017 dividend: 0.52 /sh ~ 83% payoutratio Interim: 0.22 /sh(dec-17) Final: 0.30 /sh(june-18) 47

48 Back up Back up: 2017 Financial Results 48

49 Atresmedia FY17 Results in mill: P&L Ex-Smartclip* FY17 FY16 YoY FY17 YoY Net Revenues 1, ,021.1 << +3.0% 1, % OPEX <<<<<<<<<<<<<<<<< % % EBITDA EBITDA Margin 19.2% <<< 19.8% +0.1% % -0.9% EBIT % EBIT Margin 17.5% 18.1% % 17.6% Net profit Net profit Margin 13.5% % +10.0% Source: Atresmedia s financial statements * Smartclipentered consolidation perimeter as of July 1 st,

50 AtresmediaTelevision FY17 Results in mill: P&L FY17 FY16 YoY Total Net Rev % OPEX % EBITDA EBITDA Margin 18.7% 18.6% +1.3% EBIT EBIT Margin 17.1% 16.9% +1.8% Source: Atresmedia`s financial statements 50

51 Atresmedia Radio FY17 Results in mill: P&L FY17 FY16 YoY Net Revenues % OPEX % EBITDA EBITDA Margin 20.4% 24.0% -13.3% EBIT EBIT Margin 18.0% 21.6% -15.4% Source: Atresmedia s financial statements 51

52 Atresmedia: Others Division Financials Net revenues split mill FY17 Net Revenues 50.6 FY Events 18% Others * 12% Digital 49% EBITDA 13.4 Source: Atresmedia s financial statements Contribution to consolidated group net of eliminations 12.9 Films 21% *Others (Editorial, A3 Música, ) Digital includes 2H17 of Smartclip 52

53 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. 53