GRUPO ANTENA 3 PRESENTATION TO INVESTORS

Transcription

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

2 1 ANTENA 3 S RELEVANT MARKET 2 TMT Conference 2011_BAML_June 11

3 Advertising market in Spain Advertising market is currently at levels Total & TV market evolution In mill Total Ad TV Ad 7,985 5, % -30% 5,631 +4% 5,850 2,317 3, % -32% 2,378 2,472 +4% New entrants + DTT Source: Infoadex 3 TMT Conference 2011_BAML_June 11

4 Advertising market by media TV accounts for more than 40% of the Total market maintaining its appeal over the years Press has lost market share in favour of internet Market share by media Market share evolution 5,631 mill 5,850 mill OTHERS INTERNET 7.4% +0.2 pc 7.6% 11.6% +1.9 pc 13.5% 41.6% TELEVISION 42.3% NEWSP. &MAGAZ. 29.3% -2.0pc 27.3% 39.5% NEWSP.& MAGAZ. RADIO 9.6% -0.2pc 9.4% 27.3% TV 42.1% +0.2pc 42.3% 9.1% 8.4% 1.3% RADIO OTHERS INTERNET 13.5% 9.4% 7.6% Source: Infoadex 4 TMT Conference 2011_BAML_June 11

5 Advertising market vs GDP 2010 Total & TV advertising bounced back after plunge Total & TV advertising over GDP ratio still at an historic low level Total & TV ad market vs GDP Total & TV ad market / GDP 2003= % 0.76% GDP Total Ad 0.55% 0.53% 0,30% 0,33% 0,22% 0,23% Total Ad TV Ad TV Ad Source: Infoadex for TV Ad + BdE for GDP. In nominal terms 5 TMT Conference 2011_BAML_June 11

6 Advertising market growth Total Adverting market grew by 4% in 2010, in line with TV TV & Radio in Q1 11 among the sectors in positive yoy Media 2010 yoy Q1 11 yoy TV Radio Newspapers Magazines Sunday suppl. Outdoor Internet Cinema +4.0% +2.1% -4.2% +2.8% +4.8% +4.8% +20.7% +58.4% +0.9% +3.8% -10.2% -6.5% -2.9% +1.6% +18.5% -31.2% Total +3.9% -1.0% Source: Infoadex 6 TMT Conference 2011_BAML_June 11

7 TV Advertising market: quarterly evolution TV Ad market up by 1% in Q1 11 Tougher comparables in Q2 and Q3 and easier ones in Q4 11 TV Advertising by quarter yoy 12% 2% 6% 1% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11e -3% -6% -17% -23% -26% -19% -11% FY10=+4% -3% FY08= -11% -34% FY09= -23% Source: Infoadex and Internal estimates 7 TMT Conference 2011_BAML_June 11

8 TV Advertising market by sector Market growth in Q1 11 was mainly driven by Food, Retail & Finance Automotive & Beverages endured tougher comparables TV Ad market by sector Q1 11e TV Ad market by sector yoy Q1 11e Others 21% Beauty 17% Beauty Food -4% 3% Beverages 3% Finance Food 14% Automotive Telecom Retail 2% 2% 5% 10% Finance 24% Retail 10% Telecom 10% Automotive 14% Beverages Others -32% 6% Source: Internal estimates 8 TMT Conference 2011_BAML_June 11

9 TV, clear competitive position among the media TV maintains the best mix coverage-cost despite 2010 prices hike 88 Coverage by media In % TV Radio Magaz. Newsp. Internet CPT by media In TV Radio Magaz. Newsp. Internet Source: Coverage= EGM 3rd survey 2010 / Prices= Internal estimates FY10 9 TMT Conference 2011_BAML_June 11

10 TV habits in Spain Record TV viewing with 234 min/viewer TV viewing has increased in all age groups TV viewing in Spain Average daily consumption in min TV viewing by age group Average daily consumption in min min/viewer y o yo y o yo +65 y o Source: Kantar Media Source: Kantar Media 10 TMT Conference 2011_BAML_June 11

11 TV: Market drivers Stable inventories over the years close to sold out levels TV ad market mainly driven by prices evolution Inventory levels (Total TV) Prices for advertisers (Total TV) 2003= % 85% 91% 92% 87% 84% 90% 92% Source: Kantar Media. Commercial hours: 13h-25h. Conventional advertising excluding TVE Source: Internal estimates. Nominal prices. Conventional advertising 11 TMT Conference 2011_BAML_June 11

12 Fragmented audience share Very fragmented offer with more than 30 channels only in Free-to-Air TV Commercial FTA TVs Public FTA TVs A3 Mediaset España Sexta Net TV Veo TV FORTA TVE FTA Core channel FTA Complem. Channels * * * * Pay Complem. Channels Audience share Q1 11 (%) Market share Q1 11 (%) Power ratio Q1 11 (x) Source : Kantar Media + Infoadex * Depending on the region 12 TMT Conference 2011_BAML_June 11

13 Consolidation process in the sector Consolidation process over last two years should improve bargaining power of main FTA TV players Changes in the number of FTA TV players Main FTA TV players * Commercial FTA TV players State-owned TV players Commercial FTA TV players State-owned TV players Commercial FTA TV players State-owned TV players Market share: 69% 28% 83% 11% 86% 10% 6 players 5 players 4 players * Q1 11 Source : Infoadex 13 TMT Conference 2011_BAML_June 11

14 2 ANTENA 3 S PERFORMANCE 14 TMT Conference 2011_BAML_June 11

15 Antena 3 vs TV Advertising (I) Antena 3 s revenues fully driven by TV Ad market Discipline in costs despite a larger number of channels to manage Antena 3 TV s performance vs TV Ad market In mill 3,469 TV Ad market 2,317 A3 s TV revenues 878 2,378 2, EBITDA margin 35% % 21% 426 A3 s TV OPEX Source: Infoadex 15 TMT Conference 2011_BAML_June 11

16 Antena 3 vs TV Advertising market (II) Antena 3 TV, nine consecutive quarters outperforming the TV Ad Market Antena 3 vs TV Ad market % growth yoy Antena 3 TV TV Ad Market 6% 2% 20% 12% 24% 6% 18% 12% 1% 6% Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111-3% -10% -11% -24% -26% -34% -29% -19% Source: Infoadex and Internal Estimates 16 TMT Conference 2011_BAML_June 11

17 Antena 3: Market share & power ratio Antena 3 s market share and power ratio at its highest level Antena 3 s power ratio Market share Power ratio Audience share 26.2% 20.8% 1.3x 28.3% 1.3x 21.3% 26.3% 1.3x 19.6% 24.1% 1.4x 22.4% 24.6% 1.3x 1.5x 27.9% 1.7x 30.2% 1.8x 17.8% 17.0% 16.6% 15.8% 16.8% New entrants DTT channels A3 s advertising bundling Q1 11 Source: Infoadex + Kantar Media 17 TMT Conference 2011_BAML_June 11

18 FTA TV players: Market share in Q1 11 Antena 3 increased market share in 150 bps, the best performance among FTA players in Q1 11 Antena 3 holds the highest power ratio (1.8x) in the sector Market share & Power ratio Power Ratio Q1 11 A3 Q1 10 Q pc 1.80x T5 + Cu atro Q1 10 Q pc 1.72x AUTON Q1 10 Q pc 0.88x LA SEXTA Q1 10 Q pc 1.58x Source: Infoadex 18 TMT Conference 2011_BAML_June 11

19 Antena 3 s family of channels Proven successful strategy based on age targeting Advertising bundling: Unique simultaneous advertising across the four channels at premium prices in every of them Age Advertising Bundling (unique price) More coverage Premium prices in every channel 4-12 Male Female 19 TMT Conference 2011_BAML_June 11

20 Antena 3: Audience share Audience share improved throughout 2010 due to complementary channels 2011 audience share clearly above 2010 levels Audience share evolution Audience share yoy Antena 3 Group Antena 3 Neox+Nova+Nitro ,2% Antena 3 Group Q110 Q210 Q310 Q Q1 Q2 Q3 Q4 Source: Kantar Media 20 TMT Conference 2011_BAML_June 11

21 Audience share: Jan-May 11 performance in 24 h Antena 3, the highest increase in audience share yoy among FTA players Total individuals Jan-May 11 Commercial Target Jan-May 11 24h h Yoy Yoy Source: Kantar Media Audience share 24h; Total Individuals: 4+ & Commercial Target:16-54 yr, > 10,000 inhabitants 21 TMT Conference 2011_BAML_June 11

22 Audience share in complementary channels Antena 3, with three channels, co-leads the complementary FTA offer Total Individuals Jan-May 11 Commercial Target Jan-May Source: Kantar Media Audience share 24h; Total Individuals: 4+ & Commercial Target:16-54 yrs, > 10,000 inhabitants 22 TMT Conference 2011_BAML_June 11

23 Antena 3, a well-balanced grid Healthy and well-balanced grid Programming grid Talk shows Cinema News Entertainment Own Fiction 23 TMT Conference 2011_BAML_June 11

24 Flexible cost structure Changes in the industrial area of the business have increased cost flexibility A3 s TV business in 2009 A3 s TV business in 2011 Product definition Product definition Content purchase Content purchase Programming Programming Production services Externalization process Outsourced services 450 employees (>30% TV workforce) 10% avg cost reduction in next years 3 years payback on severance pay 24 TMT Conference 2011_BAML_June 11

25 Proven discipline in costs Rigorous cost control over the years with more channels to manage OPEX evolution (M ) In nominal terms In real terms Group OPEX 558 CAGR: +2.2% CAGR: -0.4% 544 TV OPEX 426 CAGR: +3.5% CAGR: +0.9% TMT Conference 2011_BAML_June 11

26 Radio evolution In Q1 11, Antena 3 s Radio has reached the highest number of listeners since 2005 (> 4 mill) Total listeners evolution (,000) 4,190 2,858 2,381 2,480 2, ,912 1,955 1,931 2,044 3,253 3, ,024 2,261 2, ,588 2,531 1 st 0 5 1st 06 1 st 07 1st st 09 1st st 11 Source: EGM Surveys 26 TMT Conference 2011_BAML_June 11

27 Antena 3 Radio Antena 3 s radio division outperformed its market in Q1 11 EBITDA margin over 25% Q1 11 Gross ad sales in Radio Market share Uniprex vs Market 19.7% 23.2% +0.7 pc 3.8% 4.5% Q1 10 Q1 11 EBITDA margin 23.9% 25.2% Market Uniprex Q1 10 Q1 11 Source: Antena 3 and Infoadex 27 TMT Conference 2011_BAML_June 11

28 Antena 3.0 strategy Developing Antena 3.0 strategy Television Agreements with main TV manufacturers: A3 to have privileged position in connected TV s Distribution agreements with digital platforms. Mobile Development of apps for smartphones and tablets Internet New web launched in June 10 New contents: 30% exclusive web content Exploitation of library. VoD and last 7-days catch-up service 28 TMT Conference 2011_BAML_June 11

29 Antena 3.0: Internet Strong growth in every operating indicator Unique Users (monthly average) Video Streams (monthly average) In mill In mill +62% % Q Q1 11 Source: OJD/Nielsen Market Intelligence Source: Smartadserver 29 TMT Conference 2011_BAML_June 11

30 Antena 3.0: Cross-media potentials Rights ownership creates new business opportunities NATIONAL FICTION Internet pay Free TV Internet pay post DVD / Merchandising International sales Pay per view Catch up 1st season on sale To be exploited 1st season 4.3 million viewers on average Avg.Share: 22.8% More than 75,600 fans in Facebook Premiere 1st season: 25th October 2010 Premiere 2nd season: 10th May 2011 Online game 196,300 players >10 million video streams since premiere Source : Kantar Media, OJD, Nielsen Market Intelligence, Smartadserver Data up to 31 st. March TMT Conference 2011_BAML_June 11

31 GRUPO ANTENA 3 PRESENTATION TO INVESTORS TMT Bank of America Merrill Lynch June

32 32 TMT Conference 2011_BAML_June 11 Back up slides

33 Antena 3 Group at a glance One of the largest communication groups in Spain Antena 3 Group Onda Cero Europa FM Onda Melodía Radio 11% Others 4% A3 Films Movierecord A3 eventos Unipublic Planeta-De Agostini: RTL: Treasury stock: Free-float: 44.6% 20.5% 5.0% 29.9% % on total revenues 2010 Television ANTENA 3 NEOX NOVA NITRO 85% 33 TMT Conference 2011_BAML_June 11

34 Antena 3 Group s competitive position Antena 3 TV: Solid position in audience and market share Radio: Second player in Spain TELEVISION RADIO (UNIPREX) Audience share Market share Audience share Market share Others TVE 17% 23% 11% Forta 7% 17% Sexta A3 25% Mediaset España Forta Others 10% 4% 44% 30% A3 COPE Sexta 12% 14% 42% Q1 11 Q1 11 1st 11 Q1 11 Source: Infoadex, Kantar Media Mediaset España Others 24% SER 46% 16% UNIPREX Source: EGM, 1 st. Survey 2011, Infoadex Others 35% 23% UNIPREX SER 34 TMT Conference 2011_BAML_June 11

35 Main financial ratios Share price at 1st June 2011= 5.55 /sh Market cap 1,172 million Consensus EV/EBITDA (2011) Net debt/ebitda (2011) 7.5x 0.6x P/E (2011) 9.8x Pay-out ratio 80% on net profit Dividend yield (2011e) 8.2% 35 TMT Conference 2011_BAML_June 11

36 Consolidated Group Q1 11 Results in mill: P&L Q1 11 Q1 10 YoY Net Revenues % OPEX % EBITDA EBITDA Margin 14.3% 13.0% Net profit Net profit Margin 9.6% 8.2% +16.2% +23.5% Source: Antena 3 s financial statements 36 TMT Conference 2011_BAML_June 11

37 Television division Q1 11 Results in mill: P&L Q1 11 Q1 10 YoY Total Net Revenues % OPEX % EBITDA EBITDA Margin 14.6% 14.3% EBIT EBIT Margin 12.9% 12.7% +5.0% +4.9% Source: Antena 3 s financial statements 37 TMT Conference 2011_BAML_June 11

38 Radio division Q1 11 Results in mill: P&L Q1 11 Q1 10 YoY Net Revenues % OPEX % EBITDA EBITDA Margin 25.2% 23.9% EBIT EBIT Margin 22.1% 20.3% +10.9% +14.5% Source: Antena 3 s financial statements 38 TMT Conference 2011_BAML_June 11