2008 First Quarter Results. May 2008

Transcription

1 2008 First Quarter Results May 2008

2 Disclaimer Statements contained in this document, particularly the ones regarding any RCS MediaGroup possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties. RCS MediaGroup actual results and developments may differ materially from the ones expressed or implied by the following statements depending on a variety of factors. Any reference to past performance of RCS MediaGroup shall not be taken as an indication of future performance. This communication does not constitute an offer or solicitation for the sale, purchase or acquisition of securities of any of the companies mentioned in any jurisdiction and is directed to professionals of the financial community. For further information, please contact our Investor Relations Department Federica De Medici federica.demedici@rcs.it Arianna Radice arianna.radice@rcs.it 2

3 Meeting agenda Who we are RCS Portfolio 2008: RCS Activity 2008: 1st Quarter Financial Results Details by Business Unit 3

4 Vision Integrated Multimedia and International Publishing Group 4

5 RCS MediaGroup The Italian multimedia company with the largest international presence, with activities mainly in Italy, France and Spain that operates in newspapers, magazines, books, radio and new media. Newspapers Books Magazines Advertising New Media Broadcast Partworks 5

6 Group Structure 100% 100% 100% 100% (4) 46.54% 100% 34.6% 70.9% (1) 100% 100% 45% (2) 34.5% (3) IGPDECAUX (1) RCS total stake in Unidad Editorial is 96.31% (2) Joint-venture RCS (45%), De Agostini (45%), Hachette (10%) (3) Joint-venture RCS (34.5%), JCDecaux (32.3%), Publitransport (33.2%) (4) Excluding call options among Shareholders 6

7 RCS Positioning ITALY ITALY ITALY ON LINE & MOBILE PUBLISHING ITALY ITALY Leader in National and Sport newspapers 2 nd Player in the fiction and non fiction market 13.5% Market share Leader in the education market 12.5% Market share 2 nd Information Web Site in Italy 1 st Sport Information Web Site in Italy 3 National Radios 7.3 mln listeners RCS stake: 34.6% 2 Free Press National Title 21% Market share SPAIN 2 nd Player in terms of circulation 13% Market share 2 nd player in the partworks market FRANCE Leader in the infonews market Online Classified SPAIN Thematic TV Channels SPAIN Second national newspapers Leader in Sport and Financial newspapers 17% Market share SPAIN 5.1% Market share UK 1 st Information Web Site in Europe and 1 Spanish language Web Site worldwide The leading international provider of web and mobile community and entertainment services in 23 countries Note: market shares updated with latest available market data; Newspapers: circulation and readership 1 st Sport Informatiion Web Site in Spain ON LINE & MOBILE ENT Online Gaming 7 National Sport Radio DTT TV

8 Meeting agenda Who we are RCS Portfolio 2008: RCS Activity 2008: 1st Quarter Financial Results Details by Business Unit 8

9 Corriere della Sera Brand System WEB SITE NATIONAL NEWSPAPER LOCAL EDITIONS CORRIERE MOBILE (SMS, MMS, M Site, Mobile Internet) LOCAL SUPPLEMENTS CORRIERE Tv THEMATIC SUPPLEMENTS THEMATIC AND VERTICAL CHANNELS (Health, Travel, Motor, House) MAGAZINES E-COMMERCE ADD-ONS (Books, DVDs, CDs) CLASSIFIED RADIO (Radio Tg, Format, Talk Show) 9

10 La Gazzetta dello Sport Brand System NATIONAL NEWSPAPER ON LINE LOCAL EDITIONS GAZZETTA MOBILE (SMS, MMS, M Site, Mobile Internet) LOCAL SUPPLEMENTS THEMATIC SUPPLEMENTS COMMUNITY (GazzaSpace, Fantasy Games) MAGAZINE E-COMMERCE BOOKS, DVDs, CDs RADIO (Radio Tg, Format, Talk Show) EVENTS AND EXHIBITIONS 10

11 Newspapers Italy 8.2 million Readers per Day National Newspaper Sport Newspaper Daily Free Press Supplements and Magazines Add Ons Online News & Information Mobile Video Offering Classified Online Gaming Corriere Mobile Gazzetta Mobile Max Mobile Fueps Mobile Astra Mobile Novella Mobile More than 15 million monthly Unique Visitors online More than 2.4 million monthly Unique Visitors on video contents 11

12 Corriere della Sera.it: digital offering CORRIERE.IT Real Time Information Blogs & Forum Free historic Archive THEMATIC CHANNEL Travel Health Local News Motors CORRIERE TV CORRIERE MOBILE Video News (5 per day) Categorized VideoNews Weather forecasting video (2 per day) Thematic weekly appointment Real time Interviews Highlights of Italian football championship SMS/MMS Premium Services WAP/Mobile Site Mobile Internet active subscribers CLASSIFIED Recruitment Real Estate 1,85 mln Users 5,1 mln Streaming (including audio) Automotive 11,3 mln Users 435 mln Page Views More than 1 mln workday unique users 12

13 La Gazzetta dello Sport.it: digital offering GAZZETTA.IT GAZZETTA.IT INTERNATIONAL GAZZETTA TV FANTASY GAMES GAZZETTA MOBILE Real Time Sport Information Complete news coverage on main sports events - Football - Motors - Cycling - Basketball - Tennis - Special Events (America s Cup, Olympic Games ) Gazzaspace Community 6,2 mln Users 260 mln Page Views News Coverage 24/7 Complete Coverage on: -Football News -Motor Sports -Standing & Results -Live Coverage RadioGazza Launched in March 2008 Sport Video News - Sport TG (2 editions per day) - Weekly thematic appointments Thematic Video Channel Highlights of Italian football championship Real time Interviews RadioGazza (Music) Users 2,5 mln Streaming (including audio) Magic Campionato, based on Serie A football championship Magic Champions, based on European football team players Multi-platform subscriptions More than subscribed teams SMS/MMS Premium Services WAP/Mobile Site Mobile Internet More than active subscribers Source: Nielsen Online, SiteCensus, Jan-08 13

14 Leader in Mobile Publishing Offer SMS/MMS SMS/MMS Premium Premium Services Services Corriere Corriere della della Sera Sera La La Gazzetta Gazzetta dello dello Sport Sport Max Max Astra Astra Novella2000 Novella2000 Amica Amica WAP/Mobile WAP/Mobile Site Site Corriere Corriere della della Sera Sera La La Gazzetta Gazzetta dello dello Sport Sport Max Max Novella2000 Novella2000 Fueps Fueps RCSMobile RCSMobile Innovative Innovative mobile mobile offering offering Weekly Weekly subscription subscription based based A A service service taylored taylored by by the the costumer, costumer, who who can can choose choose contents contents from from RCS RCS brands brands Active Subscribers to SMS Premium Services (2007) 30mln SMS (2007) 3mln downloaded videos on WAP Site (2007) 14

15 El Mundo Brand System NATIONAL NEWSPAPER ON LINE MADRID LOCAL EDITIONS DTT TV LOCAL SUPPLEMENTS TV PRODUCTION Multimedia entertainment and communication system THEMATIC SUPPLEMENTS COMMUNITY MAGAZINES E-COMMERCE ADD-ONS (Books, DVDs, CDs) CLASSIFIED BOOKS 15

16 Newspapers Spain 4.5 million Readers per Day National Newspaper Sport Newspaper Financial Newspaper Supplements Magazines Add Ons Online News & Information Audiovisual Offering Classified Online Gaming 19.6 million monthly Unique Visitors online 16

17 Elmundo.es: Digital Offering ELMUNDO.ES THEMATIC CHANNEL ELMUNDO.ES MOBILE CLASSIFIED First information site in Spanish worldwide Important events coverage Blogs & Forum Users participation Travel Health Technology Motors Woman Economy Alerts SMS/MMS Premium with operators. ( subscribers) Wap on portal in operators ( suscribers) Wap off portal Real Estate Economy 11.5 mln Users 346 mln Page Views 1.3 mln workday unique users 17

18 Digicast JIMMY Science fiction, music and sit com MOTO TV Moto life style YACHT & SAIL CHANNEL Sailing life style CACCIA e PESCA Hunting and Fishing Fanatics INTERNATIONAL 50 PLATFORMS 25 COUNTRIES 3 LANGUAGES 18

19 Magazines Specialized Contents Producer LEADERSHIP IN: INTERIOR DESIGN TRAVEL & LEISURE WOMEN NEW MEDIA DIVISION Thematic Channel Producer Paper Web&Mobile TV Multimedia System 19

20 Magazines Building Multimedia Systems ACTIONS PROJECTS YACHT & SAIL INTERIOR DESIGN TRAVEL WOMEN Travel Channel Paper Travel Channel Women s Web Portal H1 08 H2 08 Web& Mobile Mar 08 Sep 07 TV 20

21 Books EDUCATION ITALY FICTION AND NON-FICTION FRANCE FICTION AND NON-FICTION SPAIN & PORTUGAL FICTION AND NON-FICTION ITALY, FRANCE & UK PARTWORKS 12.5% Market share 13.5% Market share 5.1% Market share 5 th publisher DISTRIBUTION 2 nd player in Italy 1 st publisher 2 nd publisher UD - Union Distribution Source: Market shares are updated with latest available market data 21

22 * International Leader in both Community and Entertainment services for web and mobile as well as Domain, Hosting and online Advertising services 40 countries served, 45% of turnover generated internationally 12 million subscribers, o/w 7 million are paying subscribers 250,000 companies served, with a growth of 6,000+/month 850,000 domains under management, with a growth of 22,000+/month Social music space Dada.net gives people the chance to express themselves and make new friends through their personal space sharing thoughts, photos, music and videos A new concept in the Internet adv space Professional services include sale of advertising space via web & mobile, domain registration, online protection and a marketplace to give advertisers and publishers open access to each others Mobile VAS Web 2.0 Community Digital Music * Listed Company, RCS stake 46.54% excluding call options among Shareholders 22

23 Meeting agenda Who we are RCS Portfolio 2008: RCS Activity 2008: 1st Quarter Financial Results Details by Business Unit 23

24 RCS Activity up to April 2008 Newspapers Others Launch of Full Colour (Mar 08) Launch of, Florence local edition (Feb 08) Launch of gazzetta.it international (Mar 08) Launch of interior design web site (Mar 08) Restyling of, automotive classified website (Feb 08) Digital Launch of US MUSIC STORE by (Apr 08) Launch of (Feb 08) Start up of RCS New Media, digital division of RCS Periodici (Jan 08) M&A Increased stake in up to 100% Increased stake in up to 100% 24

25 Meeting agenda Who we are RCS Portfolio 2008: RCS Activity 2008: 1st Quarter Financial Results Details by Business Unit 25

26 2008 1st Quarter Results - Summary Million Euro Q108 (1) Q107 (2) Δ% (1) (2) FY 2007 Total Revenues % % 8.7% 2, % EBITDA % % -36.8% % EBIT (8.0) -1.3% % % % Net Profit (18.6) -2.9% % % % NFP (1,130.2) 21.8 (966.2) (1) Includes Recoletos and Digicast s line-by-line consolidation starting from April, Q107 Recoletos: Revenues 71.4 m, EBITDA 13.3 m (2) Reclassified discontinuing RCS Broadcast and CNR and restated accounting to P&L Dada s subscription costs 26

27 Profit & Loss Million Euro Q108 (1) Q107 (2) Δ % FY 2007 (1) (2) Circulation % % (0.5%) 1, % Advertising % % 21.1% % Other % % 23.6% % TOTAL REVENUES % % 8.7% 2, % Operating costs (474.8) (75.2%) (439.1) (75.5%) 8.1% (1,856.3) (67.8%) Labour costs (136.0) (21.5%) (111.6) (19.2%) 21.9% (504.0) (18.4%) Writedowns (1.1) (0.2%) (0.1) (0.0%) ns (10.2) (0.4%) Provisions (1.0) (0.2%) (0.6) (0.1%) 66.7% (5.9) (0.2%) EBITDA % % (36.8%) % D&A (26.9) (4.3%) (16.8) (2.9%) 60.1% (100.9) (3.7%) EBIT (8.0) (1.3%) % (161.1%) % Net financial incomes (charges) (14.8) (2.3%) % ns (35.6) (1.3%) Income (charges) from investments (7.3) (1.2%) (0.5) (0.1%) ns % PRE-TAX PROFIT (30.1) (4.8%) % (338.9%) % Taxes % % (8.8%) (61.5) (2.2%) Net profit from Discontinued Operations 0.0% (2.4) (0.4%) ns % Minorities % % 530.0% (14.6) (0.5%) NET PROFIT (18.6) (2.9%) % (210.1%) % (1) Includes Recoletos and Digicast s line-by-line consolidation starting from April, (2) Reclassified discontinuing RCS Broadcast and CNR and restated accounting to P&L Dada s subscription costs 27

28 Revenues & EBITDA Breakdown by BU Million Euro Q108 (1) Q107 (2) FY 2007 Revenues EBITDA ROS% Revenues EBITDA ROS% Revenues EBITDA ROS% (1) (2) Newspapers Italy % % % Newspapers Spain % % % Magazines 65.5 (5.1) -7.8% 70.1 (3.0) -4.3% % Advertising % % % Books (16.4) -10.4% (8.8) -5.2% % Dada % % % Digicast % % Corporate Activities 16.1 (4.0) ns 15.8 (3.0) ns 65.4 (16.1) ns Others and eliminations (127.4) ns (122.8) ns (575.2) (0.4) ns TOTAL RCS % % 2, % (1) Includes Recoletos and Digicast s line-by-line consolidation starting from April, (2) Reclassified discontinuing RCS Broadcast and CNR and restated accounting to P&L Dada s subscription costs 28

29 Cash Flow Statement Million Euro Net Financial Position 31/12/2007 (966.2) EBIT (8.0) D&A 26.9 Financial charges (14.9) Taxes (4.5) Δ NWC (14.3) Δ Funds (3.0) Free Cash Flow (17.7) CAPEX (1) (47.7) Cash Flow (including CAPEX) (65.4) Dividends (0.1) Equity investments (89.7) Equity disposals 0.5 Other (9.3) Cash Flow (164.0) Net Financial Position 31/03/2008 (1,130.2) (1) Including ΔNWC on investments 29

30 Balance Sheet Million Euro (1) Net fixed assets 2, % 2, % Tangible & Intangible fixed assets 2, % 2, % Financial fixed assets % % Net working capital % % Reserve for risks and charges (220.7) (9%) (221.4) (9%) Employee termination indemnity (95.8) (4%) (98.0) (4%) CAPITAL EMPLOYED 2, % 2, % Net financial debt 1, % % Equity 1, % 1, % EQUITY & NFD 2, % 2, % (1) Restated accounting to P&L Dada s subscription costs 30

31 Meeting agenda Who we are RCS Portfolio 2008: RCS Activity st Quarter Financial Results Details by Business Unit 31

32 Newspapers Italy P&L Circ. 653,000 avg. daily copies Read. 2,722,000 per day 435 mln page views 11.3 mln unique users Circ. 850,000 avg. daily copies 260 mln page views Circ. 356,000 avg. daily copies Read. 1,886,000 per day 6.2 mln unique users Read. 3,581,000 per day ADS + Internal Estimates, Audipress Million Euro Q108 Q107 YoY FY 2007 Circulation % % 3.2% % Advertising % % 1.6% % Add-ons % % (31.3%) % Other 3.1 2% 2.2 1% 40.9% % TOTAL REVENUES % % (6.9%) % EBITDA % % (46.5%) % 32

33 Newspapers Spain - P&L Circ. 341,000 avg. daily copies Read. 1,395,000 per day Circ. 285,000 avg. daily copies Read. 2,550,000 per day Circ. 54,000 avg. daily copies Read. 161,000 per day mln page views 11.5 mln unique users 400,3 mln page views 6,8 mln unique users OJD, Infoadex Million Euro Q108 (1) Q107 YoY FY 2007 (1) Circulation % % 99.0% % Advertising % % 77.4% % Add-ons % % 2.9% % Other % 7.2 8% 130.6% % TOTAL REVENUES % % 74.7% % o/w UNEDISA % % (1.5%) % RECOLETOS % % EBITDA % % 57.5% % (1) Recoletos consolidated starting from April, Q107 Recoletos: Revenues 71.4 m, EBITDA 13.3 m 33

34 Magazines - P&L (100%) (100%) (100%) (100%) 8 weekly magazines 23 monthly magazines Million Euro Q108 Q107 YoY FY 2007 Circulation % % (21.4%) % Advertising % % 8.0% % Other % % (4.2%) % TOTAL REVENUES % % (6.6%) % EBITDA (5.1) (3.0) ns % 34

35 Advertising - P&L Million Euro Q108 Q107 YoY FY 2007 Adv. House % % 1.2% % International Adv % % 14.9% % TOTAL REVENUES % % 2.4% % 35

36 Books - P&L Million Euro Q108 Q107 YoY FY 2007 Fiction & non-fic. Italy % % (8.9%) % Education 4.4 3% 4.7 3% (6.4%) % (1) Flammarion % % (10.0%) % Partworks % % (4.5%) % Rizzoli International 3.5 2% 3.7 2% (5.4%) % Other ns 0.3 TOTAL REVENUES % % (7.3%) % EBITDA (16.4) (8.8) ns % (1) Starting from April 2007 third parties distribution revenues have been reclassified in reduction of books purchase costs. Net of this reclassification, Flammarion presents a YoY growth of 7.8% 36

37 Digicast TV Activities - P&L Million Euro Digicast consolidated starting from April Q108 Q107 YoY FY 2007 Subscriptions % % 3.5% % Advertising 0.6 9% % (25.0%) % Other 0.3 4% 0.1 2% TOTAL REVENUES % % 3.0% % EBITDA % % 52.9% % 37