feb19 presentation to investors atresmedia santander › documents › 2019 › 02 › 2… ·...

1Roadshow back up_Mar 2013 1Presentation to investors_Jan 19

ATRESMEDIA

Presentation to investors

Feb 2019

www.atresmediacorporacion.com


Advertising market in Spain

Gross Ad market Yoy growth

+0.8% -1.9%

-5.1%

Total Ad market+4.3%

Total Ad market: Slight growth yoy

+5.5%

+12.6%

Source: Infoadex

+1.0% +1.7%

+10.0%

+1.7%

-7.2%

+2.3%2016 2017

2016 2017 2016 2017 2016 2017 2016 2017 2016 2017

-1.3%

9M18

+3.4%

9M18

+12.8%

9M18

+0.9%

9M18

-6.1%

9M18

+0.6%9M18


2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

TV: Clear leadership

Spanish Ad spending by medium Share


Source: Infoadex

-0.1pp

+27.6pp

-25.5pp

-0.3pp

41.2%

40.0%40.1%

15.7%

1.3%

28.9%

9.0% 8.7%

8.4% 6.7%-1.5pp


Source: Infoadex and Bank of Spain

Total & TV market vs GDP is steadily bouncing back

Total & TV ad intensity (vs GDP)


0.72% 0.74%

0.54%

0.41%0.46%

0.29%0.32%

0.23%

0.16% 0.19%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Total Ad market

TV Ad market

2002-17 avg=0.58%

(All-time average= 0.73%)

2003-17 avg= 0.24%

(All-time average= 0.29%)


78%

23%

58%

85%

Source: Internal estimates & EGM. 2018 data

8.5

1.5 2.4

Spanish TV: Best cost-coverage mix

Cost-coverage by mediumIn €/1,000 impacts & % penetration

CPT

Coverage


1 - 2

Display Video Premium Video

9 -10

4 - 5


Positive outlook for household consumption & GDP

Spanish TV industry: Main drivers

-0.5%

-2.1%

1.4% 2.6%3.0%

4.2% 4.2%

3.4%3.1% 3.1%

-1.9%

-1.1%

1.0%

3.7% 3.6%

4.2%

3.4%

3.8%3.2% 3.3%

2012 2013 2014 2015 2016 2017 2018e 2019e 2020e 2021e

Consumption

GDP

Forecast

Source: Funcas (Jan19). In current prices

Household Consumption & GDP Yoy growth


TV Ad market remained stable in the last two years

Spanish TV industry: Ad market

Gross TV Ad market In € mill

Source: Infoadex

16%10% 8% 9%

-11%

-23%

4%

-10%

-19%

-6%

11%6% 6%

1%

-1%

2,317

2,677

2,951

3,188

3,469

3,082

2,378 2,472

2,237

1,815 1,703

1,890 2,011

2,122 2,143 2,132

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e

% yoy Gross TV Ad market

Average: 2,410

-12%

-39%



Spanish TV Ad market, slightly below vs last year

Gross TV Ad market Yoy growth

1%

-14%

-8%

-15%-18%

-15%

-24%

-21%

-16%

-10%

-3%

6%

3%

8%

22%

13%12%

8%

3% 3%

6%

11%

1%3% 4%

-4%

3%1%

-4%

2%

-2%

1%

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 Q1 Q2 Q3 Q4e

FY11=-10%

FY12=-19%

FY13=-6%

FY14=+11%

Source: Infoadex

FY15=+6% FY16=+6%

FY17=+1%

FY18e=-1%


Source: Internal Estimates

9M18: High dispersion among sectors

Ad spending by sectors% 9M18 yoy

Beauty &Hygiene

Food Autos Telcos Retail Finance Health Beverages Others

2%

-2%

3%

-7%

1%

5%

-11%

11%

-8%

11% 11% 14% 9% 9% 10% 5% Weight24%

9M18=-1%


(Energy, Cleaning, Home,Sports & leisure…)

7%


Source: Internal estimates

9M18: High volatility within categories in quarterly basis

Ad spending by sectors% 9M18 yoy

-4%

4%4%

-8%

4%

-10% -9%

-25%

-8%-7%

4%

10%

3%

15%

-11%

-2%

34%

-10%

7.8%

-0.7%

-9.1%

8.7%

-9.3%

-14.2%

-11.0%

9.0%

-7.7%

Food Autos Beauty Retail Finance Health Telecom Beverages Others

Q1 Q2 Q3

Spanish TV industry: Ad market by quarter


Source: • TV Market: Infoadex. 2017• Prices: Internal estimates. Conventional advertising. • Volumes: Internal estimates. Commercial hours: 13h-25h. Conventional advertising excluding TVE.

Steady growth in prices and volumes

2,317

3,469

1,703

1,890 2,011

2,122 2,143

100

146 147

109112 116

118120

8389

9296 97

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Nominal Prices Volumes

TV Ad marketIn € million +

Market Prices & Volumesin index terms

TV ad market

Spanish TV industry: Prices and volumes


Source: Infoadex

Stable market shares by player

Market share evolution by playerAd Share


Forta

Other FTAs

Pay TVs

43% 44% 43% 43% 43% 44%

43% 42% 42% 42% 41% 41%

7.1% 6.8% 6.6% 6.0% 5.3% 4.7%

4.0% 4.3% 4.3% 4.8% 5.5% 5.9%

2.6% 3.2% 3.6% 3.8% 4.4% 4.9%

2013 2014 2015 2016 2017 9M18


Spanish TV industry: Commercial FTA landscape

Net TV

Commercial FTA TV landscape (9M 18)

Veo TV

Atresmedia has a key position in a wide commercial FTA TV offer

Channels

13TV

Secuoya

Real

Madrid TV

Kiss TV

AudienceMkt share Power ratio

26.6%40.9% 1.5x

29.0%43.7% 1.5x

2.9%

2.6%

2.0%

5.9% 0.7x

Source: Kantar Media, Infoadex

0.3%

0.3%

0.8%


Spanish TV industry: Competitive environment

FTA TV

Source: Kantar Media. Infoadex

PayTV OTT

Power ratio

Market Share

55.6%

84.6% 5.9%

9.0% 24.2%

4.7% 4.9%

7.6%

0%

n.a.

State/Region-owned

…and others …and others

TVin

Spain

Audience Share

1.5x 0.6x 0.6x* 0.6x n.a

* Forta (RTVE has no advertising)

TV in Spain is clearly based on Free-to-Air TV


Spanish TV industry : Pay TV

FTA TV leads by far over Pay TV

Source: Kantar Media, Infoadex & CNMC

* Penetration as of Q3 18

FTA TV vs Pay TV in SpainFY18

Penetration(% of households)

100%

37%*

Audience 2018(%)

92%

8%


26.8% 26.7%24.5%

23.1%

29.5%30.8%

33.5%36.3% 37.2%

7.0% 6.8%6.2% 5.6% 6.2% 6.8%

7.0% 7.8% 7.6%

2.6% 2.7% 2.4% 2.6% 3.1% 3.6% 3.8% 4.4% 4.9%

2010 2011 2012 2013 2014 2015 2016 2017 2018e


Pay TV in Spain is steadily growing

Source: Kantar Media, Infoadex & CNMC

Pay TV sector in Spain

Pay TV penetration (by CNMC)

Audience% Total Individuals 4+

Ad market share% Total TV ad market



Telefonica via IPTV leads the Pay TV sector

Source: CNMC

Pay TV sector in Q3 18% Total connections (6.8 mill)

Satellite10%

Cable19%

IPTV66%

Others5%

Telefonica60%

Vodafone19%

Orange10%

Others11%


Spanish TV industry : OTT TV

Source: Household panels. CNMC Q2 18

OTT penetration is still low

TV on demandQ2 18

18.5 mill households

16.4 millhouseholds

internet connected

5.4 millhouseholds

consume OTT

of which:

of which:

2.2 mill 0.9 mill2 mill

OTT

0.6 mill

≈

0.7 mill 0.5 mill


TV viewing

Source: Kantar Media. Includes linear and non linear (Time shift)

Average daily TV viewing In hours

Linear TV viewing remains very strong

83%

13%

2% 3%Online video

Linear TV

4h 44’ Nov 18

Average daily viewing In %

VoD Time shift

Source: Kantar Media & Comscore

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

3h 46’3h 54’

3h 59’

4h 06’4h 04’3h 59’

3h 57’3h 53’3h 49’3h 42’3h 46’


Average daily viewing In hours

3h 42’

Ind 4+

13 to 24

4 to 12

25 to 44

45 to 64

>65

TV viewing gap has widened over the years

Source: Kantar Media

Age groups

Spanish TV industry: Audiences

3h 37’

Ind 4+ (+7 days)

5h 52’

5h 02’

4h 27’4h 13’

2h 39’3h 11’

1h 45’

2h 26’

1h 33’

2h 23’

3h 33’


2h26’ 2h23’

3h11’

4h13’

5h02’

1h45’

2h39’

4h27’

5h52’

4-12 yrs 13-24 yrs 25-44 yrs 45- 64 yrs +65 yrs

2003 2018

Source: Kantar Media

TV habits in Spain

-41 -50

-32

+14

+50

Average daily consumption in min

TV viewing pattern by age groups changes over time

1h33´


TV is by far the best media to reach brand awareness

Source: Kantar Media & Comscore Nov 18

Spanish TV vs Online Video Audiences

32.2 32.1

TV Total onlinevideo

In 1 day In 1 month

Avg coverage in mill viewers

6.9

1.2

TV Video online

In 1 minute

Avg coverage in mill viewers


Atresmedia: A leading communication group

Atresmedia: A solid and clear group structure

OTHERS

ADVERTISING

Marketshare41%

Marketshare18%

Total Ad market

share19%

Source: Infoadex 2017


TV & Radio as main source of revenues

Source: Infoadex & internal estimates

Atresmedia: Market positioning

ANTENA 3

NEOX

NOVA

Onda CeroEuropa FMOnda Melodía

Atresmedia CineAtresmedia Digital

Atresmedia Diversification

Radio

Others

TV

Planeta-De Agostini:RTL:Imagina:Treasury stock:Free-float:

41.7%18.7%4.1%0.4%

35.2%

88%

8%

4%

LA SEXTA

MEGAATRESERIES

2017Net

Revenues

€ 1,052m91%

9%

Revenues by division Revenues by origin

Non ad revenues

Ad revenues2017 Net

Revenues

€ 1,052m


830883

970 1,021 1,052

750 756 805 819 850

80 127165 202 202

Mid single digit growth in Rev while low single digit in OPEX

Atresmedia: Revenues & OPEX evolution

CAGR +3%

REVENUE

CAGR +6%

OPEX

In € euros

2016201520142013 2017

EBITDA

x2.5


Atresmedia: OPEX

Personnel & Overheads

Programming

40%

€850mill

60%

Total OPEX

Others

88%

8%

4%

Programming costs, the bulk of Atresmedia’s OPEX

OPEX breakdown

2017


Atresmedia TV: Programming costs

In-houseproduction

TotalProgramming

3rd partycontent

1/3

2/3 of programming is in-house production

2/3

30%

60%

10%

News & Currentaffairs

Entertainment

Scripted

Programming hours by format (weighted average based on channels’ audience) In % Films &

Series

Sports


55% of ∆ rev drops at the EBITDA

Atresmedia’s operating leverageIn € mill

2013 Revenue 2013 EBITDA 2017 EBITDA 2017 Revenue

830

80

≈55%operating leverage

202

1,052

Atresmedia: Operating leverage

+222 mill rev

+122 mill EBITDA


Source: Infoadex + Kantar Media.

26.2%

28.3%

26.3%

24.1%

22.4%

24.6%

27.9%

30.5%

35.2%

42.6%

41.5%42.0%

42.1%41.4%

20.8%21.3%

19.6%

17.8%17.0%16.6%

15.8%17.1%

20.5%

28.8%27.7%

26.8%27.1%26.6%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1.7x

1.5x1.5x

1.3x1.3x

1.4x1.5x

Atresmedia Television: Competitive performance

1.3x

Atresmedia Television: A success story

1.6x

1.8x

1.5x

1.3x

1.8x

1.6x

Ad market share

Audience share


Wide and inclusive TV offer

Atresmedia Television: Positioning

Male Female

55-64

4-12

Age

2018

12.3%

6.9%

2.4%

2.4%

1.6%

1.2%

26.8%


Atresmedia Television: Programming grid at a glance

Entertainment(re-run)

NewsScripted fictionsGame shows

NewsEntertaimentScriptedSportsUS Films

NewsUS Films

NewsUS Films

NewsCurrent affairesCookingGame show

Current affairesInvestigation(rep)

NewsEntertainmentCurrent affairs

NewsEntertainmentInvestigationUS films

NewsUS Films / Series

NewsDebates/ Investigation

NewsCurrent affairesUS series

Kids

SitcomsUS seriesUS films

SitcomsUS series

KidsSitcomsUS series

Soapoperas

US Films

Soapoperas

Factual

FactualUS Films

Sport magazineUS seriesFactuals

US seriesScripted(rep)

US series

Scripted(rep)

=+Entertain.

Entertain.(rep)US series

Factuals

FactualsUS series

US series

Entertain. (rep)

Factual (rep)

FactualsFactuals

=

=+Scripted(rep)

8h –14h

14h –21h

21h –24h

Balanced and varied programming grid

12.2% 6.8% 2.4% 2.4% 1.6% 1.2%Audienceshares9M18

In-house production in bold

M

FSS

M

FSS

M

FSS


13.4 13.6 13.512.8

12.312.3

13.8

13.514.5 14.8

14.4

13.314.1 14.3

10.210.0 9.8 10.1 10.4 10.5

9.8

2013 2014 2015 2016 2017 2018 19YTD

13.413.8

13.512.8

12.1 11.9

13.5

12.2

13.6

14.1 13.5

12.4

13.413.9

8.2 7.97.8

8.8 8.5 8.68.1

2013 2014 2015 2016 2017 2018 19YTD

Antena 3: Stable audience ratings

Total Individuals24h

Commercial Target24h

Source: Kantar Media. Total Individuals (4y+)

Atresmedia Television: TV audiences by core channel

Source: Kantar Media• 2012-2015: Commercial Target (16-54 y)• As of 2016: Commercial Target (25-59 y)


6.0

7.2 7.47.1

6.8 6.97.3

6.0

6.7

7.2

6.56.2 6.0

5.0

8.5

7.87.3 7.2

7.4 7.67.9

2013 2014 2015 2016 2017 2018 19YTD

6.6

7.9 8.1

8.1

7.4

7.3

7.67.4

8.2 8.4

7.6 7.2

7.4

6.1

5.8

5.2

4.8

5.35.7 5.7 5.8

2013 2014 2015 2016 2017 2018 19YTD

La Sexta: High Commercial Target




Atresmedia Television: TV audiences by second channel

Source: Kantar Media• 2012-2015: Commercial Target (16-54 y)• *As of 2016: Commercial Target (25-59 y)


16.7 16.7 16.7 16.8 16.6 16.5 15.7

29.030.7 31.0

30.228.7 28.8

27.528.8 27.7 26.8 27.1 26.6 26.8

28.4

2013 2014 2015 2016 2017 2018 19YTD

13.8 13.6 13.4 14.4 13.6 13.2 12.7

31.433.3 33.6

31.030.0 30.5

29.331.0

30.0 29.2 29.728.5 28.4

30.0

2013 2014 2015 2016 2017 2018 19YTD

Atresmedia TV: Reducing the gap with its main competitor




Atresmedia Television: TV group audiences

Source: Kantar Media• 2012-2015: Commercial Target (16-54 y)• As of 2016: Commercial Target (25-59 y)


Audience: In-house vs external production

100% of most viewed contents are in-house, excl. sports

In-house84%

3rd parties

16%

In-house vs external

In-house100%

Top 50 programmes (2018)Including sports

Top 50 programmes (2018)Excluding sports


Programming costs: In-house vs external production

In-house25%

3rd parties

75%

2/3 of the programming costs are internally produced

In-house75%

3rd parties

25%

In-house vs external programming costsIn broadcasting hours

In-

house

64%

3rd parties

36%

Weighted average(based on audience per channel)


Programming costs: In-house production

Direct sales to Broadcasters

In-house production: A solid strategy

FTA TV

Online

Atresmedia’sPay TV channels


Atresmedia Digital

Atresplayer, our digital flagship

ATRESPLAYER

WEBs, Verticals & MCNs

Latam

AVoD

SVoD

• Largest national online media agency• Footprint in Latam countries

Atresmedia’s OTT


Atresplayer: our OTT platform

Atresmedia Digital: Atresplayer

Source: Adobe Analytics

5.2 MM

16,1 MM

27’

User & Video data Jan-Oct 2018Monthly avg

35% 58% 7%

1# Consumption by device

3#Atresplayer Premium

>59 K Subscribers @ Monthly ARPU≈3€

2# Type of content

VOD LIVE75% 25%


Developing new non ad-based media initiatives

Atresmedia Diversification: Positioning & Strategy


In mill suscribers

23

21

10

x3 vs 2013

≈55

New channel launched in March 2018

Production & Content sales: Atresmedia International

Up to 55 mill subscribers in our international channels


Atresmedia Diversification: Media for Equity

Media for Equity: Exploring new business models

Media for Equity

Exit in 2016

Exit in 2018

Partial exit in 2018

Exit in 2018


Atresmedia Radio: 18% market share

Atresmedia Radio: Positioning & Strategy

# 3 talk radio1.9 mill listeners

# 3 music radio1.5 mill listeners

#3 radio player in Spain

3.7 million listeners

18% market share

Source: EGM Q3 18 yearly averageMarket Share: Infoadex & internal estimates

New music radio

233k listeners


Sound recovery during last 5 years but still far behind fromaverage and peak levels

Gross Radio Ad market In € mill

Source: Infoadex

Spanish Radio industry: Ad market

6%13%

4% 7%

-5%

-16%

2%

-4%

-14%-11%

4%8%

1% 2% 2%

508 540

610 637

678 642

537 549 525

454

404 420

454 458 466 474

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e

% yoy Gross Radio Ad market

Average: 522

-9%

-30%


Atresmedia Radio: 3.7 million listeners

Atresmedia Radio: Audiences

Source: EGM Surveys Monday to Friday (.000) (Moving average).

Thousand of listeners

4,119 4,153 4,106 4,091 4,012 3,947 3,8753,664

1,902

1,920 1,910 1,922

1,898 1,961 1,975 1,909

1,943

1,947 1,912 1,871

1,8051,713 1,651

1,522

274 286 284 298 309 273 249 233

2nd 16 3rd 16 1st 17 2nd 17 3rd 17 1st 18 2nd 18 3rd 18


Debt at target level and dividend policy according to plan

Dividend policyTotal Net Debt Target (€ mill)

€ 150-250 mill

Payout ratio

185

134

158179

240199 2014 dividend: 0.20 €/sh

96% payout ratio

2015 dividend: 0.36 €/sh82% payout ratio

2016 dividend: 0.92 €/sh82% payout ratio + special

• Ordinary: 0.47 €/sh• Special: 0.45 €/sh

2017 dividend: 0.52 €/sh~ 83% payout ratio

• Interim: 0.22 €/sh (Dec-17)• Final: 0.30 €/sh (June-18)

Long termtarget

Medium term goals: Financials

≥80%


Back up: 2017 & 9M18 Financial Results

Back up


<<<

<<<<<<<<<<<<<<<<<

<<Net Revenues 1,052.1

EBITDA 202.1

Net profit 142.1

FY17 FY16

+3.0%

+0.1%

YoY

+10.0%

OPEX 849.9 +3.8%

Atresmedia

FY17 Results in € mill: P&L

EBITDA Margin 19.2%

Net profit Margin 13.5%

Source: Atresmedia’s financial statements

* Smartclip entered consolidation perimeter as of July 1st, 2017

EBIT 184.5 +0.0%

EBIT Margin 17.5%

1,021.1

202.2

129.2

819.1

19.8%

12.6%

184.4

18.1%

1,037.2

200.2

FY17

+1.6%

-0.9%

YoY

837.0 +2.2%

19.3%

182.6 -1.0%

17.6%

Ex-Smartclip *


Total Net Rev. 978.0 948.2

EBITDA 185.1 182.3

EBIT 169.5 166.7

FY17 FY16

+3.1%

+1.5%

YoY

+1.7%

OPEX 793.0 765.9 +3.5%

Atresmedia Audiovisual


EBITDA Margin 18.9% 18.6%

EBIT Margin 17.3% 17.6%

Source: Atresmedia`s financial statements


Net Revenues 83.5 82.2

EBITDA 17.1 19.7

EBIT 15.0 17.7

FY17 FY16

+1.7%

-13.3%

YoY

-15.4%

OPEX 66.5 62.5 +6.4%

Atresmedia Radio






<<<

<<<<<<<<<<<<<<<<<

<<Net Revenues 747.6

EBITDA 124.0

Net profit 86.1

9M 18 9M 17

-1.0%

-16.6%

YoY

-16.8%

OPEX 623.6 +2.8%

Atresmedia

9M 18 Results in € mill: P&L

EBITDA Margin 16.6%

Net profit Margin 11.5%


*Smartclip was included within the consolidation perimeter as of July 1st, 2017

EBIT 110.1 -18.8%

EBIT Margin 14.7%

755.1

148.6

103.5

606.5

19.7%

13.7%

135.6

18.0%

727.9

122.5

9M 18

-3.3%

-17.2%

YoY

605.4 +0.2%

16.8%

108.8 -19.5%

14.9%

Ex-Smartclip *

752.5

148.0

9M 17

604.4

19.7%

135.1

17.9%


Total Net Rev. 696.0 702.0

EBITDA 113.8 136.5

EBIT 101.5 125.0

9M 18 9M 17

-0.9%

-16.6%

YoY

-18.8%

OPEX 582.1 565.5 +2.9%

Atresmedia Audiovisual




Source: Atresmedia`s financial statements


Net Revenues 58.7 60.0

EBITDA 10.2 12.1

EBIT 8.6 10.5

9M 18 9M 17

-2.2%

-15.8%

YoY

-18.3%

OPEX 48.6 48.0 +1.3%

Atresmedia Radio






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.

Investor Relations Department

Additional information

Phone: +34 91 623 46 14

E-mail: [email protected]

Web: www.atresmediacorporacion.com

feb19 presentation to investors atresmedia santander › documents › 2019 › 02 › 2… ·...

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