FY 14 Results

FY 14 Results
February 26, 2015
www.atresmediacorporacion.com
FY 14 Results
1
FY 14 Highlights
According to external sources, Total Ad market increased by 6% in
2014 (TV, the best-in-class, grew by +11% and Radio by +4%)
Television gained market share for the second consecutive year
up to 42%
In 2014, Antena 3 reached its highest audience since 2009 and led
Commercial Target audience. La Sexta achieved its best rating
ever.
Radio kept its audience upward trend, totalling 5 mill listeners
Atresmedia’s Net revenue amounted to €883 mill, +6% yoy
OPEX stood at €756 mill, in line with 2013
EBITDA of €128 mill, 1.6x vs 2013
Net Profit reached €47 mill (Adjusted net profit was €81 mill)
Dividends distributed in the year amounted to €47 mill
FY 14 Results
2
1
FY14 Financial Summary
FY 14 Results
3
Advertising market in Spain
Total Ad market grew by more than 6% in 2014
TV clearly outperformed the market both in Q414 (+13%) and 2014 (+11%)
Media
Q4 14 yoy
+13.4%
+11.0%
Radio
+6.3%
+4.1%
Newspapers
+2.9%
-1.0%
Magazines
+6.4%
+0.1%
Sunday suppl.
+9.3%
-2.6%
Outdoor
+3.2%
+3.3%
Internet
+7.6%
+6.7%
+51.3%
+29.5%
+8.6%
+6.4%
TV
Cinema
Total
Source: Infoadex
FY 14 Results
2014 yoy
4
Advertising market by medium
TV remained as the leading medium and increased its market share for
second consecutive year up to 42%
Internet & Radio market share remained stable vs 2013
Ad market by medium
41.7%
41.6%
26.8%
21.1%
14.5%
10.8%
9.1%
9.3%
5.6%
1.3%
2003
2004
2005
2006
2007
2008
2009
Source: Infoadex.
FY 14 Results
5
2010
2011
2012
2013
2014
Advertising market in Spain
TV Ad market in 2014: +11%, best performance in last decade…
…but its size is still well below the average
Total & TV Ad market
In € mill
% yoy
Gross TV Ad market
3,469
Average: 2,475
1,890
2,320
1,703
16%
1%
7%
10% 8%
11%
9%
-8%
4%
-6%
-10%
-11%
-23%
-19%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Infoadex.
FY 14 Results
6
Atresmedia
FY 14 Results in € mill: P&L
FY 14
FY 13
YoY
Net Revenues
883.2
829.8
+6.4%
OPEX
755.6
749.6
+0.8%
EBITDA
127.7
80.2
+59.3%
14.5%
9.7%
111.2
62.9
EBIT Margin
12.6%
7.6%
Net profit
46.7
46.1
5.3%
5.6%
Adjusted Net Profit* 81.2
46.1
EBITDA Margin
EBIT
Net profit Margin
Adjusted Net profit Margin
9.2%
* Excluding the non-cash adjustment in Deferred Tax Assets
Source: Atresmedia’s financial statements
FY 14 Results
7
5.6%
+76.9%
+1.4%
+76.3%
Atresmedia: Net revenues by segment
Total Net Revenues stood at €883.2 million, +6.4% yoy
Net TV revenues of €785.3 million (+7.8%)
Radio revenues reached €81.2 mill (+0.8% yoy)
Revenues of “Others” at €16.7 mill (€4 mill less yoy)
Net Revenues
In € mill
+6.4%
+7.8%
830
883
785
729
+0.8%
-19.5%
FY 13
FY 14
Total Group
FY 13
TV
Source: Atresmedia’s financial statements
FY 14 Results
8
FY 14
81
81
FY 13
FY 14
Radio
21
17
FY 13
FY 14
Others
Atresmedia: OPEX
Total OPEX of €755.6 mill, +0.8% vs FY 13
Flat Programming Costs and Overheads
Personnel costs were €8 mill higher yoy mainly due to one-off effects &
variable items
OPEX breakdown by division
OPEX breakdown by type of cost
In € mill
In € mill
750
10
Others
64
+0.8%
+4.0%
+0.1%
756
756
750
+0.8%
190
-1.1%
188
111
+7.6%
119
448
-0.1%
448
10
64
Other Costs
Radio
Personnel
Costs
TV
676
+0.8%
682
Programming
costs & Others
FY 13
FY 13
FY 14
Source: Atresmedia’s financial statements
FY 14 Results
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FY 14
Atresmedia: EBITDA
Outstanding conversion from Sales to EBITDA
Sales to EBITDA conversion
In €mill
883.2
∆1€ revenue
829.8
+53.4
Net Revenues
755.6
749.6
+6.0
OPEX
127.7
80.2
+47.4
EBITDA
2013
FY 14 Results
2014
10
∆0.9€ EBITDA
Atresmedia: Cash flow & Debt position
Total net debt reached €134 million (€-50 mill vs Dec 2013)
Total net debt/EBITDA = 1.1x
Cash flow
Net Debt
In €mill
In € mill
Total available credit lines
235
-103
Undrawn
-134
-185
+82
-134
101
-49
+18
Drawn
134
2013 Net
debt
Operating
CF
Investing
CF
Others*
2014 Net
Debt
*Others include sale of Treasury stock (€+80 mill) & Dividends (€-47 mill) &
Bank borrowings (€-15 mill)
Source: Atresmedia’s financial statements
FY 14 Results
11
4-year
Syndicated loan
(2013-17)
Source: Atresmedia’s financial statements
TV Advertising market
FY 14 (+11% yoy): Best growth rate in the decade
Q4 14 (+13% yoy): Double digit growth rate despite tough yoy comparables
Gross TV Advertising by quarter (yoy growth)
FY 14=+11%
22%
13%
8%
6%
3%
1%
-3%
-8%
-10%
-14%
-15%
-15%
-16%
-18%
FY11=-10%
FY13=-6%
-21%
-24%
FY12=-19%
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
Source: Infoadex
FY 14 Results
12
TV Advertising market by sector
Strong performance in most of the categories
TV Ad market by sector
Yoy evolution FY 14
TV Ad market by sector
Market share FY 14
Market = +11%
Beauty &
Hygiene
Beauty
15%
Others
21%
-7%
0%
Food
9%
Automotive
Food
12%
Health
5%
Culture
5%
Telecom
Autos
10%
Retail
11%
14%
Finance
14%
2%
Health
Telecom
11%
Others*
*Others: Beverages, Leisure & sports, energy,….
Source: Internal estimates
FY 14 Results
Retail
Culture
Finance
11%
-1%
13
24%
37%
Atresmedia market positioning
Market share affected by the closure of three channels as of May14
Atresmedia: the highest power ratio of the industry
Ad market share positioning
Power ratio
In %
Power ratio (x Market share /Audience )
43.7%
44.2%
+0.5pp
1.50
1.51
1.48
1.44
42.6%
41.5%
-1.1pp
FY 13
2013
2014
Source: Infoadex.
FY 14 Results
14
FY 14
FY 13
FY 14
Atresmedia Television
FY 14 Results in € mill: P&L
FY 14
FY 13
Total Net Rev.
785.3
728.5
+7.8%
OPEX
681.9
676.4
+0.8%
EBITDA
103.4
52.1
EBITDA Margin
13.2%
7.1%
EBIT
89.6
37.9
EBIT Margin
11.4%
5.2%
Source: Atresmedia`s financial statements
FY 14 Results
15
YoY
+98.5%
+136.1%
Atresmedia Television: Ad revenues breakdown in FY 14
FY 14 Key factors
GRPs
∆
Audience
∆
Inventory
∆
TV viewing
∆ GRPs
∆ Price
5.5%
-1.2%
-3.7%
2.5%
-22.5%
+8.8%*
+2.7%*
∆ Gross Ad. Revenue
* Like-for-like comparison: FY 13 without
Nitro, Xplora & La Sexta 3 as of May 6th
+8%
Source: Infoadex & Atresmedia´s internal estimates
FY 14 Results
16
Atresmedia Television
FY 14 Results in € mill: OPEX breakdown
FY 14
Programming Costs
&Others
Personnel Costs
Other Costs
Total OPEX
YoY
-0.3%
432.0
433.3
68.5
62.2
181.4
181.0
+0.3%
681.9
676.4
+0.8%
Source: Atresmedia’s financial statements
FY 14 Results
FY 13
17
+10.1%
Atresmedia Radio
Atresmedia Radio outperformed the market for the 6th consecutive year
Atresmedia Radio vs Radio market
Revenues breakdown
Ad revenues yoy
Music
19%
+1.1pp
5.2%
4.1%
Conventional
81%
Radio market
FY 14
Source: Infoadex
FY 14 Results
18
Atresmedia Radio
FY 14 Results in € mill: P&L
FY 14
FY 13
Net Revenues
81.2
80.5
+0.8%
OPEX
63.6
63.6
+0.1%
EBITDA
17.6
17.0
21.6%
21.0%
15.8
14.3
19.4%
17.8%
EBITDA Margin
EBIT
EBIT Margin
Source: Atresmedia’s financial statements
FY 14 Results
19
YoY
+3.7%
+10.4%
Atresmedia: Others Division
Financials
Net revenues split
€ mill
Net Revenues
EBITDA
FY 14
A3
events
15%
FY 13
16.7
20.7
6.7
11.1
A3
films
23%
Others
62%
Source: Antena 3’s financial statements
Contribution to consolidated group
Mainly represents the business lines: Antena 3 Films, Antena 3 Eventos, Others (Atres Advertising, Internet, Música Aparte,…)
FY 14 Results
20
2
FY14 Business Summary
FY 14 Results
21
TV viewing
TV viewing remains at a very high level despite a 5-min decrease yoy
TV viewing
Average daily viewing in min
246
244
239
239
234
227
223
218
210
211
213
217
226
217
208
+29 min/viewer
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Kantar Media
FY 14 Results
22
TV audience shares: By groups
Audience share just slightly below yoy due to a tough regulatory and
competitive environment (three channels less and impact of FIFA and
FIBA World Cup audience)
Audience Share by Total Ind.
Audience Share in Commercial Target
In %
In %
2013
2013
2014
2014
33.3
28.8 27.7
29.0
31.0
30.7
30.0
31.4
-1.0pp
-1.1pp
16.7 16.7
13.8 13.6
Source: Kantar Media
Source: Kantar Media
Audience share 24h; Total Individuals: 4+
Commercial Target:16-54 yrs, > 10,000 inhabitants
FY 14 Results
23
TV audience shares: Core channels
Antena 3 grew yoy both in Total Individuals and Commercial Target
Antena 3 led in Commercial Target
Audience Share Total Individuals
Aud. Share by Commercial Target
In %
In %
14.5
13.5
13.4
13.6
+1.0 pp
13.4
+0.2pp
13.8
13.6
+0.4pp
+1.4pp
12.2
10.2
10.0
-0.2pp
8.2
2013
2014
7.9
2013
2014
Source: Kantar Media
Source: Kantar Media
Audience share 24h; Total Individuals: 4+
Commercial Target:16-54 yrs, > 10,000 inhabitants
FY 14 Results
24
-0.3pp
TV audience shares: Secondary channels
La Sexta: the highest growth in audiences among the secondary channels
Audience Share Total Individuals
Aud. Share by Commercial Target
In %
In %
8.2
7.9
8.5
6.0
7.8
7.2
-0.7pp
6.7
+0.7pp
7.4
+1.2pp
+1.3pp
6.6
5.8
6.0
5.2
2013
2014
2013
2014
Source: Kantar Media
Source: Kantar Media
Audience share 24h; Total Individuals: 4+
Commercial Target:16-54 yrs, > 10,000 inhabitants
FY 14 Results
+0.8pp
25
-0.6pp
TV audience shares
Atresmedia: the most affected by the closure of the complemenary
channels
Complementary channels’ audience share
In %
2014
2013
6.9
A3M
9.3
9.4
9.6
MSE
6.7
6.5
TVE
3.5
Net
4.4
3.6
Veo
3.5
Source: Kantar Media
Audience share 24h; Total Individuals: 4+
FY 14 Results
26
Television Industry: Digital Dividend
New DTT technical plan, which defines the FTA offer, approved in sept 14
New Technical plan
Non Comm. Broadcasters
Commercial Broadcasters
MPE4
MPE5
RGE1
RGE2
27
FORTA
TVE
A3M
Available capacity subject to a possible tender process
FY 14 Results
MAUT
TVE
MSE
MPE3
MEDIASET
(MSE)
MPE2
ATRESMEDIA
(A3M)
NET TV
VEO TV
MPE1
Atresmedia Radio
Atresmedia Radio, reached 5.0 million listeners
Onda Cero & Europa FM steadily grow survey after survey
Melodía FM, in its first year after relaunch, grew at a sound pace
Listeners evolution
In thousand of listerners
4,812
2,623
2,598
2,649
2,009
2,045
2,077
169
129
3rd 12
3rd 13
Source: EGM Surveys Monday to Friday (.000) ( Moving average).
Atresmedia Radio includes Onda Cero, Europa FM and Melodía FM
FY 14 Results
4,981
4,761
28
255
3rd 14
Atresmedia Digital
Monthly unique users increased by 41% up to 17 mill in 2014
TV websites & Atresplayer accounted for 75% of unique users traffic
Unique Users yoy
2014 Unique Users by source
In mill
Radio websites
Verticals
10.5%
14.5%
17.0
Atresplayer
12.0
>+ 5 mill
unique users/month
54.6%
TV websites
Monthly average
Source: Adobe Analytics
FY 14 Results
29
20.4%
Atresmedia Digital
Atresplayer reached almost 4 mill downloads one year after its inception
Excellent performance of Atrestube, our multichannel network
Atresmedia’s
online video platform
(1st year of full operation)
KPIs
3.9
mill
Atresmedia’s
Multichannel network
(>20 channels)
1.7
mill
KPIs
(2014)
1.3
mill
(Dec 14)
Apps
Downloads
FY 14 Results
>70
mill
Registrations
Video clips/month
30
Subscribers
Atresmedia Diversification
Atresmedia Diversification took off in 2014
Atresmedia Diversification
Adjacent
Atresmedia
Diversification
Licensing, music rights, teleshopping,…
6 mill Pay TV suscribers’ addition in
2014 (>23 milll subscribers worldwide)
International
Successful launching of Atreseries
Consolidation of Nubeox (VOD) & Tu
Album (Digital photobook)
Incubator &
MxE
Media x Equity portfolio entries:
i-neumaticos & Wallapop
FY 14 Results
31
Atresmedia Cinema
La isla mínima, an Atresmedia’s film, awarded as the best spanish film in 2014
Atresmedia’s films gathered near 30% of spanish films’ box offices revenues
Atresmedia Cinema’s films in 2014
FY 14 Results
32
Back up
FY 14 Results
33
Atresmedia
Q4 14 Results in € mill: P&L
Q4 14
Q4 13
YoY
Net Revenues
257.0
248.6
+3.4%
OPEX
213.6
213.9
-0.1%
EBITDA
43.3
34.7
+24.9%
EBITDA Margin
16.9%
14.0%
EBIT
39.2
30.5
EBIT Margin
15.3%
12.2%
-0.4
17.8
n/a
7.2%
Adjusted Net profit
34.1
17.8
Net profit Margin
13.3%
7.2%
Net profit
Net profit Margin
Source: Atresmedia’s financial statements
FY 14 Results
34
+28.7%
n/a
+91.6%
Atresmedia Television
Q4 14 Results in € mill: P&L
Q4 14
Q4 13
Total Net Revenues 230.8
216.3
+6.7%
OPEX
197.3
198.0
-0.3%
EBITDA
33.5
18.3
EBITDA Margin
14.5%
8.4%
EBIT
30.0
14.8
EBIT Margin
13.0%
6.8%
Source: Atresmedia`s financial statements
FY 14 Results
35
YoY
+83.2%
102.6%
Atresmedia Television: Ad revenues breakdown in Q4 14
Q4 14 Key factors
GRPs
∆
Audience
∆
Inventory
∆
TV viewing
∆ GRPs
∆ Price
13.5%
-1.1%
-9.0%
-32.1%
+8.8%*
-1.5%
+7.1%*
* Like-for-like comparison: Q4 13 without
Nitro, Xplora & La Sexta 3
∆ Gross Ad. Revenue
+12%
Source: Infoadex & Atresmedia´s internal estimates
FY 14 Results
36
Atresmedia Radio
Q4 14 Results in € mill: P&L
Q4 14
Q4 13
Net Revenues
21.6
24.4
-11.3%
OPEX
13.1
16.8
-21.9%
8.5
7.6
39.5%
31.2%
8.1
7.0
37.6%
28.7%
EBITDA
EBITDA Margin
EBIT
EBIT Margin
Source: Atresmedia’s financial statements
FY 14 Results
37
YoY
+12.1%
+16.1%
Additional information
Investor Relations Department
Phone: +34 91 623 46 14
E-mail: ir@atresmedia.com
Web: www.atresmediacorporacion.com
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,
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(whether in negligence or otherwise) for any loss or damage that may arise from the use of this presentation or of any
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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
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commitment whatsoever.
FY 14 Results
38