9M 14 Results

9M 14 Results
October 23, 2014
www.atresmediacorporacion.com
9M 14 Results
1
9M 14 Highlights
According to internal sources, Total Ad market increased by +4.8%
yoy in 9M 14 with TV and Radio up by +9.9% and +2.6%
respectively.
Atresmedia Television’s audience reached 28.0% in 9M 14, 0.5pp
less yoy, mainly due to the closure of 3 channels in May and the
competition from special sports events on other operators.
Atresmedia Television’s ad revenue growth was +6.9% at 9M14 and
registered an accumulated market share close to 42%
Atresmedia Radio (+6.4% yoy) outperformed the market once again
Atresmedia’s Net Revenue totalled €626 mill (+7.8% yoy)
Total OPEX stood at €542mill (+1.2% yoy)
EBITDA of €84 mill (+85% yoy) and Net Income of €47 mill (+67%
yoy), already above FY 2013 figures
Total net debt ended at €100 mill (€85 mill less than Dec 2013)
New DTT technical plan finally approved in Sept 2014
9M 14 Results
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1
9M 14 Financial Summary
9M 14 Results
3
Advertising market in Spain
Total Ad market up by +4.8% yoy at 9M 14
TV outperformed the market (+9.9%) while Radio remained below (+2.6%)
TV: Very strong Q3 14 (+21.8%)
Q3 14 yoy
9M 14 yoy
+21.8%
+9.9%
+1.5%
+2.6%
Newspapers
-1.2%
-2.8%
Magazines
-0.5%
-2.3%
Sunday suppl.
-2.7%
-8.5%
Outdoor
+7.0%
+2.0%
Internet
+4.0%
+4.5%
Cinema
+6.6%
+11.0%
Media
TV
Radio
+10.1%
Total
Source: Internal estimates
9M 14 Results
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+4.8%
Atresmedia: Consolidated results
9M 14 Results in € mill: P&L
9M 14
9M 13
YoY
Net Revenues
626.2
581.2
+7.8%
OPEX
541.9
535.7
+1.2%
EBITDA
84.3
45.5
+85.5%
EBITDA Margin
13.5%
7.8%
EBIT
72.0
32.4
EBIT Margin
11.5%
5.6%
Net profit
47.1
28.3
7.5%
4.9%
Net profit Margin
Source: Atresmedia’s financial statements
9M 14 Results
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+122.2%
+66.7%
Atresmedia: Net revenues by segment
Total Net Revenues stood at €626million, +7.8% yoy
Net TV revenues of €555 million (+8.3%)
Radio revenues reached €60mill (+6.1% yoy)
“Others” revenue decreased by 5.0% yoy to €12.1mill
Net Revenues
In € mill
+7.8%
+8.3%
581
626
555
512
+6.1%
-5.0%
9M 13
9M 14
Total Group
9M 13 9M 14
TV
Source: Atresmedia’s financial statements
9M 14 Results
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56
60
9M 13
9M 14
Radio
13
9M 13
12
9M 14
Others
Atresmedia: OPEX
Total OPEX of €542 mill, +1.2% vs 9M 13
By division, Radio was affected by the launch of Melodía FM
By concept, programming costs and personnel partially offset by the
decrease in overheads
OPEX breakdown by division
OPEX breakdown by type of cost
In € mill
Others
Radio
In € mill
536
+1.2%
10
-35.2%
47
+8.0%
542
536
7
51
Other Costs
Personnel
Costs
TV
478
+1.3%
-1.6%
136
83
+5.4%
88
314
+1.3%
318
9M 13
9M 14
Source: Atresmedia’s financial statements
9M 14 Results
138
485
Programming
costs & Others
9M 13
542
+1.2%
7
9M 14
Atresmedia: Cash flow & Debt position
Total net debt reached €100 million (€-85mill vs Dec 2013)
Last 12 months Net debt /EBITDA = x0.8
Cash flow
Net Debt
In € mill
In € mill
Total available credit lines
235
-100
-185
+41
+70
Undrawn
135
-26
Total net
debt 9M 14
100
2013 Net
debt
Operating Investing CF
CF
Others*
9M 14 Net
debt
4-year
Syndicated loan
Others*: Sale of treasury stock & Dividends
Source: Atresmedia’s financial statements
9M 14 Results
Source: Atresmedia’s financial statements
8
TV Advertising market
9M 14 (+10% yoy): Strong market performance
Q3 14 (+22% yoy): The highest growth in the decade
Gross TV Advertising by quarter (yoy growth)
9M 14=+10%
22%
8%
6%
3%
1%
-3%
-8%
-10%
-14%
-15%
-15%
-16%
-18%
-21%
FY11=-10%
FY13=-6%
-24%
FY12=-19%
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Source: Infoadex. Q3 14 and 9M14 data are internal estimates
9M 14 Results
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Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Q3 14
TV Advertising market by sector
Positive performance at every sector with the exception of Beauty
TV Ad market by sector
Yoy evolution 9M 14
TV Ad market by sector
Market share 9M 14
Market = +10%
Others
19%
Beauty &
Hygiene
Beauty
15%
Food
Automotive
Food
13%
Health
5%
Telecom
3%
8%
4%
Retail
Culture
5%
Finance
Autos
11%
Finance
10%
Retail
11%
Culture
16%
6%
4%
Health
Telecom
11%
Others*
*Others: Beverages, Leisure & sports, energy,….
Source: Internal estimates
9M 14 Results
-10%
10
20%
48%
Atresmedia market positioning
Market share affected by the closure of three channels as of May14 and
special sport events in other operators (FIFA and FIBA World Cup)
Atresmedia: Fewer channels but with the highest power ratio
Ad market share positioning
Power ratio
Power ratio (x Audience / Market share)
In %
9M 14: 1.49x
43.7%
44.4%
+0.7pp
1.54
9M 14: 1.45x
1.51
1.46
43.1%
41.8%
9M 13
9M 14
-1.3pp
1.42
Q1 14 Q2 14 Q3 14
Source: Infoadex. Q314 and 9M14 data are internal estimates
9M 14 Results
1.47
1.45
11
Q1 14 Q2 14 Q3 14
Atresmedia Television
9M 14 Results in € mill: P&L
9M 14
9M 13
Total Net Revenues
554.5
512.3
+8.3%
OPEX
484.6
478.4
+1.3%
EBITDA
69.9
33.8
EBITDA Margin
12.6%
6.6%
EBIT
59.6
23.2
EBIT Margin
10.8%
4.5%
Source: Atresmedia`s financial statements
9M 14 Results
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YoY
+106.8%
+157.5%
Atresmedia Television
9M 14 Results in € mill: Revenues breakdown
9M 14
9M 13
Gross Ad. sales
551.4
515.7
+6.9%
Net Ad. sales
529.2
490.8
+7.8%
25.3
21.5
+17.9%
554.5
512.3
+8.3%
Other net revenues
Total Net Revenues
Source: Atresmedia’s financial statements
9M 14 Results
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YoY
Atresmedia Television: Ad revenues breakdown in 9M 14
9M 14 Key factors
GRPs
∆
Audience
∆
Inventory
∆
TV viewing
∆ GRPs
∆ Price
3.8%
3.0%
-1.2%
-1.7%
-19.6%
+8.9%*
+2.5%*
∆ Gross Ad. Revenue
* Like-for-like comparison: 9M 13 without
Nitro, Xplora & La Sexta 3 as of May 6th
+6.9%
Source: Atresmedia´s internal estimates
9M 14 Results
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Atresmedia Television
9M 14 Results in € mill: OPEX breakdown
Programming Costs
&Others
Personnel Costs
Other Costs
Total OPEX
9M 14
9M 13
307.5
299.4
+2.7%
49.8
47.8
+4.2%
127.3
131.2
-3.0%
484.6
478.4
+1.3%
Source: Atresmedia’s financial statements
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YoY
Atresmedia Radio
Atresmedia Radio, +4 pp better than the market in 9M 14
Atresmedia Radio vs Radio market
Revenues breakdown
Ad revenues yoy
6.4%
Music
19%
+3.8pp
Conventional
81%
2.6%
Radio
market
Source: Internal estimates
9M 14 Results
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Atresmedia Radio
9M 14 Results in € mill: P&L
9M 14
9M 13
Net Revenues
59.6
56.1
+6.1%
OPEX
50.5
46.8
+8.0%
9.0
9.3
15.2%
16.6%
7.7
7.3
12.8%
13.0%
EBITDA
EBITDA Margin
EBIT
EBIT Margin
Source: Atresmedia’s financial statements
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YoY
-3.3%
+4.9%
Atresmedia: Others Division
Financials
Revenues split
A3
events
14%
€ mill
Net Revenues
EBITDA
9M 14
9M 13
12.1
12.8
5.4
2.3
A3
Cinema
24%
Others
62%
Source: Antena 3’s financial statements
Contribution to consolidated group
Mainly represents the business lines: Atresmedia Cine, Atresmedia Eventos, Others (Digital, Música Aparte,…).
9M 14 Results
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2
9M 14 Business Summary
9M 14 Results
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TV viewing
TV viewing remains at a very high level despite a 5-min decrease yoy
TV viewing
Average daily viewing in min
241
241
236
234
229
222
221
219
214
212
213
207
+29 min/viewer
9M 03 9M 04 9M 05 9M 06 9M 07 9M 08 9M 09 9M 10 9M 11 9M 12 9M 13 9M 14
Source: Kantar Media
9M 14 Results
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TV audience shares: By groups
Audience share just slightly below yoy due to a tough competitive
environment (three channels less and impact of FIFA and FIBA WC
audience)
Audience Share by Total Ind.
Audience Share in Commercial Target
In %
In %
9M 13
9M13
9M 14
9M14
33.1
28.5 28.0
28.9
30.6
30.7 30.3
31.2
-0.4pp
-0.5pp
16.8 16.7
14.1 13.7
Source: Kantar Media
Source: Kantar Media
Audience share 24h; Total Individuals: 4+
Commercial Target:16-54 yrs, > 10,000 inhabitants
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TV audience shares: Core channels
Antena 3 grew yoy both in Total Individuals and Commercial Target
Antena 3 leads in Commercial Target
Audience Share Total Individuals
Aud. Share by Commercial Target
In %
In %
14.5
13.3
13.1
13.6
+1.2 pp
+0.5pp
13.0
13.7
13.5
+0.7pp
+1.6pp
11.9
10.2
10.0
-0.2pp
8.4
9M 13
9M 14
9M 13
7.9
9M 14
Source: Kantar Media
Source: Kantar Media
Audience share 24h; Total Individuals: 4+
Commercial Target:16-54 yrs, > 10,000 inhabitants
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-0.5pp
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 %
8.6
7.8
6.9
6.0
6.5
-0.8pp
7.4
8.0
+0.6pp
7.6
+1.0pp
+1.0pp
6.6
+0.5pp
5.9
5.9
5.2
9M 13
9M 14
9M 13
9M 14
Source: Kantar Media
Source: Kantar Media
Audience share 24h; Total Individuals: 4+
Commercial Target:16-54 yrs, > 10,000 inhabitants
9M 14 Results
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-0.7pp
Audience shares: Q3 14 comparison
>85% of the difference in Q3 14 audience vs MSE is explained by the
number of channels and special events
A3M vs MSE audiences: Q3 14 comparison
Q3 14 audience in TTI, 4+
MSE
31.6%
+5.6%
70% explained by 2 more channels
17% explained by special events
A3M
26.0%
Source: Kantar Media
9M 14 Results
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Audience shares: Q3 14 comparison without sports events
Similar audience shares between Atresmedia and Mediaset’s core channels
when excluding the impact of the sports events in the quarter
Audience Share by Total Ind*
Audience Share Commercial Target*
In %
In %
20.5
20.5
21.3
6.9
6.7
7.7
13.6
13.8
13.6
20.7
8.2
12.5
Source: Kantar Media
Source: Kantar Media
Audience share 24h; Total Individuals: 4+
Commercial Target:16-54 yrs, > 10,000 inhabitants
* Average Audience share of days within Q314 without FIFA and FIBA World Cup rights
9M 14 Results
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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
26
FORTA
TVE
A3M
Available capacity subject to a possible tender process
9M 14 Results
MAUT
TVE
MSE
MPE3
MEDIASET
(MSE)
MPE2
ATRESMEDIA
(A3M)
NET TV
VEO TV
MPE1
Atresmedia Radio
Atresmedia Radio, consolidates 4.8 million listeners
Onda Cero & Europa FM grow steadily survey after survey
Melodía FM growing at a sound pace
Listeners evolution
In thousand of listerners
4,925
4,834
4,498
≈+330 k
2,573
2,654
2,602
2,102
2,020
1,819
169
106
2nd 12
2nd 13
Source: EGM Surveys Monday to Friday (.000) ( Moving average).
*Atresmedia Radio includes Onda Cero, Europa FM and Melodía FM
9M 14 Results
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212
2nd 14
Atresmedia Digital
Monthly unique users increased by 48% up to 16.3 mill in 9M 14
Atresplayer reaches >3 mill downloads one year after inception
Unique Users
In mill
Atresmedia’s
long form video container
(launched in Oct-13)
16.3
11.1
>+ 5 mill
unique users/month
Key metrics
3.1
mill
1.4
mill
(accumulated
at 9M 14)
Apps
Downloads
Monthly average
Source: Nielsen Market Intelligence/Adobe Analytics
9M 14 Results
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Registrations
Back up
9M 14 Results
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Atresmedia Television: Ad revenues breakdown in Q3 14
Q3 14 Key factors
GRPs
∆
Audience
∆
Inventory
∆
TV viewing
∆ GRPs
∆ Price
8.0%
-0.2%
-9.8%
4.0%
-32.8%
+10.9%*
+8.4%*
* Like-for-like comparison: Q3 13 without
Nitro, Xplora & La Sexta 3
∆ Gross Ad. Revenue
+12.3%
Source: Atresmedia´s internal estimates
9M 14 Results
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Atresmedia
Q3 14 Results in € mill: P&L
Q3 14
Q3 13
Net Revenues
175.6
158.1
+11.0%
OPEX
151.5
152.2
-0.5%
EBITDA
24.1
5.9
+305.4%
EBITDA Margin
13.7%
3.8%
EBIT
20.0
1.6
EBIT Margin
11.4%
1.0%
9.3
-0.8
5.3%
n/a
Net profit
Net profit Margin
Source: Atresmedia’s financial statements
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YoY
+1,118.0%
n/a
Atresmedia Television
Q3 14 Results in € mill: P&L
Q3 14
Q3 13
Total Net Revenues 154.3
136.3
+13.2%
OPEX
132.8
137.0
-3.1%
EBITDA
21.5
-0.7
EBITDA Margin
14.0%
n/a
EBIT
18.0
-4.2
EBIT Margin
11.7%
n/a
Source: Atresmedia`s financial statements
9M 14 Results
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YoY
n/a
n/a
Atresmedia Radio
Q3 14 Results in € mill: P&L
Q3 14
Q3 13
Net Revenues
17.1
16.1
+5.7%
OPEX
15.7
14.8
+6.0%
EBITDA
1.4
1.3
EBITDA Margin
8.0%
8.2%
EBIT
0.9
0.7
EBIT Margin
5.4%
4.2%
Source: Atresmedia’s financial statements
9M 14 Results
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YoY
+3.4%
+38.0%
Additional information
Investor Relations Department
Phone: +34 91 623 46 14
E-mail: ir@atresmedia.com
Web: www.atresmediacorporacion.com
Legal Notice
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negotiation, changes and modifications.
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9M 14 Results
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