Total Ad market

ATRESMEDIA
www.atresmediacorporacion.com
Presentation to investors
January 2016
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Advertising market in Spain
9M 15: A very positive year
9M 15 Gross Ad market
Yoy growth
8%
7%
11%
Total Ad market
Source: Infoadex
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2
5%
6%
1%
Advertising market in Spain
TV: Clear leadership and upward trend
Spanish Ad spending by medium
Share
42.0%
41.6%
+0.4pp
26.8%
21.9%
13.6%
10.8%
9.3%
9.1%
5.3%
1.3%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e
Source: Infoadex. 2015e: assuming growth rates at 9M15
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+21.6pp
-13.2pp
+0.2pp
-5.5pp
Advertising market in Spain
Total & TV market vs GDP is bouncing back
Total & TV ad intensity (vs GDP)
0.94%
Total Ad market
All-time average= 0.73%
0.44%
TV Ad market
0.33%
All-time average= 0.29%
Source: Infoadex and Bank of Spain
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0.19%
Advertising market in Spain
Spanish TV: Best cost-coverage mix
Cost-coverage by medium
In €/1,000 impacts & % penetration
88%
67%
11.9
60%
39%
8.1
29%
5.1
1.1
2.2
Coverage
CPT
Source: Internal estimates & EGM. 2015 data
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Spanish TV industry
Key issues: Ad market recovery & industry changes
2016 key issues
Ad market
•
•
Macro outlook
Ad market growth
Industry
changes
•
•
More DTT channels
New players: Pay TV
& OTTs
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Spanish TV industry: Main drivers
Positive outlook for household consumption & GDP
Household Consumption & GDP
Yoy growth
3.9%
Consumption
GDP
4.1%
3.7%
1.4%
2.7%
1.0%
-1.1%
-0.5%
-1.9%
-2.1%
Consensus
2012
2013
2014
Source: Funcas (Dec 15). In nominal terms
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2015e
2016e
Spanish TV industry: Ad market
Recovery seems sustainable but
the size of the market is still low in historical levels
Gross TV Ad market
In € mill
% yoy
Gross TV Ad market
3,469
2,378
2,317
2,472
Average: 2,475
1,890
2,015
1,703
16%
10%
8%
11%
9%
4%
-19%
-23%
2003
2004
2005
2006
2007
2008
2009
Source: Infoadex. 2015e: Consensus of analysts
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-6%
-10%
-11%
8
7%
2010
2011
2012
2013
2014 2015e
Television industry: Ad market
Spanish TV Ad market: Last 8 quarters in positive
Gross TV Ad market
FY14=+11%
Yoy growth
9M15=+8%
22%
13%
8%
6%
3%
1%
12%
8%
3%
-3%
-8%
-10%
-14%
-15%
-15%
-18%
FY11=-10%
-16%
-21%
-24%
FY13=-6%
FY12=-19%
Q111 Q211 Q311 Q411 Q112 Q2 12 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315
Source: Infoadex.
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Spanish TV industry: Ad market
9M 15: All the sectors in positive
Ad spending by sectors
% 9M 15 yoy
17%
14%
11%
8%
10%
9%
6%
6%
9M 15=+8%
1%
Beauty,
Hygiene &
Cleaning
14%
Food
Autos
Telcos
Retail
Finance
Culture
Health
Others
(Beverages
Energy
Home
Sports & leisure…)
14%
11%
10%
11%
10%
Source: Internal Estimates
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5%
6%
19%
Weight
Television industry: Prices and volumes
Prices and volumes at very low levels
TV Ad market
3,469
In € million +
Market Prices & Volumes
in index terms
2,317
2,015
147
146
1,890
1,703
109
100
83
TV ad market
2003
2004
2005
2006
Nominal Prices
2007
2008
2009
2010
112
89
116
92
Volumes
2011
2012
2013
2014
2015e
Source:
• TV Market: Infoadex. 2015e: Consensus of analysts
• Prices: Internal estimates. Conventional advertising.
• Volumes: Internal estimates. Commercial hours: 13h-25h. Conventional advertising excluding TVE.
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Spanish TV industry: Audiences
TV viewing remains at very high levels
Average daily viewing
343
In min
Age groups
>65
302
284
45 to 64
253
237
Ind 4+ (+7 days)
Ind 4+
213
234
25 to 44
191
193
146
137
143
129
Source: Kantar Media
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4 to 12
13 to 24
Spanish TV industry
Atresmedia has a key position in a wide FTA TV offer
Commercial FTA TV landscape (2015)
Channels
Audience
Power ratio
42.5%
26.8%
1.58x
43.4%
31.0%
1.40x
Mkt share*
3.4%
Net TV
4.0%
Veo TV
13TV
2.1%
2.0%
Secuoya
Real
Madrid TV
Kiss TV
To be launched in Q1 16
Source: Kantar Media, Infoadex
* At 9M15
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0.5x
Spanish TV industry : Pay TV
Pay TV position in Spain
Pay TV sector in Spain
2015
Penetration
Audience
Ad market share
% households with pay
TV connection
% Total Individuals 4+
% Total TV ad market
Pay
TV
7%
Pay
TV
25%
Source: Kantar Media, Infoadex
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Pay
TV
4%
Spanish TV industry : Pay TV
Pay TV by platform type and player
Pay TV sector
% Total connections (5.4 mill)
DTT
4%
Others
Gol T 10%
4%
Others
4%
Satellite
26%
VOD
15%
IPTV
44%
TEF
71%
Cable
22%
Source: CMT (Data available for Q215)
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Atresmedia: A leading communication group
Solid and clear group structure
OTHERS
Market
share
42%
Market
share
20%
ADVERTISING
Total
Ad market
share
19%
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Atresmedia: Market positioning
TV & Radio as main source of revenues
Atresmedia Cine
Atresmedia Digital
Atresmedia Diversification
Onda Cero
Europa FM
Onda Melodía
Others
2%
Radio
9%
2014
Net
Revenues
€ 883m
TV
89%
ANTENA 3
LA SEXTA
NEOX
NOVA
MEGA (launched in 2015)
ATRESERIES (launched in 2016)
Planeta-De Agostini: 41.7%
RTL:
18.7%
Shareh. La Sexta
4.1%
Treasury stock:
0.4%
Free-float:
35.2%
Source: Infoadex & internal estimates
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Atresmedia: Strategy
Clear strategic approach
Consolidating TV leading position
Regaining #2 position
Monetizing digital developments
Consolidating business model
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Atresmedia Television: Strategy
Unique TV offer
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Atresmedia Television: Positioning
Balanced and varied TV offer
55-64
Age
4-12
Male
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Female
20
Atresmedia Television: TV audiences by core channel
Antena 3: Stable audience ratings
Total Individuals
Commercial Target
24h
24h
14.5
13.9
14.1
14.8
13.3
13.4
13.8
13.5
12.5
13.6
13.4
13.6
13.5
10.2
10.0
9.8
12.5
13.5
12.2
12.2
10.0
8.2
7.9
Source: Kantar Media. Commercial Target (16-54 y)
Source: Kantar Media. Total Individuals (4y+)
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7.8
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Atresmedia Television: TV audiences by second channel
La Sexta: The best growth story
Total Individuals
Commercial Target
24h
24h
9.5
8.5
7.8
6.0
6.0
7.2
6.7
7.6
7.4
7.9
8.1
6.6
7.2
5.8
6.0
4.9
5.8
5.2
4.8
Source: Kantar Media. Commercial Target (16-54 y)
Source: Kantar Media. Total Individuals (4y+)
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8.4
7.4
6.8
7.3
8.2
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Atresmedia Television: TV group audiences
Atresmedia TV: Solid ratings despite
losing 3 channels as of May 2014
Total Individuals
Commercial Target
24h
24h
33.3
28.1
29.0
28.8
30.7
31.0
30.9
31.4
31.0
27.7
25.8
28.0
26.8
33.6
30.0
29.2
13.6
13.4
18.9
16.7
16.7
16.7
15.9
13.8
Source: Kantar Media. Total Individuals (4y+)
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Source: Kantar Media. Commercial Target (16-54 y)
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Atresmedia Television: TV group audiences
Atresmedia TV: closing the gap with MSE
quarter after quarter
Total Individuals
Commercial Target
24h
24h
31.4
31.5
33.7
31.1
34.4
33.7
32.8
30.1
31.3
26.6
16.7
25.8
17.0
26.6
16.7
28.6
28.1
16.3
13.9
Source: Kantar Media. Total Individuals (4y+)
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27.5
14.2
29.2
13.0
12.6
Source: Kantar Media. Commercial Target (16-54 y)
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Atresmedia: 2015 guidance in costs
Cost increases mostly explained by
one offs & programming costs
Cost increases by concept
Updated guidance
Original guidance
+0.5%
+2.0%
One-offs
+1.5%
+2.0%
+1.0%
Mega
∆Prog
Variable
costs
Sports
overlap
+7%
104
756
2014 OPEX
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100
2015 one-offs
Variable costs &
programming
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2015 OPEX
Atresmedia Radio: Positioning & Strategy
Atresmedia Radio: 20% market share
#3 radio player in Spain
4.5 million listeners
20% market share
# 2 talk radio
2.3 mill listeners
# 3 music radio
2.1 mill listeners
Source: EGM 2015 yearly average
Market Share: Infoadex & internal estimates
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New music radio
230k listeners
Atresmedia Radio: Audiences
Atresmedia Radio: 4.5 million listeners
Thousand of listeners
4,981
4,738
4,812
2,623
2,598
2,649
2,009
2,045
2,077
106
169
4,552
4,123
2,492
2,368
1,954
1,548
83
3rd 11
230
3rd 12
3rd 13
Source: EGM Surveys Monday to Friday (.000) ( Moving average).
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3rd 14
3rd 15
Atresmedia Digital: Positioning & Strategy
Exploring any possible source of audience & revenues
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Atresmedia Digital: Atresplayer
Atresplayer: Atresmedia’s OTT offer
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Atresmedia Diversification: Positioning & Strategy
Developing new non ad-based media initiatives
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Atresmedia Diversification: International
International: More than 31 mill subscribers ytd
(Antena 3’s premium
content channel)
(Celebrity & Life-style channel)
≈ 16.5 mill subscribers
≈ 9.5 mill subscribers
33%
20%
100
%
4 mill
2 mill
47%
15%
35%
50%
25 mill
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(Atresmedia’s
best-series channel)
≈ 5 mill subscribers
Atresmedia Diversification: Media for Equity
MEDIA FOR EQUITY: Exploring new business models
Automotion
Classified &
Social
Fashion &
Accesories
Travel
Health
Media
For
Equity
Sports
Leisure
Education
Technology
Others
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Medium term goals: TV & Radio
Television and Radio’s EBITDA margin on track
Market Gross Ad revenues (€ mill)
& EBITDA Margin
All time
average
≈2,100
All time
average
2014
≈460
1,890
2014
2013
2013
1,703
404
420
≈25%
≈25%
21%
15%
22%
7%
EBITDA Margin
EBITDA Margin
Source: Kantar Media & Atresmedia’s financial results
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Medium term goals: Other revenues
Other non-ad based revenues to double
Other revenues than TV & Radio advertising
as % of Total Revenues
10%
x2
45%
55%
2017e: ≈ € 100 mill
5%
67%
33%
Diversification
Others (Films & Digital)
2014: ≈€ 50 mill
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Medium term goals: Financials
Debt at target level and dividend policy according to plan
Total Net Debt Target (€ mill)
Dividend policy
185
Payout ratio
€ 150 mill
136
≥80%
Long term target
€ 100 mill
2014 dividend: 0.20 €/ sh
100% payout ratio
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Back up
Back up: 9M 15 Financial Results
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Atresmedia
9M 15 Results in € mill: P&L
9M 15
9M 14
Net Revenues
697.9
626.2
+11.4%
OPEX
578.4
541.9
+6.7%
EBITDA
119.5
84.3
+41.7%
17.1%
13.5%
103.1
72.0
EBIT Margin
14.8%
11.5%
Net profit
69.3
47.1
9.9%
7.5%
EBITDA Margin
EBIT
Net profit Margin
Source: Atresmedia’s financial statements
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YoY
+43.2%
+47.1%
Atresmedia Television
9M 15 Results in € mill: P&L
9M 15
9M 14
Total Net Rev.
617.5
554.5
+11.4%
OPEX
517.4
484.6
+6.8%
EBITDA
100.1
69.9
EBITDA Margin
16.2%
12.6%
EBIT
89.3
59.6
EBIT Margin
14.5%
10.8%
Source: Atresmedia`s financial statements
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YoY
+43.2%
+49.8%
Atresmedia Radio
9M 15 Results in € mill: P&L
9M 15
9M 14
Net Revenues
65.0
59.6
OPEX
50.6
50.5
+0.0%
EBITDA
14.4
9.0
+59.5%
22.2%
15.2%
13.0
7.6
20.1%
12.8%
EBITDA Margin
EBIT
EBIT Margin
Source: Atresmedia’s financial statements
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YoY
+9.0%
+70.2%
Atresmedia: “Others” Division
Financials
Net revenues split
€ mill
9M 15
9M 14
Events
18%
Net Revenues
15.5
12.1
Films
32%
EBITDA
5.0
5.4
Source: Atresmedia’s financial statements
Contribution to consolidated group
*Others ( Internet, Editorial…)
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Others
* 50%
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.
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