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    Mtg q12013 presentation final Mtg q12013 presentation final Presentation Transcript

    • First Quarter 20131 Financial Results
    • Forward looking statementsForward-looking information and Safe Harbour Statement under the U.S. Private Securities LitigationReform Act of 1995This report contains forward-looking information based on the current expectation of MTG management.Although management deems that the expectations presented by such forward-looking information arereasonable, such forward-looking information is subject to risks and uncertainties and no guarantee can begiven that these expectations will prove correct. Accordingly, the actual future outcome could vary considerablywhen compared to what is stated in the forward-looking information, due to such factors as described above inthe Risks & Uncertainties section. 2
    • Strong Growth in3 Emerging Markets
    • Q1 2013 • Sales up 2% y-o-y at constant FX SEK mn • Sales up 5% y-o-y at constant FX 3,500 40% 3,259 3,223 excluding closed & sold operations 35% • OPEX up y-o-y at constant FX 3,000 • Following investments in the Nordic pay-TV 2,500 30% businesses and within Emerging Markets 25% • EBIT before associated income of SEK 219 2,000 (341) mn 20% 1,500 • Total EBIT of SEK 454 (542) mn including 15% SEK 235 (201) mn of associated income 1,000 10% • PTP of SEK 472 (591) mn 500 341 • Net income of SEK 334 (454) mn 219 5% • EPS of SEK 4.73 (6.68) 0 0% Q1 2012 Q1 2013 • Cash flow from operations of SEK 267 (334) mn Revenue EBIT* EBIT margin • Net cash position of SEK 17 mn (net debt * EBIT excluding associated income position of SEK 1 mn in Q4 2012) • Received SEK 58 (52) mn in quarterly dividends from CTC Media4
    • Forward ExpectationsAs previously announced, the Group continues to expect its Nordic pay-TV business togrow its revenues at constant exchange rates in 2013, and to report an operating (EBIT)margin of approximately 10-12% for the full year 2013. The segment margin is expectedto increase in 2014.The Group also continues to expect its Emerging Market pay-TV operations to achieve abreakeven EBIT result for the full year 2013 with rising profitability levels in 2014.5
    • Operating Review6
    • Free-TV Scandinavia Financial Highlights SEK mn 1,200 50%• Sales down 1% y-o-y at constant FX in Q1 1,024 45% • Lower sales in Sweden and Norway 993 1,000 offset to an extent by higher sales & ad 40% market gains in Denmark 35% • Expected decline in both the 800 30% Danish- and Swedish TV advertising markets 600 25% • Norwegian ad market expected to have 20% continued to grow in Q1 400 15% 10%• OPEX slightly up y-o-y at constant FX 200 158 127 5%• EBIT margin of 12.8% (15.4%) in the quarter 0 0% Q1 2012 Q1 2013 Revenue EBIT EBIT margin 7
    • Free-TV Scandinavia Operating Highlights Sweden • The combined CSOV for the Swedish media Commercial Audience Share (15-49) 50% house was significantly up q-o-q but slightly down y-o-y 45% • Improved ratings throughout Q1 & highest combined CSOV ever of 35.2% (34.7%) for a 40% month of March 35% • Improvement follows success both from recurring formats & new shows 30% Denmark 25% • Combined CSOV for the Danish media house was up both y-o-y and q-o-q 20% • TV3 CSOV boosted by distribution on Boxer’s DTT platform & strong underlying performance 15% • TV3 Sport 1 & TV3 Sport 2 added to media 10% house sales from Q1 Norway • Combined CSOV stable y-o-y & up q-o-q following improved prime time ratings for TV3 Sweden Denmark Norway • Higher y-o-y combined CSOV of 19.3% (18.6%) in the month of March • Third channel to be launched in H2 20138
    • Free-TV Scandinavia Focused AVOD development Nordic traffic levels growing & AVOD Key free-TV brands go online to drive services are growing rapidly viewing & strengthen engagement • Nordic traffic levels are growing • Danish Q1 AVOD traffic higher than total FY12 traffic • Launch of clip site Viasatsport.se in January 2013 & new music video portal online • Like.tv Second Screen app growing & to be rolled out on more platforms in 2013 • MTG adapting content commission strategies to leverage linear & online assets9 9
    • Pay-TV NordicFinancial Highlights• Sales up 3% y-o-y at constant FX SEK mn • Consolidation of TV3 Sport channels in 1,400 1,310 50% 1,288 Denmark 45% 1,200• OPEX up 10% y-o-y 40% • Full consolidation of the TV3 Sport 1,000 35% channels business, the launch of new channel TV3 Sport 2 in Denmark, 30% as well as ongoing investments in 800 premium movie and sports content 25% and Viaplay 600• EBIT margin of 11.1% (17.7%) in Q1 20% 400 15%• The Group continues to expect its Nordic pay-TV 227 10% business to grow its revenues at constant exchange rates in 2013, and to report an 200 146 5% operating (EBIT) margin of approximately 10-12% for the full year 2013. The segment margin is 0 0% expected to increase in 2014 Q1 2012 Q1 2013 Revenue EBIT EBIT margin10
    • Pay-TV Nordic Operating Highlights Premium subscribers 1,200 • Viaplay reported record # of daily viewers in Q1 following strong sports events 1,000 800 Thousands 600 • 3’rd party subscriber base up y-o-y but 400 slightly down q-o-q 200 0 • Danish offering strengthened through several channel distribution agreements Satellite subscribers 3rd party network subscribers • Premium satellite ARPU up 2% y-o-y and Value added services slightly down q-o-q due to strengthening of 400 the Swedish krona 350 Thousands 300 250 200 • Positive y-o-y development due to 150 continued growth in the penetration and 100 pricing of value added services 50 011 ViasatPlus HDTV Multi-room
    • Content LeadershipTV, Movies & Premium Sports Local titles
    • Free-TV Emerging Markets Financial Highlights • Both total Free-TV Emerging Markets sales & SEK mn Free-TV Emerging Markets Baltic, Czech & Bulgarian sales up 25% y-o-y at 600 512 50% constant FX 500 432 40% • Sales cooperations in Czech Republic & Bulgaria; healthy underlying growth & higher 400 30% ad market shares in almost all territories 300 • OPEX significantly up y-o-y 20% 200 • Sales co-operations; further investments in 100 10% programming; launch of Prima ZOOM & 26 consolidation of LNT in Latvia 8 0 0% • Improved profitability y-o-y for the 6th consecutive Q1 2012 Q1 2013 quarter & more than tripled y-o-y Revenue EBIT EBIT margin • Increased operating margin SEK mn Baltics, Czech Republic & Bulgaria • Sales cooperation profitability more seasonal than 600 50% 478 MTG operations 500 393 40% • Partners’ commercial inventory acquired at fixed 400 annual wholesale prices 30% 300 • Inventory sold as part of the media house 200 20% offering at the seasonal price variations. 100 10% 27 38 0 0% Q1 2012 Q1 2013 Revenue EBIT EBIT margin13
    • Free-TV Emerging Markets Operating Highlights Baltics Commercial Audience Share 70% • Sales up 23% y-o-y at constant FX • Consolidation of LNT in Latvia & higher sales in 60% Lithuania as well as underlying growth in Latvia and Estonia 50% • Increased Pan-Baltic commercial target 40% audience share of 46.8% (40.5%) 30% Czech Republic • Sales up 29% y-o-y at constant FX 20% • Barrandov sales cooperation, ad market share 10% gains & successful launch of Prima Zoom • CSOV up y-o-y following the launch of the Prima Zoom channel Estonia (15-49) Latvia (15-49)* Bulgaria Lithuania (15-49) Czech Republic (15-54) • Sales up 29% y-o-y at constant FX Bulgaria (18-49) • Continued high ratings and the previously announced advertising sales co-operations with nine international channels • Combined CSOV up significantly y-o-y following * MTG has included the LNT channels in its reported combined CSOV in continued successful performance of key locally Latvia with effect from Q3 2012 produced shows14
    • Pay-TV Emerging Markets Financial Highlights • Sales up 10% y-o-y at constant FX in the SEK mn quarter 300 • Continued healthy subscriber intake 260 251 • Growth across 3rd party networks in 250 Russia & Eastern Europe 200 • OPEX up 20% y-o-y in Q1 but stable q-o-q • Previously announced investments in 150 premium content • Launch of the HD Premium package in 100 Russia and Ukraine in Q4 12 50 34 • EBIT loss of SEK -1 (34) y-o-y in the quarter 0 -1 Q1 2012 Q2 2013 • Pay-TV Emerging Markets continue to be expected to achieve a breakeven EBIT -50 result for the full year 2013 Revenue EBIT15
    • Pay-TV Emerging Markets Operating Highlights Satellite subscribers 600• 49,000 net new satellite subscribers added y-o-y & q-o-q performance reflected usual Thousands seasonal effects following strong subscriber 500 intake in Q4• Over 19 mn mini-pay added subscriptions y-o-y 400 • Over 1 million subscriptions added q-o-q Satellite subscribers• HD channel package sales progressing Mini-pay TV subscriptions 90,000 according to plan • Already available on several leading 80,000 Thousands networks 70,000• Agreement with Inter Media Group to 60,000 include its Ukraine free-TV channels on Viasat Ukraine platform 50,000 16 40,000 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
    • Russia & Ukraine Plenty of room to grow Russia – Pay-TV Satellite Ukraine – Pay-TV SatelliteMillions Households1 Thousands Households1 16 1,200 14 1,000 12 10 800 8 600 6 400 4 2 200 0 0 Russia - Cable & IPTV Households2 Ukraine - Cable & IPTV Households2Millions Thousands 30 5,000 25 4,000 20 3,000 15 10 2,000 5 1,000 0 017 Source: Screen Digest 2013 data; 1: Including low-ARPU satellite like Tricolor; in Russia 2: Including social cable
    • The next stepHD Channel package & Viaplay • Four exclusive key premium content deals signed in Russia, Ukraine & CIS • New premium HD channel package launched in Russia & Ukraine • Viaplay launched & available to HD customers and on independent basis Exclusive Premium Content from major Hollywood Studios18
    • Other Businesses Highlights• Sales down 17% y-o-y at constant FX when SEK mn excluding the contribution of the Bet24 450 operations, which were sold in May 2012, but 407 400 including the consolidation of the Paprika Latino production company from 17 350 September 2012 300• Norwegian radio sales up y-o-y 250 242• Swedish radio sales down substantially y-o-y 200 • 20 NRJ licenses in Sweden no longer operated by MTG from 1 Jan 13 150• MTG Studios sales down y-o-y 100• OPEX down y-o-y at constant FX excluding 50 impact of sold Bet24 operations 0 • Lower y-o-y costs for the MTG Studios Q1 2012 Q1 2013 operations -50 -14 -17 • Cost reductions in Swedish radio Revenue EBIT operations 19
    • Financial Review20
    • Income Statement• Depreciation & amortisation up y-o-y to Q1 Q1 SEK 41 (28) mn (SEK mn) 2013 2012• Net interest expenses of SEK -1 (-16) Net sales 3,223 3,259 mn due to lower borrowing levels in the EBIT before associated company period income 219 341• Financial items of SEK 19 mn Associated company income 235 201 • Positive unrealised currency EBIT 454 542 exchange rate differences of SEK 41 mn Net interest & other financial items 18 49 • Non-cash financial losses of Income before tax 472 591 SEK -13 (81) mn arising from the change in value of the option Tax -138 -137 element of the SEK 250 mn Net income 334 454 CDON Group convertible bond between the balance sheet dates Basic EPS 4.73 6.68• Effective tax rate of 29% in Q1 Diluted EPS 4.73 6.6621
    • Cash Flow• Cash flow from operations included receipt of SEK 58 (52) million of dividend Q1 Q1 (SEK mn) 2013 2012 payments from CTC Media• The Group made no investments in shares Cash flow from operations 267 334 during the first quarter of 2012 or 2013• CAPEX of SEK 47 (23) mn in the quarter, Changes in working capital -190 -269 equivalent to 1% of Group net sales for the quarter Net cash flow from 77 65 operations• Cash flow from investing activities of SEK -47 (1) mn in Q1 Cash flow used in investing -47 1 activities Cash flow used in financing -225 54 activities Net change in cash & cash -195 120 equivalents22
    • Financial Position • Total borrowings of SEK 708 (1,603) mn as at 31 31 Mar 31 Mar Mar 2013 (SEK mn) 2013 2012 • Cash & cash equivalents of SEK 509 (583) mn Non-current assets 6,125 5,683 • Net cash of SEK 17 mn as at 31 Mar 2013 Current assets 5,655 5,785 • Net debt position of SEK 733 million at the Total assets 11,780 11,468 end of Q1 2012 & available liquid funds of SEK 6,459 (5,640) mn Shareholders’ equity 5,377 4,744 • SEK 2,053 (1,869) mn book value of 37.9% shareholding in CTC media & public equity market Long-term liabilities 1,471 2,220 value of 4,607 mn as at the last business day of March 2013 Current liabilities 4,931 4,504 Total equity & liabilities 11,780 11,468 Net debt / EBITDA ratio 1.2 1.2 1.1 0.8 0.7 0.7 0.6 0.3 0.3 0.3 0.3 0 -0.0123 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 10 10 10 10 11 11 11 11 12 12 12 12 13
    • First Quarter 201324 Financial Results
    • Summary • Strong sales performance in free-TV Emerging Markets driven by sales cooperations, underlying growth & new channel • Largest free-TV media house on a quarterly basis in the Czech Republic for the first time • Continued investments in pay-TV operations & outlook reiterated • Audience shares stabilising across the board & improvements in March • Taking advertising & audience shares in Denmark • Viaplay subscriber base is growing & record viewing levels for key sports events during Q1 • Net cash position provides flexibility for both organic and M&A driven growth25
    • For further information, please visit www.mtg.se or contact: MTG Investor Relations Tel: +46 (0) 73 699 2714 Email: investor.relations@mtg.se26