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Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
Q1 2008 Presentation
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Q1 2008 Presentation

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Financial results presentation from the international entertainment broadcasting group Modern Times Group MTG AB.

Financial results presentation from the international entertainment broadcasting group Modern Times Group MTG AB.

Published in: Investor Relations
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  • 1. Maximizing the Power of Entertainment Modern Times Group MTG AB First Quarter 2008 22 April 2008
  • 2. Highlights Record First Quarter Result Growth Across the Board Group net sales up 16% to SEK 3,042 mn Operating income up 27% to SEK 596 mn with increased operating margin of 20% Viasat Broadcasting net sales up 20% to SEK 2,402 mn Operating income up 24% to SEK 596, with an increased operating margin of 25% Free-TV Scandinavia sales up 13% with significantly enhanced operating margin of 19% Higher audience share for TV3 & Viasat4 Norwegian channels than SBS channels in national universe for first time in March Net income up 26% to SEK 397 mn Completed sale of DTV to CTC Media for a cash consideration of USD 395 mn on a cash and debt free basis Viasat Ukraine DTH satellite platform launched on 21 April Repurchased 798,000 class B shares for SEK 316 mn 2
  • 3. Viasat Broadcasting (Rolling 12 Months) Increasing Exposure to High Growth Emerging Markets Q1 2006 Q1 2008 43% Sales 26% 34% 16% FTA Swe/No/Dk Pay-TV Nordic Central & Eastern Europe 41% 40% Q1 2006 Q1 2008 14% EBIT 23% 29% 10% FTA Swe/No/Dk 40% Pay-TV Nordic Central & Eastern Europe 19% 29% 36% CTC Media 3
  • 4. Viasat Broadcasting Double Digit Sales Growth in All Three Broadcasting Businesses (SEK million) Q1 2008 Q1 2007 Change (%) FY 2007 Net Sales Free-to-air TV Scandinavia 808 713 13 3,173 Pay-TV Nordic 975 877 11 3,613 Central & Eastern Europe 657 478 38 2,328 Other & Eliminations -39 -65 - -272 Total Net Sales 2,402 2,003 20 8,842 Operating income (EBIT) Free-to-air TV Scandinavia 151 110 37 627 Operating Margin 19% 15% 20% Pay-TV Nordic 157 148 6 631 Operating Margin 16% 17% 17% Central & Eastern Europe (excl. CTC Media) 76 59 29 396 Operating Margin 12% 12% 17% Associated Companies 207 162 28 461 Other & Eliminations 4 2 - -88 Total EBIT 596 481 24 2,027 4
  • 5. Free-to-air TV Scandinavia Successful Media House Approach Commercial Share of Viewing (15-49) Combined ‘Media House’ CSOV (15-49) of 35 34.1% for Swedish channels 30 - TV6 audience share up to >11.6% TV3 Sweden penetration up to 83% following 25 inclusion on Canal Digital platform (%) - TV6 & TV8 penetrations of 84% and 57%, 20 respectively Inclusion of TV3 Norway on Digital terrestrial 15 & Canal Digital platforms to significantly but gradually boost penetration levels 10 Viasat’s Norwegian channels (TV3 & Viasat4) 1 1 1 Q Q Q outperformed SBS ProSieben Channels on 06 07 08 ‘media house’ basis for the first time ever in 20 20 20 March in the national universe (15-49) TV3 & TV6 Sweden TV3 & 3+ Denmark TV3 & Viasat4 Norway 5
  • 6. Free-to-air TV Scandinavia (Rolling 12 Months) Further Advertising Market Share Gains 3 500 40% 3 300 35% 3 100 13% sales growth to SEK 808 (713) mn 30% 2 900 following increased advertising market (SEK million) 25% shares in all three Scandinavian markets 2 700 Operating costs up 9% to SEK 657 (603) mn 2 500 20% Operating income up 37% to SEK 151 (110) 2 300 15% mn with increased operating 2 100 margin of 19% (15%) 10% 1 900 1 700 5% 1 500 0% Q1 2006 Q1 2007 Q1 2008 Sales EBIT Margin 6
  • 7. Pay-TV Nordic ARPU Growth ARPU up 9% year on year to SEK 3,790 (’000 subscribers) (SEK) following package price increases, growing proportion of multi-room subscribers, 760 4,000 maturing of new subscribers into higher 740 3,900 ARPU contract periods, strengthening of 720 3,800 Norwegian & Danish krona 3,700 700 3,600 Viasat+ PVR subscriber base up from 73,000 680 3,500 at end of 2007 to 82,000 at end of Q1 2008 660 3,400 (12% of premium DTH base) & multi-room 640 3,300 subscriber base up from 130,000 to 136,000 620 3,200 during the first quarter (19% of premium 600 3,100 DTH base) 580 3,000 Q1 2006 Q1 2007 Q1 2008 Launch of 4 channel HDTV offering in Premium Subscribers January Annualized Premium ARPU TV2 Sport joint venture profitable after almost tripling sales quarter on quarter 7
  • 8. Pay-TV Nordic Investments in New Channels 1000 40% 900 800 Net sales up 11% to SEK 975 mn in Q1 30% 700 (SEK million) 600 Total operating costs up 12% following inclusion of Norwegian TV2 channels & HD launch 500 20% 400 Subscriber acquisition costs slightly down to 300 SEK 134 (139) mn 10% 200 Operating income up 6% to SEK 157 mn 100 Operating margin of 16% (17%) 0 0% Q1 2007 Q4 2007 Q1 2008 Sales EBIT Margin 8
  • 9. Central & Eastern Europe (Rolling 12 Months. Excl. CTC media) Continued Momentum 3 000 40% 35% 2 500 30% 2 000 Net sales up 38% to SEK 657 mn 25% (SEK million) Operating profits (excl. CTC Media 1 500 20% contribution) up 30% to SEK 76 mn 15% Stable operating margin of 12% (12%) (excl. 1 000 CTC Media) 10% 500 First Q1 impact from Balkan Media Group 5% 0 0% Q1 2006 Q1 2007 Q1 2008 Total EBIT Margin EBIT Margin Established Businesses 9
  • 10. Free-to-air TV Eastern Europe Audience Share Development TV3, 3+ & TV6 Latvia (15-49) TV3 & Tango TV Lithuania TV3 & 3+ Estonia (15-49) 50 50 (15-49) 50 45 45 45 40 40 40 35 35 35 30 30 30 Q1 Q1 Q4 Q1 Q1 Q4 Q1 Q1 Q4 2008 2007 2007 2008 2007 2007 2008 2007 2007 TV Prima Czech Rep (15 +) DTV Russia (6-54) Viasat3 Hungary (18-49) TV3 Slovenia (15-49) 25 5 10 10 23 4 8 8 21 3 6 6 19 2 4 4 § 17 1 2 2 15 0 0 0 Q1 Q1 Q4 Q1 Q1 Q4 Q1 Q1 Q4 Q1 Q1 Q4 2008 2007 2007 2008 2007 2007 2008 2007 2007 2008 2007 2007 10
  • 11. TV Prima Czech Republic Net sales up 21% to SEK 223 (184) mn Successful implementation of price increases in annual up front negotiations with advertisers Positive SOV trends in target 15-54 audience group Continued investments in programming schedule + promotion of repositioned channel brand - focus on younger target audience Exclusive coverage of UEFA EURO 2008 Football Championships in Q2 Operating profits up 30% to SEK 38 (29) mn Increased operating margin of 17% (16%) 11
  • 12. Free-to-air TV Baltics (Rolling 12 Months) The Leading Digital Broadcaster 600 300 550 250 500 Net sales up 18% to SEK 131 (111) mn (SEK million) 200 450 Pan-Baltic CSOV (15-49) of 39.9% 400 150 TV6 Latvia launched in Q2 07 & already achieved 2.4% CSOV 350 100 Operating profits up 31% to SEK 23 (18) mn 300 50 Increased operating margin of 18% (16%) 250 200 0 Q1 2006 Q1 2007 Q1 2008 Sales EBIT 12
  • 13. DTV Russia (Rolling 12 Months) Sold for USD 395 million to CTC Media • Net sales up 53% to SEK 95 (61) mn 350 60 • Operating profits up >3x to SEK 17 (6) mn & increased operating margin of 18% 300 50 (10%) 40 250 • Completion of sale of DTV to CTC Media (SEK Million) 30 200 on 16 April for a cash consideration of 20 USD 395 mn on a cash and debt free basis 150 • MTG to receive USD 190 mn of cash 10 at closing & balance (+interest) no 100 later than 100 days thereafter 0 • 60.5% of ~ SEK 1.9 billion net gain to 50 -10 be reported in Q2 results (as one-off above EBIT line) with remaining 0 -20 39.5% proportionally reducing book Q1 2006 Q1 2007 Q1 2008 value of CTC Media stake on Group’s balance sheet Sales EBIT 13
  • 14. Pay-TV East Continued Subscriber Intake 200 Baltic Premium DTH Mini-pay 30 180 Subscribers (thousands) Subscriptions (millions) 160 25 140 20 120 100 15 80 60 10 40 5 20 0 0 Q 005 Q 005 Q 005 Q 005 Q 006 Q 006 Q 006 Q 006 Q 007 Q 007 Q 007 Q 007 08 2 5 Q 005 4 5 1 5 2 6 Q 006 4 6 1 6 2 7 3 7 Q 007 1 7 08 Q 00 Q 00 Q 00 Q 00 Q 00 Q 00 Q 00 Q 00 Q 00 20 20 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 2 3 4 1 2 3 4 1 2 3 4 1 1 3 3 4 Q Q Addition of 11,000 premium subscribers in Baltics – base almost doubled year on year to 175,000 subscribers Addition of 1.2 million wholesale mini-Pay subscriptions - total number of subscriptions up 32% year on year to 27.6 million 14
  • 15. Pay-TV East (Rolling 12 Months) Sales Doubled (SEK million) (SEK million) 600 50 45 500 Net sales almost doubled year on year to 40 SEK 160 (83) mn 35 400 30 Balkan Media Group doubled CSOV year on year to 10.2% & reported breakeven 300 25 result 20 Viasat Ukraine satellite platform launched 200 15 on 21 April with offering of up to 60 10 channels – SEK 4 mn of pre-launch costs 100 in quarter 5 Stable operating profit of SEK 9 (10) mn 0 0 despite investments in new businesses Q1 2006 Q1 2007 Q1 2008 Sales EBIT 15
  • 16. Radio (Rolling 12 Months) Price Increases & Market Share Gains (SEK million) (excl. associated companies) 200 50% 180 160 40% Net sales up 25% year on year to SEK 140 187 mn in Q1 120 30% Market share gains in growing markets 100 in both Sweden and Norway & channel 80 20% bundling in Norway 60 Operating profits increased fivefold to 40 10% SEK 30 (6) mn & operating margin of 16% (4%) 20 0 0% Q1 2006 Q1 2007 Q1 2008 Sales EBIT Margin 16
  • 17. Online Organic Growth + Market Consolidation Net sales up 29% to SEK 417 mn & > doubling of operating profits to SEK 28 mn, with increased operating margin of 7% (4%) - all when excluding TV-Shop sales in 2007 MTG Internet Retailing sales up 36% to SEK 291 mn & operating profits up 37% to SEK 24 mn with stable operating margin of 8% (8%) Introduction of online book sales and digital book and games sales in Norway BET24 sales up 23% to SEK 105 mn & gross profits up 30%, with operating profit of SEK 10 (0) Completion of SEK 197 mn acquisition of Gymgrossisten Nordic AB on 29 February - Nelly.com, Linus-Lotta.com and Bookplus.fi acquired in last year 17
  • 18. Operating Results By Business Area (SEK million) Q1 2008 Q1 2007 Change (%) FY 2007 Net Sales Viasat Broadcasting 2,402 2,003 20 8,842 Radio 187 150 25 715 Other 499 533 -6 2.037 Parent & other companies 42 23 - 107 Eliminations -88 -81 - -350 Total Net Sales 3,042 2,629 16 11,351 Operating income (EBIT) Viasat Broadcasting 596 481 24 2,027 Radio 30 6 375 134 Other 23 16 44 61 Parent & other companies -53 -35 - -195 Total EBIT 596 468 27 2,027 18
  • 19. Summary Income Statement (SEK million) Q1 2008 Q1 2007 FY 2007 Net Sales 3,042 2,629 11,351 Operating Income (EBIT) 596 468 2,027 Net interest and other financial items -13 -2 -12 Income before tax 583 467 2,015 Tax -186 -151 -588 Net income for the period 397 316 1,428 Basic average number of shares outstanding 66,213,260 67,046,151 66,945,776 Basic earnings per share (SEK) 5.85 4.55 20.35 19
  • 20. Cash Flow (SEK million) Q1 2008 Q1 2007 FY 2007 Cash flow from operations 311 279 1,363 Changes in working capital -268 -339 -433 Net Cash Flow from Operations 43 -60 930 Proceeds from sales of shares of subsidiaries - - 70 Investments in shares in subsidiaries & associates -210 -178 -219 Investments in other non-current assets -30 -72 -327 Other cash flow from investing activities 1 -10 - Cash flow from/to investing activities -239 -261 -475 Cash flow from/to financing activities 77 115 -594 Net change in cash and cash equivalents for the period -119 -206 -139 Change in working capital reflected reduction in accounts payable + increased investments in programming rights in Scandinavia and Eastern Europe SEK 210 mn investment in shares primarily comprised acquisition of Gymgrossisten Nordic AB Repurchase of 798,000 class B shares at an average price of SEK 396 per share, for a total cash consideration of SEK 316 mn 20
  • 21. Balance Sheet (SEK million) 31 Mar 2008 31 Mar 2007 31 Mar2007 Non-current assets 6,062 5,349 5,756 Current assets 5,115 4,450 5,203 Total assets 11,177 9,799 10,958 Shareholders' equity 5,944 5,492 5,875 Long-term liabilities 425 343 430 Current liabilities 4,808 3,965 4,654 Total equity & liabilities 11,177 9,799 10,958 35% ROCE and 27% ROE for trailing twelve months Equity to assets ratio of 53% (56%) Net debt position of SEK 435 mn SEK 3.3 billion of available liquid funds Expected SEK 1 billion dividend as well as USD 395 mn consideration for DTV sale SEK 8 billion surplus of CTC Media stake market to book value 21
  • 22. 5 Year Strategic Objectives “On Track” MTG to report Group Net Sales of SEK 20 billion in 2011 (including selected acquisitions) with >10% organic annual sales growth Sales of SEK 11.8 billion for 12 month period ended 31 March 2008 - 13% sales growth Current Viasat Broadcasting C&E Europe operations to generate net sales of SEK 5 billion in 2011 Net sales of SEK 2.5 billion for 12 month period ended 31 March 2008 – up 30% year on year >20% operating (EBIT) margin for Viasat Broadcasting (excl. CTC Media) by end of 2011 Operating (EBIT) margin of 18 % for 12 month period ended 31 March 2008 Current Viasat Broadcasting C&E Europe operations (incl. CTC Media) to generate higher operating profit (EBIT) than rest of Viasat Broadcasting by 2011 C&E Europe = 43% of Viasat Broadcasting EBIT (incl. CTC Media) for 12 month period ended 31 March 2008 MTG to report 30% Return on Equity for 2007-2011 5 year period 27% Return on Equity for 12 month period ended 31 March 2008 22
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