Q114 corporate presentation final

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Q114 corporate presentation final

  1. 1. 11 MODERN TIMES GROUP SHAPING THE FUTURE OF ENTERTAINMENT APRIL 2014
  2. 2. 2 A UNIQUE PLATFORM A SUCCESSFUL TRACK RECORD (10Y) INTEGRATED & DIVERSIFIED TV EVERYWHERE & FOR EVERYONE DECENTRALIZED THE STORY 11% SALES CAGR 15% EBIT CAGR 27% ROCE (AVE.) 11% TSR CAGR A BRIGHT FUTURE RISING VIDEO CONSUMPTION CONTENT RICH DIGITAL DELIVERY & ENGAGEMENT
  3. 3. 3 First to market full service SVOD OTT operator & leading AVOD player + wide range of new products & services Multi-platform & country content acquisition & monetization strategy Leading content creator, producer & distributor DIGITALCONTENT Focus on roll-out of new products to existing markets + expansion in CEE & Africa GEO EXPANSION LONG TERM VALUE CREATION BASED ON CLEAR GROWTH STRATEGY
  4. 4. 879,470 481,800 394,200 297,840 236,520 210,240 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 MTG RTL Bonnier Mediaset CME Pro7 4 CONTENT REMAINS KING WE ARE THE BIGGEST BUYER IN TOWN Source: MTG Research TOTAL NUMBER OF BROADCAST HOURS (2013)
  5. 5. 5 LONG TERM PARTNERSHIPS WITH RELEVANT CONTENT PROVIDERS
  6. 6. OUR IN-HOUSE STUDIOS BUSINESS HAS QUADRUPLED IN SIZE 6 TOP 10 CONTENT DISTRIBUTORS (RATED BY UK INDEPENDENT TV PRODUCERS) HIGHEST RATED MOST USED Source: Televisual Distributor Poll, September 2013 1 BBC WW 2 ITV Global 3 Zodiak Rights 3 DRG 3 Shine 6 Fremantle Enterprises 6 DCD Media 6 Endemol WW 10 Passion Distribution 6 All3Media 1 BBC WW 2 DRG 4 ITV Global 3 Zodiak Rights 5 Fremantle Enterprises 6 Endemol WW 8 Passion Distribution 7 Electric Sky 9 Sky Vision 9 All3Media + TOP 5 TV PRODUCERS IN THE NORDICS (BY SALES 2012) #1 IN THE NORDICS WITH AN EXPANDING EMERGING MARKETS FOOTPRINT AND GLOBAL DISTRIBUTION CAPABILITY
  7. 7. 7 SOURCE: Nielsen Cross Platform reports Q3 ‘09 297296 TRADITIONAL TV LIVE TV TIME SHIFTED TV Q3 ‘08 ONLINE/MOBILE VIDEO ONLINE VIDEO MOBILE VIDEO Q3 ‘13 314 Q3 ‘12 314 Q3 ‘11 307 Q3 ‘10 306 +17% CAGR ONLINE/MOBILE VIDEO 0.4% CAGR TRADITIONAL VIDEO CONSUMPTION IS GROWING VIDEO USAGE IN THE USA – AVERAGE MINUTES PER DAY PER USER (2+)
  8. 8. 88 VIAPLAY OPENS UP A NEW WORLD AS OTT ENABLES UNIVERSAL REACH
  9. 9. 99 ViaPlay Premium VOD Film,series,sports,kids content Free VOD TV Channels Ad Financed Services Viasatsport.se Free sport clips on web & mobile Free Music Streaming Ad Financed Service You Tube Splay investment, MCNs eSports Broadcasted globally Klipster Coupon deal app Vertical video content sites style, family, food DEVELOPING FAST WITH A WIDE RANGE OF DIGITAL PRODUCTS
  10. 10. PREMIUM TV (Subscription based Video) VIAPLAY - Sport, Series ,Movies and Kids content FREE TV (Advertising financed) Play.se, play.no etc. VENTURES (Digital development) Music, eSports Commerce 10 MTGX - THE GROUP PLATFORM TO ACCELERATE DIGITAL GROWTH
  11. 11. 1111 SEGMENTAL HIGHLIGHTS AND Q1 PERFORMANCE
  12. 12.  Sales up 13% at constant FX & 5% on an organic basis  Organic growth in FTV Scandi and PTV Nordic accelerated by Olympics coverage in Sweden  Double digit organic growth in PTV EM & content production businesses  FTV EM – double digit growth in Baltics, Bulgaria and Ghana not fully offsetting lower sales in Czech Rep.  Merger of Viaplay and MTGx to create leading digital entertainment powerhouse  Y-o-Y profit growth in PTV Nordic for the first time in 2 years. Overall profitability impacted by seasonality, Olympics, channel launches and digital investments  Retain our FY14 expectation for higher operating margin in PTV Nordic but not currently reiterating expectation for higher profits in PTV EM given the significant currency changes seen in the region Q1 2014 – HIGHLIGHTS 12
  13. 13. 13 GROUP PERFORMANCE INVESTMENTS DRIVING GROWTH SALES GROWTH (Y-O-Y) EBIT (SEK MN) AND EBIT MARGIN (%) -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% Q22012 Q32012 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014 Sales growth at constant fx Organic sales growth 0 5 10 15 20 25 30 0 100 200 300 400 500 600 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 EBIT excl associated income & one-off items EBIT margin
  14. 14. 14 FREE-TV SCANDINAVIA AN OLYMPIC QUARTER SALES (Y-O-Y) AT CONSTANT FX EBIT (SEK MN) AND EBIT MARGIN (%) OLYMPICS BOOSTED SALES GROWTH BUT ADVERSELY IMPACTED THE PROFITABILITY -10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% Q42011 Q12012 Q22012 Q32012 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014 127 92 12.8% 8.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0 50 100 150 Q1 2013 Q1 2014 EBIT EBIT margin
  15. 15. 15 FREE-TV SCANDINAVIA CSOV GAINS IN SWEDEN AND DENMARK CSOV (15-49) – Q1 2014 VS Q1 2013 60% CSOV DURING THE OLYMPICS – ALL-TIME HIGH FOR SWEDEN. DENMARK HAD ITS HIGHEST Q1 CSOV SINCE 2000 CSOV (15-49) – Q1 2006 TO Q1 2014 32.4 17.3 25.4 39.1 15.3 25.6 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 Sweden Norway Denmark Q1 2013 Q1 2014 10 15 20 25 30 35 40 45 Q12006 Q12007 Q12008 Q12009 Q12010 Q12011 Q12012 Q12013 Q12014 Sweden Denmark Norway
  16. 16. 16 FREE-TV EMERGING MARKETS CONTINUED INVESTMENTS SALES GROWTH (Y-O-Y) AT CONSTANT FX EBIT (SEK MN) AND EBIT MARGIN (%) CZECH SALES DOWN PRIMARILY DRIVEN BY EXCEPTIONAL COMPS. DOUBLE DIGIT GROWTH IN MOST OTHER MARKETS -5% 0% 5% 10% 15% 20% 25% 30% 35% Q42011 Q12012 Q22012 Q32012 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014 2014 2013 Jan-Mar Jan-Mar Sales (SEKm) 504 512 Growth (at constant FX) -2% 25% EBIT (SEKm) -25 26 EBIT margin - 5.0%
  17. 17. 17 FREE-TV EMERGING MARKETS HUGE CYCLICAL RECOVERY POTENTIAL CSOV (15-49) – (%) TV AD MARKETS IN MTG TERRITORIES CSOV FOR THE BALTICS REACHED A NEW ALL-TIME HIGH FOR Q1 46.8 34.0 37.5 48.8 33.8 33.3 0 10 20 30 40 50 60 Baltics Bulgaria Czech Rep. Q1 2013 Q1 2014 SEK 8.6 bn SEK 5.8 bn 0 1 2 3 4 5 6 7 8 9 10 2008 2013e
  18. 18. 18 PAY-TV NORDIC ACCELERATED ORGANIC GROWTH 7% SALES GROWTH (Y-O-Y) AT CONSTANT FX EBIT (SEK MN) AND EBIT MARGIN (%) PROFITS UP FOR THE FIRST TIME IN 2 YEARS. CONTINUE TO EXPECT HIGHER EBIT MARGIN FOR FY14 11.1% 11.0% 0% 5% 10% 15% 20% 0 50 100 150 200 Q1 2013 Q1 2014 EBIT EBIT margin 0% 2% 4% 6% 8% 10% 12% Q42011 Q12012 Q22012 Q32012 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014
  19. 19. 19 PAY-TV NORDIC OVERALL SUB BASE CONTINUES TO GROW PREMIUM SUBSCRIBER DEVELOPMENT (‘000) ARPU FOR PREMIUM DTH (SEK) - ANNUALIZED RECORD SUBSCRIBER INTAKE AT VIAPLAY. DTH ARPU UP 3% IN CONSTANT FX 0 200 400 600 800 1,000 1,200 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014 Satellite subscribers 3'rd party network subscribers 4,000 4,200 4,400 4,600 4,800 5,000 5,200 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
  20. 20. 20 PAY-TV EMERGING MARKETS CONTINUED GOOD PERFORMANCE 10% SALES GROWTH (Y-O-Y) AT CONSTANT FX EBIT (SEK MN) AND EBIT MARGIN (%) NOT REITERATING EXPECTATION FOR HIGHER PROFITABILITY IN FY14 AT THIS STAGE PRIMARILY DUE TO FX 0% 5% 10% 15% 20% 25% Q42011 Q12012 Q22012 Q32012 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014 8.2% 0% 5% 10% -10 0 10 20 30 Q1 2013 Q1 2014 EBIT EBIT margin
  21. 21. 21 PAY-TV EMERGING MARKETS ALMOST 100MN MINI-PAY SUBSCRIPTIONS MINI-PAY SUBSCRIPTIONS (MN) INVESTING INTO THE HD MARKET IN THE CIS = 395 RUB ($13) ADDED ALMOST 10 MN MINI-PAY SUBSCRIPTIONS Y-O-Y AND ALMOST 3 MN Q-O-Q 0 100 200 300 400 500 600 700 0 10 20 30 40 50 60 70 80 90 100 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1 2014 Mini-Pay subscriptions (million) DTH ('000)
  22. 22. Organic + acquisition led growth  Consolidation of Nice, DRG and Novemberfilm in H2 2013  6% organic sales growth driven by double-digit growth within content production  Sales for the combined radio businesses were down Profitability pressured by seasonality and investments  Continued investments in MTGx  Profits also impacted by the seasonality of the content production businesses which have become much bigger following acquisitions MTGx continues to develop according to plan  A new AVOD platform rolled out during the quarter in seven markets  Launched a new dedicated Olympics website, new mobile app, re- launch of the Viasatsport.se site etc. 22 NICE, MTGX, RADIO CONTENT PRODUCTION DRIVES GROWTH 13% of Group sales 2014 2013 Jan-Mar Jan-Mar Sales (SEKm) 483 242 Growth (at constant FX) 105% -41% Growth (organic) 6% -19% EBIT (SEKm) -64 -17 EBIT margin - -
  23. 23. 2323 PRODUCTION HOUSE  Hungary  Bulgaria  Slovenia  Romania  Serbia  Czech Rep.  Costa Rica  Latvia  Estonia  Lithuania  Sweden  Norway  Denmark  Holland PRODUCING >3,500H OF CONTENT SOLD TO >80 COUNTRIES STUDIOS NOW A SCALE PLAYER
  24. 24.  Sales up 13% at constant FX & 5% on an organic basis  Organic growth in FTV Scandi and PTV Nordic accelerated by Olympics coverage in Sweden  Double digit organic growth in PTV EM & content production businesses  FTV EM – double digit growth in Baltics, Bulgaria and Ghana not fully offsetting lower sales in Czech Rep.  Merger of Viaplay and MTGx to create leading digital entertainment powerhouse  Y-o-Y profit growth in PTV Nordic for the first time in 2 years. Overall profitability impacted by seasonality, Olympics, channel launches and digital investments  Retain our FY14 expectation for higher operating margin in PTV Nordic but not currently reiterating expectation for higher profits in PTV EM given the significant currency changes seen in the region Q1 2014 – HIGHLIGHTS 24
  25. 25. 2525 MTG INVESTOR RELATIONS FOR FURTHER INFORMATION, PLEASE VISIT WWW.MTG.SE OR CONTACT: TEL: +46 (0) 73 699 2714 EMAIL: INVESTOR.RELATIONS@MTG.SE

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