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Publigroupe Half Year 2011 Results

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Half year 2011 results of PubliGroupe

Half year 2011 results of PubliGroupe

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  • 1. FINANCIAL RESULTS HY1 2011PubliGroupe shows net profit 2011 of CHF 14.9 million – 14 9operating result (EBIT) improved – higher online revenue1
  • 2. Overview presentation order Agenda item g Presenter 1 Overview of 2011 figures & main developments Hans-Peter Rohner: & overview segment res lts o er ie results CEO & Chairman of the Board 2 Key financials group Andreas Schmidt: Chief Financial Officer 3 Conclusion & outlook 2011 Hans-Peter Rohner: CEO & Chairman of the Board2
  • 3. 1 OVERVIEW HY1 2011 FIGURES More efficient organisation offsets drop in topline; solid Search & Find; strong DMS and Zanox Hans-Peter Rohner CEO & Chairman of the Board3
  • 4. 1 2HY1 2011 group results 3Net result up 8% on a like-for-like basis like for like Net result lower as first half of 2010 was strongly Sales and gross margin, in millions of CHF influenced by non-recurring one-off elements; operating HY1 2010 HY1 2011 result (EBIT) improved 23%. 23% 1,000 1 000 -11% On a like-for-like basis, HY1 2011 net result up 8% to 800 714.1 CHF 7.6 million (HY1 2010: CHF 7 million), operating 637.5 result up 17% to CHF 7.9 million (HY1 2010: CHF 6.8 600 million), owing again to a significantly lower cost base ), g g g y -7% % of CHF 9.8 million. 400 Sales lower due to currency effects and smaller 200 153.4 142.2 volumes in the traditional business areas, especially 0 print and TV, online growth continues. Sales Gross margin Mixed picture for segments: – Media Sales: negative EBIT mainly due to complete EBIT and net profit, in millions of CHF amortisation of goodwill of TV (CHF 5.1 million) HY1 2010 HY1 2011 – Search & Find’s solid EBIT affected by investments y 40 in home.ch, marketing, structural adjustments -44% 30 26.6 – Strong DMS with EBIT of CHF 4 million, mainly due +23% to strong performance of Zanox and Namics 20 14.9 13.8 Despite current economic woes and difficulty of 11.3 forecasting the macro economic development, PG 10 expects improvement of last year’s operative result (EBIT) for the full year 2011. 0 EBIT Net profit 4
  • 5. 1 2HY1 2011 business segment summary 3EBIT up 23%, helped by one-time profits with Corporate 23% one time EBIT lower mostly because of complete TV EBIT, in millions of CHF amortisation of goodwill EBITDA in line with previous year, even slightly p y , g y Media Sales s higher reaching CHF 0.4 million HY1 2010 HY1 2011 Publicitas branch network Switzerland with positive 15 results for the first half year International: business suffers under currency impact and some shifts in budgets from the 1st to the p g 9.4 10 8.8 88 2nd semester Comparable expenses down 14% 7.2 5 4.0 EBIT lower owing to significant investments 2.6 3.0Search & Traditionally profiting from a much stronger second Find half in terms of sales, full-year profits should be at least in the order of last year’s results 0 EBIT b tt b better because of strong operational f t ti l -5 -3.7 DMS performance at Zanox and Namics, the two most important assets -6.2 EBITDA of Zanox +18% to reach EUR 13.2 million -10 Media Search S Digital & Corporate CCorporate Continued divestment of non-strategic assets in & others China (Emphasis Video Entertainment, City Media, Sales & Find Marketing & others Huashang Media Group) lead to one-time profits at Services corporate level 5
  • 6. 1 2HY1 2011 online performance 3Strong online growth – driven by Zanox and Namics Online revenue consolidated in PubliGroupe Online sales, in millions of CHF numbers: +13% to CHF 73 million; +17% at constant exchange rates. Associated companies Publigroupe 400 (Zanox and local.ch) Online revenue incl. participations: +8% to 340 CHF 340 million; +20% at constant exchange 314 rates. rates 300 Total revenue from online (incl. participations) 227 represents 38% of total business generated 267 200 by PubliGroupe and associated companies companies. 249 PubliGroupe expands its position as a key 177 player in the online market in Switzerland 100 (through Namics and Instanz) and with Zanox 64 73 (in partnership with Axel Springer) in Western 50 0 Europe and increasingly worldwide. HY1 2009 HY1 2010 HY1 2011 Total revenue Total revenue Total revenue HY1 2009 : HY1 2010 : HY1 2011 : CHF 951 m CHF 942 m CHF 884 m (online 24%) (online 33%) (online 38%) 6
  • 7. 1 2Media Sales 3Volume mainly down due to non-continued TV activities and currency effects non continued Sales decrease by 12% to CHF 517.2 million Sales, in millions of CHF versus CHF 588.1 million in the previous year. HY1 2010 HY1 2011 800 Major reason for the lower business volume was -12% 588.1 the result of the termination of the TV 600 517.2 commercialisation agreements which represented 400 almost CHF 30 million. Print activities in Switzerland drop of 6%, 200 international volume down by 11%, only because of 0 currency effects (at constant exchange rates Sales international business with +2%) +2%). The CHF 5.1 million one-time complete impairment Gross margin and EBIT, in millions of CHF of goodwill in the TV business plus other related HY1 2010 HY1 2011 -14% costs resulted in a negative segment EBIT of CHF - 6.2 million. 100 94.4 94 4 80.8 80 EBITDA positive with CHF 0.4 million (first half of 60 2010: CHF 0.0 million) 40 Comparable expenses for the segment dropped 20 14% from CHF 93 million in 2010 to CHF 80.4 0 -20 -3.7 -6.2 million year-to-date 2011, down from CHF 145.4 Gross margin EBIT million in 2007. 7
  • 8. 1 2Media Sales 3Good operational performance by Publicitas branch network Activities in Switzerland confirm their profitable Media Sales Switzerland*, in millions of CHF turnaround, especially thanks to a good HY1 2010 HY1 2011 800 performance of the traditional Publicitas branch -6% network in the regional/local markets, despite 600 overall decline of business in Switzerland of 6%. 435.9 408.4 400 The volume of the international business, business representing less than 20% of total Media Sales 200 business, drops 11%, mainly due to negative 0 currency impacts of a lower USD and euro. Sales * Does not include Electronic Media The termination of the TV commercialisation agreements with the ProSiebenSat1 and 3+ groups Analysis Media Sales TV business 2011/2010, in millions of CHF decreased sales by almost CHF 30 million and 29.3 HY1 2010 HY1 2011 gross margin by CHF 4.4 million. Total EBIT decline 30 due to termination of CHF 5.5 million. PubliGroupe had previously decided not to enter 10 4.4 guarantee-based television agreements in favour of 0.3 0.0 0.4 a performance-oriented profitability approach across all media categories. -10 -5.5 Sales Gross margin EBIT 8
  • 9. 1 2Search & Find 3Investing in the future Good volume development, despite lower sales in Sales, in millions of CHF traditional print business that saw a decline of HY1 2010 HY1 2011 80 -11%, largely offset by good growth in online search +9% services (+11%). 60 50.4 46.3 EBIT down mainly because of investments being 40 undertaken in the online platform home ch higher home.ch, marketing efforts during the first semester and 20 continued one-off costs associated with structural 0 adjustments and the development of new online Sales services. services Margins will increaslingly profit from a reduction of Gross margin and EBIT, in millions of CHF direct costs, such as from the optimisation of paper HY1 2010 HY1 2011 +2% purchasing and production of print products with 40 fewer suppliers 31.6 32.1 30 Traditionally profiting from a much stronger second 20 -23% half in terms of sales, S&F full-year profits should 9.4 10 7.2 72 be at least in the order of last year’s results. 0 Gross margin EBIT 9
  • 10. 1 2Consolidation P+S 3(local.ch,(local ch Swisscom Directories home ch LTV) Directories, home.ch, In millions HY1 HY1 % Unique audience HY1 2011, in millions of CHF 2011 2010 3.5 3.0 Print 42.1 47.6 -11%Revenue 2.5 Online 29.4 26.4 11% 2.0 1.5 Other 26.3 24.5 7% 10 1.0 0.5 Total revenue 97.8 98.5 -1% 0.0 Google Google Maps search.ch Gelbe Seiten GA 24 ocal.ch Help.ch Swissguide.ch tories uewin cal.ch QYPE nbuch rch.ch rch.chProfitability ATE S Loc Blu Direct Telefon G map.lo tel.sear map.sear EBITDA growth th +1% 1% EBIT growth +2% 11% revenue growth on broad screen, confirms Online broad screen (local.ch + home.ch), leading position of local.ch in Switzerland, ahead in millions of CHF of search.ch, just after Google Maps based on 40 26.4 +11% 29.4 unique audience 30 20 Leadership position on mobile 10 Home.ch already #3 in real estate market 0 HY1 2010 HY1 2011 10
  • 11. 1 2Local.ch 3Successfully strengthened leading position on mobile More than 1 million downloads of local app on all mobile platforms 1.2 12 > 1 million (iOS,Android,Blackberry, downloads Monthly use iPhone, in millions W7,Nokia) 1.0 ownloads, in millions 0.8 08 m 24% usage growth of th f 24% usage local.ch app on iPhone Cumulative downloads growth since January 2011 0.6 on all platforms 0.4 04 App do n Uncontested #1 i U t t d in Mobile search & find 0.2 0.0 00 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Occasional use (>1 day per month) Frequent use (5 days per month) Active use (>10 days per month) Source: Official platform Stores (iOS,Android,Blackberry,W7,Nokia) Source: Usage rating by Apple 11
  • 12. 1 2Digital & Marketing Services 3Strong operational performance The Zanox group continues its strong performance DMS Sales, in millions of CHF as Europes #1 Performance Advertising Network. 75.0 70.3 -10% 10% SVB 62.9 62 9 The acquisition of M4N (NL) and geographical Digital expansion (e.g. Poland, Turkey) accelerate growth. 50.0 EUR 208m sales in HY 1 (+ 22% vs. PY). 51.2 40.2 25.0 25 0 DMS sales declined by -10% (-2% without currency 19.1 22.8 impact) as reduction of traditional media budgets of 0.0 SVB’s clients continues. Very good revenue HY1 2010 HY1 2011 development at Namics (+11% vs. PY). Note: Zanox Group not included; includes FX impact of -8% p ; p Gross profit +6% was supported by expansion at DMS gross margin and EBIT, in millions of CHF Namics and improved margins. +6% 30 HY1 2010 Reported EBIT grew +53% (+74% w/o FX) driven by 23.8 25 2 25.2 HY1 2011 Zanox & Namics performance as well as a one time 20 temporary effects (CHF 2.1m). +58% 10 DMS further expands its footprint in "online 2.6 4.0 performance marketing”, a fast growing area with 0 higher margins than traditional online segments. Gross Profit EBIT 12
  • 13. 1 2Digital & Marketing Services 3Zanox grows top and bottom line Zanox Sales & EBITDA, in millions of EUR Zanox with strong top and bottom line since creation of joint-venture: revenue growth of 29% +22% 22% +18% CAGR; EBITDA growth of 20% CAGR. 250 15 13.2 207.8 11.2 200 169.8 Growth as a result of both positive organic 10 150 development and acquisitions. 100 5 50 Zanox with leading market position in 0 0 Performance Advertising Network segment. HY1 2010 HY1 2011 HY1 2010 HY1 2011 Sales EBITDA Geographic expansion (organic and through acquisitions) playing an important role in the Zanox Group growth strategy. Geographic Positioning Geographic footprint further g p p 8 of 10 regions are showing double-digit strengthened New no. 1 player in Benelux revenue growth for 2011 after M4N acquisition Offices in Turkey and Poland operational - CH in p continued build-up phase Expansion to Brazil in progress together with key client 13
  • 14. 2 KEY FINANCIALS GROUP Well capitalised, solid cash flow Andreas Schmidt Chief Financial Officer14
  • 15. 1 2P&L Group 3Expense reduction compensates for gross margin decline HY1 2010 in millions of CHF Change % HY1 2011 Restated Revenue - 11% 637.5 714.1 Gross margin - 7% 142.2 153.4 Expenses - 11% -131.1 -146.6 EBITDA + 64% 11.1 6.8 EBIT + 23% 13.8 11.3 Financial result - 98% 0.4 16.4 Taxes - - 13 -1.3 Non-controlling interests + 185% 0.7 0.2 Net result - 44% 14.9 26.6 15
  • 16. 1 2Extraordinary items HY1 2011 3Again important gains from divestments in illi i millions of CHF f Net Result 2011 - nominal 14.9 Divestment 13.5 Impairments -6.6 Others 0.5 05 Total non recurring elements 7.3 Net result 2011 - comparable 7.6 16
  • 17. 1 2Net result - cause of change 3Performance improved thanks to reduced expenses and associates NET RESULT 2010 26.6 One Time Events 2010 19.6 COMPARABLE 2010 7.0 Gross margin 11 2 -11.2 Expenses 9.8 Depreciation 1.0 Associated A i t d 1.6 16 Financial result -1.3 Taxes 0.3 Minority interests 0.5 COMPARABLE 2011 7.6 One Time Events 2011 7.3 NET RESULT 2011 14.9 in millions of CHF -10 -5 0 5 10 15 20 25 30 17
  • 18. 1 2Cash flow statement 3Seasonal working capital needs affect operational cash flow 1st half year 1st half year 2011 2010 in millions of CHF restated Cash and cash equivalents as of 1 January 102.6 58.0 Cash flows from operating activities -23 5 23.5 -23 5 23.5 Cash flows from investing activities 16.7 88.5 Cash flows from financing activities -15 7 15.7 -44 8 44.8 Effect of exchange rates -2.6 -0.3 Cash and cash equivalents as of 30 June 77.5 77.9 18
  • 19. 1 2Group balance sheet 3Solid balance sheet and still solid net liquidity in millions of CHF Change as of 30 June 2011 as of 31 December 2010 Currents assets -7% 386.0 416.7 Non-current assets -6% 416.3 444.2 Total assets -7% 802.3 860.9 Current liabilities -9% 272.3 297.9 Non-current Non current liabilities -14% 14% 102.1 102 1 118.8 118 8 Equity, shareholders of PubliGroupe Ltd. -2% 401.1 410.8 Non-controlling interests -20% 26.8 33.4 Total liabilities and equity -7% 802.3 860.9 Equity in % of assets 50% 48% Net short-term group liquidity 79 118 Bank debt 93 93 19
  • 20. 3 CONCLUSION Conclusion & outlook 2011 Hans-Peter Rohner CEO & Chairman of the Board20
  • 21. 1 2Conclusion & outlook 3Operationally largely improved, solidly financed, well positioned improved financed Results of the first six months of 2011 confirm that PubliGroupe continues to witness an anticipated shrinking of its top line in the traditional business that is managed through a leaner, more effective organisation. The double-digit growth of the operational result on a like-for-like basis shows ability to double digit like for like adapt to changing economic conditions. This management culture will continue. PubliGroupe continues to see the benefits of its successful investments in its online business, which has become even more important. Despite the current economic woes and the difficulty of forecasting the macro economic development and it i d l t d its impact on th advertising spending, PG f t the d ti i di foresees th t it will i that ill improve last year’s operative result (EBIT) for the full year 2011. The level of improvement will depend on the further economic development. 21
  • 22. Backup Slides22
  • 23. Comparable expenses by segment Backup 1st half 1st half year in millions of CHF Change year 2011 2010 restated Search & Find 6% 30.7 28.8 Media Sales -14% 80.4 93.0 Custom Publishing - 0.0 5.1 Digital & Marketing Services 4% 25.1 24.1 Corporate & Oth C t Others 54% 11.3 11 3 7.3 73 Eliminations -21% -4.3 -5.4 Comparable expenses -6% 143.2 152.9 Non recurring elements 92% 12.1 6.3 Total expenses -11% 131.1 146.6 CHF 9.8 millions or 6% overall expenses reduction on comparable basis23
  • 24. Consolidated income statement Backup 1st half year in millions of CHF Change 1st half year 2011 2010 restated Revenue -11% 637.5 637 5 714.1 714 1 Purchases -11% -469.0 -526.2 Sales reductions -24% -26.3 -34.5 Gross margin -7% 142.2 153.4 Personnel expenses -9% -110.9 -110 9 -121.3 -121 3 General and administrative expenses -5% -35.9 -37.8 Other income and expenses 26% 15.7 12.5 EBITDA 64% 11.1 6.8 Depreciation and amortisation -10% 10% -8.5 85 -9.4 94 Impairment loss -6.6 -1.8 Share in result of associates 13% 17.8 15.7 Operating result (EBIT) 23% 13.8 11.3 Financial result -98% 98% 0.4 04 16.4 16 4 Result before income tax -49% 14.2 27.7 Income tax expense 0.0 -1.3 Result -46% 14.2 26.4 Result attributable to: - Non-controlling interests 185% -0.7 -0.2 - Shareholders of PubliGroupe Ltd -44% 14.9 26.624
  • 25. Consolidated balance sheet BackupAssets as of 30 June as of 31 December in illi i millions of CHF f Change Ch 2011 2010 Cash and cash equivalents -24% 77.5 102.6 Marketable and available-for-sale securities 2% 15.7 15.3 Receivables, accruals and taxes receivables -5% 283.8 298.8 Assets held for sale - 9.0 0.0 Current assets -7% 386.0 416.7 Land and buildings -13% 65.9 75.6 Other tangible and intangible assets g g -11% 65.0 72.9 Investments in associates 1% 234.0 232.7 Actifs financiers et impôts différés -18% 51.4 63.0 Non-current assets -6% 416.3 444.2 Total assets -7% 802.3 860.925
  • 26. Consolidated balance sheet BackupLiabilities as of 30 June as of 31 December in millions of CHF Change 2011 2010 Current debts - 13.9 0.0 Payables, accruals and taxes payables -13% 252.4 289.7 Long and short term provisions, deferred taxes -13% 26.5 30.4 Non-current debts -16% 81.6 96.6 Total liabilities -10% 10% 374.4 416.7 Share capital - 2.5 2.5 Treasury shares -6% -49.6 -52.6 Reserves R -3% 3% 448.2 448 2 460.9 460 9 Equity, shareholders of PubliGroupe Ltd -2% 401.1 410.8 Non-controlling interests -20% 26.8 33.4 Total equity -4% 427.9 444.2 Total liabilities and equity -7% 802.3 860.926
  • 27. Cash flow from operating activities Backup 1st half 1st half year in millions of CHF year 2011 2010 restated Result 14.2 26.4 Adjustments for non-cash items -15.4 -26.4 Dividends paid to non-controlling interests by Group companies -6.0 -8.9 Dividends received 9.9 9.0 Interest received 0.7 0.5 Interest paid -1.7 -1.8 Taxes paid -2.2 -6.5 Use of provisions -2.3 -3.0 Working capital changes -20.7 -12.8 Cash flows from operating activities -23.5 -23.527
  • 28. Cash flow from financing activities Backup 1st half 1st half year in millions of CHF year 2011 2010 restated Acquisitions of tangible assets -1.6 -1.2 Disposals of tangible assets 0.3 12.6 Acquisitions of intangible assets -6.2 -8.1 Disposals of marketable securities 0.0 0.4 Acquisitions of subsidiaries, net of cash acquired -1.7 -5.3 Disposals of subsidiaries, net of cash disposed of 11.7 0.0 Disposals of associates 0.4 21.7 Investments in financial assets -1.0 10 -6.9 69 Divestments of financial assets 14.8 75.3 Cash flows from investing activities 16.7 88.528
  • 29. Cash flow from investing activities Backup 1st half 1st half year in millions of CHF year 2011 2010 restated Increase /(decrease) in bank debts 0.9 -45.0 Capital contribution from non-controlling interests 0.0 0.1 Purchase of treasury shares -1.1 0.0 Sale of treasury shares 1.1 0.2 Acquisition of non-controlling interests -2.6 -0.2 Increase in additional paid-in capital 0.1 0.1 Dividend paid to shareholders of PubliGroupe Ltd -14.1 -14 1 0.0 00 Cash flows from financing activities -15.7 -44.829
  • 30. Digital & Marketing Services BackupEBIT Pro Forma The EBIT Pro Forma gives a comparable view of the DMS EBIT, in millions of CHF high operational EBIT contribution of DMS Pro Forma 10 Reported companies (PG share). EBIT Pro Forma is derived by eliminating 8 7.5 - depreciation of intangible assets (PPA) & -14% 6.4 - PGs share of interest and taxes in the net 6 result of the Zanox group 4.9 2.4 4 EBIT Pro Forma is 1.6x EBIT reported +58% 2 4.0 EBIT Pro Forma fell by 14% (-3% w/o FX) partially 2.6 due to increased investments resp. depreciation at Zanox 0 HY1 2010 HY1 201130