Q Interim results

Transcription

1 Q3 28 Interim results Guillaume de Posch, Chief Executive Officer Patrick Tillieux, Chief Operating Officer Axel Salzmann, Chief Financial Officer Munich, November 6, 28 1

2 ProSiebenSat.1 Group: Interim results at a glance Q3 28 affected by ongoing difficulties in German Free TV business German ad sales model continues to have a significant impact - After a satisfying start into Q3, trading situation deteriorated in September - Economic conditions in Germany have worsened by the end of the quarter Revenues in the international Free TV business showed a solid growth 2

3 ProSiebenSat.1 Group: Interim results at a glance Group revenues EUR 646.5m -3.3% -EUR 21.9m Recurring EBITDA EUR 13.1m -17.4% -EUR 21.7m Revenues German-speaking Free TV EUR 344.2m Revenues International Free TV EUR 174.4m -9.% -EUR 34.1m +1.9% +EUR 17.1m > Weak revenue performance in the German Free TV market was partly offset by higher revenues in the international Free TV business. Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 3

4 German Free TV business: Q3 audience shares significantly up In spite of the Olympics the German stations audience shares increase significantly from 29.1 percent to 29.7 percent September share of 31.1 percent among the key demographic is stations best monthly performance since April 25 Audience shares in Germany In percent 35 Q3 28: Olympic effect adjusted Q3 28 Q ProSiebenSat.1 Group Sat.1 ProSieben kabel eins N Basis: All German TV households (Germany + EU), Mo.-Sun., 3:-3:h, viewers years. Source: AGF/GfK Fernsehforschung / pc#tv aktuell / SevenOne Media Marketing & Research. 4

5 International Free TV business: stable portfolio performance in Q3 Sustained high performance in Netherlands Stable Scandinavian performances with strong performance of Denmark Weaker shares in Hungary and Romania due to increased fragmentation of the market Audience shares in International In percent Q3 28 Q Netherlands Belgium (Flanders) Sweden Norway Denmark Hungary Romania Basis: Basis: All All German local national TV households households (Germany as used in + EU), local Mo.-Sun., comparisons, 3:-3:h, 2-49y or 15-44y viewers or15-5y years. or18-49y, Mo.-Sun., 2:-2:h Source: SKO/GfK Intomart; CIM/GfK Audimetrie; MMS/AGB Nielsen; TNS-Gallup; AGB Nielsen; ARMA/TNS-AGB International; Advantedge Note: Sweden excludes VoiceTV Sweden 5

6 Financials Q3 28 and Q1 Q3 28 6

7 Decrease in Group revenues and recurring EBITDA in Q The decline resulted from ongoing difficulties in the German TV advertising market Q3 Consolidated Revenues Q3 Recurring EBITDA % % Q3 27 Q3 28 Q3 27 Q3 28 Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 7

8 Q Total costs Non-recurring expenses totaled EUR 14.4 m, compared to EUR m in Q3 27 Total costs Total recurring costs % % Q3 27 Q3 28 Q3 27 Q3 28 Consolidation of SBS since July 27. 8

9 Q EBITDA reconciliation In Euro m Q3 28 Q3 27 Pre-tax profit Financial loss Operating result Depreciation and amortization thereof: PPA EBITDA Non-recurring items Recurring EBITDA Non-recurring items in 28: Non-recurring costs in Q3 28 resulted mainly from portfolio changes (EUR 4.9m) and write-offs resulting from the termination of the Lehman Brothers interest rate swaps (EUR 4.1m) Proceeds from the sale of BTI in August 28 added EUR 3.8m to non-recurring items Non-recurring items in 27: One-off charge of EUR 12. m in Q3 27 resulting from a settlement with Germany s Federal Cartel Office 9

10 Q3 - German-speaking Free TV segment Advertising revenues down in Germany: Ad sales model continues to have a significant impact Lower costs due to optimized programming expenses External Revenues 5 Recurring EBITDA -9.% -3.1% Q3 27 Q3 28 Q3 27 Q3 28 Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 1

11 Q3 - International Free TV segment International Free TV business with revenue increase Sale of BTI closed in August External Revenues Recurring EBITDA % % Q3 27 Q3 28 Q3 27 Q3 28 Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 11

12 Q3 - Diversification segment Decrease in revenues due to lower Call TV revenues of 9Live in Germany Revenues up in the international radio and pay TV business, online business in Germany strengthened Higher costs due to expanded radio and online operations as well as start-up costs for 9Live International External Revenues Recurring EBITDA % % Q3 27 Q3 28 Q3 27 Q3 28 Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 12

13 Debt facilities - Financing leaves sufficient headroom for further operative and strategic expansion Debt facilities SBS transaction was financed via a long-term senior secured credit facility in July 27: EUR 3.6bn of term loans with bullet repayment structure in 214/ ,8 Term Loan B 1,8 Term Loan C EUR 6m revolving credit facility Attractive initial margin of 1.75/1.875 percent p.a. for Term Loan B and C respectively Around 8 percent of term loans are hedged into fixed interest rates with interest rate swaps RCF* 31 Mortgage July 214 July 215 July /221 Amortizing mortgage loan for Sat.1 premises in Berlin (EUR 31m) Net debt as of September 3, 28 was EUR 3.817bn** LTM recurring EBITDA is EUR 692m Leverage (Net debt/ltm recurring EBITDA) as per September 3, 28 is 5.5x Legal consolidation of SBS since July 27. *Revolving Credit Facility. ** Includes EUR 29.m of cash attributable to C More. 13

14 Legal consolidation for the nine-month period Increase in revenues and earnings due to first-time consolidation of SBS in July 27 Q1-Q3 Consolidated Revenues % 2,177.4 Q1-Q3 Recurring EBITDA % 2 1, Q1-Q3 27 Q1-Q3 28 Q1-Q3 27 Q1-Q3 28 Consolidation of SBS since July 27. Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 14

15 Pro forma combined basis for the nine-month period - Revenues and earnings decrease due to shortfall in German TV ad sales Q1-Q3 Consolidated Revenues (pro forma combined) , % 2,177.4 Q1-Q3 Recurring EBITDA (pro forma combined) % Q1-Q3 27 Q1-Q3 28 Q1-Q3 27 Q1-Q3 28 Q1-Q3 27 pro forma combined (including SBS). Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 15

16 Outlook 16

17 Outlook for European TV advertising markets in 28 - Low visibility based on macro economic uncertainties TV Ad spendings (net) Change 8 vs 7 in percent, at current prices 5 4 ZenithOptimedia WARC Germany Austria CH NL Belgium Sweden Norway Denmark Finland Hungary Romania Bulgaria Greece Source: World Advertising Research Center (9/8) / ZenithOptimedia (1/8), figures extensively harmonized on a net base, but still several methodical differences between countries and sources. 17

18 Outlook Difficulties with German ad sales will continue to affect the performance in Q4 > Our task is to capitalize on our good audience share in Germany and to increase in the TV advertising market Economic conditions deteriorate across Europe > Although single markets with high growth rates still exist, on the basis of current market data, we expect an overall deterioration for the fourth quarter 28 > 29 will be another year of major challenges 18

19 Outlook Focus on core business and must haves Divestments are a part of our strategy of optimizing our portfolio by selectively expanding high-profit operations and concentrating on core competences: Sale of C More is about to reach completion in Q4 28 Proactive cost management necessary Our 29 budget will be adapted to the challenging environment Further potential to improve efficiency within the Group must be analyzed 19

20 Financial Appendix 2

21 ProSiebenSat.1 Group: key figures legal consolidation Q3 28 EUR m Q3 27 EUR m Q1-Q3 28 EUR m Q1-Q3 27 EUR m Revenues , ,721.2 Total costs , ,569.6 of which depreciation and amortization thereof purchase price allocation* Recurring EBITDA** EBITDA Financial result Pre-tax profit Underlying net income*** /3/28 EUR m 9/3/27 EUR m 12/31/27 EUR m Net financial debt**** 3,817 3,541 3,328 LTM recurring EBITDA (pro forma) Leverage***** 5.5x 4.7x 4.2x Consolidation of SBS since July 27. * Thereof SBS purchase price allocation EUR 13. m in Q3 28 (Q3: 27: EUR 38.4 m) / EUR 46.1 m in Q1-Q3 28 (Q1-Q3: 27: EUR 38.4 m). ** Recurring EBITDA: EBITDA before non-recurring (exceptional) items. *** Underlying net income: Consolidated net profit before effects of purchase price allocation and in 27 fine from the FCO (EUR 12.m). **** Includes EUR 29.m of cash attributable to C More. ***** Net debt/ltm recurring EBITDA. 21

22 ProSiebenSat.1 Group: key figures Q1-Q3 27 pro forma combined Q3 28 EUR m Q3 27 EUR m Q1-Q3 28 EUR m Q1-Q3 27 EUR m Revenues , ,248. Total costs , ,31.5 of which depreciation and amortization thereof purchase price allocation Recurring EBITDA* EBITDA Financial result Pre-tax profit Consolidated net profit (after minorities) Q1-Q3 27 pro forma combined (including SBS). * Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 22

23 Q3 27 key figures of segments Free TV German-speaking Free TV International Total Free TV Diversification Q3 28 Q3 27 Percent Q3 28 Q3 27 Percent Q3 28 Q3 27 Percent Q3 28 Q3 27 Percent Revenues External revenues Recurring EBITDA* EBITDA , Q1-Q3 27 pro forma combined (including SBS). * Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 23

24 Key figures of segments: Q1-Q3 27 legal consolidation Free TV German-speaking Free TV International Total Free TV Diversification 9M 28 9M 27 Percent 9M 28 9M 27 Percent 9M 28 9M 27 Percent 9M 28 9M 27 Percent Revenues 1,252. 1, , , External revenues 1, , , , Recurring EBITDA* EBITDA Consolidation of SBS since July 27. * Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 24

25 Key figures of segments: Q1-Q3 27 pro forma combined Free TV German-speaking Free TV International Total Free TV Diversification 9M 28 9M 27 Percent 9M 28 9M 27 Percent 9M 28 9M 27 Percent 9M 28 9M 27 Percent Revenues 1,252. 1, ,819,5 1, External revenues 1, , , , Recurring EBITDA* EBITDA Q1-Q3 27 pro forma combined (including SBS). * Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 25

26 Disclaimer This presentation contains forward looking statements regarding ProSiebenSat.1 Media AG ( ProSieben-Sat.1 ) or ProSiebenSat.1 Group, including opinions, estimates and projections regarding ProSiebenSat.1 s or ProSiebenSat.1 Group s financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of ProSiebenSat.1 or ProSiebenSat.1 Group to be materially different from future results, performance or achievements expressed or implied by such forward looking statements. These forward looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, express or implied, is made by ProSiebenSat.1 with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning ProSiebenSat.1 or ProSiebenSat.1 Group. ProSiebenSat.1 undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise. 26

27 ProSiebenSat.1 Media AG Corporate Office Medienallee 7 D Unterföhring Tel. +49/89/