ENIRO Q3 REPORT Johan Lindgren, CEO Mattias Lundqvist, CFO Cecilia Lannebo, Head of IR

Transcription

1 ENIRO Q3 REPORT Johan Lindgren, CEO Mattias Lundqvist, CFO Cecilia Lannebo, Head of IR

2 CEO INTRODUCTION & SUMMARY A digital media company with 74 percent of revenues being digital the transformation is done long-tail Print and Voice Continue to streamline and concentrate operations Continued strong EBITDA and free cash flow generation loan repayments ahead of timetable head-room to bank covenants solid platform for future growth Online & Media is growing, but at a lower pace than expected full-year top-line guidance for 2012 revised Reiterated guidance for: EBITDA De-leverage 2

3 DEVELOPMENT NET DEBT/EBITDA SEK M X 3

4 TOP-LINE CHALLENGE AND ACTIONS TAKEN Lower revenues due to weaker development within larger customer accounts and Media Products Actions during autumn: Launch of new mobile products and extended mobile packages Ramp up in sales force Extended service element within Online/mobile and Media products Further third-party co-operations planned for Other factors contributing during remaining's of 2012: Acquisition of Open AdExchange to strengthen Media products Move of print publications to impact revenues favorably during the remaining's of 2012 Voice price increases in Sweden on sms and calls 4

5 FINANCIAL HIGHLIGHTS, Q Revenues SEK 948 M (1,012), a decline of 6% (-11). Negative currency effects accounts for some 30 MSEK, or 3 percent. Moved publication effect is positive with some SEK 15 M. Organically revenues declined by 8 percent (-8). Online/mobile revenues increased by 4%, organically revenues increased 1% Digital media share, rolling 12M, is 74 percent excl Voice (65) Cost reductions SEK 41 M i.e. SEK 213 M in savings 9M. Full year target increased to SEK 250 M EBITDA SEK 261 M (269), EBITDA margin of 27,5% (26,6) Adjusted EBITDA SEK 273 M (271) Operating cash flow is improving by SEK 78 M to SEK 25 M (-53) Interest bearing net debt SEK 2,863 M (3,849), (Q2 2,887) Net debt/ebitda 2.9 (3.4) (Q2 2.9) 5

6 FINANCIAL HIGHLIGHTS, 9M 2012 Revenues SEK 2,908 M (3,129), a decline of 7% (-19). Organically revenues declined by 8 percent (-10) Online/mobile total revenues increased by 6%, 1% organically Cost reductions SEK 213 M exceeding the earlier communicated full year target of SEK 200 M. Full year target increased to SEK 250 M EBITDA SEK 668 M (710), EBITDA margin of 23,0% (22,7) Adjusted EBITDA SEK 693 M (738) Operating cash flow is improving with SEK 215 M to SEK 138 M (-77) 6

7 LAUNCH OF NEW APP, MAPS, ONLINE FEATURES Launch of new mobile apps with extended mobile features Local search done directly from the location on the map Facebook check-in integration High speed map resolution and responsive design More than 1 million downloads since launch in September No:1 in all countries in the Appstore category Navigation; high overall listing in all countries New online interface with improved user benefits 7

8 TRAFFIC DEVELOPMENT Weekly user sessions, monthly average YELLOW USAGE eniro.se YELLOW USAGE gulesider.no Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YELLOW USAGE krak.dk Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ONLINE YELLOW USAGE panormafirm.pl

9 PROS AND CONS IN THE Q3 REPORT Pros EBITDA supports full year guidance Cost saving ahead of plan, new cost saving guidance No further goodwill write-downs Net debt lowered Conditions in bank agreements fulfilled Cons Top-line development and guidance Prepaid development 9

10 ORGANIC DEVELOPMENT 15% 10% 5% 0% -5% -10% -15% -20% Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Total organic Reported revenues Online organic Reported revenues seasonally impacted from moved publication shifts 10

11 PREPAID REVENUES; BALANCE SHEET

12 REVENUE BRIDGE Q , , % % Reported revenues 2011 Divested business Currency Moved effects publications Organic baseline Online Print Media Other Voice Adj. Revenues Acq. Reported -6% Revenue effect from divested operations, currency and moved publications, totaled SEK -8 M Revenues decreased by 8% organically Digital revenues 74% of total Eniro excl Voice, 12M rolling 12

13 COST SAVINGS Operating cost 2011 YTD Divested Currency effect Organic baseline 2011 Net Savings Q1 Net Savings Q2 Net Savings Q3 Adj Operating cost 2012 YTD Acquired Operating cost 2012 YTD 3 rd party cost Cost Including De Gule Sider Total savings SEK 213 M in 9M 2012, of which SEK 67 M in Q1 and SEK 105 M in Q2 and SEK 41 M in Q3 Of which Staff SEK 97 M, Print and Paper SEK 32 M and Outsourced services SEK 12 M Some SEK 1,1bn in cost savings during the last three years 13

14 Comments on financials Amortizations Depreciable intangible assets that arose in connection with the acquisition of Findexa 2005 will be fully amortized by December Lowering amortizations 2013 by some SEK 280 M Taxes Eniro's tax payments are primarily in the first half. Paid tax will thus be low in the second half of 2012 A completion of the proposed corporate tax cut would result in a onetime increase of tax costs in Q4 with approx. SEK 30 M, (no impact on cash flow) Working capital The assessment is that working capital will be slightly negative for the full year

15 CHANGE IN NET DEBT months months months * * 2011/12 * 2011* SEK M Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec Opening balance Operating cash flow Acquisitions and divestments Share issue Translation difference and other changes Closing balance Net debt /EBITDA adjusted for other item s affecting com parability, tim es 2,9 3,4 2,9 3,4 2,9 3,4 Operating cash flow in Q3 improved by SEK 78 M Operating cash flow 9M improved by SEK 215 M Net debt/ebitda 2.9 (3.4) Q

16 Loan repayments Re-payments during 2012 (approx. SEK 1.2bn): Extra re-payment of SEK 158 M in Q1 SEK 150 M re-paid in June 2012 SEK 192 M in re-paid interest swaps August 2012 Earlier debt re-payment to one bank in consortium SEK 362 M, and SEK 154 M in discount on loan SEK 150 M due in December 2012 Re-payments during 2013 (approx. SEK 436 M): SEK 218 M due in June 2013 SEK 218 M due in December 2013 Re-payments during 2014 (approx. SEK 268 M): SEK 268 M due in June 2014 Maturity of loan facility November

17 REVENUE OUTLOOK FOR 2012 & The objective of reporting revenue growth in 2012 will not be realized. However, the pace at which revenues are declining is expected to become slower during the fourth quarter In 2013, Eniro will further streamline the business. Revenues from digital media, which currently account for about two-thirds of sales, are expected to increase. Revenues from Print and Voice, which represent the remaining one-third of the business, will continue to decline as a result of changing user patterns. Eniro will maximize cash flow from these media. Continued cost savings and a more efficient organizational structure are expected to yield a strong cash flow, which will be used to further reduce debt. 17

18 OUTLOOK FOR 2012 EBITDA EBITDA for 2012 in line with 2011 Cost reductions Net cost reductions 1 of SEK 250 M in 2012 Dividend and capital structure Priority will be given to the reduction of net debt 1) The planned cost savings do not include effects from divestments and acquisition of operations, or the higher third-party costs that arose as a result of the strategic shift in the revenue mix to higher revenues from third-party partnerships. 18

19 APPENDIX

20 ONLINE/MOBILE Total revenues increases 4 percent (SEK approx. 25 M contribution from De Gule Sider) Organic development +1 percent 20

21 PRINT Total revenues decreased -24 percent Change in publication shift of print books impacts positively with SEK 15 M compared with last year Organic development -30 percent 21

22 MEDIA PRODUCTS Total revenues increased by 16 percent. Organic revenues increased by 18% A continued ramp up in growth is expected 22

23 VOICE Total revenues decreased 19 percent. Organic revenues decreased 17 percent Q3 EBITDA SEK 73 M (102), an EBITDA margin of 39,0 percent (44,3) Co-operation agreement with to administer their volumes 23

24 Revenue overview Revenues by category * * 2011/12 * 2011* SEK M Jul-Sep Jul-Sep % Jan-Sep Jan-Sep % Oct-Sep Jan-Dec Total revenues Directories Online/mobile Print Media products Other products Voice Revenues by country * * 2011/12 * 2011* SEK M Jul-Sep Jul-Sep % Jan-Mar Jan-Sep % Oct-Sep Jan-Dec Total revenues Sweden Norway Denmark Finland Poland

25 EBITDA overview EBITDA by revenue area * * 2011/12 * 2011* SEK M Jul-Sep Jul-Sep % Jan-Sep Jan-Sep % Oct-Sep Jan-Dec Total EBITDA Directories Voice Other Items affecting comparability Restructuring costs Other items affecting comparability Total adjusted EBITDA * Restated comparison year in accordance with new accounting principle regarding pensions 25

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