2017 RESULTS. 27 February 2018

Transcription

1 2017 RESULTS 27 February Resultados

2 CONTENTS 1. OVERVIEW OF PERFORMANCE IN APPENDICES 2

3 DECOUPLI NG OF A DVERTISING MARKET FROM MACRO YoY variation in advertising market (traditional historical series) Data in % 14.0% 12.3% 5.0%5.0% 5.8% 2.9% 0.5% -1.1% -2.5% -8.1% -7.1% -10.1% -14.8% -18.0% -21.2% -6.7% 10.7% 0.6% Offline press adv. Internet adv. Total advertising market 1 Nominal GDP 2-2.9% -1.4% 1.2% 4.1% 3.6% 4.0% Nominal consumption 2-1.3% -2.1% 1.7% 2.9% 2.9% 4.3% Source: i2p and INE. Note 1: Internet data for 2017 is online press, total market excl. social media. Note 2: 9M17 accumulated data for

4 SOCIAL MEDIA I MPACT SUPPORTS A DVERTISING MARKET YoY variation in advertising market (new series with social media) Data in % 22.2% 19.6% 17.9% 15.2% 8.6% 5.7% 7.1% 6.6% 4.3% 1.4% 4.1% 2.0% -0.6% -8.0% -8.5% -6.9% -18.6% -17.6% Traditional adv. Digital adv. Total advertising market Nominal GDP 1-2.9% -1.4% 1.2% 4.1% 3.6% 4.0% Nominal consumption 1-1.3% -2.1% 1.7% 2.9% 2.9% 4.3% Source: i2p and INE. Note 1: 9M17 accumulated data for

5 CORRECT DECI SIONS ON DEBT I MPACT EBI TDA Performance of main financials at VOCENTO m Decisions to reduce debt which impacted EBITDA Total impact on NFD Total impact on EBITDA Sarenet 12.8m 2.7 ABC building 35.0m 2.0m Note 1: not including personnel adjustment measures and one-offs. Comparable EBITDA 1 NFD Advertising 5

6 PROTECTION OF MARGIN DESPITE FA LL I N CI RCULA TION Development of margin on circulation m Variation Revenues from sales of circulation Var. add-ons circulation margin Combined margin on circulation Variation in circulation margin at ABC and regional Circulation revenues, ABC and regional Launch of ABC Gold Card Note 1: Including circulation margin and variation in circulation add-ons. 6

7 I NCREASE I N EBI TDA THA NKS TO COSTS REDUCTI ON Comparable EBITDA VOCENTO Variation 2017 vs 2011 except comparable EBITDA ( m) VOC brands improve comparable EBITDA by +4.4m Comp. EBITDA Advertising 2 Combined circulation 3 margin Add-ons margin 4 Printing plants margin EBITDA Personnel Perimeter Audiovisual 1 costs effect Sarenet/ABC Others 5 Comp. EBITDA Note 1: not including personnel adjustment measures or one-offs. Note 2: excluding Audiovisual and Qué!. Note 3: including circulation add-ons. Note 4: only including sales add-ons. Note 5: variation of other revenues and costs. 7

8 CONTENTS 1. OVERVIEW OF PERFORMANCE IN APPENDICES 8

9 MAIN A CHIEVEMENTS I N 2017 REVENUES In a flat advertising market ( % 1 ), VOCENTO brands have improved their share of the press market Advertising revenues maintained: VOCENTO %. In 4Q17, growth was +3.8% Divergence between national and local advertising markets: local advertising revenues % PROFITABILITY Margin on circulation maintained (2016/17-0.3m, including savings on circulation add-ons Comparable EBITDA 2017: 49.7m, down -2.6m (-4.9%). Impact of lease at ABC ( -2.0m). Pro forma 2 change in comparable EBITDA 4Q m Consolidated net income 2017: -4.8m impacted by non-cash impairments to tax credits of 14.1m Agreement with third parties to achieve efficiencies: content transaction with Izen, printing deal with Prisa (2018) CASH GENERATION The net financial position was -56.2m (improving by +10.3m in the year). NFD/comparable EBITDA1.1x Ordinary cash generation: 21.6m, more than offsetting compensation payments and other extraordinaries REVENUE DIVERSIFICATION MEASURES Diversification strategy accelerated: Madridfusión, Shows on Demand and Factor Moka Note 1: i2p excluding social media. Note 2: excluding effect of deconsolidation of Veralia Contenidos. 9

10 A DVERTISING: I NCREASE I N MARKET SHA RE VOC increases offline market share in 2017 YoY variation % 8.9% 10.7% 6.2% 1 0.6% 0.1% -1.4% -6.7% -2.2% Total market ex social media Total Press market Offline press Internet market ex social media Online Press market Market VOCENTO Market source: i2p. Note 1: Local portals, ABC.es and Classifieds. 10

11 I NCREA S E D WE I G H T A ND O UTP E FORMA NCE O F LOCA L A D VERTI S I NG National advertising vs local 1 National advertising 1 : Print vs Digital 50.5% 52.9% 168.2m 167.2m 52.3% 54.0% 47.7% 46.0% National Local Total Var % % 2.6% -0.6% 49.5% 47.1% Offline Online Local advertising 1 : Print vs Digital 13.2% 15.3% % 84.7% Total national Total local Note 1: Gross advertising data. Not including audiovisual or others Offline Online 11

12 REGI ONAL: PROFITABILITY MAINTAINED Comparable EBITDA at Regional Variation 2016 vs 2017 except comparable EBITDA m and comparable EBITDA margin % EBITDA margin % 14.6% Advertising 2 Combined Personnel Commercial circulation costs 1 costs and others 3 margin Note 1: excluding adjustment measures and one-offs -4.2m and m. Note 2: print and digital. Note 3: including commercial costs, LDK launch costs, printing plant margins and other fixed costs. 12

13 A BC: I MPACT OF NEW LEA SE ON EBI TDA Comparable EBITDA at ABC Variation 2016 vs 2017 except comparable EBITDA m and comparable EBITDA margin % Printing agreement with Prisa in 2018 EBITDA margin 1 7.9% 5.9% Advertising 2 Combined Personnel Lease of circulation costs and others 3 building margin Note 1: excluding personnel adjustment measures and one-offs m and m. Note 2: print and digital. Note 3: others include personnel expenses, printing plant margins, commercial expenses and other fixed costs. 13

14 OPTIMIZED STRA TEGIES FOR MARKETING I NVESTMENT ABC Gold Card: Intelligent Marketing (customized mass marketing) Aims To identify the client a the point of sale To support recurrent sales and mitigate organic falls in circulation To make a return on investments in marketing promotions Main results 75% of loyal customers identified 30,000 ABC cards activated 12,000 active cards on average per week (92% Heavy Users) Incremental impact on circulation (4,000 daily copies) Enhanced marketing To be extended to VOCENTO regional newspapers in

15 ELEMENTS OF THE DIGITAL STRA TEGY Advertising revenues Payment models Transactional businesses Digital advertising and e- commerce revenues 32% of the total More than 14,000 subscribers to ON+ Revenues c. 3m 15

16 DIVERSIFICATION A ND NEW BUSI NESSES Gastronomy: two leading national and international food-and-drink trade fairs 1. Madridfusión: 2. Gastronomika San Sebastián: The 2018 event outperformed last year Around 2,000 participants +20% vs international speakers (55 Michelin stars) 13,000 professional visitors Potential for internationalisation in Asia and LatAm 1,500 participants 215 speakers from 45 countries (more than 70 Michelin stars) 13,000 professional visitors Other businesses 1. Third party editorial content production 2. Organization of events via crowdfunding 3. Musical events 16

17 CONTI NUED FOCUS ON COSTS Comparable EBITDA at VOCENTO Variation 2016 vs 2017 except comparable EBITDA ( m) Press online+offline : -2.7m New businesses: 0.8m Corporate -0.7m v v v Comp. EBITDA Circulation revenues Savings In circulation 2 Advertising Commercial costs and others 3 ABC Lease Savings in personnel expenses Printing and distrib. Audiov. Classifieds Diversifac 4 Corporate Comp. EBITDA Note 1: excluding personnel adjustment measures and one-offs m and m. Note 2 : including savings in circulation promotions. Note 3: including LDK expenses, higher costs for events, etc. Note 4: Gastronomía and Factor Moka. 17

18 CONSOLI DATED P&L IFRS Data in m Var% Operating revenues % Comparable operating expenses % Comparable EBITDA % Compensation and one-offs % EBITDA % EBIT Sale of ABC -59.8% Financial result and others Building 29.1% Pre-tax result % Corporation tax Adjustment % to tax RD Law Profit before minority interest n.a credits 3/ m Attributable net income % (non-cash) Note 1: excluding personnel adjustment measures and one-offs m and m. 18

19 REDUCTI ON OF DEBT + CA SH GENERA TION Net financial debt at VOCENTO m Ordinary cash generation 21.6m NFD/comparable EBITDA 1.3x NFD/comparable EBITDA 1.1x NFD 2016 Comp. EBITDA Working capital Capex Financals Comp. NFD. and other Compens. payments. Veralia Madrid Fusión Others 3 NFD 2017 Note 1: excluding personnel adjustment measures and one-offs m. Note 2: includes anticipated income, net financial expenses, dividends to minority interest, taxes. Note 3: including payment related to Las Provincias and taxes on sale of ABC building. 19

20 CONTENTS 1. OVERVIEW OF PERFORMANCE IN APPENDICES 20

21 DEVELOPMENT OF DIGITAL A DVERTISING REVENUES Digital advertising revenues 1 as % of total % 21.9% 24.9% 27.6% 31.0% 32.1% 13.2% 17.1% Note 1: including revenues from e-commerce. 21

22 I NCREASED WEI GHT OF LOCA L A DVERTISING National advertising vs. local 1 National advertising 1 : Print vs Digital 159.5m 167.2m 52.1% 54.0% CAGR National 0.2% Local 2.1% Total 1.2% 31.4% 52.9% 68.6% 47.1% Offline Online Local advertising 1 : Print vs Digital 11.0% 15.3% 47.9% 46.0% 89.0% 84.7% Total national Total local Note 1: Gross advertising data Note 2: Compound Annual Growth Rate Offline Online 22

23 REGI ONAL PROFITABILITY STA BLE Comparable EBITDA 1 at Regional Press m Regional brands Local printing plants Rest Total Regional Note 1: not including personnel adjustment measures and one-offs. 23

24 RECOVERY OF PROFITABILITY A T A BC Comparable EBITDA 1 at ABC m Comparable EBITDA excl. lease ABC 2016/17-0.2m ABC brand ABC printing plant Total ABC Note 1: not including personnel adjustment measures and one-offs. 24

25 A BC CONSOLI DATES #2 POSI TION I N MADRID ABC share of ordinary circulation in Comunidad de Madrid % 36.8% 36.4% 36.4% 27.3% 26.6% 25.6% 35.1% 27.3% Mobile online readership 1 for ABC.es up in 2017 (+36.7%) a higher increase than competitors 21.9% 23.3% 23.4% 22.7% +5.4 p.p. market share since % 13.7% 14.6% 14.9% Source: OJD data not certified. Note 1: source comscore average for

26 A UDI OVISUAL: STABLE PROFITABILITY Performance of comparable EBITDA at Audiovisual Variation 2016 vs 2017 except comparable EBITDA ( m) DTT Radio Content 2017 Note 1: excluding adjustment measures and one-offs m. 26

27 GROWTH A T CLA SSIFIEDS Performance of advertising Development of comparable EBITDA Advertising revenues ( m) and variation (%) m +3.3% +11.5% Note 1: excluding personnel adjustment measures m. 27

28 FI NANCIAL A PPENDIX 28 Resultados Results

29 CONSOLI DATED BA LA NCE SHEET IFRS (Data in m) Non-current assets Current assets Assets held for sale TOTAL ASSETS SHAREHOLDER EQUITY Financial debt Other non-current liabilities Other current liabilities TOTAL LIABILITIES + SHAREHOLDER EQUITY Net financial debt

30 VA RIATION I N NET FI NANCIAL DEBT 2017 IFRS Data in m Comparable EBITDA Variation in working capital Capex Other items Cash flow from recurring activities Interest payments received Dividends and interest paid Total ordinary cash flow Payment for adjustment measures Sum of non-recurring items with impact on cash flow Change in Net Financial Debt Net Financial Debt Note 1: including tax paid on capital gains, withholding of interest payment, minority interest and others. Note 2: dividend payments to subsidiaries with minority interest and interest payments. Note 3: includes among others the sale of ABC real estate, the second stage of the acquisition of 34% of Rotomadrid and the exercise of the put option at Las Provincias. 30

31 REVENUES BY BUSI NESS Newspapers Audiovisual Classifieds m m m Total Total Total 48.6 Total 44.5 Total 17.8 Total Regional ABC Supp & Mags. Elimin. DTT Radio Content Elimin. Classifieds 31

32 COMPARABLE EBI TDA 1 BY BUSI NESS Newspapers Audiovisual Classifieds m m m Total 47.0 Total 44.4 Total 12.7 Total 13.5 Total 2.1 Total Regional ABC Supp. & Mag. DTT Radio Content Classifieds Note 1: excluding personnel adjustment measures Newspapers m and m and Classifieds m and m. 32

33 A LTERNATIVE PERFORMANCE MEASURES ( A PMs) The definitions and calculation of Alternative Performance Measures (APM) have not changed since the publication of the results for 9M17 The annual results report includes, as well as the definitions and calculation methods for the APMs, the new calculations made for FY17 33

34 DISCLAIMER Las declaraciones contenidas en este documento, incluyendo aquellas referentes a cualquier posible realización o estimación futura de Vocento S.A. o su grupo, son declaraciones prospectivas y en este sentido implican riesgos e incertidumbres. Asimismo, los resultados y desarrollos reales pueden diferir materialmente de los expresados o implícitos en las declaraciones anteriores, dependiendo de una variedad de factores, y en ningún caso suponen ni una indicación del rendimiento futuro ni una promesa o garantía de rentabilidad futura. Adicionalmente, ciertas cifras incluidas en este documento se han redondeado. Por lo tanto, en los gráficos y tablas se pueden producir discrepancias entre los totales y las sumas de las cifras consideradas individualmente u otra información disponible, debido a este redondeo. El contenido de este documento no es, ni debe ser considerado, un documento de oferta o una oferta o solicitud de suscripción, compra o venta de acciones, y no se dirige a personas o entidades que sean ciudadanas, residentes en, constituidas en o ubicadas en, cualquier jurisdicción en la que su disponibilidad o uso constituyan una infracción de la legislación o normativa local, requisitos de registro y licencia. Del mismo modo, tampoco está dirigido ni destinado a su distribución o utilización en país alguno en el que se refiera a valores no registrados. Por todo lo anterior, no se asume responsabilidad alguna, en ningún caso, por las pérdidas, daños, sanciones o cualquier otro perjuicio que pudiera derivarse, directa o indirectamente, del uso de las declaraciones e informaciones incluidas en el documento. 34 Resultados Results

35 Relación con Inversores y Accionistas C/ Pintor Losada, Bilbao (Bizkaia) Tel.: ir@vocento.com 35 Resultados