Review of 1Q12 Results 16 May 2012

Transcription

1 Review of Results 16 May 2012

2 Notice This presentation does not constitute an offer or invitation to purchase or subscription for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The information contained in this document has not been independently verified. No representation or warranty express or implied is made as to and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the information or opinions contained herein. Neither the company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (for negligence or otherwise) with respect to any loss howsoever arising from any use by third parties of this presentation or its contents or otherwise arising in connection with it. Turkish ad market figures are estimates of DYH; based on currently available data. Ad market statistics may show inconsistency with IFRS figures. 2

3 Financial Results: Summary Consolidated revenues increased by 4.6%, to TL 199mnin. Revenues from domestic operations increased by 7.0%, although newspaper ad market shrink by 1%. Revenues from TME operations decreased by 1.7%, mainly due to decline in print ad revenues and circulation revenues. Online revenue growth was 34%, bringing the share of online in total ad revenues to 14.9% asof(11.6% in). Consolidated EBITDA decreased to TL 19 mn in,comparedtotl21mnin. Consolidated EBITDA margin amounted to 9.7% in, compared to 10.9% in. TL 150 mn of net profit has been realized in, comparedtoanetlossoftl26mnin.ofthis amount, TL 143 mn stems from building sale. Due to appreciation of TL compared to year-end, TL 38 mnoffxgainhasbeenrealizedin. Revenues (TL mn) +4.6% Q07 1Q08 1Q09 1Q10 EBITDA (TL mn) % Q07 1Q08 1Q09 1Q10 3

4 Consolidated IFRS Results mn TL 2011 YoY% Ch. Total revenues % Ad revenues (print) % Ad revenues (online) % Circulation revenues % Printing revenues % Other revenues % Cost of sales % Operating expenses % Marketing, sales and distribution % General administrative % Operating profit Other operating expenses (net) Income/loss from investments Financial expense (net) Monetary gain/loss (net) Profit before tax Tax Net profit before minority Minority Interest Net profit Depreciation % Amortised cost valuation income % Adj.EBITDA % EBITDA Margin 11.5% 9.7% 10.9% (1) Excludes amortized cost valuation income, which is part of ad revenues classified under interest income according to IFRS regulations. (2) Effects of inflation accounting in TME's Belarus operations 4

5 IFRS Results: Hürriyet excluding TME mn TL 2011 YoY% Ch. Total revenues % Ad revenues (print) % Ad revenues (online) % Circulation revenues % Printing revenues % Other revenues % Cost of sales % Operating expenses % Marketing, sales and distribution % General administrative % Operating profit % Other operating expenses (net) Depreciation % Amortised cost valuation income % Adj.EBITDA % EBITDA Margin 13.7% 11.3% 14.0% (1) Excludes amortized cost valuation income, which is part of ad revenues classified under interest income according to IFRS regulations. 5

6 Ad Market in Turkey* Total Ad Market (TL mn) +3.8% 986 1,024 TV Advertising (TL mn) Newspaper Advertising (TL mn) % % 206 * Ad market statistics are estimates compiled by DYH ad platform. Newspaper ad market size is estimated based on 26 national newspapers. 6

7 Print & Online Advertising Revenues Print Ad Revenue (TL mn) Online Revenue (TL mn) +1% % % % +41% +25% TME continued to grow aggresively in online revenues, with the pace led by marketing campaigns in 4Q11. Domestic online revenues showed a remarkable performance witha25%increase, whichiswellabovethe 15%onlinemarket growth. Yenibiris and Tipeez websites were above average performance in terms of revenue growth. Online Share in Ad Revenue 15% 7

8 Circulation Market * National Circulation (000) Hürriyet Circulation (000) -3% -5% 4,812 4, Circulation Revenue (TL mn) -2% % % Hürriyet s market share in circulation was 9.1% in. Domestic circulation revenues increased by 4%, thanks to cover price changes in 4Q11. * Circulation figures are daily averages for related period. Total circulation figures are Dogan Dagitim estimates. 8

9 Cost Analysis: Cash Costs Cash costs (TL mn)* % -4% % Main reasons behind the increase in cash costs in : increase in newsprint prices TL depreciation Cost efficiency actions taken in mid 2011, for TME operations * Defined as EBITDA -Revenues 9

10 Cost Analysis: Operating Expenses Sales, marketing and distribution costs (TL mn) General administrative costs (TL mn) % +8% % % % +3% Due to some re-allocation of mainly personnel costs, there has been re-classifications in COGS, marketing, sales & distribution expenses and general administrative expenses in Theregore, results were adjusted to be in line with the news allocation structure. 10

11 Cost Analysis: Personel Cost Personel costs (TL mn) +3% % % 42 Hürriyet : TME: There is no significant change in total headcount. The composition of total number of personnel changed in favor of online. TME personnel costs decreased by 6%, due to well management in spite of new hirings in online division. The total decrease in headcount was even higher. 11

12 Cost Analysis: Cost of Sales Cost of Sales (TL mn) Raw material costs (TL mn) +6% % % -10% % % 46 Hürriyet YoY (Ch.) Average number of pages Main paper Supplements Average newsprint price for Hürriyet newspaper was around 11% higher in compared to. average cost was $ 730 / ton whereas it was $ 808 / ton for. During the same period, TL depreciated by 14%. TME s cost of sales decrease is mainly due to declining circulation volume. 12

13 Net Debt Position mn TL 31/12/ /03/2012 Cash and Equivalents* S.T Bank Borrowings L.T Bank Borrowings Net Cash /(Net Debt) Capex Supplier Loans mn $ 31/12/ /03/2012 Cash and Equivalents S.T Bank Borrowings L.T Bank Borrowings Net Cash /(Net Debt) Capex 19 9 Supplier Loans NetdebtpositionofTL349mn(USD197mn)includesTME snetdebtoftl103mn(usd58mn). *CashandEquivalentsofTL285mnin includesaroundTL3.3mnofblockeddeposit. 13

14 Loan Repayment Schedule Loan repayment schedule (principal payment, mn USD) * Apr - Dec Hürriyet TME Total Hürriyet TME Total Hürriyet TME Total Bank Loans Supplier Loans Total *as of 31 March

15 TME: Consolidated Statements of Operations (IFRS) mn $ YoY (%) Sales % Cost of sales % Marketing, selling and distribution expenses % General administrative expenses % Other income % Operating profit % Financial income /(expense), net Tax Income / (expense) Net profit for the year Attributable to: Equity holders of the parent Non-controlling interests

16 Revenue Growth by Regions TME standalone mn $ % Ch. % Ch. (USD) (LCY) Russia % -9% Moscow % -13% Other Russia % -4% CIS % 15% CEE % -22% Total % -7% Revenue Breakdown by Regions Other Russia 42% 3 pp CIS 14% 0.5 pp CEE 9% 2 pp Moscow 36% 1 pp pp and % change, YoY 16

17 Online Revenue Growth by Regions TME standalone Online Revenue (mn $) % Ch. % Ch. (USD) (LCY) Russia % 39% Moscow % 40% Other Russia % 37% CIS % 112% CEE % -4% Total % 32% Online Share in Total Revenues 16% $ 5.3 mn +23% $ 6.6 mn 23% 17

18 EBITDA by Regions TME standalone EBITDA EBITDA Margin mn $ % Ch. (USD) pp ch. Russia % 3.6% 7.1% 3% Moscow N.A 4.5% -4.6% -9% Other Russia % 2.7% 17.2% 14% CIS % 12.4% 19.6% 7% CEE % 5.4% 2.8% -3% Operational EBITDA % 5.0% 8.4% 3% Corporate Costs % Consolidated EBITDA % 2.5% 6.0% 3% 18

19 Outlook 1 Print advertising revenue for Hürriyet domestic operations is expected to grow by around 6% in Online advertising revenue from domestic operations is expected to increase by 35-40% in TME revenue is expected to stay flat in EBITDA margin is expected to be around 15% for Hürriyet excluding TME and around 12% for TME. 5 Average newsprint prices are estimated to increase by 1% in 2012 and average out around 765 $/ton. 19

20 Newsprint Prices Average Newsprint Costs (US$) * * Including all costs and expenses like custom duties, transportation etc. 20

21 Hürriyet s Major Advertisers Sectors Real Estate 16% 13% Retail 9% 12% Social 7% 10% Classifieds (incl. HR) 12% 10% Automotive 9% 9% Tourism 6% 8% Finance 6% 5% Entertainment, Culture, art & sports 4% 4% Education 3% 3% Communication 3% 3% First 10 Total 75% 77% Others 25% 23% 21

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