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EA
ST
ER
N P
RO
MIS
ES
0%
10%
20%
30%
40%
50%
60%
70%
TV Ad spend / Total Ad spend
2
• TV viewing is significantly higher in CEE with a stable growing trend, making
TV very attractive to advertisers
• Share of TV advertising spend of total ad market is higher than in Western
Europe
EA
ST
ER
N P
RO
MIS
ES
Sources: ZenithOptimedia 2011, TNS
0
50
100
150
200
250
300
Minutes per day watching TV
Minutes per day 2010 CEE, 2000-2010
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Why these markets are attractive!
0
20
40
60
80
100
120
140
160
180
TV Ad spend per capita (USD)
60
110
160
210
260
310
360
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
TV Ad spend, WE and CEE
Index, CEE markets Index, Western Europé
3
• Advertising spend per capita is significantly lower in CEE, rendering a
significant growth potential
• CEE markets are growing faster than average in Western Europe
EA
ST
ER
N P
RO
MIS
ES
Sources: ZenithOptimedia 2011
Why these markets are attractive!
4
1997 2000 2001 2002 2005 2006 2007 2008 2008 2010 2011
4
An exciting journey through time…
Launch of
Baltic Free-TV
operations
Acquistion of 75% of DTV
in Russia
Acquisition of 95% of Hungarian operation
Acquisition of 36% of
CTC Media
Acquistion of 50% of Prima TV in Czech
Republic
Acquisition of 100% of Slovenian operations
Acquisitionof 50% of
Diema in Bulgaria
Acquistion of 100% of
Nova TV in Bulgaria
Launch of Viasat1 in
Ghana
Catch-Up services launced
across CEE
Launch of Prima LOVE
in Czech Republic
EA
ST
ER
N P
RO
MIS
ES
4
1997 2000 2001 2002 2005 2006 2007 2008 2008 2010 2011
4
An exciting journey through time…
Launch of
Baltic Free-TV
operations
Acquistion of 75% of DTV
in Russia
Acquisition of 95% of Hungarian operation
Acquisition of 36% of
CTC Media
Acquistion of 50% of Prima TV in Czech
Republic
Acquisition of 100% of Slovenian operations
Acquisitionof 50% of
Diema in Bulgaria
Acquistion of 100% of
Nova TV in Bulgaria
Launch of Viasat1 in
Ghana
Catch-Up services launced
across CEE
Launch of Prima LOVE
in Czech Republic
EA
ST
ER
N P
RO
MIS
ES
…22 channels in 9 Emerging Markets!
5
Market Positions
Estonia Latvia Lithuania
Czech
Republic Bulgaria Hungary Slovenia Ghana Russia
Market position #2
#2
#3
#2
#2
#4
Commercial
audience share
FY2010
(target
demographic)
41.9%
(15-49)
38.1%
(15-49)
40.7%
(15-49)
23.4%
(15-54)
28.2%
(18-49)
7.5%
(18-49)
10.1%
(18-49)
17.0%
(18-49)
15.6%
(14-49)
Media house
(secondary
channels &
bundled sales)
X X X X X X N/A N/A N/A
MTG DTH
platforms X X X X
MTG Pay
channels
X X X X X X X X X
MTG Radio
channels
X X X
MTG Play
channels
X X X X
#1 FTA Broadcaster in the Baltics
EA
ST
ER
N P
RO
MIS
ES
6 OU
R C
OR
E M
AR
KE
TS
• Baltics
• Estonia
• Latvia
• Lithuania
• Czech Republic
• Bulgaria
-40%
-30%
-20%
-10%
0%
10%
20%
30%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (FC)
Total Baltics, GDP (% yoy) Unemployment, Baltics Consumer expenditure, Baltics TV Ad market, Baltics
Baltics
Macro perspective
7 7 OU
R C
OR
E M
AR
KE
TS
Sources: IMF, TNS/MTG estimates
• TV ad markets grew faster than GDP upuntil the crisis
• Already in late 2010 TV advertising market started to grow again after two
consecutive years of very strong decline
• Solid growth continues in 2011
Baltics
Ad market
0
40
80
120
160
200TV Ad spend/cap. (USD)
Baltics Scandinavia
Top Five Advertiser segments Mobile operators Mobile operators
Retail Retail
Food Food
Beverages Beverages
Financial services Pharmaceuticals
International/domestic clients (%) 70/30 25/75
Media agencies / direct buy (%) 90/10 95/5
Annual commitments/ad hoc sales (%) 75/25 75/25
300
500
700
900
1,100
1,300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
TV Ad market, Baltics (MSEK)
8 OU
R C
OR
E M
AR
KE
TS
~ -500
MSEK
Sources: Zenith Optimedia 2011, TNS/MTG estimates
9
Baltics
Competitive landscape
OU
R C
OR
E M
AR
KE
TS
Free DTT 24%
Pay DTT 9%
Analog terrestrial
10%
DTH 11%
IPTV 12%
Cable 34%
Distribution overview
Free DTT Pay DTT Analog terrestrial DTH IPTV Cable
Total 2 387 000 HH
• Digitalisation increasing penetration and reach. Lithuania to become fully
digitalised in 2012
• MTG is the only broadcaster with a Pan-Baltic footprint,
• Pan-territorial sales becoming increasingly important
• Operational synergies (centralized functions and Play-out facility)
Major competitors
Kanal 2,
K 11
Local owner LNT
Local owner LNK
Sources: MTG/Viasat statistics
10
Baltics
Our Performance
OU
R C
OR
E M
AR
KE
TS
MTG, Financial dev. (%, yoy) 2009 2010
Sales -28.4% -5.1%
Costs 6.9% -16.3%
MTG, CSOV (15-49) 2009 2010
Estonia 40.2% 41.9%
Latvia 34.7% 38.1%
Lithuania 40.4% 40.7%
• Stimulate demand
• Pan-Baltic sales Sales
• Re-build operations with lower cost bases
Costs
• Continue to invest in programming to defend market positions
CSOV
Recession strategy
Competitor recession strategies
• Schibsted continued to invest in programming and lowered prices
• NewsCorp exited LNT, new owners with pure focus on cost cut. Strategy to lower prices to gain market share.
• LNT made selective cost reductions and reduced prices to protect market share.
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
2005 2006 2007 2008 2009 2010
MTG Baltics, 2005-2010
CSOV (A15-49) Market growth
Sources: Zenith OptiMedia, TNS, MTG estimates
11
Baltics
Key Formats 2011
OU
R C
OR
E M
AR
KE
TS
The Money Drop
Re-launched News
Farmer Wants a Wife
Got Talent
Dance With Me
Come Dine With Me
Crime News
Estonia Latvia Lithuania
The Money Drop
Come Dine With Me
12
Baltics
Conclusions
OU
R C
OR
E M
AR
KE
TS
Region is out of crisis
TV markets are growing
Pre-crisis TV market CAGR of 18%
In the first step, approx. 500 MSEK of TV market to regain
Pan Baltic FTA market leadership strengthened during crisis
Highly operationally
geared
Czech Republic
Macro perspective
13
• Czech economy grew at a rapid rate until the crisis – and went through it
relatively unharmed, with unemployment well below EU average
• TV ad market has been volatile over the last 10 years, but with strong
underlying growth
• Consumer spending picking up following only modest inflation pressure
OU
R C
OR
E M
AR
KE
TS
Sources: IMF, Zenith OptiMedia, MTG estimates
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (FC)
GDP Unemployment Consumer Expenditure TV market development
Czech Republic
Ad market
1500
2000
2500
3000
3500
4000
4500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
TV Ad market value (MSEK)
14 OU
R C
OR
E M
AR
KE
TS
Czech Republic Scandinavia
Top Five Advertiser segments Mobile operators Mobile operators
Retail Retail
FMCG Food
Consumer goods Beverages
Financial services Pharmaceuticals
International/domestic clients (%) 96/4 25/75
Media agencies / direct buy (%) 99/1 95/5
Annual commitments/ad hoc sales (%) 99/1 75/25
Sources: Zenith OptiMedia, ATO, MTG estimates
0
40
80
120
160
200
W. Europé Czech Republic
Ad spend /cap. (USD)
~ -800
MSEK
Czech Republic
Competitive landscape
Channel Owner* Target CSOV**
15-54
25.6% 20-40
15-44
15-54 47.3%
15
• We continue to challenge the incumbent with our media house strategy
• Major competitor has lost 11% in CSOV since 2009
• Prima LOVE launched in Q1 2011
OU
R C
OR
E M
AR
KE
TS
* MTG is 50% owner of Prima, **Q1 2011
Total 4 404 000 HH
DTT, 41%
Cable, 30%
DTH, 20%
IPTV, 9%
Distribution overview
DTT Cable DTH IPTV
Sources: Infroma 2011, ATO
16
Our Performance
Czech Republic
OU
R C
OR
E M
AR
KE
TS
MTG, Financial dev. (%, yoy) 2009 2010
Sales -15.0% 3.6%
Costs -5.2% 5.3%
MTG, CSOV (15-54) 2009 2010
Total 20.8% 23.4%
• With a proactive approach and new channel launches, sales were back to growth in 2010
Sales
• Swift cost reduction efforts, to preserve healthy EBIT margins
Costs
• Media house implementation boosted total CSOV 12.5%
CSOV
Recession strategy
Competitor recession strategies
• Aggressive pricing strategy through price decreases and bonus packages.
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
2005 2006 2007 2008 2009 2010
MTG Czech Republic, 2005-2010
CSOV (15-54), MTG TV Ad market development
Sources: Zenith OptiMedia, ATO, MTG estimates
17
Czech Republic
Key Formats 2011
OU
R C
OR
E M
AR
KE
TS
M20-40 A15-54 W20-44
18
Czech Republic
Conclusions
OU
R C
OR
E M
AR
KE
TS
The country is out of the recession
Too early to conclude that the advertising market has started to recover
Approx. 800 MSEK of market value to regain in the first step
Have gained significant CSOV over the last 12 months
Strong operational momentum
-25%
-15%
-5%
5%
15%
25%
35%
45%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (FC)
GDP Unemployment Consumer Expenditure TV Ad market dev.
Bulgaria
Macro Perspective
19
• GDP decline leveled out in 2010 with economy forecasted to go into growth in 2011
• TV Ad market grew with 24% CAGR 2000-2008 and started to
stabilize again in 2010
• Strong underlying dynamics with low ad spend per capita
OU
R C
OR
E M
AR
KE
TS
Sources: IMF, Zenith Optimedia, TNS/MTG estimates
65%
Bulgaria
Ad Market
0
200
400
600
800
1000
1200
1400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
TV Ad market value (MSEK)
0
40
80
120
160
200
W. Europé Bulgaria
Ad spend/cap. (USD)
Bulgaria Scandinavia
Top Five Advertiser segments Mobile operators Mobile operators
Retail Retail
Food Food
Beverages Beverages
Pharmaceuticals Pharmaceuticals
International/domestic clients (%) 50/50 25/75
Media agencies / direct buy (%) 92/8 95/5
Annual commitments/ad hoc sales (%) 85/15 75/25
20 OU
R C
OR
E M
AR
KE
TS
Sources: Zenith Optimedia 2011/MTG est.,TNS
~ -250
MSEK
21
Our Performance
Bulgaria
OU
R C
OR
E M
AR
KE
TS
MTG, Financial dev. (%, yoy) 2009 2010
Sales -22.6% 1.0%
Costs -0.3% 5.0%
MTG, CSOV (18-49) 2009 2010
Total MTG 32.9% 28.2%
• Proactivity and efficicent inventory utilization to counter pricing pressure from CME
Sales
• Streamlined operations and efficiency increases, to optimize the cost base
Costs
• Programming investments to ensure long term growth in CSOV and Mini-pay revenues
CSOV
Recession strategy
Competitor recession strategies
• Acquisition of bTV from News Corp., market consolidated to two players • Launched secondary channels • Aggressive pricing strategy
-25%
-15%
-5%
5%
15%
25%
35%
2008 2009 2010
MTG Bulgaria, 2008-2010
CSOV (18-49) TV Ad market dev.
Analog terrestrial
21%
Cable 50%
DTH 27%
IPTV/Other 2%
Distribution overview
Analog terrestrial Cable DTH IPTV/Other
Channel Owner Target CSOV*
18-49 28.2%
18-49 53.0%
22
Bulgaria
Competitive landscape
• MTG operates a fully integrated mediahouse, with clearly positioned channels
• Primary channel Nova (FTA) remain the strongest in urban areas
• Digitalisation of terrestrial distribution expected to take place 2014-2015
OU
R C
OR
E M
AR
KE
TS
Sources: TNS TV Plan establishment Survey 2010, TNS
* Q1 2011
23
Bulgaria
Key Formats and rights 2011
OU
R C
OR
E M
AR
KE
TS
Farmer Wants a Wife
24
Bulgaria
Conclusions
OU
R C
OR
E M
AR
KE
TS
Economic recovery lagging other CEE countries
Consumer confidence lagging GDP recovery
TV-market has not turned to growth yet
Pre-crisis advertising market CAGR of 24%
Approx. 250 MSEK of TV market to regain in the first step
Market consolidated to a two-player market
Strategy in place to grow CSOV and market share
25
The Eastern
Promises
1.5 bn SEK of TV ad market
to regain to get back to pre-
crisis level
Advertising market recovery
is lagging, programming
investments scewed to H2 11
Well positioned with media
house strategy deployed in
consolidated markets –
high operational leverage
26 EA
ST
ER
N P
RO
MIS
ES