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2
Unparallelled reach across 4
continents
31 free-TV channels in 10 countries
Satellite pay-TV platforms in 9 countries
Over 75 million mini-pay subscriptions in 31 countries
0%
3%
6%
9%
12%
15%
18%
21%
24%
27%
30%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Revenues EBIT* Margin
3
Revenues & EBIT
6%
15%
21% 21%
29%
34%
31%
15%
25%
29%
Total EBIT excluding discontinued DTV and CDON Group operations and one-offs; ROIC excluding non-recurring items.
Return on capital employed
With a track record of profitable
growth
SEK million
4
2011 revenue mix Segmental revenue mix
Due to a uniquely balanced
revenue mix
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011
Free-TV Scandinavia Pay-TV Nordic Emerging Markets
44% 47%
9%
Advertising Subscription B2B / B2C
5 Business Segments
5
Sweden
Norway
Denmark
Estonia
Latvia
Lithuania
Bulgaria
Czech Republic
Hungary
Ghana
• 4 satellite platforms
• Virtual operator in
3rd party networks
• 19 channels • 5 satellite platforms –
Baltics, Ukraine & Russia
• 19 channels on 3rd party
networks
• 9 Free-TV channels
Free-TV
Scandinavia
Pay-TV
Nordic
Free-TV
Emerging Markets
Pay-TV
Emerging Markets
• Radio
• Modern Studios +
MAP
Other
Businesses
And a rich & varied portfolio of
content
6
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
MTG RTL SBS Bonnier CME Mediaset
MTG TV channels broadcast 472,372 hours of entertainment in 2011
= 20,000 days of programming! Hours broadcast
Shown through multiple windows
7
Theatrical Release
Rental DVD
TVOD
1 2 3 4 5 6
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
Yr
Throughout the life cycle of title
12 months
Pay TV 2nd window, SVOD/Catch-up
DVD & electronic sell through
Throughout the life cycle of title
6 months
36 months Free-TV
Pay-TV, SVOD/Catch-up
Library
Rental DVD
SVOD
Life cycle MTG presence
7
And combined with premium
sports rights
* In Sweden & Denmark
** In Denmark & Norway
* **
9
Sweden – 1 Feb 2008
Denmark – 1 Nov 2009
Norway – 1 Dec 2009
Scandinavian TV landscape
(2011)
Cable 52% Satellite
19%
DTT 19%
IPTV 9%
Cable 55%
Satellite 19%
DTT 7%
Analogue Terrestrial
20%
Scandinavian TV landscape
(2005)
Digitalisation has changed the
landscape forever
10
11
And increased the channel
universe
SWEDEN DENMARK NORWAY
Competing for 162
viewing minutes per day
Competing for 198
viewing minutes per day
Competing for 166
viewing minutes per day
From one channel in 1987 to over 50 in 2012
130
140
150
160
170
180
190
200
Average TV Viewing per day
(minutes)
2007 2011
+5 min
+50 min
+21 min
100
120
140
160
180
200
220
240
260
280
300
71% higher viewing in US & 29% higher viewing
in UK when compared to average viewing of 175
minutes in Scandinavia 2011
Digitalization has increased viewing during last
4 years • Sweden: +3% (first to enact analogue shutdown)
• Denmark: +34%
• Norway: +14%
With potential to grow
Which has boosted TV viewing
levels
12
And driven TV ad market growth
13
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
2005 2006 2007 2008 2009 2010 2011 2012E
Sweden Denmark Norway USA UK Europe incl. Russia
14
0%
10%
20%
30%
40%
50%
0%
5%
10%
15%
20%
25%
TV Share of Ad Market
2008 2011
+2.1%
+2% +1.4%
94% higher TV share in US Market
45% higher TV share in UK Market
…compared to average TV share of 21% in
Scandinavia 2011
TV Share in Scandinavia was growing
from 2008 to 2011 • 2.1% in Sweden
• 2% in Denmark
• 1.4% in Norway
With potential to grow
As a % of the total Ad Market
60
70
80
90
100
110
120
2008 2009 2010 2011 2012E75%
80%
85%
90%
95%
100%
2008 2009 2010 2011 2012 ytd
15
With rising demand & prices
Market Sold Out Ratios in prime time Market cost per thousand (indexed)
Source: MTG research
0%
10%
20%
30%
40%
50%
60%
70%
80%
Bonnier MTG SBS
The MTG Media House
16
Average Weekly Reach (15-49)
2003 2011
Old & Male Old & Female
Young & Male Young & Female
Complementary Channel Profiles
-2% +19% +8%
Source: MMS
0
10
20
30
40
50
60
70
MTG TV2 Group SBS
Has driven commercial target
audience share development
17
Sweden (15-49) Denmark (15-49) %
%
Norway (15-49)
%
Q4 to date
05
101520253035404550
MTG TV4 Group SBS
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
MTG TV2 Group SBS
34.0
22.2 19.2
33.2
21.3
17.7
0
5
10
15
20
25
30
35
40
Sweden Denmark Norway
2011 2012
With TV viewing now moving
online
18
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
ComputerScreen
Mobile Phone TV-screen Tablet
92%
83%
1%
1%
16%
7%
Viewing platform
Traditional TV Web-TV Mobile-TV
Viewing by Device
Age 15-24
+16%
+77%
+54%
+278%
Q1 2011 Q1 2012
Age 15-74
And adding new revenue
streams
19
MS
EK
0
50
100
150
200
250
300
350
2009 2010 2011 2012e 2013e
Web TV advertising market
Where revenue per viewer and per hour are higher than in traditional linear TV Price = 2.8x
higher online & even higher on mobile
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
2010 2011 2012 2013
Number of streams on MTG TV Play services
Source: MMS
TV4 numbers include TV4 premium viewing & clip sites + peak effect of Big Brother during Spring
With higher audience shares
Weeks 1-40, 2012
20
43%
Online share of
commercial viewing
45%
21%
35% 38%
17%
Linear CSOV
(15-49)
21
Regional share of total advertising
(NOK / DKK / SEK billion)
50% 40% 60%
0
5
10
15
Total regional advertising (SEK 15 bn)
• Number of regional TV3 Sweden broadcast zones
increased from 6 to 19 on February 27th 2012
• Combined TV, Radio & Internet Ad sales packages
• Local Ad prices as much as 2.13x national prices
• Local TV ad market up 22% y/y in 2011, compared to
2.5% y/y growth for total local ad market
And a regional opportunity
on top
Source: IRM Media, Regional market report,2012 & MTG estimates
TV4, 84%
MTG, 9%
Other, 7%
Regional TV advertising (SEK 860 mn)
Print, 63% Direct advertising,
14%
Internet, 14%
Radio, 4% TV, 5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2008 2009 2010 2011 2011 9M 2012 9M
Revenue EBIT EBIT margin
22
With lower growth
But healthy margins
SEK thousands
23
24
A well-positioned portfolio
Estonia Latvia** Lithuania Czech
Republic Bulgaria Hungary Ghana Russia
Position #1 #1 #1 #2 #2 #3 - #4
Combined
commercial
audience share*
(target
demographic)
40.7%
(15-49)
60.6%
(15-49)
40.2%
(15-49)
40.4%
(15-54)
28.4%
(18-49)
8.2%
(18-49)
18.8%
(15-49)
8.7%***
(6-54)
Catch-up services Yes Yes Yes Yes Yes No No Yes
Sold on ’bundled’
basis Yes Yes Yes Yes Yes Yes N/A N/A
* As at Q3 2012
* * Including LNT channels from Q3 2012
* * CTC Media channel only
0%
10%
20%
30%
40%
50%
60%
70%
2006 2007 2008 2009 2010 2011 2012 Q3
Estonia (15-49) Latvia (15-49)*
Lithuania (15-49) Czech Republic (15-54)
Bulgaria (18-49)
With scale operations in key
markets
25
Financial performance (SEK million) (Baltics, Czech Republic & Bulgaria)
Commercial Audience Share
• Clear market leadership in Baltics with 47% pan-Baltic target group share of viewing
• Completed acquisition of LNT free-TV group in Latvia in June 2012
• Investments in schedule & new Prima Love channel boosted target audience share in Czech Republic & enabled
advertising market share gains
• Higher target audience share in Bulgaria enables market share gains
• Ad markets have stabilised but not returned to sustained growth yet
-5%
0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2008 2009 2010 2011 2011 9M 2012 9M
Revenue EBIT EBIT margin
* Includes the consolidated LNT operations from Q3 2012
And equivalent consumer pricing
Bulgaria Germany
81.97 BGN 44.6 EUR = 41.9 EUR
Shopping list
EUR
Salami 3.48
Frozen fish 8.55
Coffee 5.34
Chocolate 2.24
Vodka 8.91
Shower Gel 1.39
Detergent 2.8
Powder 11.89
Shopping list
BGN
Salami 4.79
Frozen fish 10.43
Coffee 11.82
Chocolate 4.14
Vodka 23.99
Shower Gel 2.75
Detergent 8.46
Powder 15.59
Difference:
-6.4%
Source: METRO Cash & Carry monthly catalogues
26
But low contact cost / ad spend
Source: MTG research
CPT dynamics (2011)
27
TV Ad spend per capita (SEK’000, 2011)
0.0
0.5
1.0
1.5
2.0
So the opportunity is clear
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Estonia Latvia Lithuania
Bulgaria Czech Hungary
TV Ad market has outperformed Nominal GDP development
by a factor of 1.28
GDP growth in MTG EM territories
(indexed)
Forecast GDP growth in MTG CEE
territories
0
50
100
150
200
250
300
350
400
GDP TV Ad Market
20 Source: IMF, TNS/MTG estimates
0
1
2
3
4
5
6
7
8
9
10
Returning market opportunity
29
CEE TV ad markets where MTG is present
SEK 8.6 billion
SEK 6.4 billion
2008 2011
SEK 2.2 billion
Sources: Zenith Optimedia 2012/MTG Estimates
The African opportunity
30
Free-TV
Channels
Pay-TV
Channels
Production
House
Well positioned
For market recovery
31
-500
0
500
1,000
1,500
2,000
2,500
2006 2007 2008 2009 2010 2011 2011 9M 2012 9M
Revenue EBIT
32
33
Technology changes consumer
behaviour
Owned & Operated
Satellite Platform
Viasat Channels in
3rd Party Networks
Virtual Operator
in 3rd Party Networks
Gatekeeper
Independent
Internet
Environment
34
Via…sat…ellite
Premium satellite ARPU (SEK)
Value-added services (000’s)
Premium satellite subscribers (000’s)
0
1,000
2,000
3,000
4,000
5,000
6,000
2006 2007 2008 2009 2010 2011 2012Q3
0
100
200
300
400
500
600
700
800
2006 2007 2008 2009 2010 2011 2012Q3
0
50
100
150
200
250
300
350
400
9M 2012dec-11dec-10dec-09dec-08dec-07
Multi-room PVR HD
• Premium satellite ARPU growth reflects price
increases & penetration of VAS
• Increased competition in Denmark & change
in subscriber mix in Norway negatively
affecting premium satellite subscriber base
• Continued focus on offering – launch of new
HD & catch-up channels / rebranding of Viasat
Film – to moderate satellite subscriber
decline & drive ARPU growth
0
200
400
600
800
1,000
1,200
1,400
2006 2007 2008 2009 2010 2011 2012Q3
Premium satellite 3'rd party network
35
Sources: Viasat Broadcasting research
Viasat premium subscribers (Nordic)
Scandinavian
satellite
universe
Scandinavian
satellite & Virtual
Operator agreements (IPTV, cable)
~1.6m
households
~4.2m
households
2008 2009 2010 2010 1991
A platform agnostic approach
2012
36
Entertainment at your command
First to Market with Full Service
‘Over-The-Top’ Solution
• Anytime Access all services ‘on demand’
• Anywhere Access subscription online
• Any Device Enjoy subscription on multiple
devices in and out of home
Set -Top Box
PC/Mac
Mobile
Tablet Media
Players
OTT Set-Top box
Game consoles Embedded
TV Set
Applications
Now opens up a whole new
universe
37
90% of Swedish households have over 2 MB/s broadband
connection speeds
Satellite
~1.6 million
Virtual Operator
~4.2 million
OTT
~9.0 million
• Increasing investments in Nordic pay-TV content, premium channels and Viaplay online pay-TV service currently
expected to result in Nordic pay-TV EBIT margin of approximately 15% in Q4 2012 and 10-12% for full year 2013.
The total Nordic premium pay-TV subscriber base (excluding Viaplay) is currently expected to continue to decline in
Q4 2012 and for the full year 2013 due to the ongoing decline in the DTH subscriber base and lower than anticipated
growth in the third party network subscriber base, and result in stable quarter on quarter total Nordic pay-TV sales in
Q4 2012 and stable year on year sales for the full year 2013. The fast growing Viaplay online pay-TV service is
expected to continue to grow its subscribers and revenues throughout this period
Future sales growth to be driven
by current investments
38
(SEK million)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2006 2007 2008 2009 2010 2011 2011 9M 2012 9M
Revenue EBIT EBIT margin
39
Expanding horizons
40
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Countries 7 11 15 22 23 24 25 25 28 31
Channels 2 3 5 6 7 8 10 15 19 23
Satellite platforms Baltics Ukraine Russia
41
With a huge opportunity
Satellite pay-TV households in
Eastern Europe (million)
Source: Screen Digest 2012
Cable & IPTV households,
Eastern Europe (2011, million)
0
5
10
15
20
25
30
35
40
0
10
20
30
40
50
60
1% 0% 2% 5% 5% 5%
3%
21%
29% 29%
0%
10%
20%
30%
40%
Russia Ukraine Poland Sweden WesternEurope
On-demand revenue Premium pay revenue
31,361 38,838
TV advertising market Pay TV market
0%
20%
40%
60%
80%
Cable DTH (pay) IPTV
42
Source: Screen Digest 2012
Pay-TV penetration
Eastern Europe (%)
Relative TV market size
(USD million)
Russia
Eastern Europe Western Europe
4,458
1,211
TV advertising market Pay TV market
9,414 7,296
Driven by fundamentals
Share of total pay-TV revenues
43
That we are capitalising on
Mini-pay subscriptions (millions) Viasat satellite subscribers
Baltics, Ukraine, Russia (000’s)
0
100
200
300
400
500
600
2006 2007 2008 2009 2010 2011 2012Q3
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2006 2007 2008 2009 2010 2011 2012Q3
44 Source: TNS Russia 2012, Screen Digest 2012
Top 10 pay-TV channels in Russia
(monthly reach, million people)
Share of viewing – Free TV and Viasat
channels (Russia, 25-44*)
* Russia 100,000+, 1/1/2012-30/4/2012, 05:00:00 - 29:00:00
13.1
11.3
10.7
10.6
9.5
5.5
3.8
2.8
2.7
2.4
2.0
1.9
1.9
1.9
1.3
0
4
8
12
16
By establishing leading
positions
11.0
11.9
12.2
13.2
14.1
15.5
17.9
19.4
20.6
21.2
0 10 20 30
Dom Kino
Sony Entertainment TV
Viasat History
National Geographic
Eurosport
Moya Planeta
Animal Planet
Discovery Channel
TV 1000
TV 1000 Russian Kino
And launching new channels
45
• All 3 channels available in Russia,
Ukraine & CIS
• TV1000 Premium HD – Premium tier movie
channel with focus on first run premieres of
award winning films from Hollywood studios and
independent local distributors
• TV1000 Megahit HD – Premium movie channel
featuring first run premieres of the latest
blockbuster titles from Hollywood and Russia
• TV1000 Comedy HD – dedicated to US
comedy movies Content from major Hollywood studios
And new services
46
Ukrainian TV market structure
(2011)
0%
5%
10%
15%
20%
25%
30%
35%
Cable DTH IPTV
58%
2% 1%
39%
Cable
DTH (pay)
IPTV
DTH (freeview)
Ukrainian pay-TV market penetration
(%)
• Substantial market opportunity – Europe’s 6th largest country by population
• Pay-TV penetration in 2011 is still low, at close to 19.5% of TV HHs
• Addressable market for DTH – 15.4 million non-cable HHs
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
100
200
300
400
500
600
700
800
900
1,000
2006 2007 2008 2009 2010 2011 20119M
20129M
Revenue EBIT
Investing in growth
47
0
100
200
300
400
500
2004 2005 2006 2007 2008 2009 2010 2011
Total segment revenue & EBIT
(SEK million) Revenue split
2011
0
100
200
300
400
500
600
2004 2005 2006 2007 2008 2009 2010 2011
44%
56%
Satellite Channels
• Increasing investments in Russian and Ukrainian pay-TV content, HD channels and pre-paid satellite service in
Ukraine currently expected to boost Emerging Markets pay-TV revenue growth levels and result in segment operating
losses of less than SEK 20 million in Q4 2012 and less than SEK 50 million for full year 2013
48
49
Cash is king
Net operating cash flow
(SEKm) Dividends received from CTC Media
(SEKm)
0
20
40
60
80
100
120
140
Q12010
Q32010
Q12011
Q32011
Q12012
Q32012
0%
20%
40%
60%
80%
100%
0
500
1,000
1,500
2,000
2,500
Net operating cash flow % of EBITDA converted
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
50
(SEKm) (SEKm)
Net Debt Available Liquid Funds
Enables deleveraging
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2000: Acquisition of 95% of Hungarian operation
2001: Acquisition of 75% of DTV in Russia
2002: Acquisition of 36% of CTC Media in Russia
2005: Acquisition of 50% of Prima TV in Czech Republic
2006: Acquisition of 100% of Slovenian operation
2007: Acquisition of 50% of Diema channels in Bulgaria
2008: Divestment of 100% of DTV to CTC in Russia
2008: Acquisition of 50% of satellite pay-TV platform in Ukraine
2008: Acquisition of 100% of Nova TV in Bulgaria
2010: Acquisition of 50% of satellite pay-TV platform in Russia
2010: Acquisition of additional 35% of Viasat Ukraine
2011: Distribution of 100% of CDON Group to MTG shareholders
2012: Divestment of 100% of Bet24.com
2012: Acquisition of 100% of LNT in Latvia
2012: Acquisition of 53% of Paprika Latino in CEE
2012: Acquisition of 80% of Zitius in Sweden
2012: Announced acquisition of 50% of TV 2 Sport in Denmark
(closing subject to regulatory approval)
With complementary M&A
Transactions to date
51
52
• Primary focus is on growth and reinvesting cash flow into operations + M&A
• Balanced with TSR commitment – reflected in newly adopted policy to distribute at
least 30% of recurring net profit as annual ordinary dividend
Cash distribution
(SEK)
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
2006 2007 2008 2009 2010 2011
Buybacks (value per share)
CDON spin-off
Extraordinary dividend pershareOrdinary dividend per share
Net cash flow per share
EPS adj (excluding one-offs)
30% of EPS adj (excluding one-offs)
And shareholder returns
53
For Further Information, please visit www.mtg.se or contact:
MTG Investor Relations
Email: [email protected]
Nasdaq OMX: ‘MTGA’, ‘MTGB’
54