Présentation Powerpoint
Total Page:16
File Type:pdf, Size:1020Kb
Company Presentation Milano, Star Conference, March 21st 2019 Laura Cioli – Chief Executive Officer Stefano Canu - Investor Relations Disclaimer ➢ This document has been prepared by GEDI S.p.A for information purposes only and for use in the presentation of the Group’s results and strategies. ➢ For further details on GEDI S.p.A , reference should be made to publicly available information, including the Annual Report, the Semi-Annual Report and Quarterly Reports. ➢ Statements contained in this document, particularly the ones regarding any possible or assumed future performance of GEDI S.p.A , are or may be forecasts and in this respect they involve some risks and uncertainties. ➢ Any reference to the past performance of GEDI S.p.A shall not be taken as an indication of future performance. ➢ This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. 2 Agenda 1 Positioning and FY 2018 Results 2 Business Units 3 Digital, advertising and operations 3 GEDI at a glance NATIONAL PRESS GEDI NEWS NETWORK RADIO Digital GNN Local websites Radio websites Advertising Manzoni multimedia sales organization (Gedi properties and third parties) Printing facilities 5 + 1 (external) printing facilities 4 GEDI’s leadership NATIONAL PRESS GEDI NEWS NETWORK RADIO N°1 National & Local circulation N°1 Advertising collection N°1 Online News and Video N°1 Local Advertising N°3 Audience (Private) Leader in engagement in live events of the different brand (e.g., Deejay Ten, Rep Idee) Digital N°1 Repubblica is the first online news website in Italy by audience (+24% on key competitor) and video streaming N°1 Social engagement (Repubblica) N°2 Globally by reach of news website (Repubblica) Advertising N°1 Multimedia sales organization for diversification with € 95m gross online revenues (30% third parties) and €120m gross radio revenues (35% third parties) N°4 Player in Italy after the two large TV groups and Google 5 GEDI’s organization LE SCIENZE 50% HuffingtonPost Italia 49% PERSIDERA 30% 100% 99,85% 100% 82,07% 68,39% Circulation La Stampa and Local Press Radio Digital Advertising National Press GEDI GEDI NEWS ELEMEDIA SPA GEDI DIGITAL MANZONI DISTRIBUZIONE NETWORK 17,93% 31,61% 100% 83% Production My Movies GEDI PRINTING MONET ITEDI: Main recent corporate actions: • Merger of Itedi into the Local press legal entity and creation of GNN (Gedi News Network) • Itedi printing facility transferred to Gedi Printing • Merger between Manzoni and PK in advertising collection • All group digital activities concentrated in Gedi Digital 6 2018 FY results 2017(1) 2018 Revenues 615.8 648.7 Circulation 262.7 284.6 Advertising 303.1 318.0 Add-ons & 50.0 46.2 others EBITDA adj. (2) 57.4 51.7 EBITDA 9.3% 8.0% margin EBITDA reported 52.8 33.1 EBIT adj. (3) 41.1 33.1 EBIT margin 6.7% 5.1% Net income (4) (123.3) (5) (32.2) NFP (115.1) (103.2) (1) Including Itedi consolidation from July 1, 2017 (2) EBITDA 2018 before restructuring expenses and other non-ordinary items totaling €18.7m (3) EBIT 2018 before €1.3m of write-downs of printing plants and €24.2m of write-downs on goodwill (4) Net Income net of charges mentioned in Note 2 & 3 and additional € 12m write-downs on assets (5) Includes extraordinary fiscal charge of € 143.2 Mn 7 2018 Results by business unit NATIONAL PRESS (€m) FY'17 FY'18 Δ % Revenues 276,4 253,8 -8,2% Circulation 129,6 117,2 -9,6% Advertising 115,7 110,2 -4,7% Add-ons & Others 31,1 26,3 -15,3% EBITDA Adj 3,6 (6,9) n.m Ebitda Margin 1,3% -2,7% -4,0% GEDI NEWS NETWORK FY'17 FY'18 Δ % (€m) Revenues 204,0 254,1 24,6% Circulation 133,1 167,6 25,9% Advertising 61,0 76,5 25,3% Add-ons & Others 9,8 10,0 2,3% EBITDA Adj 23,6 25,3 7,3% Ebitda Margin 11,6% 10,0% -1,6% RADIO (€m) FY'17 FY'18 Δ % Revenues 59,0 62,0 5,2% Advertising 57,6 61,0 6,0% Others 1,4 1,0 -29,6% EBITDA Adj 18,1 19,1 5,9% Ebitda Margin 30,6% 30,8% 0,2% Adv, Interco & Other FY'17 FY'18 Δ % Services (€m) Revenues 76,4 78,8 3,1% EBITDA Adj 12,1 14,2 16,5% Ebitda Margin 15,9% 18,0% 2,1% 8 Our strengths ➢ A portfolio of strong brands with great identity and affiliation potential ➢ High quality of the editorial content, in terms of breadth and depth, proven over time ➢ Scale and coverage/reach focused on areas with higher GDP/capita built on a portfolio of more resilient local newspapers ➢ Undisputed leadership on digital, both on audience and reach, that constitutes a solid ground for the business transformation ➢ Encouraging initial results on digital subscriptions (Rep:, Top news, etc..) ➢ Strong and growing Radio business, yet showing some areas for further profit generation ➢ Proven ability to simplify, stream-line and cut costs 9 KeyKey actionsactions Product enrichment Newsroom’s organization and costs • New editor-in-chief on Repubblica and improvement of the newspaper • Trade union agreements with significant reduction in • Review of the weekly/monthly offering to streamline the editorial costs newspapers and support advertising and circulation • Reduction of external collaborations revenues (Espresso, RMotore, new paid product - Live) • New newsroom’s organization (desk mergers and • Synergies on national content of local newspapers synergies between newsrooms, focus on main sectors) leveraging on La Stampa as central “factory” • Integration of Content Management System (CMS) to • Relaunch and repositioning of two radios (Radio Capital enable stronger editorial synergies and IT cost reduction and M2O) Printing and distribution Digital • Development of existing pay products (Rep:, Top News & membership of local newspapers) through newsletters, • Closure of two printing facilities in Nov ‘18 and of two verticals, production/content optimization, ARPU additional in ‘19 increase, and stronger integration with local newspapers’ • Set-up of a new distribution footprint based on a series events of “local” contracts creating an independent channel • Further focus on verticals (economy, innovation, art) • Additional centralization/synergies in GNN • Enrichment of data architecture (new CRM Platform) to enable marketing automation for acquisition and churn prevention 10 Agenda 1 Positioning and FY 2018 Results 2 Business Units 3 Digital, advertising and operations 11 National press – key results N°2 National circulation NATIONAL PRESS (€m) FY'17 FY'18 Δ % Revenues 276,4 253,8 -8,2% • Circulation underperforming the market in Circulation 129,6 117,2 -9,6% 2018, but improving over time Advertising 115,7 110,2 -4,7% Add-ons & Others 31,1 26,3 -15,3% EBITDA Adj 3,6 (6,9) n.m • Trade union agreements for editorial costs Ebitda Margin 1,3% -2,7% -4,0% reduction approved − Working time reduction and exits − Reduction of external collaborations Repubblica vs Corriere − New editorial organization in the newsroom (desk mergers and synergies between newsrooms, focus on main sectors) • New products to support advertising and circulation revenues • New Editor-in-Chief from February 2019 and improvement of the newspaper 12 National press – product enrichment • New Espresso (weekly) out on Sunday Product enrichment February 24, bundle with la Repubblica (at €2.5, +67%) • Significant positive impact on Repubblica’s • Review of the weekly copies during the first weeks offers (Espresso) • Further focus on • RMotore (monthly) out on March 6 verticalizations on • Story telling on the revolution of mobility and specific sectors/themes the transition from the era of combustion to as Motors (advertising sustainable mobility revenues) • Launch of new paid • LIVE first monthly synergic (all group products as Live newspapers) magazine focus on lifestyle out on (circulation revenues) February 14, bundle with la Repubblica (at €2.0, +33%) • Total circulation of ca. 500 K copies 13 GEDI News Network – key results N°1 Local circulation & advertising GEDI NEWS NETWORK FY'17 FY'18 Δ % • Synergies and efficiencies triggered by the (€m) merger with Itedi : Revenues 204,0 254,1 24,6% Circulation 133,1 167,6 25,9% Advertising 61,0 76,5 25,3% − Admin cost reduction through staff Add-ons & Others 9,8 10,0 2,3% functions and insourcing of Itedi's EBITDA Adj 23,6 25,3 7,3% administrative activities Ebitda Margin 11,6% 10,0% -1,6% − Integration with GEDI IT systems Pricing, €/copy − Editorial offices − Merger between Manzoni and PK in Price increase in Jan 2019 advertising collection Price increase (0.1) in 2018 Pricing − Contents’ synergies (common pages for 1,40 Power local newspapers, digital, videos, 1,20 events) 1,00 • New organization enabling additional 0,80 centralization/ efficiencies 0,60 • Pricing power in local newspaper (increase 0,40 in the cover price in Jan 2019 in some local newspapers) 14 GEDI News Network – positioning 80% 70% IL PICCOLO MESSAGGERO VENETO GAZZETTA DI MANTOVA 60% LA STAMPA 50% (in Piedmont) LA PROVINCIA PAVESE IL MATTINO DI PADOVA 40% IL SECOLO XIX IL TIRRENO Market share Market IL CORRIERE DELLE ALPI 30% GAZZETTA DI REGGIO LA NUOVA FERRARA LA TRIBUNA DI TREVISO 20% GAZZETTA DI MODENA LA NUOVA VENEZIA 10% 0% 0 20 40 60 80 100 120 140 Average copies sold daily Source : ADS 2017 15 Radio – key results N°3 Radio private Group N°1 Radio advertising Group • Strong fundamentals and growth in RADIO (€m) FY'17 FY'18 Δ % usage and revenues in the last 3 Revenues 59,0 62,0 5,2% years Advertising 57,6 61,0 6,0% Others 1,4 1,0 -29,6% • Radio market gaining share on the EBITDA Adj 18,1 19,1 5,9% total advertising market Ebitda Margin 30,6% 30,8% 0,2% • Despite