Grupo Antena 3 Presentation to Investors
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GRUPO ANTENA 3 PRESENTATION TO INVESTORS European TMT Conference Deutsche Bank September 2011 1 WHAT THE PLAYING FIELD LOOKS LIKE 2 HOW WELL WE ARE PLAYING THE GAME 2 Antena 3_European TMT Conference_DB_Sep 11 1 WHAT THE PLAYING FIELD LOOKS LIKE... ...ANTENA 3’S RELEVANT MARKET 3 Antena 3_European TMT Conference_DB_Sep 11 Total advertising market (I) Total Ad market evolution In € mill +43% 7,985 -30% Ad market is 0% currently at 5,631 5,850 5,575 2003 levels 2003 2004 2005 2006 2007 2008 2009 2010 2011* Source: Infoadex * Consensus 4 Antena 3_European TMT Conference_DB_Sep 11 Total advertising market (II) Market share by media 41.6% TELEVISION 42.3% 39.5% TV keeps leading. NEWSP.& Radio stays stable MAGAZ. 27.3% 13.5% 9.1% RADIO 9.4% 8.4% OTHERS 7.6% 1.3% INTERNET 2003 2010 Source: Infoadex 5 Antena 3_European TMT Conference_DB_Sep 11 TV advertising market TV Ad market vs GDP 2003=100 TV Ad/GDP 0.31% 0.23% Spanish TV Ad market GDP overreacted to GDP drop Total Ad TV Ad 2003 2004 2005 2006 2007 2008 2009 2010 Source: Infoadex for TV Ad + BdE for GDP. In nominal terms 6 Antena 3_European TMT Conference_DB_Sep 11 TV habits in Spain TV viewing Average daily viewing in min +24 min/viewer 234 TV viewing is 227 226 still increasing 223 218 217 217 213 211 210 208 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Kantar Media 7 Antena 3_European TMT Conference_DB_Sep 11 TV: best competitive position Competitive position by media 88% Coverage by media 58% 50% 4 38% 42% TV, the highest coverage and the best price 13.3 10.0 CPT by media 8.2 In € /1,000 impacts 3.1 2.7 TV Radio Magazines Press Internet Source: Coverage: 2rd EGM survey 2011; CPT 2010 (Cost per thousand): Internal estimates 8 Antena 3_European TMT Conference_DB_Sep 11 Audience share by channel Audiences 2011 YTD 14% Clear audience 10% fragmentation 6% 2% Source: Kantar Media 9 Antena 3_European TMT Conference_DB_Sep 11 Competitive landscape Number of FTA TV players In € million 3,469 TV Ad market 2,472 2,317 2,378 Number of players is adjusting to Ad market 8 7 6 6 4 Net TV/ Veo TV 2003 2011 Source: Infoadex 10 Antena 3_European TMT Conference_DB_Sep 11 Market share concentration Market share by FTA TV players Antena 3 / Mediaset 53% 75% Private FTA TVs Two main players hold 12% 75% market share La Sexta Veo TV/Net TV 2% 16% Forta 10% Public FTA TVs TVE 30% 2003 2011e Source: Infoadex 11 Antena 3_European TMT Conference_DB_Sep 11 Radio habits in Spain Radio listening Number of radio listeners in Spain (thousands) +2.1 million listeners The highest number 24,174 of listeners ever seen 23,117 22,489 22,299 22,030 22,062 21,456 21,718 1ª 04 1ª 05 1ª 06 1ª 07 1ª 08 1ª 09 1ª 10 1ª 11 Source: EGM Moving Average 12 Antena 3_European TMT Conference_DB_Sep 11 2 HOW WELL WE ARE PLAYING THE GAME... ...ANTENA 3’S COMPETITIVE POSITION 13 Antena 3_European TMT Conference_DB_Sep 11 Antena 3’s performance A3 vs TV Ad market % Ad revenues growth yoy 24% 20% 18% Antena 3 TV 12% 6% Ten consecutive 6% 12% -3% quarters outperforming 6% TV Ad market -10% 2% 1% -3% -24% -11% -14% -29% -19% -26% TV Ad Market -34% Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Source: Infoadex 14 Antena 3_European TMT Conference_DB_Sep 11 Antena 3’s market share evolution Advertising market outlook 30.1% 28.3% 26.3% 27.9% 26.2% 24.1% 24.6% 22.4% The highest market 1.3x 1.3x 1.3x 1.8x share over the last years 1.7x 1.4x 21.3% 1.3x 1.5x 20.8% 19.6% Market share 17.8% 17.0% 16.6% Power ratio 16.5% Audience share 15.8% 2004 2005 2006 2007 2008 2009 2010 1H 11 Source: Infoadex + Kantar Media 15 Antena 3_European TMT Conference_DB_Sep 11 Antena 3: Audience shares Audience shares In % 26.0 25.9 25.1 +0.8pc A3, the best performance 24.7 23.5 22.8 -1.9pc in audience share 16.5 16.5 over the last year 15.1 +1.4pc 11.5 10.4 10.6 -0.9pc 7.7 6.8 6.7 +0.9pc 1H 10 2H 10 1H 11 Source: Kantar Media 16 Antena 3_European TMT Conference_DB_Sep 11 Antena 3, a well-balanced grid Our programming grid Talk shows Our best asset: A varied and balanced grid Entertainment News Fiction & Cinema 17 Antena 3_European TMT Conference_DB_Sep 11 Advertising bundling: An unique commercial approach Advertising bundling 55-64 Advertising bundling, Age a succesful strategy 4-12 Male Female Advertising bundling 18 Antena 3 – DB TMT Conference_Sep 11 OPEX evolution Antena 3’s OPEX evolution In real terms CAGR: -0.4% 558 544 Discipline in costs, Group OPEX CAGR: +0.9% ambitious outsourcing 454 process achieved 426 TV OPEX 2003 2004 2005 2006 2007 2008 2009 2010 Source: A3´s financial statements 19 Antena 3_European TMT Conference_DB_Sep 11 Antena 3’s performance A3´s performance vs Ad market In € mill 3,469 TV Ad market 2,472 2,317 2,378 A3’s TV revenues 878 Well positioned for 688 a recovery in Ad market 604 539 EBITDA margin 35% 21% 21% 569 A3’s TV OPEX 536 543 426 2003 2004 2005 2006 2007 2008 2009 2010 Source: Infoadex + A3´s financial statements 20 Antena 3_European TMT Conference_DB_Sep 11 Antena 3 Radio (Uniprex) Number of listeners In ‘000 4,055 x2 87 Antena 3 Radio, 1,476 doubling the number of listeners 2,132 2 162 2,492 1,968 2nd 05 2nd 11 Source: EGM surveys 21 Antena 3_European TMT Conference_DB_Sep 11 Antena 3 Radio (Uniprex) Antena 3 Radio’s competitive position Audience share Market share Antena 3 Radio, excellent position UNIPREX UNIPREX Others to gain size 16% Others 24% 23% COPE 14% 42% 2nd 11 H1 11 35% 46% SER SER Source: EGM, 2nd Survey 2011, Infoadex 22 Antena 3_European TMT Conference_DB_Sep 11 Antena 3 Multimedia Internet division CONTENTS DISTRIBUTION EXPLOITATION Revenue-based strategy INTERNET From TV ADV. in multimedia (in house REVENUES production) (i.e. Preroll) MOBILE Exclusive OTHERS Content (i.e. Prepay, (i.e El Sótano) online game,..) SOCIAL NETWORKS 23 Antena 3_European TMT Conference_DB_Sep 11 Antena 3 Multimedia Internet division In mill 53.9 6.8 Strong performance in 4.8 26.3 every business indicator 3.5 13.4 x2 x4 2009 2010 H1 11 2009 2010 H1 11 Unique Users Video streams (monthly avg) (monthly avg) Monthly average Source: OJD/Nielsen Market Intelligence/ Smartadserver 24 Antena 3_European TMT Conference_DB_Sep 11 Conclusions When the going gets tough, the tough get going In pole position to ride the wave of Ad growth Fit enough to do things our way Antena 3, challenges are opportunities 25 Antena 3_European TMT Conference_DB_Sep 11 GRUPO ANTENA 3 Committed with Corporate Social Responsability: Back up slides 27 Antena 3_European TMT Conference_DB_Sep 11 Consolidated Group 1H 11 Results in € mill: P&L 1H 11 1H 10 YoY Net Revenues 420.9 422.7 -0.4% OPEX 342.9 336.8 +1.8% EBITDA 77.9 85.9 -9.3% EBITDA Margin 18.5% 20.3% Net profit 54.0 57.6 -6.4% Net profit Margin 12.8% 13.6% Source: Antena 3’s financial statements 28 Antena 3_European TMT Conference_DB_Sep 11 Television division 1H 11 Results in € mill: OPEX breakdown 1H 11 1H 10 YoY Programming Costs 166.1 152.7 +8.8% Personnel Costs 35.0 49.2 -28.9% Other Costs 90.6 85.5 +5.9% Total OPEX 291.7 287.5 +1.5% Source: Antena 3’s financial statements 29 Antena 3_European TMT Conference_DB_Sep 11 Radio division 1H 11 Results in € mill: P&L 1H 11 1H 10 YoY Net Revenues 48.4 48.8 -0.8% OPEX 35.2 34.9 +1.0% EBITDA 13.2 13.9 -5.1% EBITDA Margin 27.3% 28.5% EBIT 11.5 12.4 -7.2% EBIT Margin 23.7% 25.3% Source: Antena 3’s financial statements 30 Antena 3_European TMT Conference_DB_Sep 11 Additional information Investor Relations Department Phone: +34 91 623 46 14 E-mail: [email protected] Web: www.grupoantena3.com Legal Notice The information contained in this presentation has not been independently verified and is, in any case, subject to negotiation, changes and modifications. None of the Company, its shareholders or any of their respective affiliates shall be liable for the accuracy or completeness of the information or statements included in this presentation, and in no event may its content be construed as any type of explicit or implicit representation or warranty made by the Company, its shareholders or any other such person. Likewise, none of the Company, its shareholders or any of their respective affiliates shall be liable in any respect whatsoever (whether in negligence or otherwise) for any loss or damage that may arise from the use of this presentation or of any content therein or otherwise arising in connection with the information contained in this presentation. You may not copy or distribute this presentation to any person. 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