Advertising Revenues
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INVESTOR DAY 2004 Full Year Results Milan, 23rd March 2005 GROUP Fedele Confalonieri Chairman MEDIASET GROUP | Consolidated Results (€ml.) 2003 2004 ∆ % Net Consolidated Revenues 3,070.0 3,441.6 +12.1% EBIT 777.6 1,034.2 +32.9% NET PROFIT after Minorities 369.7 500.2 +35.3% Dividend per Share (€) 0.23 0.38 +65.2% | 3 | | 3 3| MEDIASET GROUP | Shareholdings at 31/12/2004 Mediaset Shareholdings Geografical Breakdown (Estimates at 31/12/ 2004) (Estimates at 31/12/ 2004) Retail Italy Germany Others 5.3% (ca. 250.000) 9.6% 8.2% France UK 7.5% 16.7% Fininvest MARKET 51.0% 43.7% ITALY 22.9% Usa 35.1% | 4 | | 4 | Broadcasting Pier Silvio Berlusconi Vice-Chairman and Head of Broadcasting MEDIASET: Audience Share Performance | 6 | MEDIASET 2004 | Audience in line with All-time highs 24 Hours audience in line with the latest 3 years, the best in Mediaset history: 43.0% Canal : 1st channel in Day Time: 22.5% Italia 1: 3rd channel in the latest 3 years: 11.2% Rete 4: Record audience in Prime Time since 1995: 8.9% Source: Auditel (Individuals) | 7 | | 7 | MEDIASET 2002-2005 | “Audience Guaranteed Period” Commercial Target (15-64 Years), 24 Hours 47.2% 46.5% 45.8% 46.4% 44.6% 44.6% 43.7% 43.5% 43.3% 43.6% 41.9% 41.3% 40.8% 38.4% S’02 A’02 S’03 A’03 S’04 A’04 S’05(*) A: Autumn S: Spring Source: Auditel (*) From 30/01/2005 to 12/03/2005 | 8 | | 8 | MEDIASET 2004 | Channel Ranking (24 Hours) 15-64 yrs 15-24 yrs 25-34 yrs 35-44 yrs CANALE 5 24.1 CANALE 5 27.9 CANALE 5 27.0 CANALE 5 24.6 RAI1 20.5 ITALIA 1 21.7 RAI 1 16.7 RAI 1 17.9 ITALIA 1 12.8 RAI 1 14.5 ITALIA 1 15.6 ITALIA 1 14.8 RAI 2 12.3 RAI 2 10.1 RAI 2 12.1 RAI 2 12.9 RAI 3 8.6 RAI 3 5.3 RAI 3 7.3 RAI 3 7.5 RETE 4 7.7 RETE 4 5.1 RETE 4 6.5 RETE 4 7.1 45-54 yrs 55-64 yrs 64+ yrs 4-14 yrs CANALE 5 23.0 RAI 1 26.8 RAI 1 31.1 ITALIA 1 27.7 RAI 1 22.5 CANALE 5 20.6 CANALE 5 19.4 CANALE 5 19.6 RAI 2 12.9 RAI 2 12.6 RETE 4 13.2 RAI 1 14.2 ITALIA 1 10.4 RAI 3 11.5 RAI 2 11.9 RAI 2 12.5 RAI 3 9.4 RETE 4 9.7 RAI 3 11.0 RAI 3 5.7 RETE 4 8.3 ITALIA 1 6.6 ITALIA 1 4.4 RETE 4 4.3 Source: Auditel | 9 | | 9 | MEDIASET 2005 | First Hints of PRIME TIME Audience Up until 12 /03/2005 43.8% INDIVIDUALS 44.0% 41.3% COMMERCIAL TARGET (15-64 Years) 45.9% Source: Auditel | 10 | | 10 | MEDIASET 2005 | First Hints of PRIME TIME Audience “Audience Guaranteed Period” from 30/1/2005 to 12/03/2005 41.1% INDIVIDUALS 46.8% 38.3% COMMERCIAL TARGET (15-64 Years) 49.1% Source: Auditel | 11 | | 11 | MEDIASET: TV Operation Profitability | 12 | | 12 | MEDIASET 2001-2004 | Total TV Costs Trend Growth vs Previous Year 8.3% +1.0% CAGR 2004 vs. 2001 1.2% 0.7% 1.1% 2001 2002 2003 2004 (*): Total TV Costs = Personnel Costs + TV Operating Costs + TV Rights D&A | 13 | | 13 | MEDIASET 2001-2004 | Operating Leverage (Index 100) 116.3 +9.1% 2004 vs 2003 TV Advertising Revenues 106.6 +1.2% 100 100 2004 vs 2003 103.1 101.8 100 100.7 Total TV Costs 2001 2002 2003 2004 | 14 | | 14 | MEDIASET 2001-2004 | Operating Leverage (Index 100) 143.8 +28.4% 2004 vs 2003 33.0% TV Operating Profit 112.2 28.0% 100 96.1 26.1% Profitability 25.2% 2001 2002 2003 2004 | 15 | | 15 | MEDIASET: Diversification Activities | 16 | | 16 | MEDIASET | Diversification Activities Telco Revenues Content Extension Teleshopping - Core Business - Merchandising Content providing Internet Teletext | 17 | | 17 | MEDIASET 2002-2004 | Total Revenues from Diversification 101.9 62.6 46.2 +62.8% +35.5% 2002 2003 2004 | 18 | | 18 | MEDIASET CENTRAL POSITIONING IN THE CONTENT MARKET | 19 | | 19 | New TV Content Market in Italy FTA Analog TV: Satellite TV : Cable: ADSL: UMTS: | 20 | | 20 | TV Strength in Italy 1999-2004: Total Audience (24 Hours) 9.095 9.284 8.848 8.915 9.140 8.630 224 TV Consumption (minutes per day) 234 1999 2000 2001 2002 2003 2004 Source: Auditel (24 hours, average minute) | 21 | | 21 | Leadership of FTA TV in Italy % of people Generalist TV Viewers 98.6 % Satellite TV Viewers 16.0 % Internet Users 28.8 % “LA TELEVISIONE GENERALISTA SI CONFERMA L’UNICO MEZZO IN GRADO DI PARLARE A TUTTI GLI ITALIANI” Rapporto Censis, January 2005 Source: Rapporto Censis, January 2005 | 22 | | 22 | Innovation of Generalist TV in Italy N° of PRIME-TIMEs with New Productions (*) February 2005 (28 days) 42 29 RAI MEDIASET 48% 40% (*) Fiction and Entertainment | 23 | | 23 | MEDIASET 2004 | More Unique Content 24 Hours Production (*) vs. Library 34% 51% 66% 49% 2000 2004 Production Library (*) Entertainment, Fiction, News | 24 | | 24 | MEDIASET 2005 | Programming Schedule Guidelines More Productions More News and Information Programs More Live Programs .. for an ever increasing TV “appeal” Mediaset stronger Mediaset more in competing efficient and against other therefore more platforms profitable | 25 | | 25 | CANALE 5| Prime Time Profit Contribution Analysis (Champions League, Index 100) COSTS GRP’s Champions League 100 100 Movies 60 115 Fiction 46 120 Entertainment 29 140 | 26 | | 26 | CANALE 5| A sample week in Springtime: 2004 vs 2005 Prime Time 2004 Fiction 2005 Sunday Monday Tuesda Movie Fiction Entertainment Movie Sunday Monday Tuesda y WednesdayChampions Thursday Movie League Fiction Entertainment Entertain. Entertainment Champions y Wednesday Thursday Friday League Entertainment Entertainment Saturday Entertainment Friday Entertainment Saturday | 27 | | 27 | MEDIASET: DTT Opportunity | 28 | | 28 | MEDIASET | DTT is launched on the TV market FTA Analog TV: DIGITAL TERRESTRIAL TV Satellite TV : Cable: ADSL: UMTS: | 29 | | 29 | MEDIASET | First Mover on DTT MEDIASET 6 RECORDS First to develop a Digital Terrestrial Network in only 9 months First to include Interactivity in TV Programs First to test Interactive and Enhanced Spots First to host 3rd -party content providers on its Multiplex First to launch a Free-to-Air channel for Kids First to launch PPV Offer | 30 | | 30 | MEDIASET | First Pre-paid card Offer on TV BENEFITS FOR VIEWERS BENEFITS FOR MEDIASET No dish required Focused Investments No Subscription Defensive Move “Pay for what you watch” Driver for DTT Penetration Additional Revenues | 31 | | 31 | MEDIASET | The Big “Serie A”, until 2007 Juventus Milan Inter Roma Sampdoria Atalanta Messina Livorno Siena 79.5% of Italian Football Supporters From 2007, Pre-emption Rights on: DTT, Satellite, Cable e ADSL Total Investment: Less then 1% of Mediaset MARKET CAP Source: Mediaset, Eurisko, Sinottica 2004-1, Makno 2004; Nielsen, Monitor Calcio 2003-2004 | 32 | | 32 | | 33 | | 33 | Advertising Giuliano Adreani CEO MEDIASET | Advertising Market Revenues 144 134 142 137 132 124 111 100 1997 1998 1999 2000 2001 2002 2003 2004 (Basis 100 – homogeneous media basis) | 35 | | 35 | MEDIASET | Publitalia Advertising Revenues 9.1% 2,869.1 2,630.4 (€ml.) 2003 2004 | 36 | | 36 | MEDIASET | 9M vs 4Q Advertising Revenues +10.1% +8.7% +6.8% +4.3% ADV ADV mkt mkt 9 Months 4Q | 37 | | 37 | MEDIASET | 2004 Italian TV Advertising Market Growth 2004 vs 2000 TOTAL ADV MARKET +2.4% +17.4% -3.3% - 10.0% PRESS Source: Adex Nielsen Estimates On an Homogeneous basis excluding ALL MUSIC and CNR | 38 | | 38 | MEDIASET | Advertising by Sector 2004 (ml€) 2004 vs 2003 MEDIA & PUBLISHING 259 +26.7% TELECOM 290 +25.9% AUTOMOTIVE 295 +19.2% FINANCE/INSURANCE 88 +13.5% NON FOOD 441 +5.4% FOOD 813 -5.5% | 39 | | 39 | MEDIASET | 2004 Breakdown by Sectors 3.0% 3.1% Finance Media & publishing 7.3% 9.0% TLC 8.4% 10.1% 9.6% Automotive 10.3% Non Food 16.4% 15.4% Food 32.0% 28.3% Others Sectors 23.3% 23.8% 2002 2004 | 40 | | 40 | MEDIASET | New Clients Acquisition Policy Active Clients New Clients in 2004 2003 1,069 New Clients 291 2004 1,104 Revenues 88.9 ml € | 41 | | 41 | PUBLITALIA: First Hints on 2005 | 42 | PUBLITALIA | First Hints on 2005 ADVERTISING REVENUES (January / February) +7.7% +2.0% 460.8 470.0 427.9 (€ml.) 2003 2004 2005 | 43 | | 43 | MEDIASET | Advertising by Sector (January / February) 2005 (ml€) 2005 vs 2004 RETAIL 5 +98.5% TELECOM 45 +11.2% MEDIA & PUBLISHING 58 +6.3% AUTOMOTIVE 66 +3.4% | 44 | | 44 | SPANISH ADVERTISING | 45 | TELECINCO | 2004 Spanish Advertising Market Growth 2004 vs 2003 TOTAL ADV. MARKET +10.4% TV +15.0% MAGAZINES +10.5% RADIO +6.3% PRESS +5.9% Source: InfoAdex, “Conventional Media” (Publishing, radio, TV, Outdoor, Internet, cinema) | 46 | | 46 | TELECINCO | Publiespana Advertising Revenues 762.7 644.8 633.7 579.0 567.4 (ml) 20002001 2002 2003 2004 | 47 | | 47 | Financials Marco Giordani CFO MEDIASET GROUP | Consolidated Results (€ml.) 2003 2004 ∆ % Net Consolidated Revenues 3,070.0 3,441.6 +12.1% Operating Costs (1,281.3) (1,467.2) EBITDA 1,788.7 1,974.4 Amortisation & Depreciation (967.9) (892.4) EBIT pre Goodwill Amortisation 820.8 1,082.0 Tele5 Goodwill Amortisation (43.2) (47.8) EBIT 777.6 1,034.2 +33.0% Pre-Tax Profit and Minorities 675.1 994.8 NET PROFIT after Minorities 369.7 500.2 +35.3% | 49 | | 49 | MEDIASET GROUP | Consolidated Results 2004 2004 2004 Consolidation (€ml.) Consolidated Mediaset Telecinco Effects Net Consolidated Revenues 3,441.6 2,649.4 793.4 (1.2) EBITDA 1,974.4 1,513.0 461.6 0.0 margin 57.4% 57.1% 58.2% EBIT 1,034.2 788.3 294.0 (47.8) margin 30% 29.8% 37.1% Net Profit 500.2 435.9 112.3* (47.8) (*): excluding Minorities | 50 | | 50 | ITALIAN BUSINESS FINANCIALS | 51 | | 51 | MEDIASET ITALIAN BUSINESS | P&L Results (€ml.) 2003 2004 ∆ % Net Consolidated Revenues 2,424.9 2,649.4 +9.3% Operating Costs 1,001.3 1,136.4 EBITDA 1,423.6 1,513.0 Rights Amortisation (657.2) (598.1) EBITDA Adj.