Business Performance Q1 2006

Transcription

1 Business Performance Q Guillaume de Posch, Chief Executive Officer Lothar Lanz, Chief Financial Officer Munich, May 11, 2006

2 Agenda First Quarter 2006 Financial statements Q (IFRS) Outlook page 2

3 ProSiebenSat.1 Group: Successful Q The Group increased both revenues and earnings. Contributions from both the core Free TV business and the Diversification division Revenues EUR m +8.2% Consolidated net profit EUR 30.7 m +7.0% EBITDA EUR 70.6 m +10.0% EBITDA- Margin 15.2 % +2.0% Pre-tax profit EUR 50.1 m +6.4% Earnings per share* 0.14 EUR +7.7% * per preferred share page 3

4 ProSiebenSat.1 Group: Q Growth in both divisions The core business in Free TV benefited from the slight growth of the advertising market, the Diversification division from organic growth and the consolidation of 9Live. Free TV Growth through higher advertising revenues All four stations generate a profit Profitability up significantly at Sat.1 and kabel eins ProSieben revenue situation overshadowed by weak audience share in 2005 ProSieben audience share on the up since March Group s stations strengthen combined market share Diversification: Transaction TV/Other Diversification Increase in revenues and earnings driven by full consolidation of 9Live Organic growth through Internet, mobile and licencing acitivities Development of new business models Launch of SevenSenses for Pay TV, IPTV and video-on-demand services page 4

5 Free TV: Group s audience share is on the rise Despite intense competition from the Winter Olympics on ARD and ZDF, the Group s stations strengthen their audience share. Audience share, 14-49, in percent %points Q Q * Sat.1, ProSieben, kabel eins, N24, 9Live page 5

6 Free TV: Q Programming of the Group s stations Top five programs of the ProSiebenSat.1 Group in Q Audience share viewers 14 to 49 Verliebt in Berlin (up to 25.8%) Navy CIS (up to 22.2%) Schillerstraße (up to 22.0%) Daddy Day Care (21.1%) Schmitz komm raus! (up to 18.7%) ProSieben Märchenstunde (up to 28.7%) Catch me if you can (26.8%) Terminator 3: Rise of the Machine (25.3%) Tears of the Sun (24.5%) Germany s next Topmodel by Heidi Klum (up to 24.0%) Running Man (11.0%) Cold Case Kein Opfer ist je vergessen (up to 10.2%) The President s Man (10.0%) Highlander (10.0%) Spurlos verschwunden Without a Trace (up to 9.9%) Newscast (up to 4.9 %) Arabella Kiesbauer (up to 1.8%) Studio Friedman (up to 1.4%) Was erlauben Strunz (up to 1.1%) Source: AGF/GfK-Fernsehforschung, SevenOne Media page 6

7 Agenda First Quarter 2006 Financial statements Q (IFRS) Outlook page 7

8 ProSiebenSat.1 Group: Q Revenues and costs Rise in revenues due to higher advertising revenues and full consolidation of 9Live.* The contribution to revenues from 9Live came to EUR 25.8 million. (in EUR m) Revenues Costs % % Q Q Q Q *Consolidation of 9Live since June 1, 2005 page 8

9 ProSiebenSat.1 Group: Q Total costs Increase in total costs mainly caused by larger consumption of programming assets and full consolidation of 9Live. ProSiebenSat.1 Group total costs by line item, Q vs. Q1 2005, in EUR m +7.7% +15.5% -0.6% +7.3% +10.4% +33.8% Total cost increase: EUR 30.0 million Q Q Cost of sales Selling expenses Administrative expenses Consumption of programming assets Personnel expenses** Depreciation and amortization** * Included in cost of sales ** Included in cost of sales, selling expenses and administrative expenses page 9

10 ProSiebenSat.1 Group: Q Results ProSiebenSat.1 Group boosts EBITDA and pre-tax profit despite rise in costs. (in EUR m) EBITDA Pre-tax profit % % Q Q Q Q page 10

11 ProSiebenSat.1 Group: Q Consolidated net profit /EPS Increase in consolidated net profit improves earnings per share. 50 Consolidated net profit (in EUR m) Earnings per Share (in EUR) 0, % 0, ,3 20 0,2 +7.7% ,1 0 Q Q ,0 Q Q page 11

12 ProSiebenSat.1 Group: Net financial debt reduced Reduction of net debt despite 9Live acquisition in June Positive trend due to favourable cashflows. Net debt/ltm-ebitda 1,0x 0,6x Debt instruments as per March 31, RCF % Notes 200* Notes 42, April 2009 May 2009 Mortgages July * First call exercisable in July 2006 (premium: 5.625%) 100 Current long-term credit ratings: Fitch: BBB- (Positive outlook) Moody s: Ba1 (Positive outlook) page 12

13 ProSiebenSat.1 Group: Q Key Figures Major income statement, cash flow and balance sheet items Q Q Change EUR m EUR m EUR m Percent Revenues EBITDA EBIT Financial loss Pre-tax profit Consolidated net profit Earnings per preferred share (IFRS) Programming investments Free Cash-Flow Balance sheet total 2, , Shareholder s equity 1, , Equity ratio 59% 55% -/- 7.3 EBITDA margin 15.2% 14.9% -/- 2.0 Net financial debt Net debt/ltm-ebitda 0.6 x 1.0 x Employees (averaging full-time equivalent jobs) 2,885 2,699 -/- 6.9 page 13

14 Free TV: Q Free TV revenue mainstay Higher advertising revenues provided the main impetus for revenue growth. Higher programming costs result in decrease of operating profit. (in EUR m) Revenues Operating profit % % Q Q Q Q page 14

15 Free TV: Q Key figures by stations ProSieben: Lower audience share in 2005 and reduction in internal program sales influence revenues, higher programming investments increase costs. (in EUR m) Key figures by stations Revenues EBITDA Pre-tax profit Q Q % Q Q % Q Q % page 15

16 ProSiebenSat.1 Group: Q Key figures by segments Other Diversification segment: Reallocation of revenues within the Diversification division results in reduction of revenues. (in EUR m) Key figures by segments Total revenues External revenues EBITDA Operating profit Q Q % Q Q % Q Q % Q Q % Free TV , Transaction TV /- -/ /- -/ /- -/ /- -/- Other Diversification page 16

17 Agenda First Quarter 2006 Financial statements Q (IFRS) Outlook page 17

18 ProSiebenSat.1 Group: Strategic goals ProSiebenSat.1 Group has three strategic goals to maintain its position as leading commercial TV Group in Germany. Leading commercial TV Group in Germany 1 Strengthening of the core business TV 2 Expansion of diversification 3 Positioning for the digital world Increase of revenues and earnings page 18

19 Outlook 2006: Economic climate Experts expect positive development of the economy in Development of GDP and private consumption 1999 to 2006 (in percent) Real GDP Private consumption % % e* e* Source: Statistisches Bundesamt, *2006: Economic instituts/spring survey GDP and consumer demand in real terms. page 19

20 Outlook 2006: Core business TV ProSiebenSat.1 Group expects TV advertising investments to rise by 2 percent in Net TV advertising investments, changes from previous year (in percent) e* 2006e* Source: ZAW, *ProSiebenSat.1 estimates page 20

21 Outlook 2006: Core business television Highlights of the stations in Q First-class TV for a broad audience: High-quality films and in-house productions in the DIE SAT.1 FAMILIENPACKUNG or theatrical co-productions such as The Miracle of Bern Series such as Verliebt in Berlin Continuation of successful shows like Die Comedy-Falle The finest from Hollywood: Blockbusters like Star Wars oder Mission Impossible from April also on Wednesdays Premium production such as 4400 More science shows and documentaries, inclusding Galileo specials and coproductions such as Die Päpstin Classic TV, new series and highlights: Successful series such as King of Queens, M*A*S*H Magazines such as Abenteuer Leben täglich Wissen and events like Forces of Nature Shows such as Top 10 TV-Comedy or Quiz Taxi QUEEN-Event : Show with Ingolf Lück and documentary on Freddy Mercury in May N24 gets right to the point: Current news and background on all relevant events, around the clock Political and general interest talkshows Launch of a further political talkshow and development of new special interest magazines. Source: AGF/GfK-Fernsehforschung, SevenOne Media page 21

22 Diversification: new business activities for the Group After the Call-TV market, ProSiebenSat.1 opens up Pay-TV and video-on-demand markets. Acquisitions Organic growth New business activities Effects of 9Live consolidation in Q2 (consolidation since June 2005) Development of 9Live as an inter-active TV brand Internet Mobile services Mobile DMB Licensing Music (Starwatch) Pay-TV: launch of kabel eins classics and Sat.1 Comedy Launch of Wettstudio.at in Austria on May Preparation of the Launch of Video-on-Demand portal maxdome page 22

23 ProSiebenSat.1 Group: Pay TV services start June 1, 2006 Sat.1 Comedy and kabel eins classics will be broadcast via digital feeds of Kabel Deutschland (Kabel Digital Home) and Unity Media (Tividi). Broad selection of movies with top titles from the 1930 s s Wide range of genres for a broad target group Event programming E.g. 80th birthday of Marilyn Monroe on June 1st Comedy shows from the ProSiebenSat.1 family of channels Shows: TV Total, Genial daneben, Harald Schmidt Classics Series: Sechserpack, Was nicht passt wird passend gemacht, Das Büro Comedy movies American Pie, Ace Ventura, Forrest Gump International sitcoms Roseanne, The Simpsons, Who s the Boss, Married with Children, Benson, M*A*S*H, Will & Grace page 23

24 Diversification: maxdome starts in Q ProSiebenSat.1 and United Internet are launching joint VoD platform maxdome in Q Strategic rationale: Enter the growing VoD market Deal structure: United Internet: Hosting/Streaming, Billing & Clearing/CRM, Customer-Care, Promotion/Selling, Hardware ProSiebenSat.1: Content-Sourcing, Editorial, Content preparation, Promotion/Marketing Business model: Strategic cooperation (profit share) Product: VoD platform for PC and TV (STB), four SVoD packages will be offered (Comedy, Series, Complete and Movies) as well as VoD offering including ProSiebenSat.1 content and Hollywood Content deals: Paramount, Constantin, Kinowelt, Epsilon, Kirch Media; others under final negotation Access: 1&1, WEB.de, GMX page 24

25 Outlook 2006: Moving towards the digital world IPTV: ProSiebenSat.1 Group has signed contracts with Telefónica as well as T-Online to transmit its programs via DSL and is negotiating with other providers. Offers Streaming of stations: Sat.1, ProSieben, kabel eins, N24, 9Live Planned: Pay channels of the Group: Sat.1 Comedy, kabel eins Classics VoD platform maxdome with United Internet/cooperation with T-Online New revenue sources Cost per Subscriber Expansion of reach Additional distribution Higher reach for ProSiebenSat.1 channels Signal protection Digital Rights Management to secure license requirements Encryption of basic package page 25

26 Outlook 2006: triple play world of ProSiebenSat.1 More variety for viewers and consumers: ProSiebenSat.1 uses new channels to enlarge its services. Cable/satellite/terrestrial ADSL/Internet Mobile networks Free TV Transaction TV Pay TV/ non-linear content Video-on-Demand via page 26

27 ProSiebenSat.1 Media AG Corporate Office Medienallee 7 D Unterföhring Tel. +49/89/ Fax +49/89/ page 27