Post on 05-Jul-2020
The leading European entertainment networkThe leading European entertainment network
HALF-YEAR RESULTS 2013Anke Schäferkordt & Guillaume de Posch, Co-CEOsElmar Heggen, CFO
Luxembourg, 22 August 2013
This presentation is not an offer or solicitation of an offer to buy or sell securities. It is furnished to you solely for your information and use at this meeting. It contains summary information only and does not purport to be comprehensive or complete, and it is not intended to be (and should not be used as) the sole basis of any analysis or other evaluation.No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein. By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of RTL Group S.A. (the "Company”) and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business.This presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes,” “expects,” “predicts,” “intends,” “projects,” “plans,” “estimates,” “aims,” “foresees,” “anticipates,” “targets,” “will,” “would,” “could” and similar expressions. The forward-looking statements contained in this presentation, including assumptions, opinions and views of the Company or cited from third-party sources, are solely opinions and forecasts which are uncertain and subject to risks and uncertainty because they relate to events and depend upon future circumstances that may or may not occur, many of which are beyond the Company’s control. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company or any of its subsidiaries (together with the Company, the “Group”) or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in general economic conditions, in particular economic conditions in core markets of the members of the Group, changes in the markets in which the Group operates, changes affecting interest rate levels, changes affecting currency exchange rates, changes in competition levels, changes in laws and regulations, the potential impact of legal proceedings and actions, the Group’s ability to achieve operational synergies from past or future acquisitions and the materialization of risks relating to past divestments. The Company does not guarantee that the assumptions underlying the forward-looking statements in this presentation are free from errors and it does not accept any responsibility for the future accuracy of the opinions expressed in this presentation. The Company does not assume any obligation to update any information or statements in this presentation to reflect subsequent events. The forward-looking statements in this presentation are made only as of the date hereof. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients thereof shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.This presentation is for information purposes only, and does not constitute a prospectus or an offer to sell, exchange or transfer any securities or a solicitation of an offer to purchase, exchange or transfer any securities in or into the United States or in any other jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or pursuant to an available exemption from the registration requirements of the U.S. Securities Act of 1933, as amended.
Disclaimer
The leading European entertainment networkThe leading European entertainment network
Agenda
● HALF-YEAR HIGHLIGHTS
o Business Review
o Financial Review
o Business Outlook
3
RTL Group with strong performance in first-half 2013
4
o Successful IPO at Frankfurt Stock Exchange
o Strong interim results demonstrating resilience of diversified portfolio and business model
o Significantly higher EBITA and net profit for the first half of 2013 despite tough economic environment
o Strong cash flow generation leading to interim dividend payment
o Clear focus on executing our growth strategy “broadcast – content – digital”
RTL Group continues to create value
Successful IPO
o Largest EMEA IPO this year
o Largest media IPO since 2004
o SDAX inclusion from 24 June 2013
o Prime standard reporting
51.0
53.0
55.0
57.0
59.0
61.0
63.0
65.0
29 April 2013 14 May 2013 29 May 2013 13 June 2013 28 June 2013
€
RTL Group vs DAX (30 April to 30 June 2013)
RTL Group (Frankfurt) DAX (rebased)
+13.8%
+1.1%
5
REVENUE
€2.8 billion
REPORTED EBITA continuing operations
€552 million
CASH CONVERSION
120%EBITA MARGIN
19.9%NET RESULT
€418 million
SECOND BEST FIRST-HALF EBITA; INTERIM DIVIDEND ANNOUNCED
Half-year highlights 2013
6
INTERIM DIVIDEND
€2.5 per share
The leading European entertainment networkThe leading European entertainment network
Agenda
o Half-year highlights
● BUSINESS REVIEW
o Financial Review
o Business Outlook
7
Note: P7S1 includes N24 up to 2010. 2011 and 2012 exclude Sixx
RECORD FIRST HALF-YEAR FINANCIAL RESULTS
KEY FINANCIALS (in € million)AUDIENCE SHARE 14-59 (in %)
Mediengruppe RTL Deutschland
14.5
9.4 8.5
29.5 29.430.9
30.131.5
32.4 32.631.3 31.2
27.6 26.7 26.4 26.9 27.4 26.9 26.025.2
24.5
2005 2006 2007 2008 2009 2010 2011 2012 HY 2013
5.77.6
5.3
43.843.3
46.4
43.543.9
43.7 44.3 44.0
43.4 43.1
39.2
41.6 41.4 41.4 40.742.3
2006 2007 2008 2009 2010 2011 2012 HY2013
AUDIENCE SHARE – FAMILY OF CHANNELS14-59 (in %)
RTL
P7S1
RTL Pro7Sat.1 VoxRTL II Kabel1
RTL
P7S1
SHARE OF NET ADVERTISING MARKET (in %)
+/-0+0.4-1.1 -1.1 -0.4 +0.3
Percentage point deviation vs HY 2012Source: GfK, ZAW and RTL Group estimates
x
933 944
280 306
ROS
30.0%
ROS
32.4%
HY 2012 HY 2013HY 2012 HY 2013
REVENUE EBITA
8
711 698
SOLID PERFORMANCE IN DIFFICULT MARKET CONDITIONS
15.8
25.2
10.04.4
44.6
M6 TF1 France 2 France 3 Others
NET TV ADVERTISING MARKET DEVELOPMENT
AUDIENCE SHARE – FAMILY OF CHANNELS
20.832.5
18.5
Groupe M6 TF1 Group France Télévisions
AUDIENCE SHARE – MAIN CHANNELSQ1 2013 VS Q1 2012 (in %)
-6.0
-2.3
-8.8
126 127
KEY FINANCIALS (in € million)
M6 TF1Market
-0.6 -2.4+0.5
ROS
18.2%
ROS
17.7%
HOUSEWIVES <50 ALL DAY (in %)
HOUSEWIVES <50 ALL DAY (in %)
-1.5 -1.0 +2.9-0.1 -0.3
Percentage point deviation vs HY 2012
Source: Médiamétrie, housewives under 50, RTL Group estimatesGroupe M6: M6, W9 and 6ter; TF1 Group: TF1, TMC, NT1 and HD1; France TV: Fr2 – Fr5
x
Percentage point deviation vs HY 2012x M6 and TF1: based on published information. Market : RTL Group estimates
HY 2012 HY 2013HY 2012 HY 2013
REVENUE EBITA
Groupe M6
9
IMPROVED OPERATIONAL PERFORMANCE
671
FremantleMedia
KEY FACTS 2013 KEY FINANCIALS (in € million)
ROS
5.6%
ROS
7.0%
10
REVENUE EBITA
HY 2012 HY 2013 HY 2012 HY 2013
671720
47
● Core franchises remain strongo Idols: 12th season peak audience
most watched entertainment show so far this year
o America’s Got Talent: launch show up7 per cent on last season (7)
o Family Feud: best performance inover 20 years
● Digitalo 24.3 million downloads across
mobile and Facebook for Ludia’ssocial games
o Youtube channels attract 2.9 billion video views, up 86% year on year 40
OUT-PERFORMING IN A DIFFICULT MARKET
HY AUDIENCE SHARE – FAMILY OF CHANNELS KEY FINANCIALS (in € million)
HY AUDIENCE SHARE: 20-49, PRIMETIME (in %)
18.9 14.58.5
5.2 5.3
RTL 4 NED 1 SBS 6 RTL 5 Net 5
+/- 0 -0.5-3.7
32.4
20.326.5
RTL Nederland SBS Ned 1-3
+/- 0 -3.4+0.3
-0.8 +1.0
HY 2013 vs HY 2012 (in %)
NET TV ADVERTISING MARKET DEVELOPMENT
-5.6
-1.1
Market RTL Nederland
Percentage point deviation vs HY 2012x
Percentage point deviation vs HY 2012x Source: RTL Group estimates (spot and non-spot)
ROS
18.3%
ROS
17.8%
REVENUE EBITA
HY 2012 HY 2013 HY 2012 HY 2013
20-49, PRIMETIME (in %)
RTL Nederland
208 214
38 38
11
SOLID RESULTS DUE TO MANAGEMENT OF COST BASE
NET TV ADVERTISING MARKET DEVELOPMENT
AUDIENCE SHARE – FAMILY OF CHANNELS
RTL Belgium
26.6
14.25.0 6.2 4.1
RTL-TVI La Une La Deux Club RTL Plug RTL
36.9
19.2
4.8
23.2
RTL Belgium Pubcaster AB 3 FrenchChannels
AUDIENCE SHARE: SHP 18-54, PRIMETIME (in %)
KEY FINANCIALS (in € million)
-0.2 +0.5-0.2 -1.6
-7.5 -7.5-9.8
Market RTL Belgium RTBF
HY 2013 VS HY 2012 (in %)
-1.0 -1.2+1.0 +0.5
108
25 25
105ROS
23.1%
ROS
23.8%
Percentage point deviation vs HY 2012
Source: Audimétrie
x
Percentage point deviation vs HY 2012x
12
REVENUE EBITA
HY 2012 HY 2013 HY 2012 HY2013
Source: RTL Group estimates
+0.3
SHOPPERS 18-54, PRIMETIME (in %)
FLAGSHIP CHANNEL GAINING AUDIENCE SHARE
12.1
● Audience share of RTL family well ahead of commercial rivals
● Advertising market estimated to be down 1.0 per cent with RTL’s share at 25.2 per cent
RTL Radio (France)
KEY FACTS 2013 KEY FINANCIALS (in € million)
+0.6 +0.7 +0.3 -0.1 -0.2 -1.2 +0.5
16.3 +1.8p -0.7p
AVERAGE AUDIENCE SHARE 2013 – 13+, 5-24H, MON – FRI (in %), APRIL-JUNE
RTL Fun Radio
RTL2 NRJ Nostalgie ChérieFM
Rire &Chansons
Eur. 1 Virgin RFM FranceInter
FranceBleu
FranceInfo
RTL STATIONS NRJ GROUP LAGARDÈRE PUBCASTER
18.5 -0.9p+0.2p 19.5
+0.4
12.0
3.5 3.0
7.6
4.2 2.91.6
7.3
1.9 2.9
9.36.8
3.4
Percentage point deviation vs April-June 2012x
13
13 13
ROS
14.6%
ROS
15.1%
HY 2012 HY2013HY 2012 HY2013
REVENUE EBITA
8986
-0.3 +0.1 +0.2 -0.2-0.4
IMPROVED PROFITABILITY IN ALL MARKETS
-403 5
Others: Hungary, Croatia, Spain
KEY FINANCIALS, Atresmedia (in € million)
14
KEY FINANCIALS, RTL Klub (in € million) KEY FINANCIALS, RTL Hrvatska (in € million)
100% VIEW
● TV advertising markets in HY 2013:Hungary: –3.0%; Croatia –4.0%;Spain –12.8%
● Audience shares of family of channels:Hungary 37.2%; Croatia 28.9%; Spain 30.5%
KEY FACTS 2013
385 423
34 40
ROS
8.8%
ROS
9.5%
HY 2012 HY 2013HY 2012 HY 2013
REVENUE EBITDA
15 17
HY 2012 HY 2013HY 2012 HY 2013
REVENUE EBITA
HY 2012 HY 2013HY 2012 HY 2013
REVENUE EBITA
45 45ROS
6.7%
ROS
11.1%
Enter high
growth
markets
Strengthen
family of
channels
Secure
attractive
content
Key developments 2013 : delivering on our strategy
Broadcast
+X %JULY
RTL Television secures rights to German national team qualifiers for Euro 2016 and World Cup 2018
AUGUST
RTL Group announces launch of two new basic pay channels in Asia in a partnership with CBS
JULY
RTL Hrvatska awarded licence for new kids channel in Croatia
15SELECTED INVESTMENTS IN BROADCAST 15
Growing
across all
digital
platforms
Strengthen
VOD offer
Digital
expansion
INVESTMENTS BOOST PRESENCE IN DIGITAL
Key developments 2013 : delivering on our strategy
Digital
+X %
JUNE
Acquisition of majority stake in Canadian company BBTV, Youtube’s 5th
largest multi-channel network (MCN)
AUGUST
RTL Group acquires a 65% stake in “TEG”, the number 1Pay Video-On-Demand (Pay VOD) company in the Netherlands
RTL Group’s video services and websites attracted 4.8 billion online video views in the first six months of 2013 – up 35 per cent. Online revenue up 20 per cent to €108 million
16
The leading European entertainment networkThe leading European entertainment network
Agenda
o Half-year highlights
o Business Review
● FINANCIAL REVIEW
o Business Outlook
17
Review of Results 30 June 2013, continuing operations (1/2)
In € millionHalf-year to
June 2013
Half-year to
June 2012
Per cent
change
REVENUE 2,779 2,815 -1.3
REPORTED EBITA 552 506 +9.1
Reported EBITA margin (%) 19.9 18.0 +1.9pp
Net result attributable to RTL Group shareholders 418 274 +52.6
UNDERLYING REVENUE 2,780 2,815 -1.2
UNDERLYING EBITA 565 506 +11.7
18
Half-year to
June 2013
Half-year to
June 2012
Per cent
change
REPORTED EBITA 552 506 +9.1
Impairment of investment in associates and amortisationand impairment of fair value adjustments on acquisitions 67 (15)
Gain / (Loss) from sale of subsidiaries, joint venturesand other investments
1 (1)
Net financial income / (expense ) 5 (11)
Income tax expense (158) (147)
PROFIT FOR THE PERIOD – CONTINUING OPERATIONS 467 332 +40.7
LOSS FOR THE PERIOD – DISCONTINUED OPERATIONS - (1)
PROFIT FOR THE PERIOD 467 331
Attributable to:
Non controlling interests 49 57
RTL Group shareholders 418 274 +52.6
In € million
19
Review of Results 30 June 2013, continuing operations (2/2)
Cash Flow Statement as of 30 June 2013
In € million Half-year to
June 2013
Half-year to
June 2012
NET CASH FLOW FROM OPERATING ACTIVITIES 581 385
Add: Income tax paid 132 225
Less: Acquisition of assets, net (53) (87)
Equals: Reported free cash flow (FCF) 660 523
Acquisition of subsidiaries and JVs, net of cash acquired (66) 1
Disposal of subsidiaries and JVs, net of cash (1) (2)
Other financial assets (deposit excluded), net (4) 3
Net interest received / (paid) 20 (10)
Transaction with non controlling interests 1 (5)
Income tax paid (132) (225)
Dividends paid (1,746) (869)
CASH GENERATED / (USED) (1,268) (584)
REPORTED EBITA (CONTINUING AND DISCONTINUED) 552 503
EBITA CONVERSION (FCF/EBITA) 120% 104%
20
Net debt & EBITDA as of 30 June 2013
In € million Half-year to
June 2013
Full year to
December 2012
Gross financial debt (540) (29)
Cash and cash equivalents 313 650
Deposit with majority shareholder - 426
Other 3 4
Net (debt) / cash position (224) 1,051
EBITDA 635 1,257
21
o Extraordinary interim dividend of €2.5 per share or €387 million to be paid 5 September
The leading European entertainment networkThe leading European entertainment network
Agenda
o Half-year highlights
o Business Review
o Financial Review
● BUSINESS OUTLOOK
22
Outlook
23
The tough economic environment is not expected to easeover the remainder of the year
Strong interim results with all profit indicators up demonstrateresilience of a diversified and balanced portfolio
While visibility on the 4th quarter is limited, RTL Group expects a similar level of EBITA as in 2012 assuming no
unexpected market deterioration
The leading European entertainment networkThe leading European entertainment network
HALF-YEAR RESULTS 2013Anke Schäferkordt & Guillaume de Posch, Co-CEOsElmar Heggen, CFO
Luxembourg, 22 August 2013
The leading European entertainment network
Appendix
€, m Q2 2013 Q2 2012
Revenue 1,450 1,493
EBITA 345 315
EBITA margin 23.8% 21.1%
EBIT 401 311
Interest income 3 3
Interest expense (6) (7)
Financial results other than interest 10 (35)
Profit before taxes 408 272
Income tax expense (97) (85)
Profit for the period, continuing operations 311 187
Discontinued operations - -
Profit for the period 311 187
EPS 1.86 1.07
Summary consolidated income statement for the 3 months to 30 June
26
€, m Q1 2013 Q2 2013 HY 2013 Q1 2012 Q2 2012 HY 2012
Mediengruppe RTL Deutschland
461 483 944 456 477 933
Groupe M6 349 349 698 355 356 711
Fremantle Media 303 368 671 311 409 720
RTL Nederland 92 122 214 90 118 208
RTL Belgium 51 54 105 54 54 108
French Radio 39 47 86 41 48 89
Other segments 82 78 160 64 79 143
Of which: Hungary 20 25 45 19 26 45
Croatia 7 10 17 6 9 15
German Radio 12 13 25 12 13 25
UFA Sports 20 3 23 1 6 7
Eliminations (48) (51) (99) (49) (48) (97)
Total revenue 1,329 1,450 2,779 1,322 1,493 2,815
Revenue by Business Unit, continuing operations
27
€, m Q1 2013 Q2 2013 HY 2013 Q1 2012 Q2 2012 HY 2012
Mediengruppe RTL Deutschland
134 172 306 109 171 280
Groupe M6 60 67 127 63 63 126
Fremantle Media 10 37 47 13 27 40
RTL Nederland 4 34 38 5 33 38
RTL Belgium 12 13 25 12 13 25
French Radio 2 11 13 3 10 13
Other segments (15) 11 (4) (14) (2) (16)
Of which: Hungary (1) 6 5 (2) 5 3
Croatia (2) 2 - (4) - (4)
German Radio 2 4 6 3 3 6
UFA Sports - - - (2) 1 (1)
Atresmedia (1) 7 6 2 2 4
Total EBITA 207 345 552 191 315 506
EBITA by Business Unit, continuing operations
28
The leading European entertainment networkThe leading European entertainment network
IR calendar and contacts
29
IR Calendar:
1 October 2013 : Analysts and Investor Day; Cologne
6 November 2013 : Quarter 3 IMS
6 March 2014 : Full year 2013 results announcement
IR Contact details:Andrew Buckhurst : 00 352 2486 5074 : andrew.buckhurst@rtlgroup.comPhilipp Klose : 00 352 2486 5075 : philipp.klose@rtlgroup.com