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3 4 2018 Group Group Operational Strategy & highlights - PowerPoint PPT Presentation

Mar 26, 2024 •141 likes •432 views

Agenda 1 2 3 4 2018 Group Group Operational Strategy & highlights financials highlights Outlook 2018 2 2 Highlights The pan-European leader in Total Video REVENUE BROADCAST 3,046 +2.3% In million Leading free-to-air

  2. Agenda 1 2 3 4 2018 Group Group Operational Strategy & highlights financials highlights Outlook 2018 2 2

  3. Highlights The pan-European leader in Total Video REVENUE BROADCAST 3,046 +2.3% In € million Leading free-to-air channels and growing HY 2018: First time over €3 billion TV VOD services CONTENT Global entertainment brands Record-high in and growing catalogue TV challenging market of high-end drama environments DIGITAL Proprietary tech with HY 2018 HY 2013 leading ad-tech stack TV & global MPNs EBITDA of €638 million 3 3

  4. Highlights Our long-term track record LOCAL CONTENT AS KEY SUCCESS FACTOR … Consistent revenue +3% CAGR since 2014 growth 20.9% in HY 2018 High EBITDA margins Ever more diversified 52.3% Non-TV ad revenue revenue mix Organic growth Digital: +16.3% 1 +10.3% … PROVIDING FIREPOWER TO from content & digital revenue YoY revenue YoY EXPAND “TOTAL VIDEO” POSITION Notes: 1.Refers to total digital revenue of MGRTL, M6, and RTL NL. 4 4

  5. Highlights Strong second quarter drives half-year results +3.6% Q2 revenue +4.7% Q2 EBITDA +2.3% Half-year revenue +1.9% Half-year EBITDA 5 5

  6. Highlights Continued organic growth through a broad and diversified revenue mix RTL GROUP HY 2018 REVENUE SPLIT PLATFORM AND DIGITAL REVENUE Groupe M6: In € million In % Renewal of distribution agreements 591 Platform 1 167 Content #1 MPN Revenue +20% YoY 3 1.7x 213 18.7 424 3.8x 100 5.5 113 47.7 € 3.0 bn TV advertising RTL Group: Video views HY 2014 HY 2018 13.9 +28% YoY 10.0 4.2 3.7% 5.5% % of total RTL Radio advertising Group revenue Goal: 4.2% 13.9% Other Grow direct-to-consumer Digital 2 revenue significantly Platform Digital Notes: 1. Platform revenue defined as revenue generated across all pay platforms (cable, satellite, IPTV) including subscription and re-transmission fees. 2. Excl. e-commerce, home shopping, and platform revenue for digital TV. 3. In EUR, impacted materially by negative FX effects. 6 6

  7. Looking forward More organic growth initiatives across all our main businesses BROADCAST Expand local video-on-demand services CONTENT Continue push into scripted drama DIGITAL Build global MPNs and ad-tech stack We are re- inventing RTL’s pioneering spirit 7 7

  8. Agenda 1 2 3 4 2018 Group Group Operational Strategy & highlights financials highlights Outlook 2018 8 8

  9. Review of results 30 June 2018 Q2/2018: Strong growth across all financial metrics Quarter to Quarter to Per cent In € million 30 June 2018 30 June 2017 change Revenue 1,630 1,573 +3.6 EBITDA 379 362 +4.7 EBITDA margin (%) 23.3 23.0 EBITA 338 315 +7.3 EBITA margin (%) 20.7 20.0 9 9

  10. Review of results 30 June 2018 H1/2018: Strong second quarter leads to growth across first half year Half-year to Half-year to Per cent In € million June 2018 June 2017 change Revenue 3,046 2,978 +2.3 Underlying revenue 3,081 2,971 +3.7 Operating cost base 2,542 2,494 +1.9 EBITDA 638 626 +1.9 EBITDA margin (%) 20.9 21.0 - EBITA 548 533 +2.8 EBITA margin (%) 18.0 17.9 - Net debt (943) (1,000) - 10 10

  11. Review of results 30 June 2018 Bridge from EBITDA to net profit Half-year to Half-year to Per cent In € million June 2018 June 2017 change Reported EBITDA 638 626 +1.9 Depreciation, amortisation and impairment (97) (101) Re-measurement of earn-out arrangements and gain / (loss) from sale of subsidiaries other investments and re-measurement to fair value of pre- 9 13 existing interest in acquiree Impairment of investments accounted for using the equity method (2) (2) Net financial income/(expense) (6) (8) Income tax expense (176) (165) (6.7) Profit for the period 366 363 +0.8 Attributable to: RTL Group shareholders 318 320 (0.6) 11 11

  12. Review of results 30 June 2018 Stable cash generation despite on-going investments in scripted drama Half-year to Half-year to In € million June 2018 June 2017 Net cash flow from operating activities 226 214 Add: Income tax paid 280 264 Less: Acquisition of assets, net (86) (62) Equals: Reported free cash flow (FCF) 420 416 Reported EBITA 548 533 EBITA conversion (FCF/EBITA) 77% 78% 12 12

  13. Agenda 1 2 3 4 2018 Group Group Operational Strategy & highlights financials highlights Outlook 2018 13

  14. Mediengruppe RTL Deutschland RTL Group’s largest unit with outstanding profitability … FAMILY OF CHANNELS MG RTL 1 27.3% KEY FINANCIALS +0.5 to 1.5% 14 to 59, HY 2018 In € million TV ad market REVENUE EBITDA 34.2% 10.7% margin +0.8% Others 23.5% 6.3% +0.8% 1,070 1,061 10.3% 366 7.0% 363 ARD-III 8.6% ARD 24.1% 9.5% ZDF P7S1 2 2 HY 2017 HY 2018 HY 2017 HY 2018 Source: AGF in cooperation with GfK. Notes: 1. MG RTL includes RTL II and Super RTL, excluding pay-TV channels. 2. Re-presented, please see the financial report for details. 14 14

  15. Mediengruppe RTL Deutschland … and significant audience share lead in most important time slots FAMILY OF CHANNELS MG RTL 1 27.3% ACCESS PRIME TIME PRIME TIME 14 to 59, HY 2018 (17 – 20h) 14 to 59, in % (20 – 23h) 14 to 59, in % 10.7% +5.3 pp +3.7 pp Others 23.5% 6.3% 27.5 26.0 22.2 22.3 10.3% 7.0% ARD-III 8.6% ARD 24.1% 9.5% ZDF P7S1 MG RTL P7S1 MG RTL P7S1 Source: AGF in cooperation with GfK. Notes: 1. MG RTL includes RTL II and Super RTL, excluding pay-TV channels. 15

  16. MGRTL TV On-demand TV Now is outperforming expectations and competition Key growth drivers: PAID SUBSCRIBER AND VIDEO VIEW GROWTH 1 In % exclusive local formats such as GZSZ +42% +44% Successful launch 2 of OTT linear channel: Now US 35.8 Premium service 20.3 3 TV Now Plus: dynamic HY 2017 HY 2018 HY 2017 HY 2018 growth of subscribers Paid subscribers Video views Source: Internal measurement, video views include Connected TV. 16

  17. Groupe M6 EBITDA up driven by growing high-margin platform revenue FAMILY OF CHANNELS GROUPE M6 1 21.1% KEY FINANCIALS +1.9% Women < 50 responsible for In € million TV ad market purchases, HY 2018 REVENUE EBITDA 14.6% -0.5% Others +2.2% 743 739 34.0% 6.5% 182 178 4.2% France 3 32.3% 8.4% Groupe TF1 2 France 2 3 3 HY 2017 HY 2018 HY 2017 HY 2018 Source: Médiamétrie Notes: 1. Groupe M6 includes M6, W9 and 6ter. 2. Groupe TF1 includes TF1, TF1 Series Films, TFX and TMC. 3. Re-presented, please see the financial report for details. 17

  18. RTL Nederland Advertising market positive; significant jump in EBITDA FAMILY OF CHANNELS RTL Nederland 27.7% RTL Nederland 27.7% KEY FINANCIALS +3.2% 25 to 54, Prime time, HY 2018 In € million TV ad market REVENUE EBITDA 16.2% Others Others 26.6% +5.7% +68.4% 241 228 11.5% 11.5% 32 19 25.4% 20.3% Pubcaster 2 Talpa TV 1 Pubcaster 3 3 HY 2017 HY 2018 HY 2017 HY 2018 Source: SKO Notes: 1. Talpa TV: SBS6, Net 5, Veronica & SBS 9. 2. Pubcaster: NPO 1, NPO 2 & NPO 3. 3. Re-presented, please see the financial report for more details. 18

  19. FremantleMedia Good revenue growth despite negative FX effects… REVENUE BRIDGE HY 2017 – HY 2018 EBITDA In € million In € million +66 (43) +10 672 639 FX effects Acquisitions Net growth 42 42 +5.2% 1 1 HY 2017 HY 2018 HY 2017 HY 2018 Increased content aired in first six months of 2018 to 6,202 hours Notes: 1. Re-presented, please see the financial report for details. 19

  20. FremantleMedia … driven by successful comeback of American Idol RENEWED FOR SECOND SEASON ON #1 Social TV show 1 #1 entertainment show Jennifer Mullin for ABC with > 1 billion video views appointed to lead FremantleMedia Note: 1. On prime time. 20

  21. Agenda 1 2 3 4 2018 Group Group Operational Strategy & highlights financials highlights Outlook 2018 21

  22. Strategy 2018 More organic growth initiatives in two main areas 1 Video-on-demand: Build local streaming champions 2 Content production: Continue push into scripted drama, explore new genres Leverage pan-EU scale to drive organic growth 22 22

  23. 01 VOD Strategic priority #1: Video-on-demand Hybrid product strategy to attract mass audiences HYBRID “FREEMIUM” APPROACH Illustrative Hybrid 7+ day TV Exclusive content on-demand business Pre-TV and archive Basic TV Premium Full ad load Upsell Low ad load model on-demand on-demand SD quality (Ad-funded) (Pay) HD quality Live signal 01 Grow local content investments Key priorities 02 Utilising common VOD tech platform across the Group across the Group 03 Develop hybrid business model 23 23

  24. 01 VOD Strategic priority #1: Video-on-demand We are massively expanding our direct-to-consumer businesses Upcoming major relaunch Combining Videoland & RTL XL Salto in France More exclusive content with + clear goal to build mass-market German streaming service Merged product will Provides one-stop-shop +44% for “Best of TV” content Paid subscriber growth strengthen user proposition and conversion to pay-tiers for young audiences Paid subscriber growth; Registered users +42% +122% >22m on 6play service – Video view growth viewing time up by 204% strong upsell funnel 24 24

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