Roadshow presentation - April 2020
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Roadshow presentation April 2020
Q1 summary
The year started out well, but the spread of the
Coronavirus is having an adverse impact on the business Organic sales growth
-2%
Organic sales down 2%
Strong subscriber intake in Viaplay almost fully offset
EBIT growth
weaker performance in Advertising and Studios
-20%
Now targeting 400k net adds for Viaplay in 2020 = 25%
growth
Viaplay subs (QoQ)
EBIT before IAC down SEK 55m but included SEK 60m
headwind from the US dollar +102k
A subscription driven business
sales split subscriber split
Productions
Viasat 3rd party
10% Advertising
17%
23%
Viasat DTC 19%
64%
Viaplay
67%
Subscription & Others
Q1 2020 End of Q1 2020
4
Viaplay Subscriptions & Other
Viaplay subscriber base*, thousands Comments
1,671 • Subscription revenues up 5% and accounted for 67% of
1,568 Group revenues
1,421 1,459
1,357
• Viaplay added 102k subscribers QoQ
• TV & Movies base up 114k – a new record
• Now targeting 400k net adds in 2020 - 25% growth
• # of started streams up 34% YoY in Q1
• # of started streams (non-sports) up 46% YoY in March
• Record sales for TVOD and EST
• Successful launch in Iceland on 1 April with >5% of households
Q1 19 Q2 19 Q3 19 Q4 19 Q1 20
already signed up
* Standalone paying subscribers (i.e. not including subscribers that have access to Viaplay through traditional pay-TV packages)
5
Advertising & NENT Studios
Advertising Studios
Advertising revenues Studios revenues
• Down 13% in Q1 and accounted for 23% of • Down 17% and accounted for 10% of Group
Group revenues revenues
• March down 17% • Q2 expected to be down significantly
• April expected to be down 25%
Comments
Comments
• Postponements and delays to Autumn 20 or Spring
• ~80% of estimated annual ad inventory has
21 but few cancellations and continued strong
been committed in upfront agreements at slightly
underlying demand for scripted drama content
higher net prices than last year
• Largely variable cost base so limited impact on
• The most affected segments right now are Travel,
group earnings
Entertainment, Retail and Betting
• Sale of non-scripted, events and branded
• The most resilient segments are Pharma and
entertainment businesses paused but to restart
Healthcare, FMCG and Telcos
soon after encouraging levels of interest
Cash flow and leverage
SEKm Q120 Q119 FY19 SEKm Q120
Cash flow from operations 247 245 1,393 LTM EBITDA before IAC 1,826
Change in working capital -794 -402 -791 Net debt 4,754
Net operating cash flow -547 -157 602 Net debt / LTM EBITDA before IAC 2.6x
CapEx * -37 -32 -176 Financial net debt 4,194
Operating FCF -584 -189 426 Lease liabilities and dividend payable 560
* Excluding Acquisitions and Divestments
Covid-19 action plan
9 March - travel ban initially to/from affected areas and then altogether
Protecting our People 11 March – encouraging people to work from home
Emphasis on continuous communication and interaction to support physical and mental wellbeing
Helping to fight Helping health authorities inform the public
#Lyssnarhjälpen
Covid-19 Offering Viaplay accounts to particularly affected people and their careers
Taking care of our 13 March – Temporary price reductions for sports packages
customers and More sports related programming, ‘feel good’ content, and ‘straight to store’ movies available
partners New long-term deals with studios, sports rights owners and distribution partners
Implemented actions to reduce costs by at least SEK 700m in 2020 without reducing permanent
Reducing costs workforce or reducing ambitions for Viaplay
This comes on top of the SEK 250m of savings from last year’s transformation
Cash flow boost from OpEx and CapEX savings and no dividend payment will exceed SEK 1 bn
Protecting cash flow Looking into utilising government initiatives to manage liquidity during 2020
Business outlook for 2020
outlook
profitable growth withdrawn for 2020
viaplay net subscriber intake approx. 400 thousand
cost savings from 2019 program majority of the SEK 250m will impact 2020
cost savings from 2020 program approx. SEK 700m with full impact 2020
transactional FX impact on EBIT approx. SEK -200m
tax rate approx. 20%
capital expenditure approx. 1% of sales
The bigger picture
Our strategy to focus We’ve taken quick and Our expansion to
on streaming is more decisive actions so that Iceland demonstrates
relevant than ever we are able to capture Viaplay's ability to
before opportunities travel internationally
10
Still significant growth potential in Viaplay
Nordic SVOD penetration (%) # of subscriptions per SVOD household
95 3,0
1,357
1,258
1,61
1,8
50
~95 ~3
~1.8
~50
2019 Future 2019 Future
Q1 2019The broadest & most relevant content
series movies sports originals
acquired from local and acquired from local and 55,000 hours of live sports >30 local language
international studios international studios per year premieres every yearAn unmatched portfolio of sports rights
National
Soccer
Leagues
2021 2028 2024 2021 2021 2021 2021 2021 2022 2024 2024 2028 2026 2025 2025 2022 2024 2026
(from (from
2021) 2021)
2024 2028 2024 2021 2021 2021 2021 2021 2022 2024 2024 2028 2024 2025 2025 2022 2024 2026
(from (from (from
2024) 2021) 2021)
2021 2028 2024 2021 2021 2021 2021 2021 2022 2024 2024 2028 2022 2025 2025 2022 2024 2026
(from 2022) (from (from
2021) 2021)
2021 2028 2024 2021 2021 2021 2021 2021 2022 2024 2024 2028 2022 2025 2025 2022 2024 2026
(from 2021) (from (from (from
2024) 2021) 2021)Viaplay Originals - no substitute for local drama
21
titles
8titles
~30
titles to be
premiered 2019 premiered Q1 2020 premiered in 2020
Wisting Face to Face Love Me Those Who KillViasat Consumer & Canal Digital to form 50/50 JV
Creates stronger combined business with ability to
invest in enhanced customer proposition
Substantial cost and revenue synergies + prolongs life
(DTH) (DTH & BTV)
of traditional platforms
50/50 equity split - a clear win-win transaction with
JV no cash payment from either side
In line with NENT Group strategy - a game changing
50% 50% agreement long in the making
Subject to regulatory approvals and expected to be
completed during Q2 2020
3a unique play on the Nordic
streaming market
a Nordic content champion
Our investor
with global appeal
proposition a successful track record &
a winning team
a clear capital allocation
strategyTelling stories Touching lives Expanding worlds
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