Central European Media Enterprises Ltd
Central European Media Enterprises — Q1 2013 Earnings Presentation
26 slides from Central European Media Enterprises's earnings presentation, Apr 29, 2013
Slide 1: Determined to Reverse the Trend of Declining TV Advertising Spending: 2013 Earnings Call
DETERMINED TO REVERSE THE TREND OF DECLINING TV ADVERTISING SPENDING 2013 EARNINGS CALL
Slide 2: CME Management Attending the Call
CME MANAGEMENT ATTENDING THE CALL 2
Slide 3: Safe Harbour Statement
SAFE HARBOUR STATEMENT This presentation contains forward-looking statements, including those relating to our capital needs, business strategy, expectations and intentions. Statements that use the terms “believe”, “anticipate”, “trend”, “expect”, “plan”, “estimate”, “forecast”, “intend” and similar
Slide 4: Determined to Reverse the Trend of Declining TV Ad Spending
4 DETERMINED TO REVERSE THE TREND OF DECLINING TV AD SPENDING 2013 is a year of bold actions to restore the value we receive for our products We focused on strengthening the product performance and audience in key markets We achieved double digit advertising price increases in the Czech Republic and
Slide 5: We Replicated Our Business Model in Each Country
5 WE REPLICATED OUR BUSINESS MODEL IN EACH COUNTRY “One Content, Multiple Distribution” Model Our business model “One Content, Multiple Distribution” is based on powerful local content which is aggregated and monetized through multiple distribution platforms Beginning in January 2013, we replicated
Slide 6: Q1 2013 CME Consolidated Revenues
6 Q1 2013 CME CONSOLIDATED REVENUES * Year-on-year percentage change Real GDP* CME average Real Private Consumption* CME average 2012 2013 TV Ad Market* CME average TV Ad Market Share CME average Sources: Real GDP: Eurostat, 2013 CME estimates based on market consensus (ING, BNP Paribas, Erste, JPM,
Slide 7: Q1 2013 Financials: Consolidated Operations
7 US$ m US$ m US$ m US$ m US$ m US$ m Q1 2013 FINANCIALS: CONSOLIDATED OPERATIONS Q1 2012 @ 2012 rates Q1 2012 @ 2013 rates Q1 2013 @ 2013 rates Q1 2012 @ 2012 rates Q1 2012 @ 2013 rates Q1 2013 @ 2013 rates Q1 2012 @ 2012 rates Q1 2012 @ 2013 rates Q1 2013 @ 2013 rates
Slide 8: Czech Republic Product
8 1 Total views in the quarter 2 Average audience share in the quarter 3 In relation to local production 4 Subscribers at quarter end 5 Average daily non-duplicated unique visitors in the quarter Sources: ATO- Mediaresearch (TV audience; shares in 15-54 target group); internal measurement (VOYO); Ne
Slide 9: Czech Republic Financial
9 Q1 2013 Financials CZECH REPUBLIC – FINANCIAL PERFORMANCE IN Q1 2013 Real GDP * TV Ad Market Share TV Ad Market * Real Private Consumption * 2012 2013 2012 2013 2012 2013 2012 2013 * Year-on-year percentage change Sources: Real GDP: Eurostat, 2013 CME estimates based on market consensus (ING, BNP
Slide 10: Romania Product
10 ROMANIA PRODUCT PERFORMANCE IN Q1 2013 1 Total views in the quarter 2 Average audience share in the quarter 3 In relation to local production 4 Average daily unique visitors in the quarter 5 Subscribers at quarter end 6 Average daily non-duplicated unique visitors in the quarter Sources: Kantar M
Slide 11: Romania Financial
2012 2013 2012 2013 11 ROMANIA FINANCIAL PERFORMANCE IN Q1 2013 Q1 2013 Financials 2012 2013 2012 2013 * Year-on-year percentage change, TV Ad Market and TV Ad Market Share excludes Moldova Sources: Real GDP: Eurostat, 2013 CME estimates based on market consensus (ING, BNP Paribas, Erste, JPM, Deuts
Slide 12: Slovak Republic Financial
Q1 2013 Financials 13 SLOVAK REPUBLIC FINANCIAL PERFORMANCE IN Q1 2013 Real GDP * TV Ad Market Share TV Ad Market * Real Private Consumption * 2012 2013 2012 2013 2012 2013 2012 2013 * Year-on-year percentage change Sources: Real GDP: Eurostat, 2013 CME estimates based on market consensus (ING, BNP
Slide 13: Bulgaria Product
14 BULGARIA PRODUCT PERFORMANCE IN Q1 2013 CME leaders VOYO Website traffic 4 Voyo subscribers 3 ‘000 (million) Combined prime time audience share 1 bTV Main News The Voice of Bulgaria Citizens in Excess bTV channel 1 Average audience share in the quarter 2 In relation to local production 3 Subscrib
Slide 14: Bulgaria Financial
15 BULGARIA FINANCIAL PERFORMANCE IN Q1 2013 Q1 2013 Financials 2012 2013 2012 2013 2012 2013 2012 2013 * Year-on-year percentage change Sources: Real GDP: Eurostat, 2013 CME estimates based on market consensus (ING, BNP Paribas, Erste, JPM, Deutsche Bank, The Economist, Citi, Goldman Sachs, RBS, Na
Slide 15: Slovenia Product
16 SLOVENIA PRODUCT PERFORMANCE IN Q1 2013 CME leaders Website traffic 5 Voyo subscribers 4 ‘000 (million) Combined prime time audience share 1 POP TV Main News Slovenia’s Got Talent POP TV channel Top Notch VOYO 1 Average audience share in the quarter 2 In relation to local production 3 Average dai
Slide 16: Slovenia Financial
Real GDP * TV Ad Market Share TV Ad Market * Real Private Consumption * 2012 2013 2012 2013 2012 2013 2012 2013 17 SLOVENIA FINANCIAL PERFORMANCE IN Q1 2013 Q1 2013 Financials * Year-on-year percentage change Sources: Real GDP: Eurostat, 2013 CME estimates based on market consensus (ING, BNP Paribas
Slide 17: Croatia Product
Website traffic 4 Oyo subscribers 3 ‘000 (million) Combined prime time audience share 1 18 CROATIA PRODUCT PERFORMANCE IN Q1 2013 CME leaders OYO Nova Main News Lara’s Choice Nova channel 1 Average audience share in the quarter 2 In relation to local production 3 Subscribers at quarter end 4 Average
Slide 18: Croatia Financial
Real GDP * TV Ad Market Share TV Ad Market * Real Private Consumption * 19 CROATIA FINANCIAL PERFORMANCE IN Q1 2013 Q1 2013 Financials 2012 2013 2012 2013 2012 2013 2012 2013 1 Number not meaningful * Year-on-year percentage change Sources: Real GDP: Eurostat, 2013 CME estimates based on market cons
Slide 19: Debt Maturity Profile and Free Cash Flow
DEBT MATURITY PROFILE AND FREE CASH FLOW 20 No senior debt due until November 2015 Net debt as at March 31, 2013: US$1,066 m Cash balance: US$ 123 m Free cash flow: US$ (11) m The announced equity offerings, if successful, will improve our liquidity and help us to deleverage. 2017 Fixed Rate Notes 2
Slide 20: 2013 Outlook
2013 OUTLOOK 21 Improving product performance and audience shares Achieving advertising and carriage fee price increases Reducing costs through our operating model optimization Securing sufficient liquidity to support our pricing initiatives, invest in content, and deleverage Based on our view today
Slide 21: Financial Review
FINANCIAL REVIEW 2013 EARNINGS CALL
Slide 22: Q1 2013 Segment Analysis
23 Q1 2013 SEGMENT ANALYSIS US$ m Net Revenues OIBDA Q1 2013 Q1 2012 Growth % Like-for-Like growth1 Q1 2013 Q1 2012 Growth % Like-for-Like growth1 Bulgaria 16.4 19.3 (15)% (15)% (2.4) (1.2) (99)% (82)% Croatia 12.1 12.9 (6)% (5)% (0.6) 1.6 Nm(3) Nm(3) Czech Republic 36.8 59.0 (38)% (36)% (6.7) 23.3
Slide 23: Summary Consolidated Income Statement
24 SUMMARY CONSOLIDATED INCOME STATEMENT US$ m Three months ended March 31, 2013 2012 Net revenues 137.0 167.4 Content costs 89.2 86.9 Other operating costs 34.5 30.0 Depreciation and amortization 14.3 24.4 Selling, general and administrative costs 34.0 36.4 Operating loss (35.0) (10.3) Net interest
Slide 24: Summary Consolidated Balance Sheet
25 SUMMARY CONSOLIDATED BALANCE SHEET US$ m As at March 31, As at December 31, 2013 2012 Current assets 448.7 518.6 Non-current assets 1,586.5 1,656.1 Total assets 2,035.2 2,174.7 Current liabilities 285.8 291.4 Non-current liabilities 1,224.0 1,252.1 Total liabilities 1,509.8 1,543.5 Shareholders'
Slide 25: Summary Cash Flow
26 SUMMARY CASH FLOW Three months ended March 31, US$ m 2013 2012 Net cash used in operating activities (0.9) (33.1) Net cash used in investing activities (10.0) (7.2) Net cash used in financing activities (1.0) (1.2) Impact of exchange rate fluctuations (5.4) 5.1 Net decrease in cash and cash equiv
Slide 26: OIBDA Reconciliation
27 OIBDA RECONCILIATION US$ m Three months ended March 31, 2013 2012 Reconciliation to Consolidated Statement of Operations: Operating loss (35.0) (10.3) Depreciation of property, plant and equipment 10.2 11.9 Amortization of intangible assets 4.1 12.5 OIBDA (20.7) 14.1 Please refer to our Form 10-Q
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