Central European Media Enterprises Ltd
Central European Media Enterprises — Investor Presentation (June 2010)
14 slides from Central European Media Enterprises's investor presentation, Jun 30, 2010
Slide 1: Growing in difficult market conditions
Growing in difficult market conditions June 30, 2010
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation contains written or oral forward-looking statements, including those related to our capital needs, business strategies, expectations and commitments. Statements that include the words “may”, “expect”, “intend”, “plan”, “target”, “prospect”, “forecast”, “belie
Slide 3: Headlines
Headlines Recoveries are starting in some markets but are slower and more fragile than expected. We still expect overall growth in the second half of the year. We are successfully integrating the newly acquired bTV in Bulgaria into CME. Inventory is selling out; we are prepared to increase prices in
Slide 4: Questions?
Questions?
Slide 5: Good news Bad news
Good news Bad news In Czech Republic and Slovenia GDP and TV Ad market grew in Q2. Prices will follow. ING June 28: "With better debt and budget deficit figures than most of the Eurozone, and cheaper labour costs, emerging Europe should clearly outperform the Eurozone in 2011. “ (Charles Robertson,
Slide 6: Q1 macros: Q1 was the lowest point
Q1 macros: Q1 was the lowest point Source: European Commission, Eurostat Source: CME Internal Estimates (April 29th, 2010) Source: Eurostat Consumer Confidence Index TV Ad Market Annual Change Rate, % Final consumption expenditure of households Annual Change Rate, % Consumer confidence fell sharply
Slide 7: Macroeconomic estimates
Real GDP TV Ad Spend Q2 2010 FY 2010 Macroeconomic estimates 0.4% (5.4%) Source: CME estimates based on average economist consensus reports issued in April, May & June 2010 (ING, BNP, JPM, Bloomberg), TV ad spend - CME estimates 1% (1%)
Slide 8: CME today: vertically integrated media and entertainment company
8 New Media Content Broadcast We are the winner of the region. Some players left, some players are prepared to leave …. CME today: vertically integrated media and entertainment company § We are leaders in audience in all our 6 markets § We launched over 40 online products and services with 2.0 milli
Slide 9: Our Goal by 2014 is to be one of the largest media companies in Europe
Our Goal by 2014 is to be one of the largest media companies in Europe Our Goal by 2014 is to be one of the largest media companies in Europe
Slide 10: Key indicators of sustainable upturn: convergence
CME markets Western European markets 2009 GDP per capita 2004 to 2009 GDP CAGR 2009 Total Ad spend per capita 2009 Ad intensity Avg. Product prices Key indicators of sustainable upturn: convergence Source: Group M and CME estimates Western Europe includes Austria, Belgium, Denmark, Finland, France,
Slide 11: Key indicators of sustainable upturn: our audience leadership
Leadership charts for four of our markets: May 10 - May 16 2010 Key indicators of sustainable upturn: our audience leadership Sources: ATO Mediaresearch, TNS-AGB INTL, PMT/TNS SK, TNS Bulgaria
Slide 12: Key indicators of sustainable upturn: our market leadership
Audience Share Power Ratio 2.0x 1.7x 2.5x 1.8x 2009 All Day Audience Share and Market Share 2.1x 1.6x Key indicators of sustainable upturn: our market leadership Market Share = / #2 #1 #1 #1 #1 Sources: Audience share data: Croatia, AGB Nielsen Media Research; Czech Republic, ATO Mediaresearch; Slov
Slide 13: TV and Internet will be the winners from advertising spend growth
TV continues to have the broadest reach and capture the highest share of advertisers’ marketing budgets TV and Internet will be the winners from advertising spend growth Source: Zenith Optimedia
Slide 14: CME remains an attractive media investment
CME remains an attractive media investment We have a history of outperforming our markets Between 2006 - 2008 TV ad spend in our markets grew at an average rate of 15% per year. In the same period our revenues* grew 35% per year on average. Average EBITDA* margin 2006 - 2008: 41% * Czech Republic, R
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