2014 Half-Year Results Presentation

1
2014 half-year results
30th July 2014
Mecom 2014 half-year results
Summary
• Circulation revenue down 1% to €190 million
• Advertising revenue down 22% to €116 million
• Costs €39 million (11%) lower than H1 2013
• EBITDA up €8.0 million to €38.6 million
• EPS of 16.0 euro cents a share
Net debt of €31.5 million, down €9.7m from 31 December
2013*
* As restated to reflect the adoption of IFRS 11 Joint Arrangements
2
Mecom 2014 half-year results
3
Financial Summary: Continuing Operations1
€m
H1 2014
H1 20132
Var.
Circulation
189.6
192.4
(1)%
Advertising
116.1
148.8
(22)%
41.4
36.5
13%
347.1
377.7
(8)%
(308.5)
(347.1)
11% lower
38.6
30.6
8.0
11.1%
8.1%
3 pts
Adjusted EPS (euro cents)- continuing operations
16.0 cents
7.7 cents
+8.3 cents
Adjusted EPS (euro cents)3 - full Group
16.0 cents
7.1 cents
+8.9 cents
(31.5)
(99.7)
68.2 lower
Other
Total revenue
Total costs
EBITDA
EBITDA margin (%)
Net debt
1 Except
where stated, the results shown exclude Mecom Poland (sold October 2013) but include the in-country disposals made in 2013.
2
2013 results restated to reflect adoption of IFRS 11 Joint Arrangements. A reconciliation to previously reported results is included in the Appendix
3
Includes Mecom Poland in 2013
Mecom 2014 half-year results
4
Subscribers, ARPU and circulation revenue
1
Subscribers ('000s)
H1 2014
H1 2013
Monthly ARPU (€)
H1 2014
H1 2013
Revenue (€m)
H1 2014
H1 2013
Netherlands
740
780
27.7
26.7
123.2
125.0
Denmark
Total
135
875
156
936
54.5
31.9
47.3
30.2
44.1
167.3
44.4
169.4
22.3
189.6
23.0
192.4
Single copy sales
Total circulation revenue
Net subscriber losses (%)
ARPU increase (full price subs only)
Dutch regional Danish national Danish regional
Trial
titles
titles
titles
subscriptions
0%
-5%
-10%
-15%
-20%
-25%
-30%
-35%
-40%
-45%
1 Subscriber
10%
9%
7%
8%
-5%
-6%
6%
-8%
4%
4%
2%
0%
-40%
Dutch regional Danish national Danish regional
titles
titles
titles
numbers are shown above on a “daily subscriber equivalent” basis above (i.e. Saturday only subscribers and subscribers to weekly publications are treated as
1/6th of a subscriber for these purposes). Without making such adjustments to a daily equivalent basis (i.e. treating all subscribers as being of equal value) the average number
of subscribers in June was c.770,000 in the Netherlands divisions and c.165,000 in Denmark.
Mecom 2014 half-year results
5
Six Month Advertising Revenue Growth/Decline
Group -continuing businesses
0%
(2%)
(4%)
(6%)
(8%)
(10%)
(12%)
(14%)
(16%)
(18%)
(20%)
(5%)
(7%)
(5%)
(7%)
(*11%)
*(14%)
(15%)
(18%)
*(19%)
Netherlands
Denmark
0%
(5%)
(10%)
(4%)
(8%)
(8%)
(10%)
(15%)
(20%)
*(13%)
(16%)
(*17%)
(20%)
(25%)
(30%)
* Adjusted for disposals
*(24%)
4%
2%
0%
(2%)
(4%)
(6%)
(8%)
(10%)
(12%)
(14%)
(16%)
1%
(5%)
(4%)
(2%)
*(9%)
(13%)
(15%)
*(8%)
*(8%)
Mecom 2014 half-year results
6
Other Revenues
€m
Sweetdeal
H1 2014
2.7
H1 2013
2.9
Var.
(7)%
4.5
4.5
-
Distribution
12.4
10.0
24%
Printing
12.1
11.6
4%
9.7
7.5
29%
41.4
36.5
13%
Other consumer sales
Other
Other Revenues
• Distribution of De Persgroep Nederland titles commenced in
January 2014
• Other revenue includes radio operations in Denmark and revenues
from service level agreements with disposed businesses
Mecom 2014 half-year results
7
Total Costs
€m
Netherlands
Denmark
Central
Total costs
H1 2014
(191.1)
(115.9)
(1.5)
(308.5)
H1 2013
(217.0)
(127.8)
(2.3)
(347.1)
Var. €
25.9
11.9
0.8
38.6
Var. %
(12)%
(9)%
(35)%
(11)%
Note: Cost figures as presented above are shown net of income from associates and joint ventures.
• Cost savings in the Netherlands include the effects of the “Phoenix”
restructuring, which started in H2 2013
• In Denmark, cost reductions achieved in all categories except sales and
marketing, largely as a result of disposals
• Total Group FTEs down by 271 (7%) since year-end
Mecom 2014 half-year results
8
Divisional Performance Summarised
€m
H1 2014
Revenue
EBITDA
224.2
33.1
Netherlands
Denmark
122.9
7.0
137.8
10.0
-
(1.5)
-
(2.3)
347.1
38.6
377.7
30.6
Central
Mecom - Continuing Group
16.0%
H1 2013
Revenue
EBITDA
239.9
22.9
EBITDA Margin %
14.8%
H1 2014
14.0%
12.0%
10.0%
H1 2013
11.1%
9.5%
8.1%
7.3%
8.0%
5.7%
6.0%
4.0%
2.0%
0.0%
Netherlands
Denmark
Mecom - Continuing Group
Mecom 2014 half-year results
9
Earnings Per Share Bridge
Euro cents per share
25.0
20.0
1.0
3.4
2.4
0.1
15.0
0.4
16.0
WANOS
H1 2014
6.7
10.0
0.6
5.0
0.2
7.7
H1 2013
IFRS 11
Poland
(reported) restatement
H1 2013
Continuing
7.3
EBITDA Depreciation Interest
Tax
NCI
Mecom 2014 half-year results
10
Cash Flow 1
€m
H1 2014
H1 2013
30.6
28.2
(18.3)
(18.2)
-
(10.4)
Cash flow from operations
12.3
(0.4)
Net capital expenditure
(0.8)
(2.7)
Net interest paid
(2.3)
(4.4)
Other cash flows
3.5
5.4
Cash flow before acq'ns, disposals & dividends
12.7
(2.1)
Cash conversion (% of Group EBITDA)
33%
(7%)
Disposals, acquisitions and other items
(3.0)
44.0
-
(6.7)
Cash from operations (excluding exceptional cash)
Exceptional cash flows
Exceptional De Pers
Dividends paid
Decrease in net debt
Closing net debt
1 Total
Group, including discontinued operations
9.7
35.2
(31.5)
(99.7)
Appendices
Mecom 2014 half-year results
12
Effect of IFRS 11 adoption on H1 2013 results
Orginally reported
Restated
Effect of
restatement
Circulation
199.1
192.4
(6.7)
Advertising
154.1
148.8
(5.3)
62.1
36.5
(25.6)
Total revenue- Continuing operations
415.3
377.7
(37.6)
Total costs (before net income from JVs)
(383.6)
(348.4)
35.2
-
1.3
1.3
31.7
30.6
(1.1)
EPS- Continuing operations
7.9 cents
7.7 cents
(0.2) cents
EPS- Total Group
7.3 cents
7.1 cents
(0.2) cents
- At 30 June 2013
(95.5)
(99.7)
(4.2)
- At 31 December 2013
(38.1)
(41.2)
(3.1)
1.5
(0.4)
(1.9)
34.0
35.2
1.2
€m
Other
Net income from JVs
EBITDA - Continuing operations
Net Debt:
Cash flow from operations
Decrease in Net debt (H1 2013)
Mecom 2014 half-year results
13
Netherlands Income Statement
€m
Circulation
H1 2014
126.5
H1 2013
128.7
Var. €
(2.2)
Var. %
(2)%
Advertising
76.7
92.2
(15.5)
(17)%
Other
21.0
19.0
2.0
11%
224.2
239.9
(15.7)
(7)%
(191.1)
(217.0)
25.9
(12)%
33.1
22.9
10.2
45%
14.8%
9.5%
5.3 pts
Depreciation
(6.8)
(9.0)
2.2
(24)%
EBITA
26.3
13.9
12.4
89%
Total revenue
Total costs
EBITDA
EBITDA margin (%)
Mecom 2014 half-year results
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Denmark Income Statement
€m
H1 2014
H1 2013
Var. €
Var. %
Circulation
63.1
63.7
(0.6)
(1)%
Advertising
39.4
56.6
(17.2)
(30)%
Other
20.4
17.5
2.9
17%
122.9
137.8
(14.9)
(11)%
(115.9)
(127.8)
11.9
(9)%
7.0
10.0
(3.0)
(30)%
5.7%
7.3%
(1.6 pts)
(4.0)
(5.8)
1.8
(31)%
3.0
4.2
(1.2)
(29)%
Total revenue
Total costs
EBITDA
EBITDA margin (%)
Depreciation
EBITA
Mecom 2014 half-year results
15
Group Income Statement: Continuing Operations
€m
H1 2014
H1 2013
Var. €
Var. %
Circulation
189.6
192.4
(2.8)
(1)%
Advertising
116.1
148.8
(32.7)
(22)%
41.4
36.5
4.9
13%
347.1
377.7
(30.6)
(8)%
(308.5)
(347.1)
38.6
(11)%
38.6
30.6
8.0
26%
11.1%
8.1%
3 pts
(10.8)
(14.8)
4.0
(27)%
27.8
15.8
12.0
76%
Other
Total revenue
Total costs
EBITDA
EBITDA margin (%)
Depreciation
EBITA
Mecom 2014 half-year results
16
Poland: Discontinued Operations
€m
H1 2014
H1 2013
Circulation
-
11.3
Advertising
-
7.9
Other
-
3.2
Total revenue
-
22.4
Total costs
-
(22.0)
EBITDA
-
0.4
EBITDA margin (%)
-
1.8%
Depreciation
-
(1.0)
EBITA
-
(0.6)
Mecom 2014 half-year results
17
Costs by Type and Country
People costs
Direct costs
€m
H1 2014
H1 2013
Var.
€m
Netherlands
(63.0)
(68.8)
(8)%
Netherlands
Denmark
(33.7)
(38.4)
(12)%
-
-
n/a
(96.7)
(107.2)
(10)%
Central
Total continuing costs
H1 2014
H1 2013
Var.
(102.3)
(118.8)
(14)%
(52.6)
(59.5)
(12)%
(1.6)
(2.3)
(30)%
(156.5)
(180.6)
(13)%
H1 2014
H1 2013
Var.
Netherlands
(191.1)
(217.0)
(12)%
Denmark
(115.9)
(127.8)
(9)%
(1.5)
(2.3)
(35)%
(308.5)
(347.1)
(11)%
Denmark
Central
Total continuing costs
Other costs
€m
Total costs
H1 2014
H1 2013
Var.
Netherlands
(25.9)
(29.4)
(12)%
Denmark
(29.6)
(29.9)
(1)%
0.1
-
n/a
(55.3)
(59.3)
(7)%
Central
Total continuing costs
€m
Central
Total continuing costs
Note: Other costs as presented above are shown net of income from associates and joint ventures, and (in the case of other costs for the “central” category) net of intragroup
recharges.
Mecom 2014 half-year results
18
Income Statement
Continuing operations (€m)1
Revenue
H1 2014
H1 2013
Var.
347.1
377.7
(8)%
EBITDA
38.6
30.6
26%
Operating profit
27.8
15.8
76%
Net finance expense
(3.1)
(4.3)
(28)%
Profit before tax
24.7
11.5
115%
22.0%
26.9%
-4.9 pts
H1 2014
H1 2013
Var.
EPS- adjusted (euro cents)
16.0 cents
7.1 cents
8.9 cents
EPS- unadjusted (euro cents)
-2.4 cents
-82 cents
79.6 cents
-
(121.0)
121.0
Exceptional operating costs
(4.8)
(6.0)
1.2
Exceptional finance costs
(2.0)
(0.1)
(1.9)
Exceptional (loss)/gain on disposal
(2.2)
25.0
(27.2)
Amortisation of acquired intangibles
(19.5)
(21.0)
Effective tax rate (%)2
All operations (€m)
Exceptional impairments
1) Excluding exceptional items of income and expense, and amortisation of intangibles
2) Excluding the share of results of associates and joint ventures
1.5
Mecom 2014 half-year results
19
Balance Sheet
€m
Jun 14
Dec 13
Jun 13
278.4
316.1
310.2
88.4
103.2
115.7
(152.1)
(169.3)
(177.2)
Provisions & employee benefits
(48.4)
(70.6)
(56.0)
Deferred tax and other
(51.0)
(48.0)
(37.1)
Net debt
(31.5)
(41.2)
(99.7)
1.9
-
(0.7)
85.7
90.2
55.2
Intangible assets
Property, plant and equipment
Net working capital (excluding cash)
Net assets held for sale (excluding cash)
Net assets
Mecom 2014 half-year results
20
Cash From Operations
€m
H1 2014
H1 2013
Loss for the period
(3.1)
(97.6)
Depreciation & amortisation
30.3
36.8
-
121.0
Loss/(gain) on sale of assets/investments
2.0
(25.1)
Net finance costs
5.1
4.3
(7.5)
(6.9)
(13.9)
(16.3)
(0.7)
(14.5)
0.1
(2.1)
12.3
(0.4)
Impairment charges
Change in working capital
Change in provisions/employee benefits
Income tax credit
Other
Net cash from operations
Mecom 2014 half-year results
Exchange Rates
vs EUR
DKK
GBP
Average Closing
7.462
7.455
0.820
0.801
21

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