eniro q1 report · q1 q2 q3 q4 2011 2012. print share of total revenues revenues, sek m • total...
TRANSCRIPT
ENIRO Q1 REPORT
2012-04-25
Johan Lindgren, CEO
Mattias Lundqvist, CFO
Cecilia Lannebo, Head of IR
FINANCIAL HIGHLIGHTS, Q1 2012
� Revenues SEK 959 M (966), a decline of 0,7% (-24). Organically revenues
declined by 8 percent (-13)
� Online/mobile revenues increased by 2% (-2) organically
� Digital media share in Eniro 77 percent excl Voice (73)
� Cost reductions SEK 67 M – part of the SEK 200 M communicated for the
2
� Cost reductions SEK 67 M – part of the SEK 200 M communicated for the
full year 2012
� EBITDA SEK 156 M (122), EBITDA margin of 16,3% (12,6)
� Adjusted EBITDA SEK 160 M (134)
� Cash flow SEK 13 M (-78)
� Interest bearing net debt SEK 3,515 M (3,775), (Q4 3,535) Net
debt/EBITDA 3.3 (3.3) (Q4 3.4)
PROS AND CONS IN THE Q1 REPORT
Pros Cons
� Total revenue development � Adjusted revenue guidance for 2012
� Group EBITDA � Organic sales development
� Cash-flow and working capital � Prepaid development quarter over quarter
� Cost savings
� Net debt slightly lowered� Net debt slightly lowered
� Development of Danish operation
� Conditions in bank agreements fulfilled
� Additional repayment of SEK 158 M
� EBITDA guidance remains
3
REVENUE BY CATEGORY AND COUNTRY
Revenue by category Revenue by country
+7%
-9%-11%
300
400
500
600
-1%
-7%
300
400
500
600
4
-9%
+15%-20%
-11%
0
100
200
Q1 2011 Q1 2012
+42%-9%
-10%
0
100
200
Sweden Norway Denmark Finland Poland
Q1 2011 Q1 2012
ORGANIC DEVELOPMENT
-5%
0%
5%
10%
15%
5
-25%
-20%
-15%
-10%
Total
Online
ONLINE/MOBILE
• Total revenues increases 7 percent (SEK 23 M contribution from De Gule Sider)
• Organic development +2 percent
SHARE OF TOTAL
REVENUES
REVENUES, SEK M
600
6
Q1 2012 Q1 2011
Revenues, SEK M 513 479
Organic development % 2 -2
Share of Eniro % 53 50
53%
0
200
400
600
Q1 Q2 Q3 Q4
2011 2012
SHARE OF TOTAL
REVENUES
REVENUES, SEK M
• Total revenues decreased -9 percent
• Organic development -30 percent
• Evaluation of future strategy regarding De Gule Sider print books
18% 500
Q1 2012 Q1 2011
Revenues, SEK M 172 189
Organic development % -30 -37
Share of Eniro % 18 20
7
18%
0
100
200
300
400
500
Q1 Q2 Q3 Q4
2011 2012
MEDIA PRODUCTS
SHARE OF TOTAL
REVENUES
REVENUES SEK M
• Total revenues increased 15 percent
• Organic development 14 percent, a ramp up in growth is expected during H2
• Eniro Deals to be managed via third party
• Eniro “Buy & Sell sevice” divested
Q1 2012 Q1 2011
Revenues, SEK M 54 47
Organic development % 14 23
Share of Eniro % 6 5
8
REVENUES
6%
0
20
40
60
80
Q1 Q2 Q3 Q4
2011 2012
VOICE
• Total revenues decreased 11 percent
• Organic development -11 percent
• Q1 EBITDA SEK 57 M (53), an EBITDA margin of 31,1 percent (25,9)
• Decision not to complete the acquisition of the DA company 118 800
Q1 2012 Q1 2011
Revenues, SEK M 183 205
Organic development % -11 -9
EBITDA, SEK M 57 53
Share of Eniro % 19 21
9
SHARE OF TOTAL
REVENUES
REVENEUS, SEK M
19%
0
100
200
300
Q1 Q2 Q3 Q4
2011 2012
ACTIVITIES IN THE PERIOD
� Implementation of the acquisition De Gule Sider in Denmark
� Communication of Eniro not completing the acquisition of 118 800 in Sweden
� Change in accounting principles in pension obligations and reporting structure
� Eniro Deals will be hosted through third-party co-operation
Corporate
10
� Eniro Deals will be hosted through third-party co-operation
� Divesture of Eniro Buy & Sell service
� Completion and implementation of Eniro brand project
� Launch of Eniro for iPad
� Print re-scooping
� Strengthened position within the strong growing mobile segment
� Build-up of sales force within Mediaproducts
Product
FINANCIAL GUIDELINES – DE GULE SIDER, DENMARK
� Estimated turnover for FY 2012 of some SEK 100 M (Order intake 12
rolling months higher)
� Estimated EBITDA impact for 2012 above SEK 10 M
� Consolidation of Danish operation
11
� Consolidation of Danish operation
THE TURNAROUND PLAN
� Organic revenue decline
2010 2011 2012
� Organic revenue decline � Returning to total revenue � Organic revenue decline
less than 15%
� Total cost base reduction
of approx SEK 350 M vs.
total costs 20091
� Actuals in line with
guidance
� Organic revenue decline
close to 10 percent
� Total cost base reduction of
approx SEK 350 M vs. total
costs 20101
� Actual top-line in line with
guidance
� Cost reductions ahead of
guidance, 458 MSEK
� Returning to total revenue
growth
� EBITDA 2012 inline with
outcome 2011
� Total cost base reduction of
approx SEK 200 M vs. total
costs 20112
1) Assuming unchanged currencies and for comparable units
2) The planned cost savings do not include effects from divestments and acquisition of operations, or the higher third-party
costs that arose as a result of the strategic shift in the revenue mix to higher revenues from third-party partnerships. 12
REVENUE BRIDGE Q1 2012-7.8%
7
51
9
1,015 8
71
70
23936
23
966959
13
� Revenue effect from divested operations, currency and moved publications, totaled SEK 49 M
� Revenues decreased by 8% organically
� Revenues from digital 77% of total Eniro excl Voice
� Voice down -11% organically, but margin up to 31,1% due to price increase and high efficiency
Reported
revenues
Q1 2012
Divested
business
Reported
revenues
2011
Currency
effects
Moved
publications
Organic
baseline
2011
Online/
mobilePrint Media Other Voice Revenues
ex. acq.
Acq.
-30+2 +14 -1 -11
COST SAVINGS
836
828
8312
16
761
777
803
26
-59
-6759
845
14
� Total savings SEK 67 M in Q1 2012
� Of which Staff SEK 30 M, Print and Paper SEK 10 M, Marketing SEK 13 M
960 MSEK in cost savings during the last two and a half year
Organic
baseline
2012
Currency
effect
DivestedOperating
costs 2011
Adj
Operating
cost 2012
YTD
Net
Savings
Q1
Acquired Operating
cost 2012
YTD
Including dgs
Cost
3’rd party cost
Revenue overview
Revenues by category
2012 2011 2011/12 2011
SEK M Jan-Mar Jan-Mar % Apr-Mar Jan-Dec
Total revenues 959 966 -1 4 316 4 323
Directories 776 761 2 3 439 3 424
Online/mobile 513 479 7 2 042 2 008
Print 172 189 -9 1 034 1 051
Media products 54 47 15 195 188
Other products 37 46 -20 168 177
Voice 183 205 -11 877 899
15
Revenues by country
2012 2011 2011/12 2011
SEK M Jan-Mar Jan-Mar % Apr-Mar Jan-Dec
Total revenues 959 966 -1 4 316 4 323
Sweden 450 455 -1 2 042 2 047
Norway 310 333 -7 1 263 1 286
Denmark 104 73 42 503 472
Finland 58 64 -9 278 284
Poland 37 41 -10 230 234
EBITDA overview
EBITDA by revenue area
2012 2011 2011/12 2011
SEK M Jan-Mar Jan-Mar % Apr-Mar Jan-Dec
Total EBITDA 156 122 28 1 065 1 031
Directories 126 84 50 812 770
Voice 57 53 8 348 344
Other -27 -15 80 -95 -83
16
Other -27 -15 80 -95 -83
of which items affecting comparability
Restructuring costs 4 12 -67 35 43
Other items affecting comparability - - - 4 4
Total adjusted EBITDA 160 134 19 1 104 1 078
PREPAID REVENUES; BALANCE SHEET
1 275
1 2331 190
1 145
1 089
1 049
1 083 1 1171 073
948
1 031
1 042
1 000
1 200
1 400
17
� Prepaid revenues in line with Q4
948
600
800
CHANGE IN NET DEBT
Analysis of interest bearing net debt
------ 3months -----
- -12months-
2012 2011 2011/12 2011
SEK M Jan-Mar Jan-Mar Apr-Mar Jan-Dec
Opening balance -3 535 -3 756 -3 775 -3 756
Operating cash flow 13 -78 321 230
18
� Operating cash flow in Q1 increased by 91 MSEK
� Net debt/EBITDA 3.3 (6.8) Q4 3.4
Acquisitions and divestments 26 26 0 0
Share issue -1 -9 -2 -10
Translation difference and other changes -18 42 -59 1
Closing balance -3 515 -3 775 -3 515 -3 535
Net debt /EBITDA adjusted for other
items affecting comparability, times 3,3 3,3 3,3 3,4
FOCUS IN ENIRO
Market positionWith the customer in focus, we
develop our services and make
our advertisers searchable 24/7
• Updated brand platform
• Desirable product portfolio
• Leading in mobile
• Attractive employer
• Content program
Focus areas Meaning Main initiatives2012
19
Quality
Profitable growth
Stability, relevance and simplicity
in all that we do
Eniro grows with focus on both
revenues and costs
• Content program
• Quality in focus
• Web analytics
• Improved customer experience
• Culture program
• Priority of existing customers
• Sales channel optimization
• Cost optimization
MEDIA MARKET DEVELOPMENT IN SWEDEN
%
• IRM forecasts for 2012 slightly adjusted
• Growth within online/internet media continues to outperform market average
• Eniro within the long-tail mass market segment for small- medium sized companies
10
1512,1
6,27,8
108,4
20
Source: IRM-15
-10
-5
0
5
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
E
20
12
E
-5,8-3,8
0,3
6,2 5,6
1,5
-12,5
4,8
-0,1 (-0,4ppt)
OUTLOOK FOR 2012
Revenues
Total revenue growth in 2012
EBITDA
EBITDA for 2012 in line with 2011
1) The planned cost savings do not include effects from divestments and acquisition of operations, or the higher third-party
costs that arose as a result of the strategic shift in the revenue mix to higher revenues from third-party partnerships.
21
Cost reductions
Net cost reductions1 of SEK 200 M in 2012
Dividend and capital structure
Priority will be given to the reduction of net debt
APPENDIX
sessio
ns
YELLOW USAGE – eniro.seWeekly sessions, monthly average
1000000
1200000
1400000
1600000
1 306 039
User
sessio
ns
23
0
200000
400000
600000
800000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2011 2010
sessio
ns
YELLOW USAGE – gulesider.noWeekly sessions, monthly average
800 000
1 000 000
1 200 000
927 382
User
sessio
ns
24
0
200 000
400 000
600 000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2011 2010
YELLOW USAGE – Krak DenmarkWeekly sessions, monthly average
sessio
ns
500 000
600 000
700 000
800 000 738 966
25
User
sessio
ns
0
100 000
200 000
300 000
400 000
500 000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2011 2010