financial hearings q1 2016 - eniro group · programmatic buying ... - google adwords in sweden -...

Financial hearingsQ1 20162016‐04‐27

Agenda

1) Q1 highlights

2) Strategic update

3) Traffic and product development

4) Financials

5) Summary

Interim report January – March 20162

Management’s focus in Q1 2016

Measures to reverse the negative trend in digital revenue• Actions to stabilize customer base

• Subscriptions• Google • Reduced amount of complaints

• Improved user and customer experience• On average, 8.1 million visitors/week

• Operational improvements to increase efficiency and support strategy• New organisation ‐ Nordic Sales• Reduced staff turn‐over


Efficiency enhancing activities pays off

Profitability increases• Adjusted EBITDA increases 14%, reaching 119 MSEK (104)

• Adjusted EBITDA‐margin 24%

• EBITDA up 46%, reaching 136 MSEK (93)• EBITDA‐margin 27%

Operating revenue, decreases 20%, reaching 504 MSEK (632)• Q1 2016 compared to Q4 2015 ‐13%

Desktop/Mobile Search revenue, decreases ‐17%, reaching 356 MSEK (430)• Q1 2016 compared to Q4 2015 growth of 3%


Contents

1) Q1 highlights

2) Strategic update


4) Financials

5) Summary


Market drivers

Digital advertising growthImproved demand of ROI Programmatic buying Ads purchased 24/7Social media search


Strengthen the position within Local search

Complement with digital marketing services

Manage mature business responsibly

Our strategy

Strengthen the position within Local search

- Subscriptions- Improved display ad

formats- New updates and

new features- Nordic sales

organization

Complement with digital marketing services

- Google AdWords in Sweden

- Google training- Facebook retargeting- Programmatic

Manage mature business responsibly

- Voice office in Kristianstad closed31/3

- Preparing technicalsolution for costinformation in II8118

Our strategy – Actions in Q1

Contents

1) Q1 highlights

2) Strategic update


4) Financials

5) Summary


2 800 000

2 700 000

2 600 000

2 500 000

0DecNovOktSepAugJulJunMajAprMarFebJan

Actual 2016Actual 2015Actual 2014

1 550 000

1 500 000

1 450 000

1 400 000

1 350 000

1 300 000

1 250 000

0DecNovOktSepAugJulJunMajAprMarFebJan

1 450 0001 400 000

0

1 750 0001 700 0001 650 0001 600 0001 550 0001 500 000

DecNovOktSepAugJulJunMajAprMarFebJan

1 600 000

1 500 000

1 400 000

1 300 000

1 200 000

1 100 000

0DecSep NovOktJulJunMaj AugAprMarFebJan

Total UB decreased by ~1.5 % YTD

YTD 2016‐3,4%

YTD 2016‐6,1%

YTD 2016‐0,6%

YTD 2016‐1,2%


900 000

850 000

800 000

750 000

0

950 000


Actual 2016Actual 2015Actual 2014

650 000

600 000

550 000

500 000

450 000

0SepAugJulJunMajAprMarFebJan DecNovOkt

600 000

550 000

500 000

450 0000


850 000

800 000

750 000

700 000

650 000

600 000

550 000

500 0000

NovOktSepAugJulJunMajAprMarFebJan Dec

Leads delivered to our customers increased by ~1 % YTD

YTD 20160 %

YTD 2016‐4 %

YTD 2016‐1 %

YTD 20167 %


Mobile usage of our services continuous to increase

‐

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

8 000 000

9 000 000

2013 2014 2015 2016 Q1

Total desktop UB Total mobile UB

26%

74%

34%

66%

36%

64%

19%

81%


13 Interim report January – March 2016

Push notifications in our apps Waste and recycling centers at

gulesider.no

Real estate boarders, eniro.se (above, Castle of Stockholm) Kitchen selector

when searchingfor restaurants

Login to rate and reviewin the apps

Improved menu in map view

Facebookphotos at infopages in the apps

Improved iPad format (allows both horisontal and vertical mode)

Timetable for busses at krak.dk

User experienceUpdates in Q1


CustomerSatisfaction Index,

SE and DKGoogle Adwords SE

Facebook retargeting

CSIgulesiderinnsikt.no

Two new display ad formats (directions and and maps)

Customer experienceUpdates in Q1

Subscription based agreements

Customer Infopage Production Malmö

Contents

1) Q1 highlights

2) Strategic update


4) Financials

5) Summary


Jan-Mar Jan-Mar Jan-DecSEK M 2016 2015 % 2015

Desktop/Mobile search 356 430 -17 1 546Complementary digital marketing products 33 57 -42 222 Digital search 389 487 -20 1 768Print 24 29 -17 210Local search 413 516 -20 1 978Voice 91 116 -22 460

Total revenue 504 632 -20 2 438

Focus on reversing the trend in Digital revenues

16

Operating revenue by category and operating segments Comments

Q1 2016 vs Q4 2015, 3% growth In Q1 2015 decision was made to

stop selling less profitable products within the segment

Improved performance in sales teams but still problems in some important teams handling larger volumes

Focus areas: Stabilize customer base through:

Reduced churn Increased prospects(eg. Subscription & Google)


Revenue by category (%) Q1 2016


Revenue Q1 2016 vs Q1 2015, decrease of 20%

18

25

24

74

Compl. Dig. Mkt. Prod.

Desktop/Mobile Revenue Q1 2016

504

VoicePrint products

5

Revenue Q1 2015

632CommentsRevenue bridge

Currency effects of ‐15 MSEK included, primarily due to a weaker NOK


Declining digital revenues remains a challenge

19

Revenue by country Comments

Jan-Mar Jan-Mar Jan-DecSEK M 2016 2015 % 2015

Sw eden 219 276 -21 1 038Norw ay 127 173 -27 641Denmark 68 84 -19 366Finland 37 43 -14 178Poland 53 56 -5 215

Total revenue 504 632 -20 2 438

Comparison of revenue in Norway year by year is affected by a currency effect of ‐12MSEK, excluding the currency effect the decline was ‐20%


Starting 2016 with a 371 MSEK lower cost base on a yearly basis

20

Improved EBITDA margins due to:‐ Higher cost efficiency

Remaining restructuring costs from previous year’s reorganization

”Other items affecting comp.” is primarily effects from changes to the calculations of pension liabilities

EBITDA by operating segments CommentsJan-Mar Jan-Mar Jan-Dec

SEK M 2016 2015 % 2015Local search 114 65 75 273Voice 28 43 -35 189Other -6 -15 60 -79

Total EBITDA 136 93 46 383EBITDA margin % 27,0 14,7 15,7Items affecting comparabilityRestructuring costs 2 11 73Other items affecting comparability -19 - -2Total adjusted EBITDA 119 104 14 454

Adjusted EBITDA margin % 23,6 16,5 18,6


Key financials: Q/Q comparison

21

65

-17-20

5

119136

504502

60

-22-2-8

10493

632577

CapEx Operating cash flow

Net financial items

Change in working capital

Adj. EBITDAEBITDARevenuePrepaid revenue

Q1 2016Q1 2015

1) Cash flow from operating activities according to Q1 report

1


Development net debt/EBITDA R12

22

1 211

426

3,2

2,8

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2012 2013 2014 2015 Q12016

Net debt* EBITDA Net debt/EBITDA

*Net debt is equal to net senior debt, i.e excl. convertibles

366

3362390

Remaining convertibles

Q4 2015Q3 2015Q2 2015 Q1 2016

Convertibles converted to shares

Q2 2015 438 779 366Q3 2015 460 317 825Q4 2015 477 240 899Q1 2016 477 240 899

Total number of shares


Contents

1) Q1 highlights

2) Strategic update


4) Financials

5) Summary


Summary

Efficiency enhancing activities pays off, profitability increases• Adjusted EBITDA increases 14%, reaching 119 MSEK (104)

• Adjusted EBITDA‐margin 24%

Desktop/Mobile Search ‐17%, reaching 356 MSEK (430)• Q1 2016 compared to Q4 2015 represent a growth of 3%

Measures to reverse the negative trend in digital revenue• Customers: Stabilise customer base (Subscriptions and Google AdWords Sweden)

• Users: 8.1 million visitors/week (new features and updates)

• Internally: Improve culture, reduce staff turn‐over (Nordic Sales, training)


financial hearings q1 2016 - eniro group · programmatic buying ... - google adwords in sweden -...

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