kino polska tv s.a. capital group business results 2014...this presentation (the “presentation”)...
TRANSCRIPT
Kino Polska TV S.A. Capital Groupbusiness results
2014
DISCLAIMER
This presentation (the “Presentation”) has been prepared by Kino Polska TV S.A. (the “Company“, “KPTV”) and is for informational purposes only. Its purpose is to present se-lected data on Kino Polska TV S.A. Capital Group (the “Group”) and its prospects for development. It may not be regarded as part of an invitation or offer to acquire securities or to make investments. This presentation does not constitute or form part of any offer or invitation to conduct other transactions in securities.
The information contained in this Presentation not arising directly from the periodical reports published by companies belonging to Kino Polska TV S.A. Capital Group has not been independently verified, and therefore there is no guarantee that it is complete and fully reflect the actual state. This Presentation contains statements relating to the future. These statements contain the words such as “anticipate”, “intend”, “estimate”, “be”, “expect”, “assess” and words of similar meaning. All statements, other than these re-lating to historical facts, contained in this Presentation, including, among others, statements regarding the Group’s financial position, its business strategy, plans and objectives of the management boards for future operations (including development plans and objectives relating to the Group’s products and services) are forward-looking statements. Such forward-looking statements are subject to known and unknown risks, are characterized by inherent uncertainties and are subject to other important factors that could cause those actual results or achievements of the Group’s operations would be materially different from any future results, operations or achievements expressed directly or implied in these forward-looking statements. These statements are based on numerous assumptions regarding present and future business strategies of the Group and the environment in which it will be operating in the future. The statements contained herein, have been prepared solely as at the Presentation day. The Company expressly waives any duties or obligations to disseminate any updates or revisions of any statements that are contained herein, designed to reflect changes in the Company’s expec-tations or changes in events, conditions or circumstances on which any such statement has been based, unless the applicable laws require otherwise. The Company hereby reserves that the forward-looking statements are not guarantees of future performances and that its actual financial position, business strategy, plans and objectives of the management boards for future operations may differ materially from these described or implied in such statements contained in this Presentation. Moreover, even if the financial position, business strategy, plans and objectives of management boards for future operations of the Group are consistent with the forward-looking statements in this Presentation, those results or developments may not provide any indication as to the results or events in subsequent periods.The Company undertakes no obligation to publish any updates, changes or corrections of information, data or statements contained in this Presentation, unless such an obligation is provided by applicable laws.
The Group is not responsible for the results of the decisions which were taken after reading of this Presentation. The only reliable source on the financial results of Kino Polska TV S.A. Capital Group are current and periodic reports, submitted by the companies of Kino Polska TV S.A Capital Group in performing its information obligations arising under relevant Polish laws.
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SEGMENT: PREMIUM
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FILMBOX UNIVERSEThe premium pack has changed into an all-inclusive & mobile product, merging premium TV and a mobile application. FilmBox Universe lets users enjoy the following benefits:
FilmBox Universe is already availableon Vectra, Netia and Toya
• Ad-free, premium TV (5 channels)
• Top technology – 4k / Ultra HD, live & interactive games
• Access to much wider content (11 channels: sport, fashion, music, games and more)
• multi-screen entertainment service
• Top technology – 4k / Ultra HD, live & interactive games
• VOD library (more than 1000 movies)
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Future improvementof FilmBox Universe package
NEW CONTENT: 4k/Ultra HD movies, documentaries and animation
The market is growing!4K-capable TVs will be in 10% of all North American households by year-end 2018.This number will reach 50% by the end of 2024, just 9 years from now.
CRF is a major provider of 4k/Ultra HD, distributed by Kino Polska TV S.A. CRF will serve the channels offered in the FilmBox Universe package: most of the upcoming 4K endeavors, including the production of Ultra HD versions of several all-time movie classics.
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FilmBox Universe sales support
EXEMPLARY CAMPAIGN:
FBL LOGO ON
20 000 000PACKS OF LAY’S CHIPS.
As FilmBox Universe is a pack including the FilmBox Premium channels and the FilmBox Live app, we receive a positive outcome every time FBL provides an advertising campaign.
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TOP CONTENTFROM THE TOP PRODUCERS
This year FilmBox Extrachanged into FilmBox Premium
in Czech Republic, Hungary and Slovakia.Planned change in Poland: September 2015
We signed new deals for TOP CONTENT:
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PREMIUM CHANNELSGLOBAL EXPANSION
NORTH AND SOUTH AMERICA:Kino Polska Muzyka Intl. and Kino Polska Intl. Premium channels are now available anywhere & on any screen – for all subscribers who have internet, smartphone, PC or PS4.
THE FUTURE IS WIDE OPEN2015 started with launching FilmBox HD on Radijus Vektor, one of Serbia’s largest cable operators. FilmBox HD feeds started to be carried on Blizoo, the largest telecommunication operator in Bulgaria.
• Premium Package was launched in Macedonia and Antenna Hungaria (Hungary)
• The FBL app was bundled with the Premium Package on Skylink
• The FBL app was launched on the Telenor My TV platform (the Telenor platform in Hungary has already carried the FilmBox brand linear channels since January 2014).
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LOCAL LANGUAGE VERSIONS
The Balkans (already improved)
The Russian-speaking markets(upcoming)
The Middle East and Africa(Arabic) (upcoming)
We have also started negotiationswith platforms / operators in Estonia.
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In 2014 we implemented new sales-increasing toolsfor the Premium package.
Motivation systems for sales teams
Loyalty system for subscribers
Promotional periods for newcomers
Top content positions for advertising campaigns
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SEGMENT:BASIC AND EXTENDED BASIC
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KINO POLSKA
We started organizing a contest, which will be announced this year. The award is a 46m2 apartment in Warsaw, worth PLN 380,000. It will increase the number of viewers and ATS (September – December 2015).
Kino Polska InternationalKino Polska International is the overseas version, programmed especially for Polish-speaking audience outside of Poland. The channel offers something for everyone, including feature films, documentaries and popular TV series.
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WE REACHED A WIDER AUDIENCE:Average Daily Reach of Audience 1,713,310Monthly Cumulative Reach 10,055,801Percent of population 28.14%
KINO POLSKA MUZYKA
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• We achieved 5th place on the list of the best music channels in Poland
• The daily grid improved ATS ratio to: 47 minutes (which is even more than the market leader’s ATS - PoloTV, which is 42 min.) – 30% growth!
• We achieved:
Average Daily Reach of Audience 277,134 Monthly Cumulative Reach 2,905,492 Percent of population 8.13%
• In order to focus on the most efficient target group (16 – 49) we provided the following changes:
• “young” music content structure (now: 2010-2015 - 31.5% 2000-2009 - 19.61% | 1990-1999 - 29.41% 1980-1989 - 14.95% | 1960-1979 - 3.02%)
• Switching music videos to 16:9 video aspect ratio • Interactive programming solutions • Presenting the hottest Polish artists of today • Much more fresh look in ads / commercials targeted to 16-49
filmbox deals completed in 2014
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• Ex Yugoslavia countries / Bulgaria (strategic alliance with Austria Telekom)
• Bulgaria (Blizoo)
• Hungary (Antenna Hungaria)
• Ukraine (5 platforms)
• Africa (3 platforms)
• Estonia
• Romania (DCS Romania)
• Poland (T-mobile)
• Beginning monetization of DIGI (Czech Republic)
• Renewing agreements with key operators: Magyar Telekom, Skylink (Czech Republic)
New FilmBox launches:
Other agreements:
new deals on the horizon
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• Orange Poland
• SBB Serbia
• RCS / DIGI Hungary
• Bulsatcom in Bulgaria
and FilmBox to be launched in Middle East
the FUTUREIS WIDE OPEN
Balkans FilmBox Arthouse is now available on Radijus Vektor, one of Serbia’s largest cable operators (already available in FilmBox package).
Brasil FilmBox Arthouse was approved to launch by the Brazil regulatory body (and is planned to launch in June). This is an extremely attractive market with 30% of homes having pay-TV and 40% of the country paying for cable.
Hungary FilmBox Arthouse was launched via the FBL app on MyTv Platform (Telenor) (already available in the “Film” package).
Indonesia FilmBox Arthouse was launched on Dens.TV, operated under CBN’s subsidiary Digdaya Duta Digital (VOD already available in every package).
Zimbabwe BOStv will deliver FilmBox Arthouse to TV viewers in Zimbabwe in the second quarter of 2015.
2015 STARTED WITH THE FOLLOWING DEALS WORLDWIDE:
MYTOTALTV - APP AVAILABLE WORLDWIDE16
FILMBOX ARTHOUSEanywhere, any screen Germany and NorwayMAGINE TV platform (cloud-based service on smartphone, tablet, Smart TV or on the web)
FilmOn Networks - FilmBox Arthouse channels were added to the renewed agreement with the world’s largest internet TV provider. The channel will be accessible to Filmon.com’s 65 million monthly users around the world.
North & South AmericaApollo TV platform (serves ethnic households and targeted markets)
Other platforms: • WorldRelay Tuner for iOS
• FilmBox Live apps on major Smart TV platforms, PlayStation and XBOX game consoles
SMART TVWEB17
Why were ourB2B sales Goalspossible to achieve?
We have sales representatives working in 18 countries. They present our offer 10 times a year at worldwide branch events.
Each event means more than 50 personal meetings with decision makers.
During exhibitions, our promotional materials are visible to more than 100,000 professionals.
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TV OKAZJE
Increase in the number of customers (on a month to month basis): October 283% | November 9% | December 29%
Growing proportion of returning customers(from the beginning of its operations to the end of the given month): September 3.2% | October 3% | November 4% | December 5%
Consistent audience increase In 2014, the Company entered into agreements with: Kino Polska, Kino Polska Muzyka, FilmBox, Stopklatka TV, TVP Gdańsk, TVP Warszawa, CBS Reality, CBS Horror, CBS Drama, Extreme Sport. The average daily viewership in total is as following: September 4,4 h | October 9,5 h | November 14,1 h | December 14,9 h
Development of the offer: From September to December 2014 the offer expanded to more than 100 products (from the initial several in the TV offer and approx. 40 pieces in the e-commerce offer).
Prospects Further development of TV sales, e-commerce and retail (retail sales - retail chains and owned retail stores).
TV OKAZJE SP. Z O.O. BECAME PART OF THE KINO POLSKA TV S.A. CAPITAL GROUP ON 18 SEPTEMBER 2014 (THE ISSUER HOLDS 80% OF THE SHARES IN THIS COMPANY).
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#2 movie channel in Poland Stopklatka TV is the #2 movie channel in Poland (source: Nielsen Audience Measurement, Feb 2015) and the 5th ‘most interesting terrestrial channel in Poland’, directly after the ‘Big Four’ (source: Cyfrowizja, DTT report by the media house MEC, May 2014).
• Content from major and independent distributors; premiere series (2014’s The Musketeers), original programming (a movie talk-show and various short formats).
• HbbTV platform with TV guide and entertainment news.• Synergies with the movie website Stopklatka.pl and the Agora
media conglomerate.• Crucial milestone: 1% monthly share in the commercial audience
(age 16-49) reached for the first time in August, a record-breaking 6 months after launching.
• 2014 average: 0.81% share in the commercial audience (age 16-49), 0.78% share in total audience (age 4+).
• 2014 average: 2.02% share in the commercial DTT-only audience.• AMRs of prime-time movies exceeding 400,000 (total audience).• Technical reach exceeding 90% of Polish population.
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thank you!
SUMMARY OF CONSOLIDATED FINANCIAL RESULTS OF KINO POLSKA TV S.A. CAPITAL GROUP
(12 MONThs ENDED 31.12.2014)
DISCLAIMER
This presentation (the „Presentation”) has been prepared by Kino Polska TV S.A. (the „Company„, „KPTV”) and is for informational purposes only. Its purpose is to present se-lected data on Kino Polska TV S.A. Capital Group (the „Group”) and its prospects for development. It may not be regarded as part of an invitation or offer to acquire securities or to make investments. This presentation does not constitute or form part of any offer or invitation to conduct other transactions in securities.The information contained in this Presentation not arising directly from the periodical reports published by companies belonging to Kino Polska TV S.A. Capital Group has not been independently verified, and therefore there is no guarantee that it is complete and fully reflect the actual state. This Presentation contains statements relating to the future. These statements contain the words such as „anticipate”, „intend”, „estimate”, „be”, „expect”, „assess” and words of similar meaning. All statements, other than these relating to historical facts, contained in this Presentation, including, among others, statements regarding the Group’s financial position, its business strategy, plans and objectives of the management boards for future operations (including development plans and objectives relating to the Group’s products and services) are forward-looking statements. Such forward-looking statements are subject to known and unknown risks, are characterized by inherent uncertainties and are subject to other important factors that could cause those actual results or achievements of the Group’s operations would be materially different from any future results, operations or achievements expres-sed directly or implied in these forward-looking statements. These statements are based on numerous assumptions regarding present and future business strategies of the Group and the environment in which it will be operating in the future. The statements contained herein, have been prepared solely as at the Presentation day. The Company expressly waives any duties or obligations to disseminate any updates or revisions of any statements that are contained herein, designed to reflect changes in the Company’s expectations or changes in events, conditions or circumstances on which any such statement has been based, unless the applicable laws require otherwise. The Company hereby reserves that the forward-looking statements are not guarantees of future performances and that its actual financial position, business strategy, plans and objectives of the management boards for future operations may differ materially from these described or implied in such statements contained in this Presentation. Moreover, even if the financial position, business strategy, plans and objectives of management boards for future operations of the Group are consistent with the forward-looking statements in this Presentation, those results or developments may not provide any indication as to the results or events in subsequent periods.The Company undertakes no obligation to publish any updates, changes or corrections of information, data or statements contained in this Presentation, unless such an obligation is provided by applicable laws.The Group is not responsible for the results of the decisions which were taken after reading of this Presentation. The only reliable source on the financial results of Kino Polska TV S.A. Capital Group are current and periodic reports, submitted by the companies of Kino Polska TV S.A Capital Group in performing its information obligations arising under relevant Polish laws.
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financial HIGHLIGHTS
% 2014 2013 diff
CASH AT THE END OF THE YEAR 48.7% 22.3 15.0 7.3
EBITDA 15.6% 35.6 30.8 4.8
REVENUE FROM CONTINUED OPERATIONS (5.5%) 102.4 108.4 (6.0)
NET PROFIT FROM CONTIN-UED OPERATIONS (35.8%) 13.6 21.2 (7.6)
% 2014 PREVIOUS FORECAST diff
EBITDA (15.2%) 35.6 42.0 (6.4)
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in millions PLN
in millions PLN
ebitda 2014 vs. 2013
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2013 revenue FB movie channels and thematic channels
influence
TV Okazje EBITDA
in millions PLN
2014
50.0
60.0
(6.0)30.8
12.4 (0.6)(1.0) 35.6
40.0
30.0
20.0
other
diff 4.8m 15.6%
EBITDA actuals 2014 vs. previous forecast
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previousforecast
sale of license rights
Kino Polskaadvertisement
FB movie channels broadcast
TV Okazje EBITDA
2014
40.0
45.0
42.0 (2.2)
(2.2)
(1.4)
(0.6) 35.6
35.0
30.0
25.0
20.0
in millions PLN
diff (6.4m) (15.2%)
revenue 2014 vs. 2013
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2013 channelproduction
VOD FB movie channels and
thematic channels
Kino Polska
diff (6.0m) (5.5%)
sale of license rights
other 2014
140.0
108.4
17.33.9 3.6 1.0 102.4
(30.2)
(1.6)100.0
60.0
20.0
in millions PLN
NET PROFIT FROM CONTINUED OPERATIONS2014 vs. 2013
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2013 revenue tax KPP amortization and depreci-
ation
share in STK FB movie channels
and thematic channels influence
write off TV Okazje other 2014
20.0
20.5
21.2
(2.0)
(6.1)
(2.8)
12.4 (1.6)
(0.6) (0.9) 13.6
(6.0)
15.0
10.0
5.0
in millions PLN
diff (7.6m) (35.8%)
EXPLANATIONSinterviews and other programs
(6,436,026.37)
assesment of the eligibility of program expenditure
for 2003-2010
retained earnings/intangible assets
net PLN
no grounds for the qualification
of expenditure as intangible assets
no impacton 2014
impacton retained earnings from previous years
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EXPLANATIONS
Assesment of the eligibility of individual costs for each category of costs (cost of sales of products and goods, selling cost, general and
administrative expenses)
misclassificationof costs no impact
2014
after before
cost of sales 65.7 69.7
selling costs 6.2 2.4
general and administrative expenses
9.3 9.1
in millions PLN
costs reclassifitactions
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EXPLANATIONSstopklatka investment
Assesment of fair value of investment in Stopklatka S.A.
Small turnover on the NewConnect market: valuation is not derived from transactions
Adopted price from the valuation of the transaction price with Agora S.A.
Adequate and fair value
(17.6)impact on 2014
after before
profit ondisposal 0.4 36.5 as discontinued
operations
share in loss from STK (2.8) (2.8) in terms of
operating profit
impairment of shares in STK - (18.5) in terms of
operating profit
in millions PLN
10
EXPLANATIONScosts reclassifitactions
(1.4)
(0.1)
Reclassification of presentation below costs
exchange differences
public and other trade interests
Exchange differences and public and other trade interests shift from financial costs to other operating expenses
in millions PLN
no impact
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REVENUE
tv broadcast revenue advertising revenue
29.8
3.1 3.7
46.6
16.3
13.3 18.1
15.4
2013 2013
KINO POLSKA CHANNELS FILMBOX MOVIE CHANNELS AND THEMATIC CHANNELS
2014 2014
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cumulatively cumulatively cumulatively cumulatively
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in millions PLN in millions PLN
dividend for 2014
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PLN 1 gross per share PLN 19,821,404.00
Recommendation of the Management Board of Kino Polska TV S.A.
total
number of active subscribers
NUMBER OF ACTIVE SUBSCRIBERS
POLAND ChangesNumber of active subscribers as at
31.12.2014
Number of active subscribers as at
31.12.2013
Kino polska 0.1% 8 311 8 322
Kino Polska Muzyka
17% 6 505 5 540
filmbox basic 8% 5 498 5 110
Filmbox premiumpackage
21% 2 090 1 725
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(in thousands)
NUMBER OF ACTIVE SUBSCRIBERS
HUNGARY ChangesNumber of active subscribers as at
31.12.2014
Number of active subscribers as at
31.12.2013
filmbox Basic 5% 1 414 1 341
filmbox plus 106% 70 34
filmbox hd 32% 25 19
filmbox family 19% 51 43
filmbox extra 58% 52 33
filmbox extra 1* - - 42
*FilmBox Extra 1 was rebranded into FilmBox Plus
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(in thousands)
NUMBER OF ACTIVE SUBSCRIBERS
SLOVAKIA ChangesNumber of active subscribers as at
31.12.2014
Number of active subscribers as at
31.12.2013
filmbox basic 15% 370 323
filmbox plus 50% 39 26
filmbox hd 37% 41 30
filmbox family 27% 28 22
filmbox premium* 33% 28 21
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(in thousands)*previous name FilmBox Extra
NUMBER OF ACTIVE SUBSCRIBERS
CZECH ChangesNumber of active subscribers as at
31.12.2014
Number of active subscribers as at
31.12.2013
filmbox basic 19% 722 896
filmbox plus 28% 484 672
filmbox hd 10% 321 292
filmbox family 30% 26 20
filmbox premium* 73% 26 15
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(in thousands)*previous name FilmBox Extra
NUMBER OF ACTIVE SUBSCRIBERS
ROMANIA ChangesNumber of active subscribers as at
31.12.2014
Number of active subscribers as at
31.12.2013
filmbox basic 11% 979 884
filmbox plus* - 69 -
filmbox HD 171% 103 38
filmbox family 16% 66 79
filmbox EXTRA** - 61 -
FilmBox Extra 1*** - - 82
* FilmBox Plus was launched in January 2014** FilmBox Extra was launched in Q4 2014 in UPC*** FB EXTRA 1 was replaced by FilmBox Plus in January 2014
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(in thousands)
THANK YOUFOR YOUR ATTENTION