eniro€¦ · swedbank robur fonder 7,8% 8 019 840 0 -0,1% fidelity funds 7,3% 7 550 981 0 5,1%...
TRANSCRIPT
Eniro
Q1 report
Johan Lindgren, CEO Cecilia Lannebo, Head of IR
April 24th, 2014
1. Johan Lindgren CEO
Eniro the local search company
“In the digital value chain Eniro is an aggregator:
a search company that filters and organizes local information“
3
A digital media company
Desktop search
Mobile search
Listing, ranking and visibility in local search services on desktop and mobile
Campaign products
Keyword advertising, SEO, video, homepages and banners
Voice
Directory assistance service via phone and sms in Sweden, Norway and Finland
Hyper local books in Sweden, Norway and Denmark
4
Multiscreen growth segments Mature segments
CEO summary
Continued strong mobile growth – “Mobile first”
Revenues increased 94% organically and 44% of total searches on products done on mobile
Multiscreen revenues increased 3% organically
Total revenues were down 11% (-8%)
Organic decline 7% (-7%)
Currency negative SEK 11 M
Cost savings
Cost reductions SEK 76 M in Q1
EBITDA was SEK 227 M (170 M)
Incl. SEK 62 M in capital gain and SEK 4 M in restructuring costs
Incl. cost of synthetic share program SEK 9 M
EBITDA margin of 28.7% (19.2%)
Adjusted EBITDA was SEK 169 (183 M)
Incl. negative effect of synthetic shares SEK 9 M
Excluding one-offs of net SEK 58 M in the quarter
Adj. EBITDA margin 21.3% (20.7%)
Operating cash-flow was SEK -53 M (88 M)
5
Financial development Q1 2014
6
886
170 169
89 88
792
227 183
71
-53
-200
0
200
400
600
800
1 000
Revenue EBITDA Adj. EBITDA Net Income Cash Flow
Incl. capital gain of SEK 62 M
Incl. negative effect of synthetic share SEK 9 M
2 374 2 539 Net debt -7%
-11%
+34% -8%
-20% n.m.
Pros and cons in the Q1 2014 report
Pros Cons
Adj. EBITDA supports full year guidance Slightly weaker than expected Multiscreen
Continued strong growth for Mobile Negative currency on revenues and net profit
Refining of operation by cash-generating divestures
Working capital and cash-flow
Continued high cost savings
7
Activities in Q1
Divesture of InTouch and Scandinavia Online Revenue contribution 2013 some 75 MSEK EBITDA contribution 2013 some 15 MSEK Total consideration SEK 85 M Total capital gain in Q1 SEK 62 M
Broaden Eniro’s revenue base by signing agreement with Etisalat for United Arab Emirates
Franchise agreement with worlds 13th largest telecom operator
Marginal investment, some SEK 2-3 M Expected to contribute marginally to
revenues and EBITDA 2013
Launch of new functionality, customer products and improved user experience
Product offerings
Same look and feel on all sites
Launch of GPS based turn-by-turn mobile navigation beginning of April
Selling of additional packages start August
Print phase out of regional books
Impacting print revenues in Q1 negatively
The trend for local books is good
8
New launch end of March – product offerings
9
Elgiganten
Eniro Navigation
10
Focus on growth
11
Growth is expected to be driven by:
Continued investments in market position
Organic development and focus on Eniro Global
Additional focus on mobile and multiscreen usage
Increased customer base
Growth in ARPA (average revenue per advertiser)
Focus on continued strengthen user experience
New revenue streams and new products
Cost efficiency and high leverage Activities 2014
Turn-By-Turn GPS Navigator E-Business Video
Social integration
Ratings/ reviews
Bookings
Mobile first: rapid growth in revenues and traffic
Mobile revenues increased 92% to SEK 98 M compared with last year
Mobile search 12% of total revenues in Q1
44% of all product- and company searches are done on mobile devices
Eniro market share in Sweden and Norway between 20-25%
Mobile growth strengthens financial position
12
Share of product and company search via mobile devices
2013 Q1 2014 2015E
Revenues SEK 287 M SEK 98 M SEK 900 M
Growth % 95% 92% 50%
%
0
5
10
15
20
25
30
35
40
45
50
Traffic development
13
Approx. 8 M unique users (browsers) per week visiting Eniro properties of which: • 1,8 M unique users (browsers) per week are visiting
from mobile devices
Number of unique browsers per week in Q1 2014 in line with Q1 2013
UB traffic development main sites Q1 2014 vs. Q1 2013 • Sweden +/-0%
• Norway +8%
• Denmark +3%
• Poland -12%
Mobile search accounts for 44 percent of total product and company searches
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
-
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
Jan-13 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14
Total unique browsers (UB) per week
Of which UB on mobile
Share company, product searches on mobile (%)
14
-11%
Other
18
14
44
Campaign
19
792
Reported Q1 - 2014
Voice
-7%
Organic baseline
Mobile
47
Desktop
49
851
Moved publications
24
Currency effects
11
Reported revenues Q1 - 2013
886
94% -11% 34% -24% -55% -24%
Currency and moved publications gave a total effect on revenues of SEK -35 M in Q1
Revenue bridge Q1 2014
Reported Organic
15
720
600
700
680
660
640
620
580
20
0
Reported cost Q1 2014
-83
604
630
26
Net Savings Q1
76
2 9
Organic baseline Q1 2013
713
689
24
Currency effect
5
5
Q1 2013
718
718
Cost ex 3rd party
3’rd party cost
Restructuring cost
Total savings in first quarter of SEK 76 M
Savings include reductions in Staff of SEK 54 M and cost of marketing SEK 9 M
Cost savings Q1 2014
16
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
5
0
2 000
4 000
6 000
8 000
10 000
2006 2007 2008 2009 2010 2011 2012 2013 Q1 2014
EBITDA Net Debt Net debt/EBITDA
Development net debt/EBITDA
Change in net debt
Operating cash flow in Q1 decreased to SEK -53 M (88) due to lower pace of customer penetration work during the first quarter and payments for restructuring measures that were expensed during the fourth quarter of 2013
Net debt/ adjusted EBITDA 2.5 (2.5)
17
Analysis of interest bearing net debt
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
SEK M 2014 2013 2013/14 2013
Opening balance -2 340 -2 704 -2 539 -2 704
Operating cash flow -53 88 188 329
Acquisitions and divestments 49 41 41 33
Share issue - - 0 0
Translation difference and other changes -30 36 -64 2
Closing balance -2 374 -2 539 -2 374 -2 340
Net debt /adjusted EBITDA, times 2,5 2,5 2,5 2,4
Financial commentary
Amortizations
Re-classification of the Norwegian trademarks Gule Sider and Ditt Distrikt from indefinite to a limited frame of 5-10 years annual amortization of some SEK 95 M. Q1 impact SEK 22 M
Amortization of Norwegian Voice brand 1888 of SEK 9 M in Q1
PRI pensions guarantee in force throughout 2015
Total pledged funds amount to SEK 122 M
Eniro has pledged SEK 10 M in March 2014 and additional SEK 10 M due in March 2015
Print conversion Conversion of Gula Sidorna in Sweden into
digital performing according to expectations
Cash-flow and working capital Weak cash flow to due to lower pace of
customer penetration work in Q1 together with payments for restructuring measures that were expensed during the fourth quarter of 2013
Voice Negative market trend for Voice Further future impairment loss is to be
expected
18
Outlook 2014
Multiscreen media to grow
Print and Voice to decline
Target to increase mobile revenues to SEK 900 M 2015
Adjusted EBITDA 2014 in line with 2013
Cost savings 2014 of at least SEK 200 M
Long-term net debt/EBITDA not to exceed 2x
Investments approx. SEK 150 M
Working capital to be slightly negative
Strong cash-flow generation
19
Revenues
EBITDA and balance sheet
Cash flow and investments
Eniro Q1 report Appendix
Eniro share price and shareholder development
21
010203040506070
10 largest holders (grouped), March 31th 2014 Capital % B-shares Preference
shares Changes since
30/12-2013
Swedbank Robur fonder 7,8% 8 019 840 0 -0,1%
Fidelity Funds 7,3% 7 550 981 0 5,1%
Staffan Persson, company and family 6,9% 7 129 671 0 -1,0%
JPM Chase NA 5,9% 6 031 713 0 -2,3%
Danske Capital Sverige AB 5,4% 5 442 418 126 735 -0,6%
Odey Capital 4,5% 4 493 227 85 537 +0,1%
Unionen 3,8% 3 904 027 0 0,0%
MSIL client account 3,3% 3 356 361 0 +1,9%
JP Morgan Bank 2,9% 2 945 645 750 +/-0%
Skandinaviska Enskilda Banken 2,8% 2 876 520 1 798 -1,0%
March 31, 2014
Dec 30, 2013
Total shareholders 9 850 -1 210
Market Cap (MSEK) 6 421 083 858 817
Shareholders March 31, 2014
Share price development since March 31, 2013 = +375% Share price development year-to-date 2014 = +10% Share price development March 2014 = -11%
Shareholders March 31, 2014
Refinancing – terms & conditions
SEK 3bn, were of SEK 250 M in RCF
Three years with an extension to four years, on the condition that Eniro replaces SEK 800 M of bank loan with a corporate bond
Scheduled amortizations for 2014-2016 approx. SEK 375 M annually
Base rate Stibor plus 375pp (lowered to 300pp at Net debt/EBITDA below 2x)
22
Loan facility
Amortizations
Interest rates
Revenues
23
Revenue by category
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
SEK M 2014 2013 % 2013/14 2013
Desktop search 416 473 -12 1 777 1 834
Mobile search 98 51 92 334 287
Campaign products 75 57 32 264 246
Multiscreen 589 581 1 2 375 2 367
Print 55 98 -44 464 507
Other products 11 26 -58 82 97
Local search 655 705 -7 2 921 2 971
Voice 137 181 -24 645 689
Total revenue 792 886 -11 3 566 3 660
Revenue by country
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
SEK M 2014 2013 % 2013/14 2013
Sweden 355 410 -13 1 664 1 719
Norway 236 265 -11 969 998
Denmark 111 109 2 517 515
Finland 40 53 -25 194 207
Poland 50 49 2 222 221
Total revenue 792 886 -11 3 566 3 660
EBITDA overview
24
EBITDA by revenue area
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
SEK M 2014 2013 % 2013/14 2013
Local search 200 126 59 744 670
Voice 49 57 -14 243 251
Other -22 -13 -69 -81 -72
Total EBITDA 227 170 34 906 849
Items affecting comparability
Restructuring costs 4 13 97 106
Other items affecting
comparability -62 - -61 1
Total adjusted EBITDA 169 183 -8 942 956
Balance sheet overview
25
Equity and liabilities
Equity
Share capital 309 2 529 309
Additional paid in capital 5 125 5 125 5 125
Reserves -286 -292 -360
Retained earnings -1 348 -3 866 -1 421
Total equity share holders of the Parent
company 3 800 3 496 3 653
Non-controlling interests 68 36 68
Total equity 3 868 3 532 3 721
Non-current liabilities
Borrowing 2 125 2 477 2 115
Deferred tax liabilities 272 275 276
Pension obligations 266 503 273
Provisions 5 9 5
Other non-current liabilities 6 - 6
Total non-current liabilities 2 674 3 264 2 675
Current liabilities
Trade payables 113 120 181
Current tax liabilities 53 45 25
Other current liabilities 975 1 325 1 030
Provisions 38 30 74
Borrowing 485 432 452
Total current liabilities 1 664 1 952 1 762
TOTAL EQUITY AND LIABILITIES 8 206 8 748 8 158
Consolidated balance sheet
Mar. 31 Mar. 31 Dec. 31
SEK M 2014 2013 2013
Assets
Non-current assets
Tangible assets 37 40 40
Intangible assets 7 000 7 181 6 948
Deferred tax assets 215 395 209
Financial assets 171 98 148
Total non-current assets 7 423 7 714 7 345
Current assets
Trade receivables 392 472 430
Current tax assets 0 4 0
Other current receivables 277 249 267
Other interest-bearing receivables 3 1 3
Cash and cash equivalents 111 308 113
Total current assets 783 1 034 813
TOTAL ASSETS 8 206 8 748 8 158
