FY09 - Doğan Yayın Holding

Business Review & 4Q09 Results
Doğan Yayın Holding A.Ş.
www.dyh.com.tr
April 9, 2010
Notice
The financial statements are reclassed for presentation purposes, the CMB format is also available through ISE and DYH
websites.The figures related to advertisement, which are not stated in financial statements are based on management
reports and may not be fully consistent with IFRS Figures, as there are adjustments in accordance with IAS 39 and IAS 18.
The market shares stated in this document are based on the estimates of various sources which are believed to be reliable
and compiled by DYH and are subject to slight revisions in one year period.
This presentation does not constitute an offer or invitation to purchase or subscription for any securities and no part of it
shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
The information contained in this document has not been independently verified. No representation or warranty express or
implied is made as to and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the
information or opinions contained herein. Neither the company nor any of its affiliates, advisors or representatives shall
have any liability whatsoever (for negligence or otherwise) with respect to any loss howsoever arising from any use by third
parties of this presentation or its contents or otherwise arising in connection with it.
2
Agenda
I.
Market & Operational Environment
05
II.
Fourth-Quarter 2009 Results
15
III.
Appendix : Reported Financials by Segments
30
3
Agenda
I.
Market & Operational Environment
05
II.
Fourth-Quarter 2009 Results
15
III.
Appendix : Reported Financials by Segments
30
4
Ad Spending Quarterly Trends - Turkey
23% 24%
22%
18%
17%
14%
16% 15%
14%
7%
8%
7%
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
-16%
-17%
-25%
-29%
Advertising excluding Internet
ƒ The
contraction in ad market came to an end in 4Q09, as the Turkish ad market
registered 8% growth yoy.
5
2009 Ad Spending by Segments - Turkey
Turkey's Total Ad Spend by Segments in FY09 (TLm)
FY08
FY09
Change
TV
Print Media
Newspaper
Magazine
Outdoor
Cinema
Radio
Total
Internet
Internet Inc.
Radio
Cinema 3.3%
1.3%
1,697.5
1,109.8
985.7
124.1
217.6
43.6
113.3
3,181.8
257.7
3,439.5
1,422.8
896.3
810.7
85.6
196.0
44.1
94.9
2,654.1
317.0
2,971.1
ƒ TV segment ad spending increased by
-16.2%
-19.2%
-17.8%
-31.0%
-9.9%
1.1%
-16.2%
-16.6%
23.0%
-13.6%
14% in 4Q09 and led the overall recovery
in ad spending in the last quarter.
ƒ Overall in 2009, internet and cinema
were the only segments that registered
growth.
Internet
7.5%
Radio
3.2%
Internet
10.7%
Cinema
1.5%
Outdoor
6.3%
Outdoor
6.6%
TV
49.4%
Magazine
3.6%
TV
47.9%
Magazine
2.9%
Newspaper
28.7%
FY08
6
Newspaper
27.3%
FY09
Turkish Ad Spend By Sectors - FY08/FY09*
ƒ Beverages and Automotive sectors had the highest cut in ad spend in 2009.
ƒ In 4Q09, the substantial year-on-year growths in a range of 44%-59% attained in
finance, home cleaning products, real estate and electronics sectors offset the declines
in 4Q08.
TOTAL
Share(% )
NEWSPAPER
Nominal
Share(% )
Nominal
TV
Share(% )
Nominal
Main Sectors
FY08
FY09
Growth
FY08
FY09
Growth
FY08
FY09
Growth
Food
11%
11%
-19%
2%
2%
-9%
17%
16%
-22%
Communication
10%
10%
-15%
4%
4%
-22%
11%
12%
-9%
Finance
10%
9%
-19%
8%
8%
-22%
10%
10%
-18%
Automotive
7%
6%
-27%
12%
9%
-39%
4%
4%
-1%
Cosmetics
6%
6%
-22%
1%
1%
-28%
9%
9%
-21%
Retail
5%
5%
-10%
10%
10%
-20%
2%
3%
11%
Real Estate
4%
5%
-1%
9%
12%
13%
2%
2%
-15%
Beverages
5%
4%
-28%
3%
2%
-21%
6%
5%
-31%
Home Cleaning Products
4%
4%
-22%
0%
0%
23%
7%
6%
-24%
Electronics
4%
4%
-16%
2%
2%
-31%
5%
5%
-14%
36%
37%
-14%
49%
50%
-15%
26%
27%
-13%
100%
100%
-17%
100%
100%
-18%
100%
100%
-16%
Other
*
Excluding Internet Statistics
Source : DYH Ad Platform
7
Newspaper Circulation
ƒ Decline in total circulation figures were immaterial in comparison to the significant
increase in newsstand prices.
Circulation (‘000 copies daily)
518
474
-8.4%
9.9%
14
11
-18.5%
0.2%
3
5
99.9%
0.1%
632
542
-14.2%
11.3%
233
202
-13.2%
4.2%
229
204
-10.6%
4.3%
43
40
-6.1%
0.8%
208
195
-6.3%
4.1%
1,879
1,676
-10.8%
35.0%
5,106
4,782
-6.4%
8
Source: Hurriyet, Dogan Gazetecilik, Dogan Dağıtım
Share by Group
Doğan Gazetecilik Group
Share
Hürriyet Group
Chg yoy
24.8%
FY09
10.3%
Total Market
(Estimated)
FY08
Magazines Circulation
Dogan Burda Net Circulation
(Units m)
Total Net Circulation Units – Turkey
(Units m)
23.8
-13.9%
20.5
8.1
-13.6%
7.0
2008
2009
5.7
-11.5%
5.0
4Q08
4Q09
-9.6%
2008
2009
1.9
1.7
4Q08
4Q09
ƒ Circulations continued to decline in Turkish magazine market, as around 20 titles
were suspended in 2009 due to portfolio rationalizations in the sector and
discontinuation of low priced weekly magazine strategy in 2007.
ƒ With the optimization of its portfolio and efforts to improve sales and reduce return
ratio, Dogan Burda maintained its estimated market share at 34% in 2009.
9
Free-to-Air : 28% audience share in PT
KANAL D maintains #1 position, and achieved the best
ratings in the last 15 years in prime time in October.
With new Turkish dramas, Star TV is strengthening its
position.
Prime Time-Total Ind.
FY08
FY09
Kanal D
14.0
14.1
Star TV
8.0
8.6
DTVR Total
22.0
22.7
12.2
Show TV
11.4
10.7
10.1
6.8
11.9
7.9
ATV
Fox
8.9
8.0
10.0
8.2
41.6
39.6
Others
49.7
48.4
FY08
FY09
Kanal D
18.2
19.8
Star TV
8.0
8.6
DTVR Total
26.2
28.4
Show TV
15.3
ATV
Fox
Others
YAPRAK DÖ
DÖKÜMÜ
Total Day–Total Ind.
Dr. ÖZ Show
Kurtlar
Vadisİ
Vadisİ
Kavak Yelleri
10
Strong audience share in 4Q09
11
Total Day Audience Share 2008-2009 (%)
10
Star
274
Kanal D was #1
in 274 days of 2009
9
8
7
6
55
28
N ov
S ept
J uly
M ay
M ar
J an 09
N ov
S ept
J uly
M ay
M ar
J an 08
5
KanalD
ƒ New dynamic programming introduced in Star TV.
ƒ Star TV is the official broadcaster of UEFA
Champions League
ƒTurkish drama “Kurtlar Vadisi” transferred to Star TV
in Fall 2009; and Kanal D’s successful drama “Küçük
Kadınlar” is now in Star TV as of March 2010.
ƒ New entertainment programs: “Fear Factor Extreme
2nd Ch.
3rd Ch.
7
4th Ch.
ƒ Kanal D widens the gap with other premium
channels in prime time through successful and
stable performance of Turkish Dramas.
ƒ One new Drama in Kanal D, “Hanımın Çiftliği”
replaced “Binbir Gece” in Fall 2009.
ƒ Successful live entertainment programs continue:
such as “Beyaz Show” and “Disko Kralı.”
II” and “Çal Kalbimi”.
Prime Time*
Kurtlar
Vadisİ
Vadisİ
Prime Time*
Papatyam
Benim Annem
bir Melek
www.startv.com.tr
YAPRAK
DÖKÜMÜ
11
www.kanald.com.tr
Aşk-ı Memnu
D-Smart Digital Platform, Exceeding 1m users and 25% of
active users already Pay Package subscriber
D-SMART User Statistics (000)
D-Smart Users(Activation)
Pay TV Subscribers
972
918
1,014
1,075
1,094
801
612
510
390
181
7
Mar-07
17
51
Jun 07
Sep 07
Dec 07
Mar-08
June 08
Sep 08
94
Dec 08
139
March 09
271
276
Sep 09
Dec 09
182
June 09
www.dsmart.com.tr
ƒ Number of users reached 1.1 million in 2009.
ƒ Pay TV subscribers excluding PPV users reached 276K by December-end 2009, approx. 25% of total
active users.
ƒ Introduction of PAY TV packages Movie, Family, Sports, Full and Full HD offers are in place...
ƒ Movie, Family, Sports, Full and Full HD Packages are being offered at 99/199/199/249 and 299 YTL
per year.
ƒ Double Play Offered in March : ADSL + Pay TV Offer tested successfully – 39.90 TL/month...
ƒ Rental model introduced in June 2009
12
Kanal D Romania
Audience Share, %
(18-49, Urban, Whole day)
Ad Revenues (mn YTL)
23
-4%
22
4.6
4.4
2008
2009
2008
2009
Whole Day
Source: TNS-AGB, GfK
ƒ Best TV launch performance in Romania in terms of
audience share evolution.
ƒ Secured 5th position out of more than 40 measured
Proveste de Familie
channels in one year.
ƒ Ad revenue growth in 2009 outperformed the market as
TV ad market in Romania contracted by 25%.
ƒ Balanced Combination of Turkish Dramas,
Entertainment, News, Foreign movies and local programs.
Stagiarii
13
www.kanald.ro
I.
Market & Operational Environment
05
II.
Fourth-Quarter 2009 Results
15
III.
Appendix : Reported Financials by Segments
30
14
Key Events & Highlights
ƒ
ƒ
ƒ
ƒ
Publishing
ƒ Cover price increases in 2009 in the range of 40-45%YoY supporting margins.
ƒ Closure or restructuring of certain supplements and titles.
ƒ Reduction in number of pages by around 12%.
ƒ Newsprint prices in US$ terms contracted by around 33% in 4Q09.
ƒ Continue to focus on online classifieds and newsportals.
Broadcasting
ƒ Cost cutting at programming and overhead level in FTA channels.
ƒ Focus on Pay TV packages in D-Smart and elevated program costs in 2009.
ƒ D-Smart and Smile ADSL is being restructured to merge their operations in the future.
ƒ New dynamic programming introduced in Star TV.
Retail
ƒ Exit from loss making start up investments in Smile Holding.
ƒ D&R reached 90 stores and net store area of 36,100 sqm in 2009.
Other
ƒ Regarding the tax cases that were initiated by DYH (cancellation of the tax/fine notifications
amounting to TL862.4 mn), significant portion of these cases (TL784 mn) were resulted in favor of
DYH. Both parties have the right to appeal to Higher Court.
ƒ Doğan TV and subsidiaries received a tax/fine notification of TL4.8 bn including interest in
September 2009, bringing total tax claims to TL6.0 bn (including interest). Legal process continues.
ƒ Capital increase in Doğan Yayın Holding (TL183.5m) and in Hürriyet (TL82 mn) completed in
August 09. The capital increase in our affiliate Doğan TV Holding was partially completed and the
planned capital increase via rights issue in DYH for TL198 mn will initiate on April 12, 2010.
ƒ Focus on deleveraging continues
15
FY09 Results – Key Figures
USD'000
FY08
FY09
-29%
2,880
2,435
-15%
275
-47%
667
425
-36%
(5)
(110)
n.m .
(7)
(170)
n.m .
119
105
-12%
154
162
5%
134
4
-97%
174
7
-96%
FINANCIAL INCOME / (EXPENSES) - NET
(304)
(46)
-85%
(394)
(71)
-82%
PROFIT BEFORE TAX
(331)
(239)
-28%
(429)
(369)
-14%
NET PROFIT (After Minority)
(250)
(222)
-11%
(324)
(343)
6%
REVENUES
GROSS PROFIT
EBIT*
Depreciation&Amor.
EBITDA*
FY08
FY09
2,220
1,575
514
TL'000
16
YoY
YoY
Quarterly Analysis
1Q09
2Q09
3Q09
4Q09
4Q08
QoQ%
Yoy%
547
625
577
686
701
19%
-2%
54
148
129
94
114
-27%
-18%
(80)
(2)
(16)
(72)
(49)
350%
47%
40
39
39
44
52
11%
-17%
(36)
41
29
(28)
7
n.m .
n.m .
FINANCIAL INCOME / (EXPENSES) - NET
(177)
127
20
(41)
(326)
n.m .
-87%
PROFIT BEFORE TAX
(262)
86
(7)
(186)
(451)
n.m .
-59%
NET PROFIT (After Minority)
(165)
37
(19)
(196)
(281)
n.m .
-30%
REVENUES
GROSS PROFIT
EBIT*
Depreciation&Amor.
EBITDA*
17
The impacts of Cost Cutting
ƒ Despite the increase in operating expenses in 4Q09, sales&marketing and general
administrative expenses are down by 13% and 11%, respectively in 2009.
2,706
-10%
Cash Cost
2429
FY08
FY09
Gen.Admin
331
Selling&Marketing
-11%
344
296
-13%
300
FY08
FY09
18
FY08
FY09
Revenues
Consolidated Revenues & EBITDA
Quarterly
Total
(TLm)
(TLm)
-2%
687
2,880
701
4Q08
-15%
2,435
FY08
4Q09
FY09
174
EBITDA
7
-96%
7
4Q08
4Q09
7
-28
FY08
19
FY09
Revenue Breakdown by Segments
Revenue Breakdown (TLm)
70
573
Revenue Breakdown (% share)
80
2%
3%
20%
17%
25%
27%
409
714
646
1523
1300
53%
53%
FY08
FY09
FY08
FY09
Growth by Segments (% yoy)
13%
-10%
-15%
-29%
Publishing
Broadcasting
Retail
20
Other
*Other segment was partially
reclassified to Retail segment.
Advertising Revenues
Quarterly (TLm)*
-0.5%
372
Consolidated
87
Total (TLm)*
1,562
370
-22%
348
50
1,213
-42%
-40%
12%
285
319
1,214
-17%
4Q08
4Q09
FY08
208
1,005
FY09
ƒInternatinal Advertising Revenues
ƒDomestic Advertising Revenues
ƒ Our domestic ad revenues increased by 12% yoy in 4Q09 with the revival in Turkish
ad market.
ƒ But, since the recovery in other markets that we operate has been slow, our
consolidated ad revenues were intact at 4Q08 levels.
21
Ad Growth by Segment
(TLm)
Publishing
4Q08
FY08
FY09 Ch % yoy
-19%
689
513
-19%
-27%
-4%
947
635
81
187
A 143
49
-40%
336
197
-41%
2
-4
n.m.
‐24
‐21
-10%
140
136
183
188
31%
615
524
-15%
38%
630
532
-16%
Kanal D Romanya
8
5
-38%
23
22
-4%
Interseg. Elim. (‐)
-5
-10
111%
‐38
‐30
-22%
Total Advertising
372
370
0%
1,562
1,213
-22%
Total Combined
374
385
3%
1,624
1,264
-22%
Publishing Domestic
Publishing International
Interseg. Elim. (‐)
Broadcasting
Doğan TV Radio
232
149
4Q09 Ch % yoy
22
Publishing Revenues & EBITDA
ƒ Despite of no recovery in international operations, EBITDA margin improved by 5 pp in 4Q09.
Quarterly (TLm)
Total (TLm)
1581
Revenues
396
-10%
4Q08
EBITDA
EBITDA
Margin
4%
103%
-15%
355
4Q09
FY08
9%
14 %
222
31
1348
FY09
12 %
-25%
167
15
4Q08
4Q09
23
FY08
FY09
Broadcasting Revenues & EBITDA
ƒ Broadcasting remained under pressure mainly due to operational losses of our new strategic
investments.
‰New Investments
Quarterly (TLm)
ƒBroadcasting w/o Investments
235
42%
Total (TLm)
762
119
-10%
Revenues
49
17%
166
683
140
64%
30
186
37%
135
4Q08
EBITDA
Margin
643
FY08
4Q09
-8 %
-16%
FY09
-2 %
-25 %
543
-24 %
EBITDA
ƒBroadcasting Total
ƒBroadcasting w/o New Investments-19
9
-13
4Q08
75
-5
-19
FY08
0
-163
4Q09
-13
-58
FY09
24
Retail Revenues & EBITDA
ƒ Profitable D&R operation is leading the retail segment.
ƒ Restructure in Smile Holding; loss making operations eliminated.
Quarterly (TLm)
Revenues
143
‰Smile
ƒRetail w/o Smile
-34%
43
-6%
100
410
1
EBITDA
Margin
4Q08
45
-5%
364
5
FY09
6
-4 %
ƒRetail Total
5%
5
-2
FY08
4Q09
-1 %
-76%
94
384
4Q08
EBITDA
-29%
190
95
-99%
Total (TLm)
575
1%
ƒRetail w/o Smile
4
FY08
3
4Q09
-26
-2
25
3
3
FY09
Investments&Financing
2008 FY
USD'm
2009 FY
Ch.%
CASH & BANK & MARK. SEC.
629,581
335,232
S/T BANK BORROWINGS
556,265
L/T BANK BORROWINGS
NET DEBT
2008 FY
TL'm
2009 FY
Ch.%
-47%
952,115
504,759
-47%
587,936
6%
841,239
885,255
5%
829,902
478,072
-42%
1,255,061
719,833
-43%
(756,586)
(730,776)
-3% (1,144,185) (1,100,329)
-4%
FY09
INVESTMENTS
Fixed Assets
Publishing
Broadcasting
Retail
Other
TOTAL
63,526
55,855
7,158
8,642
135,181
Programme Rights
TOTAL
84,348
63,526
140,203
26
84,348
7,158
8,642
219,529
Review of FX Risk on Debt & Cash Management
Cash as of December 09,
US$335mn (TL504m)
Bank Debt as of
December 09, US$1.07bn
(TL1,61bn)
ƒ Deleveraging and restructring in
debt portfolio continues: TL198 mn
rights issue will be executed on April
12, 2010, after TL184 mn already
completed in August 2009.
87%
27%
13%
73%
ƒ Total Bank debts declined by 23%
TL
FX
TL
from US$1.4bn at 2008-end to
US$1.1bn as of 2009-end.
FX
Long Term Bank Debt Payment Schedule*, as of 2009-end.
588
USD million
169
2009 figures are shown as current portion of long term
loans and Short term loans
16%
419
221
39%
21%
129
128
12%
12%
2010 ST Debt
2011
*supplier loans not included.
2012
2013+
27
Outlook
ƒ The contraction in ad market in 2009 came to an end in 4Q09; the Turkish ad market
excluding internet attained 8% yoy growth.
ƒ In the first months of 2010, stronger recovery in the ad market is visible.
ƒ In order to be ready for higher operational leverage in the aftermath of this global crisis, we
implemented a series of cost cutting measures in 2009 and ceased some of our non-core
operations. Our continued focus on costs will continue in 2010.
ƒ Potential strategic partnerships at Doğan Yayın Holding and/or subsidiaries level is being
considered, especially to support deleveraging.
ƒ Court cases continue regarding the tax issues.
ƒ
Regarding the tax issues that were initiated by DYH (cancellation of the tax/fine notifications
amounting to TL862.4 mn), significant portion of these cases resulted in favor of DYH (TL781 mn).
Both parties have the right to appeal to Higher Court.
ƒ
The legal process continues regarding the tax issue relates to Doğan TV Holding and affiliates,
(TL4.8 bn, including interest). Newsflow is expected from the first hearing of these tax cases within
2010.
ƒ As a result of the recovery in the ad market, our continued focus on costs and further
reduction in debt position parallel to strategic restructuring efforts, we project a strong
recovery in our operational performance compared to 2009.
28
I.
Market & Operational Environment
05
II.
Fourth-Quarter 2009 Results
15
III.
Appendix : Reported Financials by Segments
30
29
Revenues By Segments*
(TLm)
Publishing
Advertising
Circulation
Other Revenues
Distribution
Other
Broadcasting
Advertising
Other Revenues
Retail
Other Revenues
Cumulative Total
Intersegment Eliminations (-)
Total
4Q08
396
230
86
79
25
55
165
145
21
143
32
736
-35
701
4Q09
Ch % yoy
356
-10%
192
-17%
112
29%
53
-34%
30
22%
23
-59%
235
42%
193
34%
42
103%
95
-34%
35
8%
720
-2%
-33
-4%
687
-2%
FY08
1,581
971
338
272
94
178
762
653
109
575
112
3,030
-150
2,880
A
* As reported
30
FY09 Ch % yoy
1,348
-15%
710
-27%
400
18%
238
-13%
104
10%
134
-25%
683
-10%
554
-15%
129
18%
410
-29%
115
3%
2,557
-16%
-122
-19%
2,435
-15%
Quarterly Operational Results by Segments*
(TLm)
Revenues
Publishing
Broadcasting
Retail
Other
Intersegment Eliminations
COGS
Publishing
Broadcasting
Retail
Other
Intersegment Eliminations
Operating Expenses
Publishing
Broadcasting
Retail
Other
Intersegment Eliminations
4Q08
701
4Q09
687
396
166
143
32
-35
355
235
95
35
-33
-587
-592
-291
-166
-124
-19
12
-235
-264
-76
-25
8
-163
-168
-116
-33
-26
-13
25
-116
-40
-18
-20
26
31
* As reported
ch (%)
-2%
-10%
42%
-33%
8%
-4%
1%
-19%
60%
-39%
33%
-36%
3%
-1%
24%
-32%
54%
5%
2008
2,880
2009
2,435
1,581
762
575
112
-150
1,348
683
410
116
-122
-2,213
-2,010
-1,008
-650
-516
-76
36
-899
-725
-338
-78
31
-674
-596
-461
-183
-95
-50
114
-393
-169
-78
-47
91
ch (%)
-15%
-15%
-10%
-29%
3%
-19%
-9%
-11%
12%
-34%
2%
-15%
-12%
-15%
-8%
-17%
-6%
-20%
Quarterly Operational Results by Segments*
4Q08
4Q09
ch (%)
2008
2009
ch (%)
EBIT
Publishing
Broadcasting
Retail
Other
Intersegment Eliminations
-49
-73
-7
-170
-12
-33
-7
0
2
5
-70
2
-11
1
48%
n.m.
113%
n.m.
n.m.
-66%
112
-70
-36
-15
0
56
-211
-6
-10
0
n.m.
-50%
201%
-83%
-31%
-41%
EBITDA
Publishing
Broadcasting
Retail
Other
Intersegment Eliminations
7
-28
174
7
15
-13
-2
4
2
31
-58
5
-7
1
222
-19
-26
-4
0
167
-163
3
0
0
-7%
-3%
-20%
-5%
0%
1%
4%
-8%
-1%
13%
-11%
1%
-30%
2%
-31%
-4%
9%
-25%
5%
-21%
0%
7%
-9%
-6%
-13%
6%
14%
-2%
-4%
-4%
-7%
4%
-31%
-1%
-9%
0%
12%
-24%
1%
0%
(TLm)
Consolidated EBIT Margin
Publishing
Broadcasting
Retail
Other
Consolidated EBITDA Margin
Publishing
Broadcasting
Retail
Other
* As reported
32
-510%
103%
347%
n.m.
n.m.
-66%
-96%
-25%
760%
n.m.
-92%
-40%
.
EBITDA and Net Profit Reconciliation
EBITDA RECONCILIATION TABLE (MTL)
2008
2009
-7
-170
Depreciation+Amortization (+)
214
230
Programme Rights Amortization (-)
-60
-68
27
15
174
7
Operating Profit (EBIT)
Net IAS 39 impact
EBITDA
33
For further information
Email
: [email protected]
Web Site
: www.dyh.com.tr
34