Financial and market performance 2009 and 4Q 2009 February 2010
2009 advertising market performance Quarterly ad spend performance Ad spend 9 000 18% yoy % change PLN mln yoy % change 13% 12% 13% 8.1 bln � 11% 6% 7.1 bln 0% 1Q09 2Q09 3Q09 4Q09 -6% 6 000 2.15 bln -12% � 15% -18% 1.44 bln � 17% -24% -30% 3 000 -36% 1.89 bln 1 Internet Television Radio � 7% Outdoor 2 Magazines Dailies 1.62 mld 0 TOTAL 1Q09 2Q09 3Q09 4Q09 TOTAL TOTAL 2009 2008 2008 Source: ad spend estimates by: Agora (press based on Expert Monitor and monitoring of Agora, radio based on Expert Monitor), Starlink (TV, Internet – in 2008 display, search engines, since 1Q09 additionally classifieds, e- mail marketing), IGRZ (outdoor); ¹ since1Q09 media house Starlink changed the methodology of Internet ad market measurement; Internet ad market includes now: display, SEM, e-mail marketing and classifieds. Previously it included only display and SEM; 2 the historical data, concerning the estimates for Internet ad market for previous reporting periods has not been adjusted adequately therefore the data is not fully comparable; ² IGRZ, since 1Q09 data based on a new definition of outdoor market redefined as „out-of-home” market incl. stationary, mobile and digital advertising; the historical data has been adjusted adequately and is fully comparable.
2009 advertising market performance, cont. Ad market structure Ad spend vs GDP in 2009 5% yoy % change yoy pp and % change 1.7% 3.0% ³ 1.1% 0.8% Outdoor² 9% 0% Television 0pp 1Q09 2Q09 3Q09 4Q09 47% � 0.5pp Internet¹ 2009 12% -5% -7% � 2.5pp PLN 7.1 bln � 13% -11% -10% Dailies 11% � 2pp -15% Radio Magazines -17% 7% 14% -15% � 0.5pp � 0.5pp -20% GDP growth total ad spend (yoy) Source: ad spend estimates by: Agora (press based on Expert Monitor and monitoring of Agora, radio based on Expert Monitor), Starlink (TV, Internet – in 2008 display, search engines, since 1Q09 additionally classifieds, e-mail marketing), IGRZ (outdoor); GDP: 1-3Q09, General Statistical Office; ¹ since1Q09 media house Starlink changed the methodology of Internet ad market measurement; Internet ad market includes now: display, SEM, e-mail marketing and classifieds. Previously it included only display and SEM; the 3 3 historical data, concerning the estimates for Internet ad market for previous reporting periods has not been adjusted adequately therefore the data is not fully comparable; ² IGRZ, since 1Q09 data based on a new definition of outdoor market redefined as „out-of-home” market incl. stationary, mobile and digital advertising; the historical data has been adjusted adequately and is fully comparable; ³ estimates by economists and Ministry of Finance on the basis of an annual GDP estimate on the level of 1.7%.
Financial performance of the Group yoy yoy 4Q 2009 4Q 2008 2009 2008 PLN mln change change - Copy price increase introduced twice in Revenues, incl.: 291.1 335.9 1 110.1 1 277.7 (13.3%) (13.1%) 2009 partially - advertising¹ 198.4 (16.6%) 732.2 (20.1%) 238.0 916.1 compensates decline in copy sales; - copy sales¹ 48.2 (0.4%) (3.4%) 193.4 48.4 200.2 - Special Projects, incl. collections 15.2 (34.5%) 26.3% 79.8 23.2 63.2 - Cost of production materials due to Operating cost, incl.: 271.6 361.3 1 057.2 1 233.1 (24.8%) (14.3%) increased production volume for external - raw materials, energy and consumables 55.7 55.1 1.1% 222.8 211.2 5.5% clients; - staff cost 66.7 80.4 (17.0%) 268.1 298,7 (10.2%) - non-cash expense of share-based payment 3.1 3.6 (13.9%) 10.2 27.2 (62.5%) - marketing and promotion 40.5 57.8 (29.9%) 150.1 218.2 (31.2%) - incl., i.a., decline by 530 - D&A 20.0 22.7 (11.9%) 81.2 83.8 (3.1%) FTEs vs 31 December 2008; - operating efficiency improvement plan - 8.6 - 2.3 8.6 (73.3%) - impairment loss on Trader.com(Polska) - 27.2 - - 27.2 - EBIT 19.5 (25.4) 52.9 44.6 - 18.6% - Lower prices of media EBIT margin 6.7% (7.6%) 14.3 pp 4.8% 3.5% 1.3 pp purchase; - Limited number and Operating EBITDA² 42.6 0,8 143.9 155.0 5 225.0% (7.2%) scale of promotional Operating EBITDA margin ² 0.9 pp campaigns; 14.6% 0.2% 14.4 pp 13.0% 12.1% Net profit 14.9 (30.7) 38.3 23.4 63.7% - Adjusted EBIT³ 19.5 1.8 52.9 71.8 983.3% (26.3%) - Decrease in staff Adjusted EBIT margin³ 6.7% 0.5% 6.2 pp 4.8% 5.6% (0.8 pp) reduction by 530 FTEs vs 31 December 2008 Adjusted operating EBITDA 42.6 28.0 143.9 182.2 2, 3 52.1% (21.0%) partially resulting from operating efficiency Adjusted operating EBITDA margin (1.3 pp) 2, 3 14.6% 8.3% 6.3 pp 13.0% 14.3% improvement plan. Employment (e/y FTE) 3 143 3 673 3 143 3 673 (14.4%) (14.4%) Source: consolidated financial statements according to IFRS, 4Q09; ¹ excluding Special Projects; 4 ² excluding non-cash cost of share-based payments; ³ excluding impairment loss on Trader.com (Polska).
Group’s operating cost Reduction of Group’s operating cost in 2009 400 PLN mln yoy % change PLN 27,2 mln impairment loss on Trader.com(Polska) � 9.8% 300 � 24.8% excluding impairment loss on � 7.6% Trader.com(Polska) – decline by 18.7% � 12.5% 200 2008 100 2009 0 1Q 2Q 3Q 4Q 80 80 4 000 80 PLN mln � 9.7% PLN mln FTE at the end of period yoy % change PLN mln � 14.0% yoy % change yoy % change � 17.0% � 25.7% � 8.4% � 16.6% � 1.1% � 6.4% 2008 � 36.2% � 29.9% � 28.3% 2 000 2008 40 40 2009 40 � 29.2% 2008 2009 2009 0 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 0 2008 2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Employment of the Group Source: consolidated financial statements according to IFRS, 1-4Q09; 5 ¹ excluding non-cash cost of share-based payments.
Segment performance: Newspapers ( Gazeta , Metro , Special Projects, Printing Division) Financial performance ¹ 4Q 2009 4Q 2008 yoy change 2009 2008 yoy change PLN mln - Ad market condition and 178.0 206.9 696.9 821.0 (14.0%) (15.1%) Revenues, incl.: decline of recruitment ads category by 50%, in which 90.5 115.6 (21.7%) 342.8 485.8 (29.4%) - advertising in G azeta Gazeta has a leadership position; - copy sales in G azeta 37.4 36.6 2.2% 150.4 151.9 (1.0%) - Copy price increase; 138.0 171.4 556.9 657.3 Operating cost, incl.: (19.5%) (15.3%) - raw materials, energy and 57.6 57.9 (0.5%) 234.9 227.5 3.3% consumables - i.a result of staff reduction; - staff cost excl. non-cash 32.4 37.3 (13.1%) 129.9 146.9 (11.6%) cost of share-based payments - Lower prices of media 23.8 41.0 (42.0%) 96.8 156.3 (38.1%) - marketing and promotion purchase; - Limited number of - operating efficiency - 3.0 - 1.4 3.0 (53.3%) promotional campaigns; improvement plan - Limited number of Gazeta’s editions with dual pricing offers. EBIT ² 140.0 163.7 40.0 35.5 12.7% (14.5%) EBIT margin ² 22.5% 17.2% 5.3 pp 20.1% 19.9% 0.2 pp Operating EBITDA³ 172.0 216.2 48.2 46.6 3.4% (20.4%) Operating EBITDA margin ³ 27.1% 22.5% 4.6 pp 24.7% 26.3% (1.6 pp) Source: financials: consolidated financial statements according to IFRS, 4Q09; recruitment ads: Agora, display ads, 4Q09 vs 4Q08; ¹ incl. Gazeta , Metro , Special Projects, Printing Division; 6 ² excluding allocations of general overhead cost of Agora SA; ³ excluding non-cash cost of share-based payments and allocations of general overhead cost of Agora SA.
Dailies in 2009 Dailies cover prices (actual, basic) Newspapers ad spend structure ¹ Super Express quality quality tabloids tabloids 3% other national Rzeczpospolita yoy % and pp change 0pp Dziennik 3% Dziennik local local 9% Gazeta Gazeta Super Super 0pp Rzeczpospolita Rzeczpospolita Gazeta Gazeta Fakt Fakt � 1pp Wyborcza Wyborcza Express Express Metro Prawna Prawna local 4% � 0.5pp 28% PLN 2.0 – 2.5 PLN 3.4 PLN 1.4 – 1.7 � 0.5pp PLN 2.6 – 2.9 PLN 1.4 – 1.7 PLN 1.2 – 2.5 2009 PLN 0.8 bln � 25% Fakt Gazeta maintains its 8% market share in dailies Gazeta � 2pp ad spend in 2009 if 38% Dziennik Gazeta Prawna recruitment ads are (till Sep 11, 09 Gazeta Prawna²) � 2.5pp excluded Dziennik 3% (till Sep 12, 09) � 1.5pp 4% � 3pp Weekly readership reach in 4Q 2009³ Copy sales³ No of readers 600 thou. copies 14.4% Fakt 4.3 mln 14.0% 462 K Fakt Gazeta 4.2 mln 450 Gazeta 7.1% Metro 2.15 mln 347 K Super Express 300 6.5% Super Express 2.0 mln Rzeczpospolita 192 K 4.0% Dziennik Rzeczpospolita 1.2 mln 150 137 K 107 K Dziennik Gazeta 3.5% Dziennik Gazeta Prawna 1.1 mln Prawna 4 (till Sep 11, 09 % reach 0 Gazeta Prawna) 0% 4% 8% 12% 16% Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Source: copy sales: ZKDP, total paid circulation, Jan-Dec 2009, comparison; readership: Polskie Badania Czytelnictwa, execution MillwardBrown SMG/KRC, Oct-Dec 2009, N=12 047, CCS indicator (weekly readership), elaboration Agora SA; dailies ad market: display ads, Agora’s estimates, 2009; (1) comparison of major dailies only; 7 (2) the title appeared on the market on September 14, 2009 from the merger of Gazeta Prawna and Dziennik . The ad revenue for the period January 1 – September 11 relates to the ad revenue of Gazeta Prawna. (3) selected dailies with nationwide reach; (4) title created on September 14, 2009 from the merger of Dziennik and Gazeta Prawna which was classified as a specialist title, whereas Dziennik as a quality title .
Recommend
More recommend
