Creating a Global Champion - J.P. Morgan European Tech Stars 2020 Conference September 2020 - ProSiebenSat.1 Media SE
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
-1-
Creating a Global Champion
J.P. Morgan European Tech Stars 2020 Conference
September 2020
-2-
Deep industry know-how and vast experience in direct-to-customer, media
and digital businesses
Tim Schiffers Henning Rönneberg Marc Schachtel Geoff Cook
Chief Executive Officer Chief Financial Officer Chief Operative Officer CEO The Meet Group /
(CEO) (CFO) (COO) General Manager Video
As Group CEO Tim Schiffers is Henning Rönneberg is responsible Group COO Marc Schachtel is Geoffrey Cook is CEO of The Meet
responsible for ParshipMeet for the central functions of the responsible for the group’s Group, overseeing the social dating
Group’s overall strategic direction. group. In his role as Group CFO he technology and platform strategy. and entertainment portfolio of the
He oversees the brand, media and oversees finance (treasury, For the matchmaking part of the group. In addition, he is responsible
marketing activities to ensure controlling, accounting, tax), business, he oversees the product for ParshipMeet Group’s overall
growth across the portfolio of investor relations and business strategy and drives the constant video strategy including the vPaaS
brands. intelligence as well as human optimization of customer success business.
resources, compliance and legal and monetization.
affairs.
Tim joined Parship as CEO in 2014 Henning joined Parship as CFO in Marc joined Parship as Director Geoff co-founded The Meet Group
after having led several strategy and 2008, being Managing Director Engineering in 2011, being CTO in 2005 and has been its CEO ever
optimization projects within the from 2012 onwards. Prior positions from 2012 and Managing Director since, which was created out of
Holtzbrinck Publishing Group. Prior include CFO of publicly listed from 2014 onwards. myYearBook. Previously he has
positions include CEO of adviqo AG, Pixelpark AG, CFO of Axel Springer’s Prior positions include Co-Founder been the co-founder and CEO of
Managing Director of Wunderman finance and services division, CFO of and CTO of VC-backed gaming ResumeEdge and EssayEdge.
and several national and Bertelsmann’s Bol.com and Head of company Goodbeans and Senior
international leadership roles at Business Development at Infineon Consultant at BCG Platinion, BCG’s
Bertelsmann. AG. IT-consulting branch.
-3-
ParshipMeet Group – combining two leading complementary online dating
businesses into new global champion
Globally leading mobile-
Leading international first, social dating and Leading global online
mobile-first matchmaking brands dating & social
matchmaking brands and platforms entertainment platforms
and platforms
EUR 451m
EUR 222m H1 2020 LTM Revenue1 EUR 229m
H1 2020 LTM Revenue H1 2020 LTM Revenue1
EUR 95m
EUR 56m H1 2020 LTM adj. EBITDA1 EUR 39m
H1 2020 LTM adj. EBITDA H1 2020 LTM adj. EBITDA1
1) LTM revenues and adjusted EBITDA per June 30, 2020. The Meet Group’s pro-forma adjusted EBITDA included in the above deducts 80% of the expenses for stock-based compensation from
The Meet Group’s management adjusted EBITDA. USD numbers converted at 1.12 for 2019, 1.14 for H1 2019 and 1.12 for H1 2020.
-4-
Operating in highly attractive market segments with dynamic growth
prospects
Monetizing
Large and High Growth Markets Strong Structural Growth Drivers
▪ Growth in numbers of singles from
changes in lifestyle and work
>8% Online dating market growth choices
for US & Germany ▪ Increasing use of online
~ EUR 9bn interaction and social
Global online dating market TAM
entertainment
>11% Social entertainment market
▪ Increasing penetration, trust and
growth
acceptance of meeting and
EUR 2.3bn socializing online
Subsegment: US & German online ▪ Technology increasing the
dating & matchmaking TAM Video Platform as a
substance and meaning of online
Service business
connections
(„vPaaS“)
▪ Changes in customer behaviour
being accelerated by „new
normal“
Source: ParshipMeet Group estimate based on third party consulting firm report.
-5-
Addressing all needs for meeting new people – from social dating and
entertainment to matchmaking and finding a meaningful relationship Our Brands
Social Dating & Entertainment Matchmaking
MeetMe Tagged Growlr Skout Lovoo Parship eharmony ElitePartner
The mobile version of Social Networking The gay dating app to Discover and meet Leading European Parship is THE love The US-based The online dating
the bar or and dating for the meet men in your new friends across and most brand for long-term and pioneer in creating service for demanding
coffeehouse where African American neighborhood or the globe or down downloaded German- happy relationships in highly compatible singles looking for an
everyone belongs community across the globe the block speaking dating app DACH and Benelux relationships inspiring relationship
Whatever people are looking for with us – we have the right service for them.
A long-term relationship with the right partner? Fun encounters in a relaxed, but at the same time safe
atmosphere? Live video and entertainment?
Our highly diversified range of apps offers something for everyone. That’s what make us uniquely special in
the online dating market.
-6-
Uniquely covering the full spectrum of the online dating market –
newly formed group is the global #2 dating player
Tinder PoF Pairs Meetic OKCupid Match Hinge
MeetMe Skout Tagged GROWLr Lovoo Parship eharmony ElitePartner
Badoo Bumble
Zoosk Christian Mingle SilverSingle eDarling EliteSingles
MARKET SEGMENT Social Dating / Entertainment Classic Dating Matchmaking
USER INTENTION Meeting Dating Relationship
Source: ParshipMeet Group estimate.
-7-
Highly diversified business model and revenue streams standing out in the
market
Subscriptions Virtual Goods Advertising B2B vPaaS
Note: Revenue split in percent of H1 2020 pro forma revenues of ParshipMeet Group. USD numbers converted at 1.12 for H1 2020.
-8-
Live streaming dating – the future of online dating AND reality TV has
arrived, and we are leading
Live Streaming Dating: Reality TV 2.0 Components & Success Factors
Technology
Tens of millions of dollars per year
in software improvements and new
features
Moderation
500+ human moderators combine
with sophisticated AI
Talent Management
30-person talent team recruit and
promote emerging talents
Formats Combined in one easy to
Constantly developing new formats integrate SDK that any app
to engage the audience or website can add …
Monetization
Gifting to streamers based on
in-app purchases of coins
Audience
1.2 mm broadcasters and 8.9 mm
viewers per month*
-9-
ParshipMeet Group – one of a few global internet champions
headquartered in Germany
US
50%
of revenues
Germany
26%
of revenues
HQ
Rest of World
24%
of revenues
Offices
Hamburg (Group and Parship HQ)
New Hope (Meet HQ)
Philadelphia (Meet)
Dresden (Lovoo)
Berlin (Lovoo)
Los Angeles (eharmony)
London (eharmony)
Amsterdam (Parship)
Note: Geographical split based on H1 2020 pro forma revenues ParshipMeet Group. USD numbers converted at 1.12 for H1 2020.
- 10 - We will now turn to the realization of synergies while staying focused on growth Cross-selling between brands Cooperation P7S1 Entertainment Technology & platforms
- 11 -
Formation of ParshipMeet Group has created a leading global player in
online dating – to IPO in 2022
2012 2015 2016 2018 2020 2022
First Media-for- Acquisition of Acquisition of Acquisition of Participation of Acquisition of Acquisition of Vision to IPO
Revenue Deal Parship by Oakley ElitePartner Parship by General Atlantic eharmony The Meet Group ParshipMeet
with P7S1 Capital NuCom Group in NuCom Group Group
EV of EUR 300m EV of USD 85m USD 6.30 / share
Revenues ParshipMeet Group [EURm] Adj. EBITDA ParshipMeet Group [EURm]
52
246
44
209 40
36
143 28
117 124
82 18
60
37 44 9
-5 -2
2012 2013 2014 2015 2016 2017 2018 2019 H1 2020 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020
pro-forma* pro-forma*
Note: All enterprise values refer to acquisitions at the time. Aggregate merger consideration for The Meet Group at USD 497m (EUR 448m) based on EUR/USD exchange rate of 1.11
1) LTM revenues and adjusted EBITDA per June 30, 2020. The Meet Group’s pro-forma adjusted EBITDA included in the above deducts 80% of the expenses for stock-based
compensation from The Meet Group’s management adjusted EBITDA. USD numbers converted at 1.12 for 2019, 1.14 for H1 2019 and 1.12 for H1 2020.- 12 - Appendix
- 13 - Parship Group
- 14 -
After consolidating the DACH market and integrating eharmony, PG #1 in
matchmaking with market leading positions in Europe and North America
… 2012 2013 2014 2015 2016 2017 2018 2019 2020+
Parship Optimization and Growth ElitePartner eharmony Innovation and
“Parship Excellence” Acquisition and Integration Acquisition and Integration Growth
Sale Parship to Oakley Acquisition ElitePartner Sale to P7S1 Acquisition eharmony
Revenues Parship Group [EURm] adj. EBITDA Parship Group [EURm]
eHarmony Parship ElitePartner
209 44
40
36
31
143 28
117 124 117 18
82 9
60
37 44
-2
-5
2012 2013 2014 2015 2016 2017 2018 2019 H1 2020 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020- 15 -
Based on their top-of-class awareness and relevance our three strong
brands are leading in online matchmaking internationally
No other brand can give you Biggest and most experienced The dating service for discerning
Brand promise more confidence to fulfill matchmaker for finding a serious clients, where not everybody
your relationship goals long-term relationship makes the cut
Brand personality Trusted & dedicated confidant The passionate expert The cultured agent
Confidence: highest chance of success High chances and the most efficient Find the perfect partner with a similar
Emotional Benefit and most efficient way to find your way to find the perfect partner for a social standing and lifestyle for a
partner long-lasting, happy relationship serious relationship
Largest pool of desirable singles The largest selection thanks to the Best pre-selection through
Functional Benefit
seeking a real relationship largest database manual profile inspection- 16 -
Parship’s “Circle of Excellence” is the proven way of running online
matchmaking successfully, also forming the blueprint for eharmony growth
Parship “Circle of Excellence” in Online Matchmaking Key Facts
High media
pressure & ▪ In the online matchmaking business the most
efficient important asset is having and constantly
marketing refilling the largest database of high-quality
enables combined with singles.
▪ This large database is the key driver for the
attraction and – in the case of a subscription
Optimized model – conversion of new singles.
Best in class user conversion of ▪ The only way to obtain and grow such a high
Strong Brand
monetization online (brand) quality database is to build up a brand
traffic communicating this exact proposition.
▪ This can most effectively be achieved via use of
reach media, which in turn can only be afforded
as basis for leads to
based on excellent monetization capabilities
Largest database generating strong customer lifetime values.
of high quality ▪ Today, Parship Group masters this cycle and
users runs it in a highly profitable way.- 17 - The Meet Group
- 18 -
The Meet Group has combined acquisitions with a proven history of
performance through innovation to claim a market leading position
Acquisition Skout Acquisition Tagged Acquisition Lovoo Acquisition Growlr First vPaaS Client
2005 … 2010 2011 2012 … 2016 2017 2018 2019 2020
Launch of myYearbook -one myYearbook Introduction of video Live-streaming
Go-live on Mobile surpasses Launch of live-
of the first social networks for rebrands to Platform as a Service surpasses 50%
iPhone and Android 90% of revenue streaming video
meeting new people MeetMe Business (vPaaS) of revenue
Forms The Meet Group Acqu. by ParshipGroup
Revenues The Meet Group [USDm Reported] adj. EBITDA The Meet Group [USDm Reported]
MeetMe Skout Tagged Lovoo vPaaS Growlr
212
42
179
145 32 32
124 29 29
20
76
57
45
5
2014 2015 2016 2017 2018 2019 H1 2020 2014 2015 2016 2017 2018 2019 H1 2020
Note: adjusted EBITDA of The Meet Group can be found in the appendix of this presentation- 19 -
The Meet Group‘s continuous focus on three key pillars drives a sustainable
advantage in the market
Build the most
engaging dating communities
in the world
(2.1 billion monthly chats)
provides the provides the
distribution monetization
advantage to… advantage to…
Invest in new products and
services like live-streaming
Partner for and acquire new
video and AI to entice our
audiences, including through
community to spend more time
platform-as-a-service products provides the user
acquisition
advantage to… (1.1 billion video minutes monthly)- 20 -
Adjusted EBITDA definition of The Meet Group
The Meet Group (the “Company”) uses Adjusted EBITDA as a performance measure, which is a financial measure that either excludes or includes amounts that
are nor normally included or excluded in the most directly comparable measure calculated and presented in accordance with U.S. GAAP. The company defines
Adjusted EBITDA as income or loss from operations before interest expense, benefit from the provision for income taxes, depreciation and amortization expense,
stock-based compensation expense, non-recurring acquisition, restructuring or other expenses, gain or loss on foreign currency transactions, gain or loss on sale
or disposal of assets, bad debt expense outside the normal range and goodwill and long-lived asset impairment charges. The company excludes stock-based
compensation expense because it is non-cash in nature. The company believes Adjusted EBITDA is an important measure of its operating performance because
it allows management, investors and analysts to evaluate and assess its core operating results form period to period after removing the impact of acquisition
related costs, and other items of a non-operational nature that affect comparability. The company recognizes Adjusted EBITDA has inherent limitations because
of the excluded items.
The following table sets forth a reconciliation of the Meet Group’s Adjusted EBITDA to its U.S. GAAP net income for the year 2019:
in USD m FY 2019
Net Income (Loss) 11.332.497
Interest expense 1.301.348
Income tax expense 4.929.440
Depreciation and amortization expense 13.131.002
Stock-based compensation expense 11.107.152
Acquisition and restructuring 414.110
Loss on disposal of assets 0
Loss on foreign currency transactions 10.172
Adjusted EBITDA 42.225.722
Source: The Meet GroupYou can also read
