Results presentation Q3 2021 - nentgroup.com - Nordic Entertainment Group
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Results presentation Q3 2021 nentgroup.com
Q3 Key highlights
Group organic sales up 10%
Viaplay sales up 15%
Viaplay subs up 28% to 3,608k
including 3,296k Nordic and 313k
international subscribers
Successful Polish launch and new
targets presented at CMD
Viaplay Original: Furia
Viaplay performance
Viaplay subscriber base* (thousands) Comments
• 28% YoY subscriber growth with 322k subscribers
3,608
3,287
added QoQ and 795k YoY
3,147
3,020
2,716 2,813 • Successful Polish launch in August with high
2,510
2,272 awareness levels & 3 key distribution agreements
• 12.89bn streamed minutes and 99.98% up-rate
• 15% YoY organic sales growth to account for 36% of
Group revenues
• Well on track to year-end target of adding at least
Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 400k Nordic and 500k international subscribers
• Viaplay to be launched in the US in December 2021
* paying subscribers (including subscribers that have access to Viaplay through traditional pay-TV packages)
Viaplay Originals
11 +38% 5
titles increase in viewing of of top 10 scripted series
premiered Viaplay Originals YoY were Viaplay Originals
New & extended sports rights
UEFA EURO
2022 - 2028 2021 - 2023 2024 & 2028
FIFA and UEFA UEFA Nations
European Qualifiers League
2021 - 2024
2022 - 2028 2022 - 2028 2021 - 2026
Photo Marco Bertorello AFP
Subscriptions, advertising and studios
Other subscriptions Advertising Studios & other
Other subscription revenues Advertising revenues Studio revenues
• Up 1% on organic basis to • Up 10% on organic basis to • Up 118% on organic basis to
account for 34% of Group account for 27% of Group account for 3% of Group
revenues revenues revenues
Comments Comments Comments
• Underlying growth primarily • TV and radio advertising markets • Higher external order and
reflected the growth in Allente all grew as spending rebounded production volumes
revenues from impact of Coronavirus • Rebranded as Viaplay Studios to
• New long-term deals being pandemic in 2020 focus on content creation for
negotiated with key distribution • High sold-out ratios combined Viaplay
partners to reflect addition of key with price increases to offset • Completed sale of remaining
new sports rights in Q4 & 2022 ongoing decline in linear viewing discontinued studios businesses
Our sustainability priorities
• Current 3 yr strategy & plan has focused on promoting Nordic storytelling and equality, diversity and inclusion
• New 5 yr strategy & plan under development - to be launched 2022
• ESG assessments conducted ahead of new market entries
Ongoing activities Content and creative industry
• Re-opening of offices with new hybrid and flexible • Launched pan-Scandinavian pitching programme for
ways of working & collaborative work spaces film students to encourage debutant writers to bring
• Ongoing data protection impact assessments and new perspectives and stories
adoption of working practices in line with risk • Continued focus on acquiring and producing content
framework for third country data transfers that raises societal & environmental issues: The Prize of
• Ongoing evaluation of the most material climate- Silence, Sort Of, The Trick, and The Uninhabitable Earth
related risks and opportunities according to the Task • Ongoing annual onsite audits of content suppliers
Force on Climate-related Financial Disclosure • Science-based targets to be set in 2021 with objective
framework - to be disclosed at end of 2021 of being carbon neutral by end of 2023
NENT Group 2025 targets
Group organic sales growth ~18-20% CAGR 2020-25
~12 million by end of 2025,
Viaplay subscribers
of which ~6m in Nordics and ~6m International
Nordic organic sales growth ~13-15% CAGR 2020-25
Viaplay Nordics organic sales growth ~23-25% CAGR 2020-25
Nordic EBIT (excl. ACI & IAC) ~15% margin in 2025 and ~20% long term margin
International EBIT Accretive in 2025, ~15% margin in 2026 and ~25% long term margin
Leverage policyShort term outlook
Group organic sales growth ~28% in 2022
Nordic organic sales growth ~20% in 2022
~6.5 million by end of 2022,
Viaplay subscribers
of which ~4.3m Nordic and ~2.2m International
Nordic EBIT (excl. ACI & IAC) Rising profits with stable margin in 2022
International EBIT Loss of ~1.5bn SEK in 2022
Change in working capital Approximately -3.2bn SEK in 2022The next chapter
Viaplay to launch in the US in Q4 2021, Netherlands
in Q1 2022 and the UK in the second half 2022
Ambition to premiere 50+ new Viaplay Originals in
2021 and 60+ in 2022
Wide range of multi-year sports rights agreements
added or extended across multiple markets
Viaplay Original: Close To MeQ3 performance summary
Comments Sales split Q3 21
• 10% organic sales growth
• Operating income before associated company
income (ACI) and items affecting comparability 34%
36%
(IAC) of SEK 80m (176) including SEK -200m impact
of Viaplay International expansion
• Operating income of SEK 114m (256) including ACI
of SEK 34m (80) 3%
27%
• Adjusted net income from continuing operations
of SEK 179m (219) with adjusted EPS of SEK 2.30 Viaplay
(3.25) Other subscription
Advertising
Studios and otherAllente update
SEKm Q321
EBITDA before IAC 348
Depreciation and amortisation -107
EBIT before IAC 241
Items affecting comparability -138
EBIT 103
Net income 67
NENT Group 50% share 33
Net debt position (end of period) 1,648
# of subscribers 1,068k
Viaplay Original: Two SistersCash flow and leverage
SEKm Q321 Q320 FY20 FY19 SEKm Q321
Cash flow from operations 265 175 2,200 1,393 LTM EBITDA before IAC 1,280
Change in working capital -986 167 -674 -791 Net debt -1,392
Net operating cash flow -721 343 1,526 602 Net debt / LTM EBITDA before IAC -1.1x
CapEx * -55 -30 -147 -176 Financial net debt -1,754
Operating FCF -776 313 1,379 426 Lease liabilities and sublease receivables 362
• Cash flow from operating activities of SEK 265m included SEK 125m dividend from Allente
• Changes in w/c reflected usual seasonal pattern in sports rights payments + Viaplay original investments
• Cashflow from investing activities of SEK 353m included SEK 412m of proceeds from studios divestments
• Fully funded with net cash position and well-balanced capital structure
* Excluding Acquisitions and DivestmentsQ&A
Telling stories Touching lives Expanding worlds
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