Company Presentation - gedispa.it€¦ · Company Presentation Milano, Star Conference, March 21st...

Company Presentation

Milano, Star Conference, March 21st 2019

Laura Cioli – Chief Executive Officer

Stefano Canu - Investor Relations

2

➢ This document has been prepared by GEDI S.p.A for information purposes only and for use in the presentation of the

Group’s results and strategies.

➢ For further details on GEDI S.p.A , reference should be made to publicly available information, including the Annual

Report, the Semi-Annual Report and Quarterly Reports.

➢ Statements contained in this document, particularly the ones regarding any possible or assumed future performance of

GEDI S.p.A , are or may be forecasts and in this respect they involve some risks and uncertainties.

➢ Any reference to the past performance of GEDI S.p.A shall not be taken as an indication of future performance.

➢ This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall

form the basis of or be relied upon in connection with any contract or commitment whatsoever.

Disclaimer

3

Positioning and FY 2018 Results

Business Units

Digital, advertising and operations

Agenda

1

2

3

4

GEDI at a glance

NATIONAL PRESS GEDI NEWS NETWORK RADIO

GNN Local websites Radio websites

Digital

Manzoni multimedia sales organization

(Gedi properties and third parties)

Advertising

5 + 1 (external) printing facilities

Printing facilities

5

GEDI’s leadership

NATIONAL PRESS GEDI NEWS NETWORK RADIO

Repubblica is the first online news website in Italy by audience (+24% on key

competitor) and video streaming

N°1 Online News and Video N°1 Local Advertising N°3 Audience (Private)

National & Local circulationN°1

N°1

Digital

Advertising

Social engagement (Repubblica)N°1

Globally by reach of news website (Repubblica)N°2

N°1 Advertising collection

Leader in engagement in live events of the different brand (e.g., Deejay Ten, Rep Idee)

Multimedia sales organization for diversification with € 95m gross online revenues (30%

third parties) and €120m gross radio revenues (35% third parties)

Player in Italy after the two large TV groups and Google

N°1

N°4

6

National Press

Circulation

GEDI

DISTRIBUZIONE

50%

ProductionGEDI PRINTING

Radio

ELEMEDIA SPA

49%

30%PERSIDERA

HuffingtonPost Italia

LE SCIENZE

Advertising

MANZONI

100% 100% 68,39%99,85%

31,61%

100%

Digital

GEDI DIGITAL

17,93%

82,07%

83%

My Movies

MONET

La Stampa and Local PressGEDI NEWS NETWORK

ITEDI:

Main recent corporate actions:

• Merger of Itedi into the Local press legal entity and creation of GNN (Gedi News Network)

• Itedi printing facility transferred to Gedi Printing

• Merger between Manzoni and PK in advertising collection

• All group digital activities concentrated in Gedi Digital

GEDI’s organization

7

2018 FY results

(1) Including Itedi consolidation from July 1, 2017

(2) EBITDA 2018 before restructuring expenses and other non-ordinary items totaling €18.7m

(3) EBIT 2018 before €1.3m of write-downs of printing plants and €24.2m of write-downs on goodwill

(4) Net Income net of charges mentioned in Note 2 & 3 and additional € 12m write-downs on assets

(5) Includes extraordinary fiscal charge of € 143.2 Mn

Revenues

Circulation

615.8

262.7

648.7

284.6

2017(1) 2018

Advertising 303.1 318.0

Add-ons &

others

50.0 46.2

EBITDA adj. (2) 57.4 51.7

EBITDA

margin

9.3% 8.0%

EBITDA reported 52.8 33.1

EBIT adj. (3) 41.1 33.1

EBIT margin 6.7% 5.1%

Net income (4) (123.3) (5) (32.2)

NFP (115.1) (103.2)

8

2018 Results by business unit

NATIONAL PRESS (€m) FY'17 FY'18 Δ %

Revenues 276,4 253,8 -8,2%

Circulation 129,6 117,2 -9,6%

Advertising 115,7 110,2 -4,7%

Add-ons & Others 31,1 26,3 -15,3%

EBITDA Adj 3,6 (6,9) n.m

Ebitda Margin 1,3% -2,7% -4,0%

GEDI NEWS NETWORK

(€m)FY'17 FY'18 Δ %

Revenues 204,0 254,1 24,6%

Circulation 133,1 167,6 25,9%

Advertising 61,0 76,5 25,3%

Add-ons & Others 9,8 10,0 2,3%

EBITDA Adj 23,6 25,3 7,3%

Ebitda Margin 11,6% 10,0% -1,6%

RADIO (€m) FY'17 FY'18 Δ %

Revenues 59,0 62,0 5,2%


Others 1,4 1,0 -29,6%

EBITDA Adj 18,1 19,1 5,9%

Ebitda Margin 30,6% 30,8% 0,2%

Adv, Interco & Other

Services (€m)FY'17 FY'18 Δ %

Revenues 76,4 78,8 3,1%

EBITDA Adj 12,1 14,2 16,5%


9

Our strengths

➢ A portfolio of strong brands with great identity and affiliation

potential

➢ High quality of the editorial content, in terms of breadth and depth,

proven over time

➢ Scale and coverage/reach focused on areas with higher

GDP/capita built on a portfolio of more resilient local newspapers

➢ Undisputed leadership on digital, both on audience and reach,

that constitutes a solid ground for the business transformation

➢ Encouraging initial results on digital subscriptions (Rep:, Top news,

etc..)

➢ Strong and growing Radio business, yet showing some areas for

further profit generation

➢ Proven ability to simplify, stream-line and cut costs

10

• New editor-in-chief on Repubblica and improvement of

the newspaper

• Review of the weekly/monthly offering to streamline the

newspapers and support advertising and circulation

revenues (Espresso, RMotore, new paid product - Live)

• Synergies on national content of local newspapers

leveraging on La Stampa as central “factory”

• Relaunch and repositioning of two radios (Radio Capital

and M2O)

Key actions

Product enrichment Newsroom’s organization and costs

• Trade union agreements with significant reduction in

editorial costs

• Reduction of external collaborations

• New newsroom’s organization (desk mergers and

synergies between newsrooms, focus on main sectors)

• Integration of Content Management System (CMS) to

enable stronger editorial synergies and IT cost reduction

• Closure of two printing facilities in Nov ‘18 and of two

additional in ‘19

• Set-up of a new distribution footprint based on a series

of “local” contracts creating an independent channel

• Additional centralization/synergies in GNN

• Development of existing pay products (Rep:, Top News &

membership of local newspapers) through newsletters,

verticals, production/content optimization, ARPU

increase, and stronger integration with local newspapers’

events

• Further focus on verticals (economy, innovation, art)

• Enrichment of data architecture (new CRM Platform) to

enable marketing automation for acquisition and churn

prevention

Printing and distribution Digital

Key actions

11


Business Units


Agenda

1

2

3

12

National press – key results

• Circulation underperforming the market in

2018, but improving over time

• Trade union agreements for editorial costs

reduction approved

− Working time reduction and exits

− Reduction of external collaborations

− New editorial organization in the

newsroom (desk mergers and

synergies between newsrooms,

focus on main sectors)

• New products to support advertising and

circulation revenues

• New Editor-in-Chief from February 2019 and

improvement of the newspaper

Repubblica vs Corriere

National circulationN°2

NATIONAL PRESS (€m) FY'17 FY'18 Δ %

Revenues 276,4 253,8 -8,2%

Circulation 129,6 117,2 -9,6%

Advertising 115,7 110,2 -4,7%

Add-ons & Others 31,1 26,3 -15,3%

EBITDA Adj 3,6 (6,9) n.m

Ebitda Margin 1,3% -2,7% -4,0%

13

National press – product enrichment

• Review of the weekly

offers (Espresso)

• Further focus on

verticalizations on

specific sectors/themes

as Motors (advertising

revenues)

• Launch of new paid

products as Live

(circulation revenues)

Product enrichment

• New Espresso (weekly) out on Sunday

February 24, bundle with la Repubblica (at

€2.5, +67%)

• Significant positive impact on Repubblica’s

copies during the first weeks

• RMotore (monthly) out on March 6

• Story telling on the revolution of mobility and

the transition from the era of combustion to

sustainable mobility

• LIVE first monthly synergic (all group

newspapers) magazine focus on lifestyle out on

February 14, bundle with la Repubblica (at

€2.0, +33%)

• Total circulation of ca. 500 K copies

14

GEDI News Network – key results

Pricing, €/copy

• Synergies and efficiencies triggered by the

merger with Itedi :

− Admin cost reduction through staff

functions and insourcing of Itedi's

administrative activities

− Integration with GEDI IT systems

− Editorial offices

− Merger between Manzoni and PK in

advertising collection

− Contents’ synergies (common pages for

local newspapers, digital, videos,

events)

• New organization enabling additional

centralization/ efficiencies

• Pricing power in local newspaper (increase

in the cover price in Jan 2019 in some local

newspapers)

Price increase in Jan 2019

Price increase (0.1) in 2018 Pricing

Power

Local circulation & advertisingN°1

GEDI NEWS NETWORK

(€m)FY'17 FY'18 Δ %

Revenues 204,0 254,1 24,6%

Circulation 133,1 167,6 25,9%


Add-ons & Others 9,8 10,0 2,3%

EBITDA Adj 23,6 25,3 7,3%

Ebitda Margin 11,6% 10,0% -1,6%

0,40

0,60

0,80

1,00

1,20

1,40

15

GEDI News Network – positioning

LA STAMPA(in Piedmont)

IL SECOLO XIX

MESSAGGERO VENETO

IL PICCOLO

IL MATTINO DI PADOVA

LA TRIBUNA DI TREVISO

LA NUOVA VENEZIA

IL CORRIERE DELLE ALPI

GAZZETTA DI MANTOVA

GAZZETTA DI REGGIO

GAZZETTA DI MODENA

LA NUOVA FERRARA

LA PROVINCIA PAVESE

IL TIRRENO

0%

10%

20%

30%

40%

50%

60%

70%

80%

0 20 40 60 80 100 120 140

Mar

ket

shar

e

Average copies sold daily Source : ADS 2017

16

Radio – key results

Age-group target:

• under 44 years old (71%)

• under 34 years old (44%)

• 54 % are college /

university graduates

• 25 – 54 years old (61%)

•43% are 18-44 years old

•64% high/medium-high

education

Age-group target:

• under 44 years old

(85%)

• under 34 years old

(63%)

• Strong fundamentals and growth in

usage and revenues in the last 3

years

• Radio market gaining share on the

total advertising market

• Despite the recent grow the Italian

market is one of the most

underdeveloped countries in Europe

in terms of value (~400m vs 700m in

France)

• Most of profitability is on Radio Deejay

while Radio Capital and M2O’s

performance can be improved

• Consolidation ongoing

5.0m

Daily Listeners 1

1.6 m

1.6m

1) RadioTer research

N°3 Radio private Group

RADIO (€m) FY'17 FY'18 Δ %

Revenues 59,0 62,0 5,2%


Others 1,4 1,0 -29,6%

EBITDA Adj 18,1 19,1 5,9%


N°1 Radio advertising Group

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Radio – key initiatives

• Sustain performance, audience and

ranking

• Maintain current premium adv price

positioning

• Maintain current programming, talents and events’

calendar

• Leverage on strong brand to enter new segment (i.e.

Sport) and new events

• Leverage on DeeJay TV to sustain radio’s audience

Objectives Initiatives

• Grow number of listeners and their loyalty

• Increase of average spot value above

market average

New Editor-in-Chief (June ’18) Massimo Giannini, formerly in

“La Repubblica” with the objectives to :

• Re-focus the radio on information leveraging on Group’s

assets and adding 22 hours of News and “breaking news”

every 15 minutes

• Maintain the current focus on high quality music

• Reposition the radio to improve power

ratio

• Drive average spot value to market

average

New editorial project under new Editor-in-Chief (Dec ’18)

Albertino, leveraging his Radio DJ experience to:

• Improve brand’s “coolness”

• Increase use of social media

In addition, enrichment/improvement of the radio network to

increase coverage

18


Business Units


Agenda

1

2

3

19

Key priorities on digital

Continuing the strategy of partnering with the most innovative global digital media

•Further focus on Repubblica.it

«real time news» positioning and

multiplatform usage growth

•Dedicated organization for video

production

Video

Strategy

•Google

•YouTube

•Facebook

•MSN

Off-Site Audience

Development

•Rep: and Top News digital

subscriptions new offer

•Adding native digital products to

replica products

•Local membership

Local

•Set-up of a single infrastructure to collect all data managed at group level

•New CRM platform

•Users subscription strategy for adv profiling and conversions

Additional

revenue

stream

Building brand awareness and trust, also abroad, through prestigious awards: ONA Award 2017 Sport

Category for “Totti Re di Roma” – Prix Italia 2018 Cross-platform special prize for “Chronicle of an abduction”

– Prix Italia 2018 Signis Special Prize for “A sea of shame” – Prix Italia 2018 TV Documentary for “Daphne”

20

Portfolio of leading digital assets

N

E

W

S

• Repubblica.it

• La Stampa

• GNN*

• HuffPost

Daily audience Comment

• 3,0 mio

• 1,0 mio

• 671K

• 587K

R

A

D

I

O

• Deejay

• Capital

• M2o

• 202K

• 13K

• 7K

Including Secolo XIX

Source: AWDB, 2H 2018, reach daily

• Top news website in Italy

• Leading news website in North-west

• Leading local news in Center-north

• Thought-leader for political news

• Best performing radio on social

• Focused on information/music

• Focused on young audience

V

E

R

T

I

C

A

L

S

• Business Insider

• MyMovies

• TvZap

• 138K

• 246K

• 111K

• Focused on business and technology

• Leader in movies’ reviews

• Focused on TV shows and series

21

Italy – Online Daily Reach

International – Facebook engagement International - Reach % vs peers

Repubblica.it – KPIs

N°1

Worldwide

N°1 WorldwideN°2

in social engagement

in news

in news

Source: Reuters Institute “Private Sector News, Social

Media Distribution, and Algorithm Change”, sep 2018Source: Reuters Institute “Digital News Report 2018”


22

Leadership position on video

Need to Know

• Live coverage (6/8

hours per day)

• On demand clips

(120 per day)

• Crowdsourced

Need to Understand Need to RememberUser needs

In 2018 average monthly video views have been 58,5 million

• Explainers

• Minidocs

• Agenda setting

• Fact checking

• Data/infographics

• Webseries

• Docs

• Interactives

• 360°

• AR / VR

• GEDI websites

• External platforms

Format

Distribution

Monetization

• GEDI websites

• External platforms

• GEDI websites

• Virtual cinemas

• SVOD

• Traditional

Broadcasters

• Advertising• Advertising

• Sponsorship

• Sponsorship

• Subscription

• Rights

N°1 In video news

We have invested to build the N°1 video asset position in Italy

23

GEDI Active Subscribers

• Expanding the offer adding to replica products a

range of native digital products (in depth articles,

analysis, investigative journalism, customized

content, audio and podcast versions):

- Repubblica

- La Stampa

- Local Membership

Active digital subscribers

Ca. 72K

>110K

2 0 1 7 2 0 1 8

REPLICA 2018

Repubblica 55%

Quotidiani Locali 22%

La Stampa 14%

Periodici 10%

• Long Term Market Potential: ~1% of the monthly

unique visitors of repubblica.it = ~300K

• Benchmark 2018:

• Germany: Bild ~390K

• UK: The Guardian ~300K

• France: Le Monde ~160K

(average

ARPU >10€)

Replica

Digital Native

Replica

Digital Native

Repubblica53%Local

Newspapers23%

La Stampa13%

Magazines11%

24

Local membership: subscription funnel

• Up to 3 articles/month

• Up to 5 articles/month

• Unlimited access to website

• Daily Newsletters

• Special events and meetings

• PDF Replica

• Member «Light» benefits

Awareness

Interest

Purchase

Anonymous visitors

Registered Users

Light Members

613k daily

320k

2.3k

11.4k

Offering exampleUser ProfileObjectiveSubscription funnel of all GNN local

mermberships (exc. La Stampa and Secolo XIX)


Top Members

25

GEDI’s leadership in the advertising industry

Source: Balance Sheet 2017, Internal Data, For Google/ Facebook estimation, Sky June 17-18 period

* Market Share based on Net Adv Market Data (6,6M€)

• N°4 player in Italy after the two large TV groups and Google

• N°1 multimedia sales organization for diversification with € 95m gross online revenues (30% third

parties) and €120m gross radio revenues (35% third parties)

• N°1 International Brands represented (Huffington Post, Business Insider, Taboola)

Source: Internal Data

[B€]

[100%]

26

Manzoni is the largest Radio advertising network

Daily Listeners(last 7 days)

30.5 m

Vs Total Listeners

Source: TER 2018.1 Ind.+14.

45%33%

25%

18% 16% 15%

AMC MEDIAMOND OPENSPACE RADIO RAI RDSADVERTISING

24 ORESYSTEM

70%60%

50%

35%30% 31%


24 ORE SYSTEM

26%

19%

13%10%

8% 7%


24 ORE SYSTEM

Daily Listeners(Daily average)

15.4 m

Daily Listeners(Average quarter-hour)

1.6 m

Manzoni is the N°1 Radio advertising agency with the better

segmentation and lower overlapping within the core target, Radios

managed by Manzoni are the N°1 in most of the audience KPIs

27

DIRECT SALES (national and

local)

TAILOREDSPECIAL

PROJECTS«Fuori Format»

PROGRAMMATIC PERFORMANCESELF

SERVICEPLATFORM

15,000 Digital

2,500 National Clients

1,500 Digital

35,000 Local Clients

Self-service recently introduced to

serve local business through small

local web agencies

INSIDE (BIG DATA PLATFORM)

Manzoni’s go-to-market strategy

N°1 in terms of territorial coverage

28

Printing facilities’ rationalization

Printing facilities in 2017

RomaSassari

Catania (1)

Torino

Padova

Gorizia

Bari

Livorno

(1) External Printing services

• Closing of two printing facilities in 2018

− Gorizia, activity transferred to existing

facilities

− Livorno after an outsourcing agreement

(Poligrafici Printing to print La

Repubblica and Il Tirreno of Tuscany)

• Expected closure of other two printing facilities

in 2019

− Milano & Bari activities transferred to

existing facilities

• Possible further consolidation in the future

• All Group intercompany printing contracts are

concentrated in a single legal entity (Gedi

Printing)

Printing facilities in 2019

Active at the end of ‘19

Closed / Outsourced in ’18-’19

Milano

Mantova

Company Presentation - gedispa.it€¦ · Company Presentation Milano, Star Conference, March 21st...

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