Welcome to our Cosmedia 9 Months 20 21 Results Presentation. At the end of the presentation, we will have a Q and A session. Your first name, your company name, and then Mr. Hashki. The conference will begin shortly.
Please hold the line. Thank you. Catherine Peralta with S&T Global Markets Intelligence.
There has been 7.5. And if we talk about the small channels, what we call it complementary channels, the audience share have been 7.1%. So all in all, I see Matt talking about content and audience. It's been a very good year for this group. About digital, I think that we it's clear that we have consolidated our leadership among all VL national audiovisual players.
Our unit usage numbers has been 47,000,000 for the 1st 10 months. And if we talk of our SVOD platform, We have reached 418,000 subscribers at the end of September, which means that we have multiplied by 1.4 The figure we obtained in September 2020, so also requires successful operation for us. About the financials, the total revenue of this period has reached 665,000,000 6% on a year on year basis. And talking about the early visual, The total net revenue has been €624,000,000 with an increase of 15%. The market share of has been 42%, which means a slight increase compared with the same period for 2020, Which I think implies a very good performance if we take into consideration this year as in the Olympic Games and the Euro Cup, Both of them, we didn't have in our group.
So it means that we have increased our market share despite all these Sports events that were in the competitors' hands out in ours. The total net advertising revenue of 48.6 percent. So I think that both in television and in detail, we are doing Very good year. Talking a little bit about the Content Production and Distribution division, the revenues has It's €56,000,000 which means a slight decrease compared with 2020. That is, as you know, The difference in the schedules of production and distribution and giving them to the customers.
So we expect that by the end of the year, this decrease will be offset. And in the others' divisions, the revenues Has grown by 20.3 percent to €22,000,000 So I think that's good news in terms of revenues. About the radio activities, the net advertising revenues has been €48,000,000 which means an increase of 8.3%. In the case of the OpEx, The total OpEx for this period has been €545,000,000 with an increase of 7.4%. The EBITDA of the period has been €120,000,000 which means an increase of 64.4% I compare with the same period for 2020, and that means that the EBITDA margin have been 18%, which is Slightly above the one we obtained in 2019.
And the conversion has been 55% From revenues to EBITDA, which is slightly better than our guidance. So I think that's also very good news in terms of the EBITDA level. Net profit must be €80,000,000 versus €40,000,000 we obtained in 2020, which means doubling it. And in the case of the net debt, the actual situation is the debt is only €89,000,000 Sorry, EUR 11,000,000,000 which compares with the EUR 117,000,000 we had at the end of December 'twenty. Let's say that this is something new to send a different schedule of payment.
And by the end of the year, we expect to have a net debt of something around €100,000,000 and we include here And what about the future? What do we foresee about the last part of the year? Well, October is It is true that October 2020 was a very good month because of the People was at home and began to go out and there was a the advertising had a very positive impact. And so in October 2021, it's flat compared with 2020. And we do think that this will be the trend also for November December.
So that's why we still stick to our guidance of market growing by 8%, 9% by the end of the year. Business units, we do think that TV, radio and digital will outperform the market that we have done in the previous months. So let's say The same trend as the past. And talking about the content production and distribution, our activities here Should be growing because, I mean, we are comparing with a very low level in the last quarter of 2020. Now talking about OpEx, I think that We will I mean, we stick to our guidance also about the total OpEx for the whole year, And we will also stick to that.
We will translate every year in revenues and That is 50% of them at the EBITDA level. So that's what we can I can say for the rest of the year, Which is, I think, it will be a very good year that I don't think that the margin will be better than 8% to 9% by the end
The first question comes from Richard Arie from UBS? Please go ahead.
Yes. Good morning. I mean, the question is just on auto. Obviously, if you look at the numbers for the 9 months and relative to the 6 months, it seems there was quite
a bit of wind in there
in the Q3 from the auto. Can you just
sort of Maybe pull that apart.
I'm just trying to highlight what happened in auto in the Q3 and what you're seeing around supply chain issues coming into the Q4 and whether that's the reason why all COVID is both equally flattish and why it's being sort of Maybe just around November December.
That's the
first question.
Thank you. You're right. In October, the autos has been even disappeared, And we do expect the same thing for November and December, because the prices of these semiconductors and all that. And They can provide the cars so they cannot sell any. And that's why I think that November December will be the same as October, which is Let's more or less be flat compared to October.
On the positive side of this thing is that we are making the same figures without autos, That's very important for us, both in terms of the market share and the price they have the value, high value added type of Customers, but you're right. That's the question why we are not that optimism, that we can maintain the growth of the market at the end of the year.
Can you please just elaborate what auto was down in the Q3?
Do you mean why outlook were down?
No, not why, just the magnitude of the decline,
It's more or less 30%. Okay.
And is that what we're seeing in our favor as well?
Yes. Yes. Well, I mean, the impact of the weakness of the automobile market is pressing on October, November and October November mainly because I mean these are the 2 months where Otos has been statistically very important in our in And
just 2 other questions. One is just on the confidence side. Obviously, you said you expect growth in the Q4 given an easy comp. What should we be thinking in terms of actually physical numbers
Yes. Richard,
in the side of content production distribution, they are in the Q4, We are expecting that the there are certain impact in Q4 Because it's more this year, it's more along the year, all the different deliveries of the product, not like last year, in which there's just There was just one product in the quarter. So it will be more it will be More, I would say, spread all around the year, enough to get to a similar levels of revenues as you saw in the last year or the whole year, We are catching up, to say better, we are catching up in the Q4 in the area of our contemplation Distribution will get to the same levels of in absolute levels in that area Okay. That's clear.
And then maybe just a last question. If I look at Actors Player, Obviously, up year on year when you look at September versus September last year, but it was actually down basically on the June number. Is there any reason for that? Is that a churn issue or is it a technicality issue? And how should we think about that?
Well, there are two reasons. One is, I mean, we have increased prices To the whole subscriber base in July, and that has a certain impact. And it's also very much related to the content. We have not been pressing on content on this month, but we will do that by November. We are releasing cargo, which is So I think a type of fiction that works very well because it is very much in the line of the Nano and all that.
So we are not concerned about that Because I think we are doing quite well, and we could recover the trend in the future. And pretty much, that year impact has been very much 2 effects, 1, of decrease of price and 2, that the conflict we have had It's not been the best because I mean we could think that, that piece of work is not that important. From November on, we will push A little bit on the content, and we do think that will work in the terms of increasing the subscriber base.
Maybe just one last question, if I may. It's just on the
share from the proceeds, obviously,
it's been quite a good year so far. How do we think about things in the 4th quarter? Is there any other things that we should be aware about in terms of these Brexit deals
Well, we don't think there was this, and nothing significant. So I mean, in terms of media for equity, we have planned all what we planned for the year, which is selling the modem, selling The VP and so we don't expect to do any more deal in the last quarter and also In other revenues, we will be more or less as we expected. So no views on that side.
Great. Many thanks.
Thank you, Richard.
Let's see if there is any other question.
Thank
you. The next question comes from Fernando Cordero from Banco Santander. Please go ahead.
Hello. Good afternoon. Jarbo from Framacide. I would like to discuss a little bit on the radio business. We have seen radio underperforming during the This quarter, I can understand that the sports content is quite relevant for the radio business and particularly But I would like to understand what could be the potential Thanks, everybody.
If there is any concern on the radio market share going forward,
Well, about radio, it's Performing a little bit worse than television because I mean it's the gap between 2021 2019 is bigger than television has. I believe it's doing quite well. In our case, we are a little bit below our competitors Then comparing 2021 with 2020, but if you make the comparison with both years 2020, 2021 2019, I mean, we are more or less the same result. We are down by 21% versus 2019. This is something like down by 17% versus 20 And corporate, 21%.
The case that we did much better in 2020, much better than them. We outperformed the market by far. So we are now getting to the same levels we had previously to the COVID issues. At the same time, in the radio business, we are something like work in progress because I mean we haven't changed all the sports area. And we need to see how that is working.
As you know, radio Searching tools are different from television. We do have the figures quarter after quarter, and also it's a long term type of trend. So We need to give time to the to this sport proposal in the case of sports. At the same time, as you know, we have the bad news that our And for women in our afternoon magazine, which is Julio Atero had a disease, and so she's not in the she's not adding the program since more than 6 months. We do expect her to recover soon, and I do think that by the end of the year, it will be the game.
So I do think that the results will have a positive impact And talking about the musical format, there's also a big change. I think we changed the young core man end of the morning show there, which was Cardenas With a new program heading by 2 people, male and female. And so We are now in a changing process, but I do think that the result is anyway good in the radio. Thank you.
Okay. Thank you.
Thank you, Fernando. We move to the next question, please.
Thank you. The next question comes from Fernando Ghele from Alanta. Please go ahead. Mr. Fernando, you have the floor.
Thank you.
Hello?
Can you
hear me?
Yes, Fernando.
Sorry, I was on mute. First question is related to the market. So I don't know if you can share with us your thoughts on what respect for the market in 20 Q2, it might be a bit too early, but considering that Q1 this year was very weak, that It is expected that it seems to be GDP growth and the IoT business should come At some point, I guess, next year, I don't know if you can comment a bit on what you expect for the next year.
Sorry, we are in mute now. Yes, as you said, I think it's A little bit soon. We are just in the middle of a budget process, and we need to review all the different items. Just in general, what I see is that there is enough just room enough in order to catch up 2019. So that's good news.
It's also good news that the auto sectors disappeared in the last quarter. And well, we don't we think that It will come back by mid June next year. So 1st part of the year, I think that The automobile sector will be also out of the market. Also, if they are they evoked the most part of the budget in the last part of the year. So that's a good thing To think that the market will have certain growth, I mean, we need to review everything.
So it's too soon To say, which is our view on the market for the future. All in all, I think that, Of course, it will be positive. I mean, the point is, which is the positive that we think. If it's low single digit or high single digit, I mean, it's too soon to say anything now. Thank you.
Second question is last one is on the shareholder remuneration. So you are considering an interim dividend before year end. Are you considering anything else, I mean, an extra dividend considering the low debt levels or any buyback at all?
Well, now we are just in the process of recovering the dividend policy, which is, as you know, I have 2 payments by December and by April, more or less, and we still need approval The Board, I mean, I think that we will go back to the old policy of giving up to at least up to 80% of the net profit in dividends. I mean, we are not in any movement other than that. So we are not expecting, we are not have not studied anything of extra dividend The buyback of shares of the company. So just in the terms of going back to the old policy of The shareholders up to 80 percent of the net profit for them as a total dividend.
Thank you, Fernando. We'll move on to the next
question, please.
Thank you. We have another
In a sense, I would like to understand what are your views regarding the potential investments on On organic growth going forward, particularly, as we just think, should we expect any kind of increase of reinvestification If you are going to or if you are still looking for deals for businesses that could be complementary like the case of H2H,
Well, we are always searching the market in order See whether there is something that could be interesting for us. As you know, we have just made a deal creating a company called Sonora, which will be in the Podcast business will be a streaming subscription type of business, and it will be launched by the first quarter of 2022. So this is our main goal. We are focused on that and see whether this could be a good business for us And very much related with our business because I need to stop everything related with audio visual. And we are always reviewing what things can we do.
I mean, this is our focus now, which is this SPS subscription overview platform And let's see how it works and let's focus on that for the moment. Thank you. Thank you, Fernando.
You have more questions, Fernando?
No, no, no. That's all. Thank you very much. Okay.
Thank you.
Thank you. Thank
you.
Yes, good morning, and thank you for taking my question. I just wanted to know if you can elaborate about your views on the Free cash flow generation during the next quarter, we've seen
a very significant improvement in the Q3, helped by a series of factors.
If you could elaborate please on the Q4 and if you could confirm what you initially mentioned at the beginning of the We are reaching an aggregate of
close to €100,000,000 by year end. Thank you very much. Well, yes, I mean, Yes. For you, Timolet, we have we are expecting to pay dividends, and we are expecting also to pay some Our payables have been delayed, so that by the end of the year will be more or less €100,000,000 on the total net debt. We expect the working capital flat because I mean we have made lower investments.
And also And in terms of inventory, we have consumed more than produced for the Q3. And so that's why That's more or less the evolution of the cash flow of the company.
To refresh, yes, Herman, the main point is regarding the dividend, as you said, On the end of the movements of the payables, as we also refer that probably will take place in the 4th quarter. And the normal movements of working capital in this year takes receivables from the
Thank you. Ladies and gentlemen, there are no further questions. DSP comes back to you.
Yes. Well, there are no more questions. So if you have any other, just refer to the Investor Relations department. In any case, I wish you all