6 th Annual TMT Conference. Barcelona, 15 th -17 th November 2006

Transcription

1 6 th Annual TMT Conference Barcelona, 15 th -17 th November

2 Mediaset Group Structure Italian Business International Spanish Business Gestevision Tele5 Tele5 (52%) (50.1%) Advertising Sales Force Contents Transmission Network Advertising Sales Force Contents Publitalia RTI Elettronica Industriale Publiespana Gestevision FTA TV Multimedia Platform Digital Terrestrial TV 2 2 2

3 Mediaset Business Approach where is the money? Fedele Confalonieri, Chairman CORE BUSINESS CORE BUSINESS CORE BUSINESS

4 Core Business FTA Television 4

5 Broadcasting ( ) TV Strength in Italy : Total Audience (24 Hours) 8,113 8,494 9,095 9,140 8,915 8,848 8,630 TV Consumption (minutes per day) 9,284 9, Source: Auditel (24 hours, average minute) 5 5 5

6 Broadcasting Leadership of FTA TV in Italy % of people Generalist TV Viewers Satellite TV Viewers Internet Users 97.2 % 15.5% 35.7 % Source: Quinto Rapporto Censis sulla comunicazione in Italia, October

7 Broadcasting ( ) Mediaset Leadership on CT Commercial Target (% audience share) 24 Hours Prime Time Source Auditel 7 7

8 Broadcasting ( ) Mediaset catching up on Individuals Individuals (% audience share) 24 Hours Prime Time Source Auditel 8 8

9 Advertising Expenditure in Europe Total Ad Spend as % of GDP Total Ad Spend per Capita 2005 (US$) ,02 0,89 0,97 0,95 0,97 0, ,80 0,66 0,64 0,80 0,74 0,75 0,73 0,74 0,71 0,73 0,75 0,62 0,61 0,62 0,61 0,62 0,63 0,60 0, UK Germany Spain France Italy Source Zenith UK Germany France Spain Italy Source Zenith Optimedia April 2006, Global Insight 9 9

10 Advertising Market Structure in Europe Cost per Thousand (CPT) 2005 Cost per Thousand in Italy (CPT) ITALY SPAIN UK GERMANY FRANCE TV 24H RADIO 24H NEWSPAPER MAGAZINES Source Nielsen/Auditel; Infoadex/Sofres; Nielsen DDS; ZAW/GFK IREP Medametrie. Adults Target 30 seconds spots Source Mediaedge Global Media Comparison 10 10

11 Advertising ( ) Mediaset outpaced the market Tot. Market 8,030.8 Tot. Market 5,451.6 Total Advertising Market CAGR ( ): 5.0% 2, , % -3,1 36.8% Mediaset CAGR ( ): 6.3% Source AC Nielsen 11 11

12 Advertising ( ) Mediaset vs. ADV Cycle 1997, Index Total Advertising Market Source: Publitalia elaboration on Nielsen AdEx data

13 Financials ( ) Mediaset Leading Indicators Net Revenues (ml Euro) Operating Profit (ml Euro) CAGR ( ): 9.9% CAGR ( ): 12.8% 1, , ,1 1, Net Profit (ml Euro) Dividend per share (Euro) CAGR ( ): 12.3% CAGR ( ): 17.3% ,

14 Italian Advertising Market Potential Structural Growth UK Ad-spend Nominal GDP = 0.96% UK Total Adv. Market Italian Total Adv. Market Deregulation Privatisation Industry Evolution ITA Ad-spend Nominal GDP = 0.62%

15 The advent of Digital 15

16 TV PLATFORM The new Italian Competitive Scenario Mediaset Competitive approach on Convergency DTT PPV DVB-H FTA DTH Cable ADSL Mobile UMTS 16

17 Mediaset Business Model Content Provider Network Provider FREE-TO-AIR TELEVISION PAY TV NETWORK OPERATOR Commercial TV 3 generalistic channels funded by advertising (Analog, DVB-T, DVB-H) Multichannel Theme Channel funded by targeted advertising or telesales (DVB-T, DVB-H) Interactivity Interactive and Enhanced advertising Interactive services (DVB-T, DVB-H) Premium Content Access through: Pay-per-View Pay-per-Time Pay-per- Category (DVB-T, DVB-H) Renting of Spectrum on proprietary Digital Terrestrial Transmitting Network to: Captive to Mediaset channels (Analog) non-captive TV content provider (DVB-T) mobile operators (DVB-H)

18 Digital Terrestrial overview 18

19 DTT DTT roadmap in major European countries and the USA? (!) General agreement on the unfeasibility of completing national switch-off by 2010 (2) Higher than expected DTT development may allow for switch-off in 2008 Sources: EPRA / AGCOM Working Group on DTT (June 2004), DigiTa; Digital TV Group; Booz Allen Hamilton analysis (3) Re-launch of DTT on a regional base in 2002; national DTT re-launch in

20 DTT Development in Italy State of the Art 6 national network operators (10 Mux) Over 80 local TV broadcasters 15 free content providers (28 channels) 2 providers of Pay Services + a number of local TV operators 14 interactive channels and over 100 interactive services on air in the last 2 years 2 mobile TV networks (DVB-H) on air (open to all telecom and mobile content providers) Sources: DGTVi; FUB; Booz Allen Hamilton analysis 20 20

21 DTT Development in Italy Coverage Transmission Technology Operator Number of DTT multiplexes Population Coverage 2 mux 80% - 65% 2 mux >70% DVB-T 2 mux 70% - 65% 1 mux 68% 1 mux 47% DVB-H 1 mux 1 mux n.a. n.a. Source: DGTVi, Corporate website - Local TV MUXs are not included 21 21

22 DTT Development in Italy Channel Offer Main analogue channels in simulcast Sport and sport news i i i i i SPORT i i i SOLOCALCIO News: financial, international, Kids Shopping Music channels i i i Cinema news Public service channels Religion Pay per View services i i i i i i Interactive Channels Note: Rete A multiplex is not included (broadcasting All Music, The Club, Camera, Senato ) because its current coverage is below 50% Sources: DGTVi; Sat-Net; Booz Allen Hamilton analysis 22 22

23 DTT Development in Italy Set-Top-Box Penetration DTT STB penetration 3,600 3,800 4,200 ~ 4,500 1,250 2,100 95% are Interactive STB s jan 04 jul 04 jan 04 june 05 jan 06 mar-06 sept-06 nov-06 Driver for DTT success Content offering Premium contents (pay per view) Free channels Interactive services Accessibility Plug and Play installation Affordable pay offering Source: GfK Marketing Services Italia STBs Price History 390 Subsidy Net Price 150 Retail Price (gross of Sudsidy) jan 04 mar-04 may 04 sept 04 dec 04 apr-04 nov-05 today

24 Pay-Per-View 24

25 Pay-Per-View First Pre-paid card Offer on TV BENEFITS FOR VIEWERS No dish required No Subscription Pay for what you watch Clear and simple technology BENEFITS FOR MEDIASET Focused Investments Defensive Move Driver for DTT Penetration Additional Revenues Credit recharged on the Card 4 1 Credit used watching Mediaset Premium Content Credit sent OTA (Over the Air) to the STB 3 2 Credit Purchased (on-line / off line)

26 Pay-Per-View Mediaset Premium content offer Football Theatre and Concerts Movies Reality Games Fiction 26 26

27 MEDIASET ITALIAN BUSINESS Pay TV Up to 31/12/2005 From 1/1/2006 to 30/9/2006 From 1/1/2006 To 31/10/2006 TOTAL At 31/10/2006 Mediaset Premium Smart Cards Sold to Retailers N Recharges sold to Retailers Cashed in 63.4 ml Euro 61.5 ml Euro

28 MEDIASET ITALIAN BUSINESS Pay TV

29 Network operator 29

30 Network operator DVB-T and DVB-H Digital Terrestrial Network DVB-T DVB-H Digital Terrestrial Set-Top-Box Mobile Handset, PDA, Portable TV Open Platform Limited Broadcasting Capacity Ideal for FTA Broadcasting Channel multiplication 2 MUX. already hosting 3 rd party channels 4 6 Mbps per channel 4 6 channels per Multiplex Open Platform Tv content can be broadcast in original format and DVD quality Low power consumption for handset Needs only a small antenna kbps per channel channels per Multiplex 30 30

31 DVB-H Mediaset Agreements with Mobile Operators Transmission Network Content - 3 Commercial Channels - Series A Championship - Champions League - 3 Commercial Channels - Series A Championship - Boing (kids channel) On Air On Air 31 31

32 Future Developments 32

33 Mediaset Group Possible Future Developments Unique position in Italian and Spanish advertising market Strong TV franchise In-house production and creativity of mass audience content Control on key content rights (football) Transmission network ownership Leader and first mover in the platform technological development (DTT-DVB-H) Strong track record and execution Strong financial capability Content Geography Access

34 6 th Annual TMT Conference Barcelona, 15 th -17 th November