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Financial results and market performance
in the 3rd quarter of 2007
Investor presentation
November 2007
SOLID FINANCIAL PERFORMANCE OF THE GROUP
Revenues
PLN mln
Operating cost
yoy % change
PLN mln
…16%
300
Advertising
250
Copy sales
200
Collections
Other
150
…4%
Staff*
200
…3%
150
…16%
Marketing
…4%
Other
…49%
100
50
†11%
50
0
…6%
250
100
Materials
0
3Q06
3Q7
3Q06
Operating performance
PLN mln
20%
18%
yoy % change
30
yoy % change
25
15%
…71%
12%
3Q07
Net profit
PLN mln
60
40
yoy % change
300
…13%
10%
20
…247%
15
10
20
5%
5
0
0%
3Q06
3Q07
Operating EBITDA
0
3Q06
Operating EBITDA margin
PLN 374 mln in cash and cash equivalents (incl. certificates in investment funds)
2
* excluding non-cash cost of share-based payments
Source: consolidated financial statements according to IFRS, 3Q07
3Q07
ADVERTISING SPENDING GREW AHEAD OF EXPECTATIONS
Ad spend growth in 3Q07
2007 ad spend growth estimates
yoy % change
Internet
42%
Outdoor
Internet
40%
Outdoor
14% - 15%
TV
15% - 16%
26%
TV
Radio
6% - 7%
Total
Dailies
4% - 5%
y18%
Magazines
4%
25%
Radio
11%
Total
Dailies
11% - 12%
8%
Magazines
7%
yoy % change
0%
3
5%
10%
15%
20%
25%
30%
35%
40%
45%
Source: the estimates are adjusted for average discount rate; 3Q07: Starlink estimates (TV and Internet), IGRZ (outdoor), Agora’s estimates based on Expert Monitor and monitoring of Agora (press and radio); 2007 estimates: Agora
EXCELLENT MARKET AND FINANCIAL PERFORMANCE OF GAZETA
Copy sales
Thou copies
Weekly readership
% reach
yoy % change
600
19.1%
20%
…3.5%
500
163 thou copies
sold in September
…3.5%
400
300
15%
10%
Gazeta
Fakt
Super Express
Dziennik
Rzeczpospolita
0%
Fakt
Gazeta
Super Express
Dziennik
Rzeczpospolita
Ad spend for dailies
Gazeta’s revenues
yoy % change
140
120
1.5 mln
0
2.1 mln
100
5.0%
2.4 mln
5%
Metro
3%
A success of
double-pricing
and copy sales
growth
…10%
100
Rzeczpospolita
7%
% share
Fakt
5.5%
Dziennik
80
7%
Gazeta
60
41%
…66%
40
3Q07
Super Express
3%
3Q06
3Q07
20
0
Advertising
4
7.0%
5.4 mln
†8.4%
5.8 mln
†17.8%
8.1%
no of readers
…7.3%
200
PLN mln
17.8%
Copy sales
Other
33.5%
* incl revenues from the dual media offers
Source: revenues: consolidated financial statements according to IFRS, 3Q07; copy sales: ZKDP, Jul – Sep 2007, Sep 2007 ; readership: Polish Readership Survey, realization MillwardBrown SMG/KRC, Jul-Sep 2007, N=11 618, SCR
indicator (weekly readership); ad market: Agora’s estimates adjusted for average discount rate (data in current prices)
DYNAMIC DEVELOPMENT AND ACCELERATED REVENUE GROWTH ONLINE
August 2006
40%
12
new services,
24 revamped
42.2%
35.1%
45.2%
45.2%
52.1%
47.5%
August 2007
57.6%
60%
65.7%
80%
67.5%
% reach
74.6%
Reach of Internet services
G.pl web mail built on Google’s popular Gmail
20%
Web TV platform with Big Brother 4.1 reality show
attracted over a million users during the first month
of operations
0%
Onet.pl
PLN mln
8
WP
Interia.pl
o2.pl
Agora
Agora’s online revenues
…87%
3Q06
yoy % change
1.2 mln users in August; #3 online sports service
3Q07
…101%
6
Portal with news, sports, business, weather and
cinema schedule; cooperation with Nokia to share
audio files via Nokia Podcasting
4
Both vortals maintained strong positions in their
respective categories Gazeta.Dom.pl #1,
Gazeta.Praca.pl #2 player
2
0
TOTAL revenues
5
Advertising*
Source: reach: Megapanel PBI/Gemius; financials: consolidated financial statements according to IFRS, 3Q07
*excl vortal ad sales
REVENUE GROWTH AND OFFER EXPANSION OF METRO
Revenues
New print and online offers
PLN mln
8
yoy % change
6
…38%
4
2
0
3Q06
3Q07
Weekly readership
% reach
19.1%
20%
17.8%
#3 player in
daily
readership
15%
Fakt
7.6%
7.0%
2.1 mln
5.4 mln
Gazeta
2.4 mln
5.8 mln
no of readers
5%
8.1%
2.3 mln
10%
Metro
Dziennik
0%
6
Super Express
Source: revenues: consolidated financial statements according to IFRS, 3Q07; readership: Polish Readership Survey, realization MillwardBrown SMG/KRC, Jul-Sep 2007, N=11 618, CCS indicator (weekly readership), CPW
indicator (daily readership)
NEW SERIES AND NEW ENTERTAINMENT PROJECTS
We sold over 6
mln books and
A high-budget TV series
sold in Gazeta’s Library
before it is shown on TV
books with CDs/DVDs
in January – September 2007
PLN mln
20
Revenues
PLN mln
†11%
15
10
5
0
120
yoy % change
3Q07
E.K.G. – the most
recent record of
Edyta Górniak
†1%
100
80
Special edition of a
music record
Koledzy
60
40
20
0
1-3Q06
1-3Q07
Famous Football Clubs series
7
Source: revenues: consolidated financial statements according to IFRS, 3Q07
Business Collection
AMS DELIVERS HEALTHY REVENUE GROWTH AND STRONG MARGINS
Revenues
Over 500 new faces of
PLN mln
yoy% change
45
40
…15%
cityscroll panels introduced in
35
30
October 2006 – September 2007
25
20
15
10
5
0
3Q06
3Q07
Operating performance
Share in outdoor ad market
PLN mln
8
7
20%
18%
18%
…17%
14%
yoy% change
12%
4
10%
3Q07
8%
3
6%
2
4%
1
2%
0
0%
3Q06
Operating EBITDA
8
23%
18%
16%
6
5
AMS
% share
3Q07
Other
77%
Operating EBITDA margin
Source: financials: consolidated financial statements according to IFRS, 3Q07; outdoor advertising: IGRZ Monitoring, 3Q7; number of panels: IGRZ Monitoring
SOLID PERFORMANCE OF MAGAZINES AND RADIOS AND GROWTH ONLINE
7 new radio channels
Revenues and profitability of magazines
and access to Agora’s
traditional stations
PLN mln
30
yoy% change
…6%
25
3Q06
3Q07
20
15
10
…44%
.
5
0
Revenues
Operating EBITDA
Audience influences
music content and play
Revenues of local stations
PLN mln
yoy% change
18
…13%
16
14
12
10
8
6
4
2
0
3Q06
9
Source: consolidated financial statements according to IFRS, 3Q07
3Q07
list
GROWTH AND INVESTMENTS
 Continue to grow our existing businesses and seek new revenue
engines;
 Leverage rich asset portfolio and powerful brands of our media;
execute third party cooperations;
 We will continue to execute on the growth plan; strategic goals and
directions to be presented together with 4Q07 report.
10