MFE-Mediaforeurope N.V. (MFEB) Earnings Call Transcript & Summary

Good day, and welcome to the MFE-MediaForEurope 2021 Full Year Results Web Phone Conference Call. Today's conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Sara Bersan. Please go ahead.

Good morning, ladies and gentlemen, and welcome to the full year 2021 results of MediaForEurope. Today's presentation will be opted by our Group CFO, Marco Giordani, and by Matteo Cardani, Managing Director of Publitalia. During the presentation, we will show you a video. The video will represent an important section of today's presentation. So please bear with us as it gives you insight on our new commercial offer and its attractiveness to the advertisers. Now let me hand over immediately to Matteo for the advertising and audience outlook. Matteo, please go ahead.

Thank you, Sara. Good morning, everybody. Thank you for your attendance. Today, we will give more colors on fiscal year 2021 results, and also on the current trading. MFE fiscal year '21 result was positive. As you can see from Chart #3, at plus 14.4% year-on-year, and we were around 1.6 points better than the market that was at plus 12.8% year-on-year. So in the last fiscal year, we increased our market share from 40.3% to 40.9%. And in 2022, we are further gaining market share. In fact, the overall market has not recovered the 2019 pre-COVID level being still down 4.5% against fiscal year 2019. On the contrary, neither for Europe has not only recovered the pre-COVID level but reached a level that was up plus 2.4% versus fiscal year 2019, gaining additional EUR 45.7 million. The fiscal year results above market trend is a truly impressive performance. If we consider that last year, during summer, we were competing against the European football championship and the Olympics, and we had to deal with the internal discontinuity of Champions League in August '20. Remarkably, it is the first time since 2010 that Mediaset has beaten both at the total advertising market and the TV market in a year with sport events broadcasted by competitors. The other interesting thing is that the overall results were achieved, thanks to the double-digit positive contribution of over through media, TV, radio and digital. Last but not the least, it is remarkable that we consolidated also a positive Q4 performance plus 2.2% year-on-year even against Q4 '20 already strongly positive. Then I can also anticipate that Q1 '22 is the seventh quarter in a row with a positive performance year-on-year even against a positive Q1 '21. So I'd like to share with you that the company achieved the above-mentioned results, thanks to 2 main drivers. First of all, as you can see from Chart #4, the positive growth performance throughout almost all the key economic sectors. The sector represented the 85% of the MFE advertising collection were positive year-on-year. And the remaining sectors, in particular, automotive were mostly impacted by the crisis in the procurement of raw material in Q3 and Q4. But as you can see from Chart #4, where you have the weighted contribution to growth sector by sector, you can see that the crisis in the automotive sector was more than compensated by all other sectors. E-commerce sector gave a fundamental contribution. It's around 30% of fiscal year '21 growth. But also we benefited from recovering sectors, such as tourism, travel and leisure and also traditional sectors like fast-moving consumer goods and retail that significantly contributed to fiscal year growth performance. This was the first driver. The second driver of the advertising growth has been the strength of our offer, namely our proposition defined as the total media audience system that we are going to show you in more detail in a few minutes. As you can see from Chart #5, you have the total audience evolution, linear and nonlinear. And despite all the talks around the linear TV audience downturn, actually, our linear TV audience is in good health, plus 2.1% versus 2019. On the solid ground of this linear baseline, we had the highest digital -- digit growth from digital screens. So connected TV plus mobile price tested. And this brings you to a total audience growth of plus 3.9% versus 2019. So the combination of the strength of first linear screen plus the high growth on digital screens is the perfect scenario to protect the legacy business to increase revenue diversification towards a higher digital mix. Now I have the pleasure to share with you a video that explains the strength and reach of our comprehensive cross-media proposition. A video that has been shown to more than 1,000 advertising during our March roadshow throughout Italy. So please go ahead with the video. Thank you. [Presentation]

Thank you for your attention, and the go-to-market proposition of the video just shown clearly explains why in the last couple of years, we were able to overcome the market performance and also to drive attention and budgets from pure digital e-comm players. Now I would like to close my speech, giving a quick outlook on Q1 2022. Of course, the advertising market in Italy is having a slowdown as in all the other European countries. However, the total market is not drastically falling like it happened in Q1 2020, so we estimate a flattish trend year-on-year in Q1 2022. This is for the market. On the back of this uncertain scenario, us, MediaForEurope is further gaining market share, registering the seventh positive quarter in a row even against a positive Q1 2021. This positive trend has been sustained by 3 factors. First of all, a rational defeature of our advertising as we materially touch during our road show in March, where we had the opportunity to meet more than 1,000 advertisers, even in the case of war outbreak, advertisers did not have panic reactions, but simply adopted their plans. All the thanks to the range of investment opportunity granted by the unique MFE commercial offer. In fact, the majority of our clients have confirmed their original plans, and we have not registered any material cancellations so far. The second factor sustaining our Q1 performance is the sector dynamics shown before, where we have been able to balance the slowdown of suffering sector as automotive, thanks to both the stronger traditional ones and the new sector as the e-commerce and direct to consumers. Last but not the least, the positive momentum of our total audience going on. We had the best Q1 audience performance over the past 5 years, and this performance was also supported now by official and certified metrics just released by Auditel. So to wrap up, despite the uncertain market conditions, thanks to all the factors I just commented, we were able to close Q1 2022 with a performance of plus 2% year-on-year. Having said that, I pass to Marco, and I thank you.

Thank you, Matteo, and good morning to everybody also from my side before entering the numbers, I'd like to spend a couple of words regarding the tender offer on Mediaset España minorities. As you know, we are waiting for the approval of the offer documents from CNMV. And so it's very hard to comment on this particular phase of the process, but we can tell you that as soon as the offer document will be approved and the calendar will be finalized, we will be on the market, and we are planning to meet all of you organizing a roadshow and explaining all the details about the offer. Now I mean, on the 2021 number, I mean, they were already disclosed beginning of March. So we will not spend a lot of time on it, but I will try to give you also the guidance regarding 2022. In any case, I'd like to underline some of the highlights of 2021. First comment would be on revenue. We came back to 2019 level with a higher profitability. And that's clearly a very good result as far as our number is concerned. We have generated EUR 475 million of EBIT. That is clearly much more higher than 2021 more than 50% up. And in terms of net profit, we closed 2021 with EUR 374 million profit, 2.5x better than 2020. You know that 2021 has been affected by extraordinary gains. But even excluding them, the group net profit is more than the double than 2020 number, and it is 50% higher than 2019 level the last year before COVID emergence. The group net financial position was EUR 870 million debt at the end of 2021. We recorded an extraordinary cash generation that helped us, let's say, to improve, to reduce the debt, even including the distribution of more than EUR 340 million cashed out in July last year. Setting in, in the Italian business. Matteo has just explained the advertising performance. In any case, total revenue were EUR 2.038 billion fully recovering and exceeding 2019 level. The other revenue line in 2021 was at EUR 338 million better than an expectation. And the main contribution to this extraordinary result was given by our OTT Champions League streaming offer. The sale of in-house content to third party. We had some exceptional revenue coming from the Vivendi settlement and also the DZAN Publitalia contract that we signed in summer last year. Moving to guidance. 2022, there will be clearly many changes in the mix of the other revenue line. Clearly, we are not going to have the extraordinary revenue coming from the Vivendi settlement almost [ EUR 428 million ]. And we are going to have less revenue coming from some of the contracts we signed in 2017 with SKY for the transmission and the streaming of the premium channels that has been terminated at the beginning of 2022. On the other hand, we are going to have other improvements. The first one is coming from Medusa. Clearly, cinema now are reopened. And so the Medusa activity will restart. And in that respect, we will have some more revenue for sure for 2021. Clearly, OTT platform, Infinity performance will go on because clearly, the Champions League will not be like-for-like at 2022 versus 2021, when we started streaming only in September. And for that reason, all in all, we are expecting a level of other revenue between EUR 300 million and EUR 310 million. in full year 2022. As far as costs are concerned, last year, costs were EUR 1.788 billion, in line with the guidance, showing a reduction of more than EUR 100 million compared to '19. That's the reason for which our EBIT performance was so good. As I said, revenue were higher than 2019, but costs were down EUR 100 million. So that's clearly an example of how our, let's say, cost discipline performed in 2021. And we are accounting a reduction of cost in the region of 5.4% compared to the '19 cost base. Then moving to 2022. Clearly, we are living in a very complex time in terms of forecasting, uncertainty is dominating not only the advertising market, as Matteo was saying, but also the cost part because clearly, we are getting some inflationary pressure, but we are going to set our 2031 focusing ourselves on flexibility and trying to adapt as much as possible our cost base in relation to the evolution of the advertising market. Clearly, we are working on a base scenario that is clearly something we are expecting now. And our base scenario is projecting an advertising revenue growth of 1% and a cost pay evolution of plus 0.6%. So in any case, improving our profitability. That's our cost base scenario, and that will produce a EUR 1.8 million cost base. This is clearly, again, a combination of several factors. We are going to have the energy cost inflation and the cost of labor inflation that are clearly affecting us in these days. And that would probably create additional cost for EUR 70 million in 2022. This includes also the sports rights we acquired last summer, like Coppa Italia, Super Cup and also DZAN contract I was mentioning before. But this EUR 70 million increase in costs will be offset -- almost offset by EUR 60 million of savings representing roughly 3.4% year-on-year reduction. That's clearly our, as I said, base scenario, but we are ready to adapt our cost base following what is going to happen in the coming months that, as I said before, it's very difficult to foresee today. Lastly, I would like to underline the fact that the EBIT margin in Italy in 2021 has been the highest since 2011. So the best performance in the last 10 years. Moving down to the P&L. The financial income in 2021 was positive for almost EUR 20 million, and the associates were clearly affected by the extraordinary disposal of EI Towers and was almost EUR 111 million positive in 2021. Moving to 2022 guidance, financial income will be around EUR 10 million positive, again, a composition -- so let's say, a mix of effect coming from proceeding dividends and financial charges. And on the associate line, the guidance is for a positive contribution of almost EUR 15 million. Moving to CapEx. Page 11. As you can see, we were able to reduce a lot that amount. That's clearly the result of the change in mix of scheduling. Clearly, we are reducing the acquisition of TV rights, and we are investing more in local content that are in the OpEx side. So we have reduced last year almost EUR 75 million of TV rights investment compared to 2020. And as far as the guidance is concerned, we are confirming for 2022, the investment, let's say, level of 2021. So again, we can say that our investments are at almost 35% lower than 2019. Then moving to cash flow. Last page, Page 12. We have registered -- clearly, we have explained the composition of the P&L and the investments. So we have registered in 2021, a huge increase in the free cash flow. That's clearly the combination of all the elements I've just commented. And clearly, moving down in the cash flow statement, you can appreciate also the cash out for the dividends we paid in July last year. And also the contribution coming from the EI Towers extraordinary sales happen in the second quarter last year. Moving to 2022, the -- let's say, the net debt target for the full year will be affected by many things. The first one is the one that I mentioned before, so the uncertainty on the top line. As I said, our base case scenario is based on a plus 1% advertising revenue increase in 2022. That's clearly what the consensus is saying. As tradition, we are not estimating anything. Clearly, we will perform what the market will do. But I confirm that our base case scenario is the one that the consensus is showing. So clearly, net debt will be affected by that. The second element that will affect the net debt at the end of the year will be the tender offer on Mediaset España minorities that could represent a cash up, up to EUR 258 million. And the third element that will affect the net debt in 2022 will be the dividend. I mean you have learned this morning that the Board has approved to propose to the AGM a payment of EUR 0.05 dividends for both Category A and Category B shares. That's a remarkable yield for the 2 shares, and in particular, for Class A with a 9.3% yield and also for Class B that is almost 5.5% yield. So a pretty remarkable yield for our shareholders. We decided to do our best to ensure also to the Mediaset España shareholders the dividend, so we have agreed with Borsa Italiana to delay the traditional payment date to wait, so to say, that the tender offer will be completed and the offer period will be set. That's the reason for which, for the time being, we don't have a specific date for the dividend payment. And we will wait for the approval of the prospectus in Spain when the offer calendar will be set. And at that point, the dividend payment date will be set by the Board of Directors. In any case, all in all, our target for the full year is to stay in the 1.0x EBITDA -- net debt-to-EBITDA ratio, even including all these elements that I have just commented. Now I have completed my presentation, and I'll leave to the Q&A session time. Thank you. Thank you for the attention.

[Operator Instructions] Our first question today comes from Stefano Gamberini of Equita.

A few questions from my side. First, regarding the trend of advertising that you expect also in the following months. Clearly, the visibility is very low, but what are, in your view, the main drivers right now? I'm speaking -- I refer mainly to automotive sector, what could happen in the forthcoming quarters? Do you have some signs from the investors on these sectors and also from all the other sectors because the second quarter last year was clearly better than 2019, while in the first quarter, we are still around 5%, 6% below 2019 levels? The second question regarding the offer for Spain in case that you do not reach your target to 90% of attendance. What could be a plan B, clearly, if there is a merger between Mediaset España and MFE on the other -- are there some other options that you have in your hands?

Thank you, Stefano. I'll pick up the latter and then I'll hand over to Matteo. No, I mean, there is no plan B actually. We think that our tender offer is based on a solid industrial project. And the project is clearly based on unlocking synergies among, let's say, between Mediaset España and Mediaset Italia. And I believe that the video you have watched should also give you the rationale for it because everything that has been explained today regards only Italy. But we believe that enlarging it also to Spain and potential to other country can only be an incremental, let's say, value. So that's the reason for which we are proposing the tender offer. Clearly, the 100% attendance or let's say, the 100% ownership of Mediaset España will unlock the full the level of synergies, the lower -- the result will be the lower the synergy can be clearly achieved. But it's important also to remind because clearly, as passed almost a little bit more than 1 month, that when we publish the -- when we announced the deal, at that level, the value offered to the minority -- the Mediaset España minority was almost 30% higher than the 3-month average and almost 25% higher than the 1 month average. And at that date, the implied premium was almost 60% versus Mediaset España core business, so to say, excluding net cash and the stake on procedures. So we don't have plan being in the sense that we consider that after pretty valuable also for Mediaset España minority also because it's aligning the interest of all the shareholders will give, let's say, also to the minority full access to the dividend flow that MFE will represent. So will be for us our base. And taking in consideration that, for instance, if the offer period will be before November, as we stated in the press release, Mediaset España minority shareholder will get EUR 0.225 per share in terms of MFE dividends that clearly are also a sign of what can be in the future, their cash in from dividends. So we are pretty relaxed. We consider the offer pretty valuable for Mediaset España shareholders. And clearly, since the announcement macroeconomic trend has been worsened, not because of us, but because of the macroeconomic situation. And that's clearly something that could affect the absolute value of the offer. But as you can see from all the broadcaster share price, we are more or less performing in the same trends following macroeconomic expectations. So that's all for my side. So Matteo, you can answer on the first part of the question of Stefano. Thank you.

Thank you, Marco, and thank you, Stefano, for your questions. Actually, there are 2 questions. One -- a general question regarding the advertising trend. And one specific question regarding the automotive sectors. I answer first the specific question of the automotive sector. For us, is a key sector even if it's a sector in trouble over the past 2 years over the past 11, 12 months, we keep on going and take care of these sectors. There are 2 positive factors in view. First of all, the decision by the Italian government for the sector incentives for 2022 up to 2024. And this decision for sure, it is an accelerator for advertising expenditures for the forthcoming months. I would expect from May on to have some positive signals from the automotive industry. And the other positive factors with regard to automotive is that luckily, we have completed our half in terms of football offers, and the triple play of the Champions League Coppa Italia plus Serie is a winning one. We already experienced this over the past years because even if the volume of advertising investment of car sector has been reduced the number of active campaigns we were able to collect was absolutely relevant. So we keep on -- we have, let's say, an open line with these sectors. Coming to the general question, I think that it is quite significant. The fact that after 2 months since we were out back at least for the Italian market, we don't have any official review of the advertising forecast. We -- personally, we did not elaborate market forecast, we rely on the official market forecast from Nielsen Media agencies or the advertising association. All these players have declared a sort of, let's say, a cautious behavior in order to understand the situation. There's a lot of uncertainty. The only thing that I would like to add is that over the past few years, we got used to the high level of vitality of our economy and even if we could, let's say, face some trouble in the near future, I have in mind that Q3 '20, Q4 '20, Q2 '21 and Q2 '21 -- Q4 '21. So over the past 7 quarters, there have been 4 quarters with a positive double-digit growth in advertising. So our economy is still vital and able to recover possible, let's say, troubles in the short term. And the significant thing is that in case there is a slowdown, but honestly, not any falling level of advertising investment. So this is my contribution to your question. That's it. Thank you.

Just a quick follow-up on the offer. Technically speaking, what could postpone the offer ahead in November? And again, technically speaking, after the approval of the shareholder meeting on the issue of the new shares, how could you improve your offer, if it's possible or if you want?

No, Stefano, the procedure is pretty clear. The offer period fixing is on CNMV, let's say, part. So they can decide when to approve the offer document. And so when -- to fix the offer period to. Frankly, for the time being, we don't see any obstacle for having a pretty soon offer period fixing. But as I said, it's not in our table. So for the time being, everything has happened in the, let's say, fastest calendar, we were forecasting. But as I said before, now it's all in the hands of CNMV.

And we now move on to our next question from Andrea Randone of Intermonte.

My first question is on EI Towers just because we read on the newspaper that there are some talks going on. I noticed in the past, you clarified your position, but if you can confirm what is your view on this important asset? And the second question is about your CapEx guidance. If you can repeat the target and in particular, if you can detail what you foresee in terms of film and TV show production that it can be also a proxy of the growth you expect for Medusa? That's it for me.

Thank you, Andrea. As far as EI Towers concerned really, as you know, we are a minority shareholders. So we -- frankly, we have a -- we are clearly reading what the newspapers are saying, but I mean, we are not aware of any kind of structural, let's say, movement in that direction. What we can say on the -- as you said, in a very material participation is that they are performing very well. They are, let's say, improving their results, and we are happy about the performance of the company. We always said that the 40% stake is not part of our core future strategic portfolio. And so we will decide in the future, let's say, when it is the time to take advantage from the value of the stake also in function of possible alternative investment and also a function of the future development of the broadcasting infrastructure sector. For the time being, we -- as I said, we have no element to change our view. And I repeat, we have no news about any kind of deals or agreements or project regarding EI Towers coming from our partner in -- controlling partner in EI Towers. As far as CapEx is concerned, I'm, let's say, confirming that the guidance for 2022 will be to stay at the level of 2021, so when the investment -- the total investment was EUR 276 million. The composition will change a little bit. Last year, we had invested resuming more in technical and in material because, as you probably know, we have carried out the switch off from, let's say, the old digital telephone technology to the new one. So we will be probably lower in technical investments in 2022 by almost EUR 10 million. And that will be compensated by an increase in TV rights and in cinema that last year was EUR 220 million and that will be probably EUR 230 million for next year. But all in all, the total cash out for investment will be stable in 2002 versus 2021. I don't know if it was sufficient with you.

I just have a quick follow-up. If you can provide us with an indication on the percentage of connected TV in Italy, the updated data, maybe you provided, but I missed the number.

I remember 14 million, so that in terms of percentage will be probably around 60%. Matteo, do you have a precise number?

Yes, please give me just 1 minute. So I can give you the last update. Okay, here we are, so...

While Matteo is looking for it. Clearly, these are -- you have to divide it, let's say, the answer between the connected TV sold, that is one number and the connected TV really connected because clearly, you can buy connectivity. But -- and so that's let's say, another important element to this, so...

In any case, we are close to 60% of Italian households having at least 1 TV set connectable. And in terms of TV sets, we are not far from 50% of the TV sets that are connectable television. So we keep on growing. And for sure, the switch-off process that is undergoing is accelerating this natural dynamics.

We now take a question from Julien Roch of Barclays.

My first question is a follow-up to Stefano. Matteo, could we -- could you be a bit more precise in terms of numbers on April? I mean, is it negative? A number would be great. So Matteo, again, on Page 5, you say your linear audience up 2.1%. Total audience up 3.9%, but we don't have the base. So could we get total audience in minutes in full year '21 and your linear audience in minutes in full year '21? You video a chart showing linear consumption and total consumption, so you have the data now. And then for Marco, thank you very much for all the very extremely helpful guidance. You gave us everything about the tax rate. So can we get the tax rate? And then on Mediaset España in terms of timing, so you're saying you're waiting for the prospectus approval for the CNMV, I mean do you think it would be a week, do you think it'd be a month? Then after that, once you have the approval, how many weeks until the offer opens and then how many weeks does the offer run? So there is, I think, kind of 3 different steps. But if we add all of them together, when will the offer close and when will we know where you stand?

Now Julien while Matteo is finding the numbers you are asking, and maybe I'll pick up my question. Tax rate, clearly, it's very hard to project also for our side, but I mean, we are considering the 30%, let's say, standard tax rate as a base case. Clearly, then things can vary, but not materially from the 30%. And again, on the calendar, it's hard to us to make projection because, as I said, and as you know, it's very much in the hand of the regulator and not to us. As I said, we are ready. We have done everything in the fastest time we could, and we have already filed the prospectus. So as I said, it's everything in the end of the CNMV. It's up to me to my projection. Clearly, what I can say is for the offer period, clearly, we will listen what the CNMV will ask us and -- but we are presuming probably 4 weeks. And as soon as the approval will be given, the offer period will start immediately after. So if everything is okay, it cannot be far, but as I said, it's not in our hand. So for the time being, as I said, we did everything at the fast pace we could.

Okay. But if the CNMV approve say Monday or -- is the offer really starting Tuesday? There must be a bit of a gap between the approval and...

No, no, let's say, basically, there will be probably 3, 4 weeks after the approval. So if it will be on Monday, probably the offer period will start 3, 4 weeks after.

Okay. So it's 3, 4 weeks between the approval and the start of the offer period than 4 weeks to the offer period. And then on the approval, I know it's not in your hand, but if you had to take a guess, is it -- can it take a week or 3 months? I mean, and what's your best guess? I know it's not in your hand, but if you had to venture a guess.

I don't know, probably in the middle of your 2 forecast. So let's say, 1 month.

Yes. All right. Okay.

Matteo?

Okay, here I am. So 2 questions to address. So the first question is regarding the advertising trend. Julien, that we do not comment any single month performance. We have already anticipated a positive Q1 performance plus 2.0%. We are going to meet in 4 weeks' time by the end of May. So we will have that more color on Q1 performance. And probably we will have a more comprehensive outlook on Q2 on the general market trend. In any case, I can assure that we are not losing the positive momentum we got in the initial 3 months of the year. While coming to the numbers, the plus 2.1% and the plus 3.9% are based on the standard metrics of the average minute rating. So the average number of viewers we have each minute of the day. So we move from [ 3.125% to 3.250% ]. So that explains the plus 3.9% increase. And this is the combination of first screen and second screen. So I hope to have answer both questions. Thanks.

Yes. Well, actually, thank you for the [ 3.125% and the 3.250% ], which is first green and other screens or linear and nonlinear. But can we have the split between the 2? That's really what I'm after. I'd like to know how much of your thorough viewing is linear and how much of your total viewing is on demand?

Again, you have -- Matteo, you just maybe recollect the numbers. But I mean, what I can tell you, Julien, is that clearly, we are experiencing in Italy as in all the European country, a reduction of the linear, let's say, attendance, let's call it in this way. But what I can tell you that, let's say, our audience increase has offset, let's say, the reduction of the total audience also in linear in the sense that the market is clearly losing audience, but the fact that we have increased our shares has made that in terms of absolute numbers, we are delivering the same eyeballs who were delivering in 2019 than maybe Matteo can give you also the absolute number. But the combination of the 2 factors is helping us to offset what is clearly structural happening in all Europe so that the linear total audience is decreasing. So Matteo, maybe you have the details.

Yes, yes. No, no, exactly. So we have a positive trend in the linear base. So '21 versus '19 is plus 2.1%. That means [ 3.190% compared to the 3.125% ]. And then you have the net addition of the digital screens that I commented before. So you have all the fee numbers for the question of our total audience so the meaningful thing is that we have a positive trend in the baseline sorry and the net addition in terms of second screen audience. For the time being, the second screen audience is mainly desktop and tablet and PC. We are also -- we are expecting to fully include the contribution of Connected Television in the further steps of Auditel total audience road map expected during this year. So it's going to grow further.

Sorry, Julien, and maybe just a comment probably. Clearly, that's the way we see at least I mean, we are producing extension. The fact that is produced through linear services or nonlinear services, frankly, it's something that we are not really focused on a lot. We are trying to produce attention to give Publitalia the possibility to sell it to their investors. And if I have to look at the future, I believe that this is the new currency, attention is the number we should look at it. The fact that people is watching Mediaset content linearly or nonlinearly on the main screen on the second screen, frankly, is something that is not really affecting us a lot also because as we have explained, the advertising, let's say, pricing policy is the same. So at the end of the day, for us, it's completely irrelevant if they are watching us on one screen or on the other. In addition to that, if they are watching gas on digital screen, we can price them higher because we can deliver addressable and targeted and blah, blah, blah, what you have already listened.

Exactly. Exactly. The point is that the value of additional digital and connected TV audience is more than proportional in terms of revenue contribution because of the fact that you have a higher pricing and beyond the simple data of average mine tradings, the real added values, the additional reach you get from these second screens and connected TV audience as [ Paula Colombo ] explained in the video, you may get an increase from 0.5% up to 5% in reaching your campaigns. And this is what's driving advertiser demand, take into account that last year, we had more than 1,000 campaigns of the connected television. We are aiming to 2,000. And we are not far from having 500 of our client base adopting the connected TV campaigns. So these are the main drivers of the total audience.

We now move on to our next question, which comes from Andrea Devita of Banca Akros.

Yes. The first one is on Infinity. So basically, you provided a lot of information of about nonlinear television about the total audience and so on. I would like to -- if you can share some more detail on your trends on your own product Infinity. So how it is going in terms of subscriber market share? Is the revenue contribution relevant to the third party so to the other revenue line? And what do you expect for the current year, also thanks to the Champions League, thanks to the agreement with [ Team Vision ]. The second point is on DZAN. So I wonder from an accounting perspective, whether if you book adjusted the net agency fee, so a net item, which flows directly to the gross profit. And second point, should team lose the exclusivity by platform with DZAN and should DZAN also migrate to the satellite platform would you keep the advertising collection also on this platform?

So I don't want to bother yearly the attendance with the Infinity. But I mean, just to summarize, clearly, our, let's say, offer is based on a sort of, let's say, combined free and SVOD and TVOD offer. So there is clearly the largest, let's say, contribution in terms of during time is from free to air and AVOD, let's say, offer. Let's say, the second step is the SVOD offer. That is the one that is also giving the possibility to watch Champions League and also some vertical channel. And the third one is TVOD. Clearly, as far as a business model, the AVOD part is clearly managed in the total audience, let's say, offer that Publitalia was explaining. So -- and this is clearly important to a large coverage and also the price of the campaign. What I can tell you is that I mean, our key indicator is viewing time. So all the rest is clearly important. But I mean the final objective of the offer is viewing time and attention, generally speaking, as we said before, to give you an idea, we have more than doubled in 3 years the viewing times of Mediaset Infinity in terms of free-to-air offer. Just to give another important element in terms of coverage, we have roughly 40 million unique visitors for a month, so every month. So that's pretty important in terms of coverage enlargement. As far as the SVOD, I mean, clearly, this is a different, let's say, revenue stream, and it is discounted in the other revenue, as we mentioned before. We have now close to 1 million subs clearly, that's probably the top of the, let's say, seasonality because of the Champions League, but this is pretty important numbers. And as I said, the revenue, on the other hand, will be accounted on the other revenue line. As far as the accounting system in DZAN, no, we are not really accounting only the commission. We are accounting cost and revenue. So let's say, the difference between the 2 will be the margin. And as I said before, in explaining the guidance of 2002 other revenue and cost, the guidance I gave, it's also including the DZAN, let's say, effect for the first half of the year because as far as 2021 is concerned, DZAN was part of other revenue and cost already in the second part of last year. And I don't know, Matteo, about -- because we don't know anything about what we are reading about DZAN moving to satellite, but I don't know -- I don't have the answer about, let's say, the possibility to move to satellite.

Exactly. No, no, I don't think it's good to do any comment regarding an ongoing deal where we all read the news in the newspapers, but we don't have detail. So I prefer not to comment on this. Also, in view of our extremely positive relationship with DZAN, we are close to the end of the first season, and we are both very, very satisfied of the relationship. So this is the starting point, let's see what happens.

Okay. Thank you, Matteo, and thank you, Marco. And thank you, guys, for all the questions. Now we are running out of time. As always, we'll be available for any questions or information you would like to ask. Have a good day. Bye.

Thank you. This concludes today's call. Thank you for your participation. Ladies and gentlemen, you may now disconnect.