Results for January-December 2022
27 FEBRUARY 2023
Vocento, S.A. and subsidiaries
Results report January-December 2022
INTRODUCTION: VOCENTO, THE ECONOMY AND THE ADVERTISING MARKET
The economic recovery of 2022 was not reflected in the advertising market partly because of the increased proportion of advertising spend dedicated to segments such as social media.
According to the INE, the growth of GDP and household consumption was 10% and 11% in nominal terms (i.e. incorporating price rises), while the advertising market (excluding social media and search engines) grew by under 1%.
Furthermore, Vocento was impacted in 2022 by the increase in prices for raw materials such as paper and the increase in the price of energy.
Performance of the Spanish economy and advertising market
Data in %
Source: i2p and INE. Note 1: advertising market excluding social media and search engines.
For 2023 the outlook is of lower economic growth because of the impact of high inflation and interest rates on internal demand.
The Funcas panel forecasts that GDP (using the price deflator) will rise by 1.3% in 2023 compared to 5% in 2022. Zero growth is expected in the first quarter, followed by 0.5%-0.6% in the rest of the year, with a significant increase in prices (CPI 2023E +4.0%).
In the advertising market, i2p is forecasting a weak growth rate of 0.9% (excluding social media and search engines).
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Vocento, S.A. and subsidiaries
Results report January-December 2022
PERFORMANCE OF THE VOCENTO BUSINESSES
VOCENTO is a multimedia group, whose parent company is VOCENTO, S.A. It is dedicated to the various areas that comprise the media sector. The Group's business lines are used to organise management information and are shown in the following infographic.
Reports to the market are based on this organisation, which covers all the businesses in which VOCENTO is present, assigned to their respective business segments.
NEWSPAPERS (offline and online)
REGIONALS | ABC | SPORTS | SUPPLEMENTS |
- El Correo
- La Verdad
- El Diario Vasco
- El Norte de Castilla
- El Diario Montañés
- Ideal
- Sur
- Las Provincias
El Comercio | | ABC | | Relevo | | XL Semanal |
Hoy | | National | ||||
Mujer Hoy | ||||||
La Rioja | printing plant | Women Now | ||||
Regional printing plants | Turium | |||||
Regional distr. (Beralán) | Welife |
- News agency (Colpisa)
- Regional sales companies
- Other regional companies (Donosti Cup, Innevento)
AUDIOVISUAL | GASTRONOMY & | ||||||
CLASSIFIEDS | |||||||
DTT | RADIO | AGENCIES | |||||
Madrid Fusión | |||||||
| Local DTT | | Analog radio | Pisos.com | |||
Gastronomika | |||||||
licenses | |||||||
Sumauto | Mateo & Co | ||||||
| Digital radio | ||||||
Local Digital Kit | Tango | ||||||
licenses | |||||||
Premium Leads | Pro Agency | ||||||
Yellow Brick Road
Antropico
IMPORTANT NOTE
To facilitate the analysis of financial information and understand the organic performance of the Company, this report always makes it clear when operating expenses, EBITDA, the net result or financial debt are affected by different non-recurring or extraordinary impacts. The details of these measures are explained in Appendix I: Alternative Performance Measures.
As is standard practice, as a general norm this report analyses the information for 2022 compared to the prior-year period.
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Vocento, S.A. and subsidiaries
Results report January-December 2022
Main highlights of the financial performance of the businesses in 2022
Advertising and diversification drive revenues higher
2022 EBITDA target achieved, despite increase in cost of paper and energy
Dividend proposal and a differentiated debt position
Target to increase EBITDA, at constant scope, based on diversification
Definition of ESG strategy and the Vocento corporate purpose
- Strong revenue growth driven by advertising and diversification
- Total revenues increased by +5.2% compared to 2021.
- Digital subscriptions increased by +28% and exceeded the target for the year (+23%).
- Advertising revenues increased by +4.1% thanks to a +6.1% increase in local advertising and a balanced mix of local and national advertising (53% and 47% respectively).
- Driven by diversified businesses, Other Revenues surged by +25.2%.
- 2022 EBITDA target achieved despite higher costs of paper and energy
- In uncertain market conditions, pro forma EBITDA rose by 771 thousand euros to 33,543 thousand euros and met the target of achieving flat pro-forma EBITDA (excluding the impact of Relevo), despite the impact of higher energy prices (a negative effect of 1,966 thousand euros) and higher costs of paper and printing plates (a negative impact of 4,496 thousand euros).
- The margin on readers fell by -8,908 thousand euros because of the fall in circulation and higher costs in the print business.
- Dividend payment and a differentiated debt position
- The proposed dividend payment on 2022 earnings is 5,500 thousand euros.
- Net financial debt excluding IFRS 16 leases is 8,892 thousand euros as a consequence of the payment of the dividend on 2021 earnings (5,419 thousand euros) and lower free cash flow.
- Free cash flow of 4,481 thousand euros reflects the higher cost of paper inventories and the changed scope of the company.
- 2023 target: diversified businesses to drive increase in EBITDA (constant scope)
- The target is for EBITDA to grow in 2023 (at constant scope).
- This increase will based on a greater contribution from the diversified businesses. Their weight will rise from 21% in 2022 to 33% of the total in 2023, thanks to organic and inorganic growth.
- ESG strategy and the Vocento purpose
- Definition of Vocento's official purpose.
- Approval of a new Sustainability Policy and Plan for 2023-26.
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Vocento, S.A. and subsidiaries
Results report January-December 2022
Main financial data
A.- Consolidated profit and loss statement
IFRS | ||||
Thousand euros | 2022 | 2021 | Var Abs | Var % |
Circulation revenues | 106,414 | 112,781 | (6,367) | (5.6%) |
Advertising revenues | 152,526 | 146,560 | 5,966 | 4.1% |
Other revenues | 85,886 | 68,576 | 17,310 | 25.2% |
Total revenue | 344,827 | 327,918 | 16,909 | 5.2% |
Staff costs | (151,993) | (143,531) | (8,462) | (5.9%) |
Procurements | (29,443) | (25,183) | (4,260) | (16.9%) |
External Services | (129,410) | (119,636) | (9,774) | (8.2%) |
Provisions | (437) | (1,756) | 1,319 | 75.1% |
Operating expenses (without D&A) | (311,284) | (290,107) | (21,177) | (7.3%) |
EBITDA | 33,543 | 37,811 | (4,268) | (11.3%) |
Depreciation and amortization | (22,677) | (20,330) | (2,347) | (11.5%) |
Impairment/gains on disposal of tan. & intan. assets | 3,478 | 10,822 | (7,344) | (67.9%) |
EBIT | 14,344 | 28,302 | (13,959) | (49.3%) |
Impairments/reversal of other intangible assets | (500) | 0 | (500) | n.a. |
Profit of companies acc. equity method | (699) | (255) | (443) | n.r. |
Net financial income | (1,942) | (3,819) | 1,877 | 49.1% |
Net income from disposal of non-current assets | 1,116 | (1,925) | 3,041 | n.r. |
Profit before taxes | 12,318 | 22,303 | (9,985) | (44.8%) |
Corporation tax | (3,955) | (4,506) | 551 | 12.2% |
Profit after taxes | 8,363 | 17,796 | (9,434) | (53.0%) |
BDI assets for sale/discontinued operations | 9,136 | 3,335 | 5,800 | n.r. |
Net profit for the year | 17,498 | 21,132 | (3,633) | (17.2%) |
Minority interests | (4,613) | (7,512) | 2,899 | 38.6% |
Net profit attributable to the parent | 12,886 | 13,620 | (734) | (5.4%) |
Note: figures are rounded to the nearest thousand euro. 2021 figures from audited financial statements which include National DTT and Content as discontinued operations.
Operating revenues
Total revenues increased by +5.2% in the year to reach 344,827 thousand euros in 2022.
By type of revenue:
- Circulation revenuesfell by -5.6% because of a decrease in circulation. The number of paying digital subscribers increased by +28%. In December 2022, there were 72 thousand subscribers to the regional press (ON+ and KyM) and 40 thousand subscribers to ABC (ABC Premium and KyM). This increase has exceeded the target of 100 thousand by the end of 2022.
- Advertising revenuesincreased by +4.1% vs. 2021, with a rise of +6.1% in local advertising. By business areas, a highlight was the increase at Classifieds (+16.8%).
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Disclaimer
Vocento SA published this content on 27 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 February 2023 17:53:06 UTC.