Vocento : obtains a positive net result of 5 million euros in 2Q16

NOTA DE PRENSA VOCENTO obtains a positive net result of 5 million euros in 2Q16

O Advertising revenues declined by 3.6% in 1H16, but stabilised in 2Q16, down just 0.6%

O The trend in comparable EBITDA improved in all operating areas, with a total rise in comparable EBITDA of almost 1 million euros

O ABC continues to increase market share in circulation and readership (in the Madrid region its lead over El Mundo in ordinary circulation increased by 4 p.p.)

O The company generated 9.5 million euros of positive operating cashflow, with Net Financial Debt/comparable EBITDA of 2.2x

Madrid, 26 July 2016.- VOCENTO ended the first half of 2016 with Operating Revenues of 224.1 million euros, -4.4% from 1H15. Despite the decline, there was a clearly improving trend quarter-by-quarter, as the fall in revenues in 1Q16 was -7%.

Advertising revenues fell by 3.6% in 1H16, compared with -7.1% in 1Q16. In 2Q16, advertising revenues were mainly stable, down just -0.6%. The circulation revenues of Regional Press and ABC fell in total by 5.8%.

Digital advertising across VOCENTO increased by 13.6% in 1H16, supported mainly by national advertising and despite a fall in local institutional advertising. The revenue profile is migrating to digital, with the digital contribution up 4.4 p.p. year-on-year to 31%, including new e-commerce businesses.

Comparable EBITDA in 1H16 was 23 million euros, vs. 23.4 million euros in 1H15. As with operating revenues, the second quarter saw an improved performance in all areas, with comparable EBITDA up almost 1 million euros compared to 2Q15, after a year-on-year fall of 1.4 million euros from 1Q15.

By business areas, there were major improvements at Audiovisual (+589 thousand euros) and Classifieds (+666 thousand euros). Comparable costs fell by 4.7% in 1H16. Cost savings totalled 9.8 million euros, partly offsetting a drop in revenues of 10.3 million euros.

The comparable operating result (EBIT) was 13.3 million euros, with the 2Q results improving, with all areas reporting year-on-year growth.

The net financial result widened to -3.3 million euros from -2.8 million euros. Last year, financial income was booked from the renegotiation of put options on Las Provincias. Excluding this effect, the financial result improved by 552 thousand euros, as a result of the reduction in average debt and lower financial costs resulting from the renegotiation of the syndicated loan conditions in 2H15.

The net consolidated result was -4 million euros. The losses were a result mainly of compensation payments incurred in the period, mainly in 1Q16. Without these costs, the net result was a positive 3.4 million euros.

Calle Pintor Losada 7, 48004 Bilbao. Bizkaia. T. 902.090.155 NOTA DE PRENSA

In the stand-alone second quarter, the net result was positive, at almost 5 million euros, up 30% from 2Q15.

The net financial position on 30 June was 111.6 million euros. In 1H16, VOCENTO generated positive operating cash flow of 9.5 million euros. The Net Financial Debt/comparable EBITDA ratio was 2.2x, the same as at the end of 2015. The Company is controlling its levels of debt and financial gearing, despite compensation payments made in 1H16 of 9.7 million euros, reflecting changes to personnel in 2015 and 2016.

Results by business area

At Newspapers,VOCENTO has consolidated its leadership of the general press sector with market share of ordinary circulation of 24.7%, more than 10 p.p. above the next player, according to OJD for Jan-May 2016. ABC has increased market share in circulation and readership. In the Madrid region, ABC increased the gap in ordinary circulation to El Mundo to 26.1% compared with 22.3%. The readership of ABC.es grew by 10% thanks to mobile growth.

Operating Revenues fell 6.1% to 194 million euros due to: 1) a decline in advertising revenues, 2) lower circulation sales at ABC and Regional, and 3) lower other revenues because of the comparative effect with 1H15, when there were a series of non-recurring effects. Comparable EBITDA slipped 5.3% to 22 million euros because of a fall in advertising spend. Comparable costs dropped by 6.2%. In 2016, costs will continue to be saved as a result of personnel adjustments and downsizing to ABC branch offices.

At Audiovisual,Operating Revenues increased by 8.1% to 23.3 million euros thanks to increased activity at DTT and Content. Comparable EBITDA improved by 10.9% to 6 million euros as a result mainly of an increase at television.

At Classifieds,Operating Revenues increased by +18% to 8.8 million euros, due to the strong performance of advertising revenues, up 18.7%. Comparable EBITDA rose to 819 thousand euros compared to 153 thousand euros, thanks to an increase in revenues and higher profitability across the area despite the costs associated with digital investments.

Calle Pintor Losada 7, 48004 Bilbao. Bizkaia. T. 902.090.155