Results for first half of 2021 26-07-2021 17:38

Caltagirone Editore: the Board of Directors approves

the results for first half of 2021

• Revenues: Euro 55.8 million (Euro 54.6 million for first half of 2020)
• Ebitda: Euro 3.1 million (Euro -1.8 million for first half of 2020)
• Group net result: Euro 16.2 million (Euro -18.1 million for first half of 2020)

Rome, July 26th, 2021 - The Board of Directors of Caltagirone Editore, chaired by Mrs. Azzurra Caltagirone, examined and approved the results of the first half of 2021.

Performance of operations

Compared to the corresponding period of 2020 all the items of the income statement recorded an improvement in the first six months of the 2021 financial year.

Revenues amounted to Euro 55.8 million, up 2.1% compared to the same period of 2020 due to the increase of advertisement incomes net of the reduction in circulation. Total revenues from the sale of the paper and digital editions of the Group newspapers went down by 4.7% compared to the corresponding period of 2020. Group advertising revenue increased by 7.4%. The contribution of the internet sector to the total advertising turnover is 24.1%. The Total Audience (pc or mobile) of the Group's web sites recorded, in the period January - May 2021, 3.49 million unique average daily users.

Costs decreased by 6.6% on the first half of 2020 and amounted to Euro 52.7 million (Euro 56.4 million as of June 30th, 2020). The cost of raw materials went down by 12.2% due to the lower quantities used in the production process and the decrease of the paper price. Labor costs, that includes non-recurrent costs of Euro 289 thousand (Euro 992 thousand as of June 30th, 2020) related to operations put in place by some controlled companies, decreased by 6.5%. The other operating costs decreased by 5.8%.

EBITDA was Euro 3.1 million (Euro -1.8 million as of June 30th, 2020).

EBIT recorded a loss of Euro 528 thousand (Euro -27.5 million in the first half 2020) and includes amortizations of Euro 3.3 million (Euro 3.2 million as of June 30th 2020), provisions of Euro 52 thousand (Euro 30 thousand as of June 30th 2020) and depreciations for Euro 271 thousand (Euro 468 thousand as of June 30th 2020). The first half of 2020 included Euro 22 million writedowns of intangible assets with an indefinite life, following the effects of the Covid-19 pandemic and in accordance with the provisions of the reference accounting standards.

Net income from financial operations, positive for Euro 8.1 million, went up compared to Euro 2.8 million in the first half of 2020 due to the higher dividends received on listed shares (Euro 8.3 million in the first half 2021 compared to Euro 3.3 million in the first half of 2020).

Group net result was positive for Euro 16.2 million (Euro -18.2 million as of June 30th 2020) also due to the use of the realignment rules operated by some subsidiaries.

The net financial position amounts to Euro 78.8 million, decreasing by Euro 7.2 million from December 31th, 2020 mainly due to the investments in listed shares net of dividends collected on listed shares and of the positive operating cash flow.

Shareholders' equity amounts to Euro 375.8 million (Euro 339.3 million as of December 31th, 2020). The increase is due to the positive effect achieved during the semester in the fair value valuation of the equity investments held and to the result of the period.

Forecasts for the current year

The Group will continue its initiatives to enhance the multimedia versions and improve internet activities in order to increase advertising flows and acquire new readers. The Group will continue to improve the containing of all discretionary costs and to reduce direct and operating costs.

***

The Executive responsible for the preparation of the corporate accounting documents, Luigi Vasta, declares in accordance with article 154 bis, paragraph 2, of the "Testo Unico della Finanza", that the accounting information contained in the present press release corresponds to the underlying documents, records and accounting entries

Attached the statutory balance sheets and income statement currently under review of the Board of Statutory Auditors and the Independent Auditors.

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CALTAGIRONE EDITORE GROUP

CONSOLIDATED BALANCE SHEET

Assets
(in Euro thousands)	30.06.2021	31.12.2020
Non-current assets
Intangible assets with definite life	682	866
Intangible assets with indefinite life	103,003	103,003
Newspaper titles	103,003	103,003
Property, plant and equipment	37,563	40,419
Equity investments and non-current securities	150,233	108,159
Other non-current assets	127	135
Deferred tax assets	52,944	53,389
TOTAL NON-CURRENT ASSETS	344,552	305,971
Current assets
Inventories	1,994	1,592
Trade receivables	33,586	41,031
of which related parties	117	208
Tax receivables	-	41
Other current assets	1,596	1,024
of which related parties	3	3
Cash and cash equivalents	89,686	100,496
TOTAL CURRENT ASSETS	126,862	144,184
TOTAL ASSETS	471,414	450,155

CALTAGIRONE EDITORE GROUP

CONSOLIDATED BALANCE SHEET

SHAREHOLDERS' EQUITY AND
LIABILITIES
(in Euro thousands)	30.06.2021	31.12.2020
Shareholders' Equity
Share capital	125,000	125,000
Share capital issue costs	(18,865)	(18,865)
Other reserves	253,383	277,411
Profit/(loss) for the year	16,244	(44,277)
Group shareholders' equity	375,762	339,269
Minority interest shareholders' equity	-	-
TOTAL SHAREHOLDERS' EQUITY	375,762	339,269
LIABILITIES
Non-current liabilities
Employee provisions	14,527	14,802
Other non-current provisions	148	155
Non-current financial liabilities	2,467	3,562
of which related parties	1,100	1,936
Other non-current liabilities	1,452	1,859
Deferred tax liabilities	18,394	27,548
TOTAL NON-CURRENT LIABILITIES	36,988	47,926
Current liabilities
Current provisions	11,609	11,769
Trade payables	18,212	19,647
of which related parties	501	248
Current financial liabilities	8,448	10,916
of which related parties	2,180	2,783
Tax payables	699	-
Other current liabilities	19,696	20,628
of which related parties	27	33
TOTAL CURRENT LIABILITIES	58,664	62,960
TOTAL LIABILITIES	95,652	110,886
TOTAL SHAREHOLDERS' EQUITY AND	471,414	450,155
LIABILITIES

CALTAGIRONE EDITORE GROUP

CONSOLIDATED INCOME STATEMENT

(in Euro thousands)

1st half 2021

1st half 2020

Revenues
Revenues from sales and supply of services	54,392		53,296
of which related parties	160		134
Other operating revenues	1,408		1,331
of which related parties	36		36
TOTAL REVENUES	55,800		54,627
Costs
Raw material costs	(3,525)		(4,013)
Personnel costs	(24,761)		(26,492)
of which non-recurring charges	(289)		(992)
Other operating charges	(24,442)		(25,936)
of which related parties	(442)		(381)
TOTAL COSTS	(52,728)		(56,441)
EBITDA	3,072		(1,814)
Amortisation	(1,472)		(1,405)
Leasing amortisation	(1,805)		(1,792)
Depreciation	(52)		(30)
Intangible assets with indefinite life write-down	0	-	22,000
Other write-downs	(271)		(468)
Amortisation, depreciations and other write-downs	(3,600)		(25,695)
EBIT	(528)		(27,509)
Financial income	9,086		3,253
of which related parties	7,575		3,250
Financial charges	(979)		(419)
of which related parties	(21)		(35)
Net financial result	8,107		2,834
PROFIT/(LOSS) BEFORE TAX	7,579		(24,675)
Income taxes for the period	8,665		6,524
NET PROFIT/(LOSS) FOR THE PERIOD	16,244		(18,151)
Group net loss	16,244		(18,151)
Minority interest share	-		-
Earnings per share	0.152		(0.170)
Diluted earnings per share	0.152		(0.170)