Public Company
Head Office: Rua do General Norton de Matos, 68, r/c - Porto Fiscal number 502 293 225
Share Capital: 25,641,459 Euro
1st quarter 17 FINANCIAL INFORMATION (Unaudited)This document is a translation of a document originally issued in Portuguese, prepared using accounting policies consistent with the International Financial Reporting Standards and with accordance with the International Accounting Standard 34 - Interim Financial Reporting, some of which may not conform or be required by generally accepted accounting principles in other countries. In the event of discrepancies, the Portuguese language version prevails.
The consolidated financial information of Cofina, prepared in accordance with the recognition and measurement principles of the International Financial Reporting Standards (IFRS), can be presented as follows:
(amounts in thousand of Euro) | 1Q 2017 | 1Q 2016 | Var (%) 1Q17/1Q16 | ||
Consolidated operating revenue Circulation Advertising Alternative marketing products and others | 20,554 11,106 6,384 3,064 | 22,584 12,645 6,411 3,528 | -9.0% -12.2% -0.4% -13.2% | ||
Operating income by segment Newspapers Magazines Operating Expenses (a) | 20,554 17,330 3,224 | 22,584 18,457 4,127 | -9.0% -6.1% -21.9% | ||
18,217 | 19,701 | -7.5% | |||
Consolidated EBITDA (b) | 2,337 | 2,883 | -18.9% | ||
EBIT DAMargin Newspapers EBITDA Newspapers EBITDAMargin Magazines EBITDA Magazines EBITDAMargin | - | 11.4% 2,875 16.6% -538 | - | 12.8% 3,256 17.6% -373 | - 1,4 p.p. -11.7% - 1,0 p.p. 44.2% ss |
Amortisation and depreciation (-) | 462 | 632 | -26.9% | ||
EB | IT EBIT Margin | 1,875 9.1% | 2,251 10.0% | -16.7% - 0,9 p.p. | |
Net financial income / (loss) | (991) | (716) | 38.4% | ||
Income before taxes and non-controlling interests | 884 | 1,535 | -42.4% | ||
Income taxes (-) | 236 648 | 532 1,003 | -55.6% -35.4% | ||
Net consolidated profit / (loss) (c) |
Operating ex penses ex cluding amortisation
EBITDA = Earnings before interest, tax es, depreciation and amortisation
Net Profit / (Loss) attributable to the parent company shareholders
The current period was characterized by a decrease of total revenues in relation to the prior year homologous period (-9%), with a decrease in all its components: circulation revenues (-12%), advertising revenues (-0.4%) and alternative marketing products and other revenues (-13%).
EBITDA recorded in this period was approximately 2.3 million Euro, which represented a decrease of approximately 19% in relation to the prior year.
Consolidated net profit recorded in the end of the 1st quarter 2017 was 0.6 million Euro. As of March 31, 2017, Cofina's nominal net debt amounted to 58.4 million Euro.
To deal with the extremely adverse market environment, Cofina has deepened its policy of reinforcing operational efficiency, with cost-cutting measures being implemented in areas most exposed to the cycle, as well as a reorganization of the organizational structure.
At the same time, Cofina is developing new business units, namely an online gaming platform, which is expected to be operational during the second quarter of 2017.
Next some key financial figures of the main business segments are presented:
Newspapers' Segment(amounts in thousand of Euro) | 1Q 2017 | 1Q 2016 | Var (%) 1Q17/1Q16 |
Operating income | 17,329 | 18,457 | -6.1% |
Circulation | 9,351 | 10,332 | -9.5% |
Advertising | 5,361 | 5,258 | 2.0% |
Alternative marketing products and others | 2,617 | 2,867 | -8.7% |
Operating expenses (a) | 14,454 | 15,201 | -4.9% |
EBITDA (b) | 2,875 | 3,256 | -11.7% |
EBIT DAMargin | 16.6% | 17.6% | - 1.0 p.p. |
Operating ex penses ex cluding amortisation
EBITDA = Earnings before interest, tax es, depreciation and amortisation
Cofina's newspapers segment recorded, in the first quarter of 2017, a total income of approximately 17.3 million Euro, a decrease of 6% when compared to the same period of the prior year. Income from circulation recorded a decrease of approximately 10%, reaching 9.4 million Euro. Advertising revenues recorded a decrease of 9.4%, reaching approximately 5.3 million Euro. Alternative marketing products income and other revenues income recorded a decrease of 9%, reaching 2.6 million Euro.
Advertising revenues, on the other hand, grew 2% reaching around 5.4 million Euro.
Therefore, EBITDA of the newspapers segment reached 2.9 million Euro, a decrease of 12% in relation to the prior year. EBITDA margin reached 16.6%.
The newspapers' segment includes the results of the "Correio da Manhã TV" channel, which has consistently beaten audience records. Thus, in the first quarter of 2017, CMTV recorded a 2.5% share, being the channel with the highest audience in the cable and the fourth largest Portuguese
channel behind Free to Air, being only present in 85% of the market (since it is not yet present on the Vodafone and Nowo platforms).
Magazines' SegmentDuring the first quarter of 2017, total income of this segment reached approximately 3.2 million Euro, reflecting a decrease of approximately 22% when compared to prior year's homologous period.
(amounts in thousand of Euro) | 1Q 2017 | 1Q 2016 | Var (%) 1Q17/1Q16 |
Operating income | 3,225 | 4,127 | -21.9% |
Circulation | 1,755 | 2,313 | -24.1% |
Advertising | 1,023 | 1,153 | -11.3% |
Alternative marketing products and others | 447 | 661 | -32.4% |
Operating expenses (a) | 3,763 | 4,500 | -16.4% |
EBITDA (b) | -538 | -373 | -44.2% |
EBIT DAMargin | - | - | ss |
Operating ex penses ex cluding amortisation
EBITDA = Earnings before interest, tax es, depreciation and amortisation
Circulation income recorded a decrease of 24%, reaching approximately 1.8 million Euro, while advertising income recorded a decrease of 11%. Alternative marketing products income recorded a decrease of 32%.
EBITDA of the magazines segment recorded in the first quarter of 2017 was of -538 thousand Euro.
It should be noted that during the reorganization process the printed edition of the weekly magazine Flash was closed (remaining only the online edition), which entailed non-recurring costs and less operating income compared with the homologous period of previous year.
Cofina SGPS SA published this content on 05 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 05 May 2017 17:59:25 UTC.
Original documenthttp://www.cofina.pt/~/media/Files/C/Cofina/press/releases/2017press/Cofina 1Q2017 ING.pdf
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