Vocento S A : Results 1H22

RESULTADOS ENERO-JUNIO 2019

26 de julio de 2019

Results for January-June 2022

26 JULY 2022

Vocento, S.A. and subsidiaries

Results Report January-June 2022

PERFORMANCE OF 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. Reports to the market are based on this information, which covers all the businesses in which VOCENTO is present, assigned to their respective business segments

• 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)

 Local DTT	 Analog radio	 Pisos.com	 Madrid Fusión
 Gastronomika
	licenses
	 Sumauto
	 Mateo & Co
	 Digital radio
	 Local Digital Kit
	 Tango
	licenses
	 Premium Leads
	 Pro Agency
			 Yellow Brick Road
			 Antropico

IMPORTANT NOTE

This document and the information presented herein was prepared by Vocento, S.A. solely with respect to the consolidated financial results of Vocento, S.A. and was prepared and is presented in accordance with the International Financial Reporting Standards ("IFRS").

To facilitate the analysis of financial information and understand the organic performance of the Company, this report includes comparative pro forma figures for 1H21 which exclude the discontinued businesses of NET TV and Veralia Distribución. Detailed information about the calculations for the P&L and balance sheet can be found in Appendix I at the end of this document: Alternative Performance Measures.

https://en.vocento.com/shareholders-investors/financial-information/#informacionperiodica

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Vocento, S.A. and subsidiaries

Results Report January-June 2022

Main highlights of the financial performance of the businesses in 1H22

Increase in total pro forma revenues

Resilient profitability

Group strategy continues to strengthen digital and diversification. Development of

Relevo

• Solid revenue growth in a challenging environment
• 1. VOCENTO's pro forma revenues (adjusted for the contribution of NET TV and Content in 1H21) increased by +4.8%.
  2. Advertising increased by +4.7% in 1H22, offsetting the fall in circulation revenues and supported by the balance between local and national advertising. Local advertising represents 53% of the total and grew by +11.2%.
  3. Other pro forma revenues (excluding NET TV and Content) increased by +23.9%, driven by the diversified businesses.
  4. Digital revenues and diversification now represent 39% of total revenues, up +4 p.p. from 1H21.
• EBITDA resilient despite higher costs
• 1. EBITDA in 1H22 was 8,796 thousand euros. At constant scope, there was a decrease of -2,453 thousand euros because of temporary effects such as -1,742 thousand euros of compensation payments (net of the savings they generated in 1H22) and the -1,671 thousand euros impact of the cost of energy.
  2. There was a fall in the combined margin on circulation and digital subscriptions in 1H22 of -3,743 thousand euros, mainly because of the rise in the price of paper.
• Cash Flow and a differentiated debt position
• 1. Net financial debt ex IFRS 16 was 4,719 thousand euros in 1H22, vs. 1,721 thousand euros at the end of 2021.
  2. Free cash flow was 5,272 thousand euros in 1H22, impacted by higher costs for paper and energy. In 1H22 the cash flow yield was 28%.
• A year of transition, preparing for 2023
  A series of strategic initiatives will bear fruit in 2023:
• 1. A new strategic focus on digital subscriptions, including centralised management and other actions.
  2. Diversification: becoming a major player in Gastronomy and Agencies with new channels and events.
  3. Relevo: establishing the foundations for the sports publication of the future, with KPI that are outperforming the competition.
  4. In Classifieds, Local Digital Kit is a major opportunity to digitalise SMEs, supported by the
     Government's Kit Digital programme with Next Generation funds from the EU.
  5. Committed to the environment, society and governance, with VOCENTO making progress with its Sustainability Plan. VOCENTO is the current leader of the Spanish market for ESG transparency, according to Bloomberg.

Elsewhere, VOCENTO has improved its share of the advertising market and has renegotiated medium- term electricity contracts to reduce the risk of price rises.

https://en.vocento.com/shareholders-investors/financial-information/#informacionperiodica

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Vocento, S.A. and subsidiaries

Results Report January-June 2022

Main financial data

Consolidated profit and loss account

Thousand euros	1H22	1H21	Var Abs	Var %	1H21	Var %
proforma
Circulation revenues	53,699	57,348	(3,649)	(6.4%)	57,348	(6.4%)
Advertising revenues	72,173	68,965	3,208	4.7%	68,373	5.6%
Other revenues	37,787	42,261	(4,474)	(10.6%)	30,498	23.9%
Total revenue	163,659	168,574	(4,915)	(2.9%)	156,219	4.8%
Staff costs	(76,834)	(72,343)	(4,491)	(6.2%)	(72,288)	(6.3%)
Procurements	(13,907)	(12,455)	(1,452)	(11.7%)	(12,455)	(11.7%)
External Services	(64,197)	(66,738)	2,541	3.8%	(57,871)	(10.9%)
Provisions	75	(1,078)	1,153	n.r.	(1,078)	n.r.
Operating expenses (without D&A)	(154,863)	(152,615)	(2,248)	(1.5%)	(143,692)	(7.8%)
EBITDA	8,796	15,959	(7,163)	(44.9%)	12,527	(29.8%)
Depreciation and amortization	(10,711)	(9,839)	(871)	(8.9%)	(9,755)	(9.8%)
Impairment/gains on disposal of tan. & intan. asse	190	10,699	(10,509)	(98.2%)	10,699	(98.2%)
EBIT	(1,725)	16,819	(18,544)	n.r.	13,471	n.r.
Impairments/reversal of other intangible assets	0	(1,000)	1,000	100.0%	0	n.a.
Profit of companies acc. equity method	47	(207)	254	n.r.	(207)	n.r.
Net financial income	(716)	(1,173)	457	38.9%	(1,173)	39.0%
Profit before taxes	(2,371)	13,516	(15,887)	n.r.	11,168	n.r.
Corporation tax	(899)	(3,269)	2,370	72.5%	(2,453)	63.4%
Profit after taxes	(3,269)	10,247	(13,517)	n.r.	8,714	n.r.
BDI assets for sale/discontinued operations	9,136	0	9,136	n.a.	1,533	n.r.
Net profit for the year	5,866	10,247	(4,381)	(42.8%)	10,247	(42.8%)
Minority interests	(850)	(4,600)	3,750	81.5%	(4,600)	81.5%
Net profit attributable to the parent	5,016	5,648	(632)	(11.2%)	5,648	(11.2%)

Note: Figures are rounded to the nearest thousand euros. 1H21 pro forma includes NET TV and Veralia as discontinued.

Operating revenues

Operating revenues in 1H22 fell by -2.9% vs 1H21 to 163,659 thousand euros. This decrease is the result of the deconsolidation of NET TV and Veralia Distribución. Without this effect, pro forma revenues were up +4.8%.

By type of revenue:

1. Circulation revenuesfell by -6.4% in 1H22 because of the performance of print circulation. The number of digital subscribers increased by +23% to 95k in June, with 65k at Regional (ON+ and KyM) and 31k at ABC (ABC Premium and KyM). A new strategy has been implemented with a focus on centralised management and other improvements. A pilot is also underway. These initiatives will drive growth in digital subscribers.
2. Advertising revenuesincreased by +4.7% in 1H22, thanks to the strong +11.2% rise in local advertising, consisting of a +24.4% increase in digital and a +7.2% rise in print advertising. National advertising revenues were stable in 1H22, with an improvement in 2Q22 (following a decrease in 1Q22 of -6.9%) thanks to a +6.7% increase in print advertising. In current market conditions, Vocento's balance between local advertising (53% of the total in 1H22) and national advertising is a major source of strength.

https://en.vocento.com/shareholders-investors/financial-information/#informacionperiodica

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Vocento, S.A. and subsidiaries

Results Report January-June 2022

National advertising and local1

Data in%

Local €38.1m (52.9% over total)		National €33.9m (47.1% over total)
28.2%			25.7%
71.8%			74.3%
		Offline		Online

Note 1: net advertising data. Not including Audiovisual or Others.

In 1H22, VOCENTO brands outperformed the advertising market both in print and online.

VOCENTO advertising performance vs the market 1H22

Data in %

	6.5%	Online
4.7%	Online	VOCENTO
VOCENTO

3.6%	Ex Classifieds	4.0%
	2.2%3

0.9%

Total market		Offline1	(0.7%)
		Online
		Market2		VOCENTO

Note 1: offline for market and VOCENTO is the press (excluding Supplements and Magazines). Note 2: market source i2p

excluding social media and search engines. Note 3: includes reclassification of LDK in 1H22.

.

Programmatic advertising revenues on the Wemass platform created by Vocento, Prisa and Godó. increased by +30% in 1H22.

Including not only digital advertising revenues but also e-commerce booked as other revenues, digital now contributes 50% of total advertising, a similar level as in 1H21 because of the growth in print advertising revenues in the last year.

1. Other Revenues: decreased by -10.6% following the deconsolidation in 1H22 of NET TV and Veralia Distribución. Excluding this, other revenues would have increased by +23.9% thanks to the contribution of gastronomy, agencies and printing for third parties, among others.

EBITDA

In the current context of macroeconomic uncertainty, falling private consumption and rising prices for paper and energy, VOCENTO has demonstrated the resilience of its profitable business model.

https://en.vocento.com/shareholders-investors/financial-information/#informacionperiodica

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