Vocento S A : Results 9M22

RESULTADOS9

Results26 deforjulioJanuaryde 2019-September 2022

15 NOVEMBER 2022

Vocento, S.A. and subsidiaries

Results Report January-September 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. 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 contained herein have been prepared by Vocento, S.A. exclusively from the consolidated financial results of Vocento, S.A. and in accordance with 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 9M21 which exclude the discontinued businesses of NET TV and Veralia Distribución. When comparing some figures, the impact of Relevo is also indicated. 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.

http://www.vocento.com/accionistas-inversores/informacion-financiera/#informacionperiodica

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Vocento, S.A. and subsidiaries

Results Report January-September 2022

Main highlights of the financial performance of the businesses in 9M22

Growth in pro-forma revenues1

Profitability impacted by higher costs

Group strategy maintained, strengthening the digital area and diversified

businesses. Relevo development continues

• Solid revenue growth in challenging market conditions
• 1. VOCENTO's pro-forma revenues (adjusted in 9M21 for NET TV and Content) increased by +5.2%.
  2. Advertising revenues increased by +4.7% in 9M22, offsetting the impact of a fall in circulation. The performance was supported by the beneficial mix of local and national advertising, with local advertising rising by +9% and now representing 52% of the total.
  3. Other pro-forma revenues (excluding NET TV and Content) rose by +25.2%, driven higher by the diversified businesses and others.
• EBITDA impacted by higher costs for paper and energy
• 1. In 9M22 EBITDA fell by -2,671 thousand euros to 10,124 thousand euros, mainly because of the high costs of energy (-2,177 thousand euros).
  2. There was a fall in the combined margin on circulation and digital subscriptions of -6,299 thousand euros in 9M22. This was due to factors such as the fall in circulation and the rise in paper prices, partly offset by an improvement in the digital margin.
  3. The EBITDA target for 2022 is maintained: EBITDA in line with 2021, when adjusted for the pro- forma impact of NET TV and Veralia Distribución and for Relevo in 2022.
• A differentiated debt position
• 1. Net financial debt ex IFRS 16 leases was 10,717 thousand euros in 9M22, vs. 1,721 thousand euros in 2021. Vocento made a dividend payment of 5,419 thousand euros in 9M22.
  2. Free cash flow was 1,449 thousand euros in 9M22, impacted by higher prices for energy and paper and by changes in the perimeter.
  3. In 9M22, the cash flow yield (using the market capitalisation of 4 November) was 20%.
• Milestones in digital and diversification
• 1. Digital + diversification mix now contributes 40% of total revenues (+5p.p. vs. 9M21).
  2. The Relevo website was launched in October. On social media, Relevo has more than 300k followers.
  3. At Classifieds, in 3Q22 there was a recovery in the revenues of the automotive vertical.
  4. Also at Classifieds, as part of the Kit Digital programme for the digitalisation of SMEs, Local Digital Kit has won 2.8k clients and sold 3.5k solutions. Potential revenues in this space are around 7 million euros.

Note 1: pro-forma excluding Relevo in 9M22 and NET TV and Veralia Contenidos in 9M21.

http://www.vocento.com/accionistas-inversores/informacion-financiera/#informacionperiodica

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Vocento, S.A. and subsidiaries

Results Report January-September 2022

Main financial data

A.- Consolidated profit and loss account

			IFRS
Thousand euros	9M22	9M21	Var Abs	Var %	9M21 pro-	Var %
					forma
Circulation revenues	80,004	85,299	(5,295)	(6.2%)	85,299	(6.2%)
Advertising revenues	104,639	99,936	4,704	4.7%	99,099	5.6%
Other revenues	58,644	64,267	(5,623)	(8.7%)	46,836	25.2%
Total revenue	243,287	249,501	(6,214)	(2.5%)	231,234	5.2%
Staff costs	(113,506)	(107,714)	(5,792)	(5.4%)	(107,632)	(5.5%)
Procurements	(21,303)	(18,782)	(2,521)	(13.4%)	(18,782)	(13.4%)
External Services	(98,451)	(99,769)	1,318	1.3%	(86,668)	(13.6%)
Provisions	97	(1,553)	1,651	n.r.	(1,553)	n.r.
Operating expenses (without D&A)	(233,163)	(227,818)	(5,345)	(2.3%)	(214,636)	(8.6%)
EBITDA	10,124	21,683	(11,559)	(53.3%)	16,598	(39.0%)
Depreciation and amortization	(16,498)	(15,158)	(1,340)	(8.8%)	(15,032)	(9.8%)
Impairment/gains on disposal of tan. & intan. assets	287	10,855	(10,568)	(97.4%)	10,855	(97.4%)
EBIT	(6,087)	17,380	(23,467)	n.r.	12,421	n.r.
Impairments/reversal of other intangible assets	0	(1,500)	1,500	100.0%	0	n.a.
Profit of companies acc. equity method	(101)	(280)	180	64.0%	(280)	64.0%
Net financial income	(1,079)	(1,708)	629	36.8%	(1,709)	36.8%
Net income from disposal of non-current assets	24	(922)	946	n.r.	(922)	n.r.
Profit before taxes	(7,244)	12,969	(20,213)	n.r.	9,510	n.r.
Corporation tax	(1,354)	(4,032)	2,678	66.4%	(2,823)	52.1%
Profit after taxes	(8,597)	8,937	(17,535)	n.r.	6,686	n.r.
BDI assets for sale/discontinued operations	9,136	0	9,136	n.a.	2,251	n.r.
Net profit for the year	538	8,937	(8,399)	(94.0%)	8,937	(94.0%)
Minority interests	(1,795)	(5,811)	4,015	69.1%	(5,811)	69.1%
Net profit attributable to the parent	(1,257)	3,127	(4,383)	n.r.	3,127	n.r.

Notes: figures are rounded to the nearest thousand euro. 9M21 pro-forma includes NET TV and Veralia as discontinued.

Operating revenues

In 9M22, total revenues fell by -2.5% to 243,287 thousand euros following the divestments of NET TV and Veralia Distribución. Excluding this effect, in pro-forma terms revenues increased by +5.2%.

By type of revenue:

1. Circulation revenuesfell by -6.2% in 9M22 because of a decrease in circulation. The number of digital subscribers increased by +25% to 101k in September, with 66k at Regional (ON+ and KyM) and 35k at ABC (ABC Premium and KyM). The new strategy which was implemented in May, with a focus on centralised management and other improvements, is leading to increased growth in digital subscriptions.
2. Advertising revenuesincreased by +4.7% in 9M22, thanks to the strong +8.9% rise in local advertising, consisting of a +17.7% increase in digital and a +5.5% rise in print advertising. National advertising revenues increased by +1.3% thanks to a +6.7% increase in print advertising. In current market conditions, Vocento's balance between local advertising (52.5% of the total in 9M22) and national advertising is a major source of strength.

http://www.vocento.com/accionistas-inversores/informacion-financiera/#informacionperiodica

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Vocento, S.A. and subsidiaries

Results Report January-September 2022

National and local advertising1 9M22

		Data in %
Local €54,7m (52,5% over total)	National €49,6m (47,5% over total)
28.5%			25.0%
71.5%			75.0%
		Offline			Online

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

In 9M22, VOCENTO brands outperformed the advertising market both in print and online.

VOCENTO advertising performance vs the market 9M22

Data in %

		Online	Online
		VOCENTO
		VOCENTO
		ex Classifieds
4.7%
4.5%		4.5%
	2.2%
		1.7%

0.8%

(0.4%)

Total market

Offline1

Online

Market2 VOCENTO

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

excluding social media and search engines.

Including not only digital advertising revenues but also e-commerce booked as other revenues, digital now contributes 51% of total advertising, a similar level as in 9M21 because of the growth in print advertising revenues in the last year

1. Other revenues: decreased by -8.7% following the deconsolidation in 9M22 of NET TV and Veralia Distribución. Excluding this, other revenues would have increased by +25.2% thanks to the contribution of Gastronomy, Aagencies, sporting events (e.g. the Donosti Cup), and printing for third parties, among others.

EBITDA

As the chart below illustrates, EBITDA in 9M22 reached 10,124 thousand euros. The performance was impacted by: 1) changes in the perimeter following the deconsolidation of NET TV and Veralia Distribución, 2) the launch of Relevo, the Group's new sporting brand, and 3) increases in the costs of energy and paper.

In the diversified businesses, there was strong growth at Gastronomy (+42%) and Agencies (+33%, excluding the YBR influencer business and the sustainability unit Antrópico) and an improvement in EBITDA in the automotive vertical at Classifieds.

http://www.vocento.com/accionistas-inversores/informacion-financiera/#informacionperiodica

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