26 de julio de 2019
Results for January-June 2020
28 JULY 2020
Vocento, S.A. and Subsidiaries
Results Report January-June 2020
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. For the organisation of management information, a number of business lines have been defined. Reports to the market are based on this organization of information, which covers all the businesses in which VOCENTO is present, assigned to their respective business segments.
NEWSPAPERS (offline and online)
REGIONALS | ABC | SUPPLEMENTS & | |||||||||||||||||||
MAGAZINES | |||||||||||||||||||||
▪ | El Correo | ▪ | El Comercio | ▪ | ABC | ▪ | XL Semanal | ||||||||||||||
▪ | La Verdad | ▪ | Hoy | ▪ | National printing | ▪ | Mujer Hoy | ||||||||||||||
▪ | El Diario Vasco | ▪ | La Rioja | plant | ▪ | Mujerhoy.com | |||||||||||||||
▪ | El Norte de Castilla | ▪ | Regional printing plants | ▪ | Women Now | ||||||||||||||||
▪ | El Diario Montañés | ▪ | Regional distribution | ||||||||||||||||||
▪ | Ideal | (Beralán ) | |||||||||||||||||||
▪ | Sur | ▪ | News agency ( Colpisa ) | ||||||||||||||||||
▪ | Las Provincias | ▪ | Regional sales | ||||||||||||||||||
companies | |||||||||||||||||||||
AUDIOVISUAL | CLASSIFIEDS | GASTRONOMY & | |||||||||||||||||||
AGENCIES | |||||||||||||||||||||
DTT | RADIO | CONTENTS | |||||||||||||||||||
▪ National | ▪ Analog radio | ▪ Veralia distribution | ▪ Pisos.com | ▪ | Madrid Fusión | ||||||||||||||||
▪ | |||||||||||||||||||||
DTT | licenses | ▪ Izen | ▪ Sumauto | Gastronomika | |||||||||||||||||
▪ | |||||||||||||||||||||
- Net TV | ▪ Digital radio | Tango | |||||||||||||||||||
▪ | |||||||||||||||||||||
licenses | Pro Agency | ||||||||||||||||||||
Accounted for by the equity method
IMPORTANT NOTE
To facilitate the analysis of financial information and understand the organic performance of the Company, it is always indicated in this report when operating expenses, EBITDA, EBIT, the Net Result or Net Financial Debt are affected by non-recurring or extraordinary items, including adjustments to the workforce. Further detail about these adjustments can be found in Appendix I at the end of this document: Alternative Performance Measures.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Main highlights of the financial performance of the business in 1H20
Revenues impacted by Covid-19, increased contribution from digital
Resilient circulation at regional newspapers in northern Spain
Cost measures preserve Group profitability
Cash protected, positive cashflow generated in 1H20
- Total revenues at VOCENTO fell by -15.6% in 1H20 as a result of Covid-19
- VOCENTO's total revenues decreased by -24.6% in 2Q20.
- Circulation revenues 1H20 -9.0% (adjusted for accounting change at ABC), vs -4.4% 1H19, with resilience at newspapers in northern Spain (-3.0%).
- 1H20 advertising revenues -22.6% (2Q20 -31.3%), performing much better than the market (1H20 -34.5%). The decrease was less severe at the end of the period (-24.8% in June). The digital contribution increased by +3.5 p.p. to 44.5%.
- Protecting Group profitability
- In 1H20 reported EBITDA was 6,574 thousand euros. Comparable EBITDA was 10,900 thousand euros, down -48.2% from 1H19.
- Cost reductions offset 64% of the fall in revenues in 1H20.
- Measures to reduce circulation costs helped preserve the margin on circulation in 1H20 (-858 thousand euros), which was similar to the performance in 1H19 (-898 thousand euros).
- Opportunities for digital growth
- 35% increase in subscriber base of ON+ to 53k in 1H20, ABC +18% on KyM. Incremental EBITDA of +447 thousand euros from ON+ in 1H20.
- ABC.es, which will roll out a paid subscription service in September, increased registered users to 800k (+200k vs Dec19).
- Development of new business models including virtual events.
- Measures to protect cash
- Ordinary cash generation in 1H20 was 6,647 thousand euros, including 2,141 thousand euros in 2Q20.
- NFD -67,516 thousand euros vs 52,811 thousand euros in 2019. NFD/comparable LTM EBITDA 1.7x. NFD ex IFRS 16 was practically flat vs 2019 (-317 thousand euros).
- Comfortable liquidity: cash and undrawn credit lines of 68,526 thousand euros.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Main financial data
Consolidated profit and loss account
Thousand Euro | IFRS | |||
1H20 | 1H19 | Var Abs | Var % | |
Circulation revenues | 59,184 | 66,762 | -7,577 | -11.3% |
Advertising revenues | 65,192 | 84,206 | -19,013 | -22.6% |
Other revenues | 39,319 | 42,873 | -3,554 | -8.3% |
Total revenue | 163,696 | 193,840 | -30,144 | -15.6% |
Staff costs | -72,470 | -79,360 | 6,890 | 8.7% |
Procurements | -13,232 | -15,780 | 2,548 | 16.1% |
External Services | -70,377 | -83,326 | 12,949 | 15.5% |
Provisions | -1,043 | -983 | -59 | -6.0% |
Operating expenses (without D&A) | -157,122 | -179,450 | 22,328 | 12.4% |
EBITDA | 6,574 | 14,391 | -7,816 | -54.3% |
Depreciation and amortization | -9,771 | -9,612 | -159 | -1.7% |
Impairment/gains on disposal of tan. & intan. assets | 56 | -30 | 87 | n.r. |
EBIT | -3,140 | 4,748 | -7,889 | n.r. |
Impairments/reversal of other intangible assets | -4,007 | -750 | -3,257 | n.r. |
Profit of companies acc. equity method | 346 | 139 | 207 | n.r. |
Net financial income | -1,326 | -1,270 | -56 | -4.4% |
Net gains on disposal of non- current assets | -218 | -1 | -217 | n.r. |
Profit before taxes | -8,346 | 2,866 | -11,212 | n.r. |
Corporation tax | -759 | -1,188 | 430 | 36.1% |
Net profit for the year | -9,105 | 1,678 | -10,783 | n.r. |
Minority interests | -2,071 | -2,697 | 626 | 23.2% |
Net profit attributable to the parent | -11,176 | -1,019 | -10,156 | n.r. |
Staff costs ex non recurring costs | -68,144 | -72,722 | 4,578 | 6.3% |
Operating Expenses ex non recurring costs | -152,796 | -172,812 | 20,015 | 11.6% |
Comparable EBITDA | 10,900 | 21,029 | -10,129 | -48.2% |
Note: numbers are rounded to the nearest thousand.
Operating revenues
In 1H20, total revenues fell by -15.6% from 1H19 to 163,696 thousand euros. In 2Q20, reflecting the impact of Covid-19, revenues fell by -24.6%.
By category, the performance of revenues was as follows:
- Circulation revenuesfell by -11.3%. Adjusted for accounting changes at ABC, the variation in 1H20 was -9.0%, compared with -4.4% in 1H19.
- Advertising revenuesfell by -22.6% in 1H20 and by -31.3% in 2Q20.
In 1H20, VOCENTO's brands outperformed the market both in the print segment (-26.4% vs -41.2%) and in online advertising (-14.8% vs -20.5%).
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Advertising performance, VOCENTO vs the market 1H20
Data in % | |
-14.8% | |
-22.6% | -20.5% |
-26.4% |
-34.5%
-41.2%
Total market | Offline | Online | ||||
Market1 | VOCENTO2 | |||||
Note 1: market source i2p ex social media. Note 2: VOCENTO offline brands include Regional Press and ABC, online Local Portal brands,
ABC.es and Classifieds.
On a month-by-month basis, Vocento is also outperforming the market. The chart illustrates a gradual reduction in the decrease in advertising over the course of 2Q20.
Monthly advertising performance, VOCENTO vs the market 1H20
Data in % | |||||||
-20.7% | -24.8% | ||||||
-33.9% | |||||||
-28.1% | -35.8% | ||||||
-36.2% | |||||||
-59.4% | -60.6% | ||||||
Jan.-20 | Feb.-20 | Mar.-20 | Apr.-20 | May.-20 | Jun.-20 |
Market1VOCENTO
Note 1: market source i2p ex social media.
In terms of the performance of local and national advertising, both segments recorded a similar performance, with decreases in 1H20 of -22.4% and -23.2% respectively.
National vs local advertising1
Data in %
Local €33.8m (52.7% of total)
Nacional €30.3m (47.3% of total)
21.7% | 29.9% | |||
78.3% | 70.1% | |||
Offline | Online | |||
Note 1: net advertising. Not including Audiovisual, sales companies or eliminations.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Including not only digital advertising revenues but also e-commerce revenues booked within other revenues, digital contributed 44.5% of total advertising, an increase of +3.5 p.p. from 1H19.
Changing profile of advertising and new digital businesses
Data in % | ||||||
40.9% | 44.5% | |||||
59.1% | 55.5% | |||||
1H19 | 1H20 | |||||
Offline | Online | |||||
- Other revenues:down -8.3% vs 1H19, with a decrease of -24.7% in 2Q20 because of a lower number of events and reduced activity in third-party printing and distribution.
EBITDA
Reported EBITDA decreased by -54.3% to 6,574 thousand euros. Excluding compensation payments, comparable EBITDA was 10,900 thousand euros, -48.2% lower than in 1H19.
Detail of movement in comparable EBITDA, 1H19-1H20
Data in variation 1H19 vs 1H20 except for comparable EBITDA. All figures in €m
Other | New | |
businesses | businesses | |
Press online + offline : €-10.3m | €-1.4m | €+0.1m |
21.0 -7.0 6.1 -15.7
3.9 -1.6
-0.5 | -0.9 | 1.4 | 10.9 | |||||||||||||
0.1 | ||||||||||||||||
4.0 | ||||||||||||||||
v | ||||||||||||||||
v | v | |||||||||||||||
Comp | Circulation | Circulation | Press | Sales costs Comp. | Printing & | Audiov. | Classif. | Diversif. 3 Corp. Centre Comp. |
EBITDA | revenues 1 | savings 1 | Advertising | & others 2 personnel | distrib. | EBITDA | ||
1H19 | expenses | 1H20 |
Note 1: excluding change to accounting of subscriptions at ABC. Note 2: including margin on events, etc. Note 3: Gastronomy and Agencies.
Operating result (EBIT)
In 1H20 the operating result fell by -7,889 thousand euros from 1H19, to stand at -3,140 thousand euros.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Goodwill writedown
Goodwill of -4,007 thousand euros was written down, reflecting the impairment of -3,007 thousand euros at Las Provincias and the recurring writedown at the Content distribution business.
Equity-accounted income
The improvement in the result by +207 thousand euros reflects the performance of Izen, especially the production of El Cid for Amazon Prime. This was partly offset by a decrease at the distribution companies, because of the temporary closure of points of sale during lockdown.
Financial result and others
The financial result was relatively stable, falling -56 thousand euros from 1H19.
Net result from sale of non-current assets
The reduction by -218 thousand euros is mainly the result of the sale of the companies which own Music Has No Limits.
Corporation tax
In 1H20, corporation tax decreased by 36.1% to 759 thousand euros compared with the same period last year, mainly because of the fall in earnings.
Minority interest
Minority interest was -2,071 thousand euros in 1H20, down by -626 thousand euros as a result mainly of the performance at Beralán and El Norte de Castilla.
Net result attributable to the parent company
The consolidated net result in 1H20 was -11,176 thousand euros, compared with -1,019 thousand euros in 1H19.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Consolidated Balance Sheet
IFRS | ||||
IFRS thousand euros | 1H20 | 2019 | Var abs | % Var |
Non current assets | 362,908 | 357,159 | 5,749 | 1.6% |
Intangible assets | 152,237 | 155,989 | -3,752 | -2.4% |
Property, plant and equipment | 108,282 | 111,382 | -3,100 | -2.8% |
Use of leases | 21,050 | 7,049 | 14,001 | n.r. |
Investments accounted using equity method | 20,491 | 20,249 | 241 | 1.2% |
Other non current assets | 60,849 | 62,490 | -1,641 | -2.6% |
Current assets | 119,082 | 128,372 | -9,290 | -7.2% |
Other current assets | 95,677 | 110,675 | -14,998 | -13.6% |
Cash and cash equivalents | 23,404 | 17,696 | 5,708 | 32.3% |
Assets held for sale | 3,324 | 193 | 3,131 | n.r. |
TOTAL ASSETS | 485,314 | 485,725 | -411 | -0.1% |
Equity | 269,635 | 282,072 | -12,437 | -4.4% |
Bank borrowings and other fin. liabilities | 92,308 | 72,564 | 19,744 | 27.2% |
Other non current liabilities | 32,319 | 34,065 | -1,746 | -5.1% |
Other current liabilities | 91,052 | 97,023 | -5,971 | -6.2% |
TOTAL EQUITY AND LIABILITIES | 485,314 | 485,725 | -411 | -0.1% |
Note: numbers are rounded to the nearest thousand.
Intangible assets
The decrease by -3,752 thousand euros is mainly the result of the reduction in goodwill.
Property, plant and equipment
The total amount fell by -3,100 thousand euros as a result, among other factors, of a greater increase in depreciation than in capex and the transfer of the land belong to El Diario Vasco to an asset held for sale.
Other current assets
Because of a fall in inventories, and in particular in the balance from clients because of lower levels of activity, there was a decrease of -14,998 thousand euros.
Net financial position
IFRS thousand euros | 1S20 | 2019 | Var Abs | Var % | |
Bank borrowings and other financial liabilities (s.t.) | 43,470 | 43,985 | -515 | -1.2% | |
Bank borrowings and other financial liabilities (l.t.) | 48,837 | 28,579 | 20,258 | 70.9% | |
Gross debt | 92,308 | 72,564 | 19,744 | 27.2% | |
+ Cash and cash equivalents | 23,404 | 17,696 | 5,708 | 32.3% | |
+ Other non current financial asstes | 2,386 | 3,383 | -996 | -29.5% | |
Deferred expenses | 999 | 1,326 | -326 | -24.6% | |
Net cash position/ (net debt) | -67,516 | -52,811 | -14,706 | -27.8% | |
Net cash position ex NIIF16 | -46,027 | -45,656 | -371 | -0.8% | |
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Gross financial debt consisted of debt with financial institutions of 34,153 thousand euros (current liabilities of 4,848 thousand euros and non-current of 29,306 thousand euros), short-term commercial paper of 35,900 thousand euros, another debt with a current cost of 766 thousand euros, and IFRS16 leases of 21,489 thousand euros.
In 2Q20 debt of 15,477 thousand euros was recognised as a result of the lease of the new offices in Madrid and to a lesser degree of the El Correo offices. NFD, excluding IFRS16, was practically unchanged from December 2019, standing at 46,027 thousand euros in 1H20. Cash and financial assets of 25,791 thousand euros, after being exceptionally high in 1T30 in order to prepare for the Covid-19 situation.
In 1H20, the Group generated positive operating cashflow of 6,647 thousand euros. Apart from EBTIDA, the major contribution was a +4,923 thousand variation in working capital, due mainly to receivables from clients.
Analysis of movement in Net Financial Debt 2019-1H20
Data in €m
Lease of new | Ordinary cash generation €6.6m | |||||||||||||
offices in Madrid | ||||||||||||||
-15.5 | 10.9 | -4.5 | -1.4 | 67.5 | ||||||||||
52.8 | 4.9 | -5.2 | -4.0 | |||||||||||
21.5 | IFRS16 | |||||||||||||
7.2 IFRS16
45.7 | Bank and | 46.0 | Bank and | ||||||
other | other | ||||||||
NFD | New leases | Comp. EBITDA Working capital | Capex | Financials | Compensation | Others | NFD | ||
IFRS 16 | |||||||||
2019 | 1H20 | and others1 | payments | 1H20 |
Note 1: including advance revenues, net financial expenses, dividends to minority interest, taxes.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Cash flow statement
IFRS | ||||||
IFRS thousand euros | 1H20 | 1H19 | Var Abs | % Var | ||
Net profit attibutable to the parent | -11,176 | -1,019 | -10,156 | n.r. | ||
Adjustments to net profit | 18,813 | 16,306 | 2,507 | 15.4% | ||
Cash flows from ordinary operating activities before | 7,638 | 15,287 | -7,649 | -50.0% | ||
changes in working capital | ||||||
Changes in working capital & others | 4,923 | 3,315 | 1,608 | 48.5% | ||
Other payables | 1,262 | 3,116 | -1,853 | -59.5% | ||
Income tax paid | -718 | -844 | 126 | 14.9% | ||
Interests deduction for tax purposes | -899 | -1,490 | 592 | 39.7% | ||
Net cash flow from operating activities (I) | 12,206 | 19,384 | -7,178 | -37.0% | ||
Acquisitions of intangible and property, plan and equipment | -7,072 | -5,693 | -1,379 | -24.2% | ||
Acquisitions of financial assets, subsidiaries and associates | -1,118 | -3,582 | 2,464 | 68.8% | ||
Interests and dividends received | 283 | 709 | -426 | -60.1% | ||
Other receivables and payables (investing) | 956 | -100 | 1,056 | n.r. | ||
Net cash flow from investing activities (II) | -6,951 | -8,666 | 1,715 | 19.8% | ||
Interests and dividends paid | -3,421 | -9,008 | 5,588 | 62.0% | ||
Cash inflows/ (outflows) relating to bank borrowings | 150 | -14,327 | 14,477 | n.r. | ||
Other receivables and payables (financing) | 3,724 | 7,572 | -3,848 | -50.8% | ||
Net cash flows from financing activities (III) | 453 | -15,763 | 16,216 | n.r. | ||
Net increase in cash and cash equivalents (I + II + III) | 5,708 | -5,045 | 10,753 | n.r. | ||
Cash and cash equivalents from acquired companies | 0 | 2,200 | -2,200 | -100.0% | ||
Cash and cash equivalents at beginning of the year | 17,696 | 20,559 | -2,862 | -13.9% | ||
Cash and cash equivalents at end of year | 23,404 | 17,713 | 5,691 | 32.1% | ||
Note: Other payables now includes Other accounts payable, which previously was included as a variation in working capital. Numbers are rounded to the nearest thousand.
Net cash flow from operating activities include the impact on working capital mentioned above.
Net cash flows from investment activities include investments of 1,862 thousand euros in the new offices in Madrid, which is considered to be extraordinary capex when analysing the change in net financial debt.
Net cash flows from financing activities include a lower level of dividend and interest payments than in 1H19, both from parent company Vocento and from certain subsidiaries to minority shareholders.
Capex | |||||||||
IFRS thousand euro | 1H20 | 1H19 | Var Abs | ||||||
Inmat. | Mat. | Total | Inmat. | Mat. | Total | Inmat. | Mat. | Total | |
Newspapers | 2,242 | 4,031 | 6,272 | 2,877 | 1,498 | 4,376 | -636 | 2,532 | 1,897 |
Audiovisual | 2 | 24 | 26 | 2 | 17 | 19 | 0 | 8 | 7 |
Classifieds | 121 | 38 | 159 | 273 | 50 | 323 | -152 | -12 | -165 |
Gastronomy & Others | 5 | 25 | 31 | 54 | 22 | 76 | -49 | 4 | -45 |
Corporate | 142 | 73 | 215 | 123 | 21 | 144 | 19 | 52 | 71 |
TOTAL | 2,512 | 4,191 | 6,703 | 3,330 | 1,608 | 4,938 | -818 | 2,583 | 1,765 |
Note: the difference between the cash outflow for investments and the Capex registered in accounts reflects the difference between payments pending for investments last year and investments made this year but not paid for yet. Figures are rounded to the nearest thousand.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Impact of Covid-19 and measures taken by the Group
The extraordinary situation resulting from the Covid-19 pandemic has resulted in a series of impacts across Vocento's businesses.
In response, different measures have been implemented to reduce both variable costs, mainly in the Newspapers area, and also fixed costs across all the businesses. The main actions have included two rounds of fourloughs and the renegotiation of conditions with our main suppliers. These cost measures in 1H20 have offset 64% of the fall in revenues.
- Newspapers: impact and measures taken
Circulation revenues were impacted by the closure of many points of sale in April and May, especially in central and southern Spain, with 24% of POS closed at the peak in central Spain. There was a decrease in the sales volumes of newspapers and magazines. In contrast, in northern Spain revenues from circulation were resilient, with a decrease in 2Q20 of just -4.1%.
A series of actions have been taken to mitigate the impact of the fall in circulation and to preserve the profitability of print sales. These include supporting points of sales so that they stayed open or reopened, as well as reaching agreements with new points of sales such as shopping malls, as well as reducing pagination and other costs in all areas.
More positively, the lockdown has resulted in an increase in digital subscriptions to the ON+ services of the regional newspapers. ON+ subscriptions increased by +35% from the end of 2019 to stand at 53,000 by June. There was also significant growth at Kiosko y +, which ABC subscriptions on the platform rising by 18%.
There has been a sharp contraction in the advertising market, especially in the print segment. This is the result of many major advertisers suspending their advertising campaigns because of current levels of uncertainty. In response to this situation, VOCENTO has stepped up its activities in areas such as branded content, podcasts and programmatic advertising. This has helped the Group outperform the market and increase the contribution from digital, which now represents 35.6% of advertising revenues at the Newspapers.
Other Revenues, which includes mainly events, has been impacted by the delay of conferences, such as Women Now, to 2H20 and 2021 and by the cancellation of some events. 35% of the events which were suspended in 1H have been rescheduled to 2H or to 2021.
b) Audiovisual: impact and measures taken
The three divisions have been impacted to differing degrees. DTT and Radio have recorded a decline in advertising, while at Content demand for products from the film catalogue has exceeded the forecasts.
c) Classifieds: impact and measures taken
VOCENTO's portals have recorded a sharp drop in earnings, because of restrictions on going to car dealerships and on visiting properties for buying or renting. Nevertheless, thanks to a range of policies implemented by management, client numbers increased by +3% at Sumauto and pisos.com
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
was able to recover some lost clients. The two portals are continuing to reinforce their competitive position in order to prepare for a return to normality.
d) Gastronomy and Agencies: impact and measures taken
There has been a major impact on Gastronomy because of its dependence on organising events. However, the Group has been able to adapt to lockdown conditions and create digital events. VOCENTO's large nationwide readership provides it with a significant advantage, as shown by the success of the Gastronomika Live event. This virtual conference organised digital shows with internationally famous chefs and attracted more than 23,000 registered participants.
Because of their high level of exposure to the catering sector, the Agencies business was impacted by the difficult economic conditions.
e) Financing and liquidity: impact and measures taken
In response to the current high levels of uncertainty, VOCENTO has increased its cash to 23,033 thousand euros in June 2020. We also have non-drawn down credit lines of 45,493 thousand euros available to us. During the first half of the year, the decision has been taken to cancel the dividend of 2019 and suspension of the buyback programme.
In these challenging conditions, our NFD excluding IFRS 16 effects is currently -46,027 thousand euros, practically the same level as at the end of 2019 (-45,656 thousand euros). We comply comfortably with the covenants of the syndicated loan and we recorded positive ordinary cash flow generation in 1H20 and in 2Q20.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Information by business area
IFRS Thousand Euro | 1H20 | 1H19 | Var Abs | Var % |
Total revenues | ||||
Newspapers | 132,184 | 160,605 | -28,422 | -17.7% |
Audiovisual | 15,226 | 16,588 | -1,362 | -8.2% |
Classifieds | 10,807 | 13,924 | -3,118 | -22.4% |
Gastronomy & Agencies | 7,401 | 4,716 | 2,685 | 56.9% |
Corporate & adjustments | -1,922 | -1,993 | 72 | 3.6% |
Total revenues | 163,696 | 193,840 | -30,144 | -15.6% |
EBITDA | ||||
Newspapers | 4,816 | 13,006 | -8,190 | -63.0% |
Audiovisual | 4,722 | 5,251 | -529 | -10.1% |
Classifieds | 1,928 | 2,331 | -403 | -17.3% |
Gastronomy & Agencies | 626 | 529 | 97 | 18.3% |
Corporate & adjustments | -5,517 | -6,726 | 1,209 | 18.0% |
Total EBITDA | 6,574 | 14,390.71 | -7,816.38 | -54.3% |
EBIT | ||||
Newspapers | -3,217 | 4,644 | -7,861 | n.r. |
Audiovisual | 4,555 | 5,023 | -468 | -9.3% |
Classifieds | 1,121 | 1,572 | -452 | -28.7% |
Gastronomy & Agencies | 160 | 518 | -359 | -69.2% |
Corporate & adjustments | -5,759 | -7,010 | 1,250 | 17.8% |
Total EBIT | -3,140 | 4,748 | -7,889 | n.r. |
Comparable EBITDA | ||||
Newspapers | 8,255 | 18,524 | -10,269 | -55.4% |
Audiovisual | 4,723 | 5,251 | -529 | -10.1% |
Classifieds | 1,993 | 2,853 | -860 | -30.1% |
Gastronomy & Agencies | 662 | 538 | 125 | 23.2% |
Corporate & adjustments | -4,733 | -6,137 | 1,404 | 22.9% |
Total comparable EBITDA | 10,900 | 21,029 | -10,129 | -48.2% |
Note: all figures are rounded up or down to the nearest thousand.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Newspapers (print and online)
IFRS Thousand Euro | 1H20 | 1H19 | Var Abs | Var % |
Total Revenues | ||||
Regionals | 93,373 | 111,189 | -17,816 | -16.0% |
ABC | 36,314 | 45,566 | -9,253 | -20.3% |
Supplements& Magazines | 8,471 | 11,612 | -3,141 | -27.1% |
Adjustments intersegment | -5,974 | -7,762 | 1,788 | 23.0% |
Total Revenues | 132,184 | 160,605 | -28,422 | -17.7% |
EBITDA | ||||
Regionals | 5,815 | 11,560 | -5,746 | -49.7% |
ABC | -741 | 1,752 | -2,493 | n.r. |
Supplements& Magazines | -258 | -307 | 49 | 15.9% |
Total EBITDA | 4,816 | 13,006 | -8,190 | -63.0% |
Comparable EBITDA | ||||
Regionals | 9,110 | 15,573 | -6,464 | -41.5% |
ABC | -741 | 3,048 | -3,788 | n.r. |
Supplements& Magazines | -113 | -97 | -16 | -16.9% |
Total comparable EBITDA | 8,255 | 18,524 | -10,269 | -55.4% |
EBIT | ||||
Regionals | 1,714 | 7,242 | -5,528 | -76.3% |
ABC | -4,382 | -2,149 | -2,233 | n.r. |
Supplements & Magazines | -550 | -449 | -101 | -22.4% |
Total EBIT | -3,217 | 4,644 | -7,861 | n.r. |
Note: The main eliminations are the result of: a) sales from TESA to the Regional Press and ABC, and b) distribution revenues at Beralán. Numbers are rounded to the nearest thousand euros.
Profitability at the Regional Presswas severely impacted by the fall in advertising, especially in print (-10,062 thousand euros), and to a lesser degree by a -958 thousand euros reduction in the margin on third parties printing and distribution. These were partly offset by savings in personnel expenses, commercial costs and other areas, totalling +5,663 thousand euros. It should be noted that despite the impact of Covid-19 on circulation, its margin fell by just -110 thousand euros.
At ABC,EBITDA was impacted by the decrease in advertising (-2,702 thousand euros, with print accounting for 82% of the fall) and to a lesser degree by the fall in the margin on circulation (-749 thousand euros) and printing (-607 thousand euros). These were partly offset by savings in personnel expenses and others.
Finally, the EBITDA of the Supplements and Magazineswas affected by the fall in advertising and the postponement of the WomenNow event to the second half of the year.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Audiovisual
IFRS Thousand Euro | 1H20 | 1H19 | Var Abs | Var % |
Total revenues | ||||
DTT | 12,624 | 13,658 | -1,034 | -7.6% |
Radio | 1,605 | 1,685 | -80 | -4.7% |
Content | 1,114 | 1,358 | -244 | -18.0% |
Adjustments intersegment | -116 | -113 | -4 | -3.5% |
Total revenues | 15,226 | 16,588 | -1,362 | -8.2% |
EBITDA | ||||
DTT | 2,613 | 2,901 | -288 | -9.9% |
Radio | 1,238 | 1,278 | -39 | -3.1% |
Content | 870 | 1,073 | -202 | -18.8% |
Total EBITDA | 4,722 | 5,251 | -529 | -10.1% |
Comparable EBITDA | ||||
DTT | 2,614 | 2,901 | -287 | -9.9% |
Radio | 1,238 | 1,278 | -39 | -3.1% |
Content | 870 | 1,073 | -202 | -18.8% |
Total comparable EBITDA | 4,723 | 5,251 | -529 | -10.1% |
EBIT | ||||
DTT | 2,554 | 2,833 | -279 | -9.9% |
Radio | 1,232 | 1,272 | -39 | -3.1% |
Content | 769 | 918 | -149 | -16.2% |
Total EBIT | 4,555 | 5,023 | -468 | -9.3% |
Note: all figures are rounded up or down to the nearest thousand.
The decrease in EBITDA at the area is mainly the result of the fall in advertising revenues at DTT and reduced activity in Content distribution.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Classifieds
IFRS thousand euros | 1H20 | 1H19 | Var Abs | Var % |
Total revenues | ||||
Classifieds | 10,807 | 13,924 | -3,118 | -22.4% |
Total revenues | 10,807 | 13,924 | -3,118 | -22.4% |
EBITDA | ||||
Classifieds | 1,928 | 2,331 | -403 | -17.3% |
Total EBITDA | 1,928 | 2,331 | -403 | -17.3% |
Comparable EBITDA | ||||
Classifieds | 1,993 | 2,853 | -860 | -30.1% |
Total comparable EBITDA | 1,993 | 2,853 | -860 | -30.1% |
EBIT | ||||
Classifieds | 1,121 | 1,572 | -452 | -28.7% |
Total EBIT | 1,121 | 1,572 | -452 | -28.7% |
Note: all figures are rounded up or down to the nearest thousand.
Revenues in this area were affected by the divestment of Infoempleo in 2019 (proforma 1H20 revenues -15.8%). In terms of operating results, in a very challenging environment for classified advertising in the automotive sector (1H20 revenues -19.0%) and real estate sector (1H20 revenues -12.8%), the EBITDA margin improved by +1.1 p.p. to 17.8% in 1H20.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Gastronomy and Agencies
IFRS Thousand Euro | 1H20 | 1H19 | Var Abs | Var % |
Total Revenues | ||||
Gastronomy | 3,130 | 4,399 | -1,269 | (28.8%) |
Agencies & Others | 4,271 | 317 | 3,954 | n.r. |
Total Revenues | 7,401 | 4,716 | 2,685 | 56.9% |
EBITDA | ||||
Gastronomy | 625 | 749 | -124 | -16.6% |
Agencies & Others | 1 | -220 | 222 | 100.5% |
Total EBITDA | 626 | 529 | 97 | 18.3% |
Comparable EBITDA | ||||
Gastronomy | 626 | 758 | -133 | -17.5% |
Agencies & Others | 37 | -220 | 257 | 116.7% |
Total comparable EBITDA | 662 | 538 | 125 | 23.2% |
EBIT | ||||
Gastronomy | 619 | 742 | -124 | -16.7% |
Agencies & Others | -459 | -224 | -235 | -105.0% |
Total EBIT | 160 | 518 | -359 | -69.2% |
Note: all figures are rounded up or down to the nearest thousand.
The Gastronomy division recorded a decrease in comparable EBITDA of -133 thousand euros in 1H20.
In the Agencies and Othersdivision, the integration of the two agencies, Tango and ProAgency, had an impact of +4,158 thousand euros on revenues and +116 thousand euros on EBITDA in 1H20.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Operational data
Newspapers | ||||
Average Circulation Data | 1H20 | 1H19 | Var Abs | % |
National Press - ABC | 56,431 | 70,266 | -13,836 | -19.7% |
Regional Press | ||||
El Correo | 50,975 | 54,489 | -3,515 | -6.5% |
El Diario Vasco | 39,740 | 41,490 | -1,750 | -4.2% |
El Diario Montañés | 16,565 | 18,656 | -2,091 | -11.2% |
Ideal | 12,128 | 14,624 | -2,496 | -17.1% |
La Verdad | 7,816 | 10,564 | -2,748 | -26.0% |
Hoy | 6,368 | 8,502 | -2,134 | -25.1% |
Sur | 8,417 | 12,819 | -4,403 | -34.3% |
La Rioja | 6,921 | 7,510 | -589 | -7.8% |
El Norte de Castilla | 12,782 | 14,710 | -1,928 | -13.1% |
El Comercio | 10,732 | 12,959 | -2,227 | -17.2% |
Las Provincias | 9,716 | 13,077 | -3,361 | -25.7% |
TOTAL Regional Press | 182,159 | 209,401 | -27,241 | -13.0% |
Sources: internal data 1H20 and OJD 1H19 non audited data. | ||||
Audience | 1st Survey 20 | 1st Survey 19 | Var Abs | % |
National Press - ABC | 444,000 | 430,000 | 14,000 | 3.3% |
Regional Press | 1,576,000 | 1,647,000 | -71,000 | -4.3% |
El Correo | 301,000 | 315,000 | -14,000 | -4.4% |
El Diario Vasco | 166,000 | 201,000 | -35,000 | -17.4% |
El Diario Montañés | 109,000 | 135,000 | -26,000 | -19.3% |
Ideal | 182,000 | 158,000 | 24,000 | 15.2% |
La Verdad | 148,000 | 127,000 | 21,000 | 16.5% |
Hoy | 83,000 | 108,000 | -25,000 | -23.1% |
Sur | 150,000 | 120,000 | 30,000 | 25.0% |
La Rioja | 69,000 | 83,000 | -14,000 | -16.9% |
El Norte de Castilla | 144,000 | 150,000 | -6,000 | -4.0% |
El Comercio | 137,000 | 138,000 | -1,000 | -0.7% |
Las Provincias | 87,000 | 112,000 | -25,000 | -22.3% |
Supplements | ||||
XL Semanal | 1,374,000 | 1,572,000 | -198,000 | -12.6% |
Mujer Hoy | 783,000 | 886,000 | -103,000 | -11.6% |
Mujer Hoy Corazón | 160,000 | 159,000 | 1,000 | 0.6% |
Monthly Unique uses (Th) | jun-20 | jun-19 | Var Abs | % |
Vocento | 28,587 | 25,809 | 2,778 | 10.8% |
Source: comScore. | ||||
Audiovisual | ||||
National TV Market | mar-20 | jun-19 | Var Abs | |
Audinece share Net TV | 2.6% | 2.9% | -0.3 p.p |
Source: Kantar Media last month.
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Appendix I: Alternative Performance Measures
On 20 October 2015, the CNMV stated its intention to comply with the Guidelines on Alternative Performance Measures published by the European Securities and Market Authority (ESMA) on 30 June 2015 in accordance with Article 16 of EU Regulation 1095/2010 of the European Parliament and Council.
The APMs used in this report include the following:
EBITDA represents the net result of the period before financial income and expenses, other results from financial instruments, tax on profits, amortization, depreciation, the impairment and sale of fixed and non-fixed assets, the writedown of goodwill in the period, excluding (a) the net result from the sale of current financial assets and (b) the results from equity-accounted subsidiaries
Comparable EBITDA is the adjustment of EBITDA for all non-recurring exceptional revenues and costs, in order to facilitate the comparison between EBITDA in different periods.
Exceptional non-recurring costs include the costs of compensation for dismissals incurred in each period.
EBIT is EBITDA less amortization and depreciation and the result from the impairment or sale of fixed and non-fixed assets.
Net Financial Debt (NFD) represents long-term and short-term debt with an explicit financial cost, either with financial institutions or other third parties, plus debt from the issue of bonds, commercial paper, securities convertible into shares or similar financial instruments plus the collateral or guarantees provided to third parties as part of the debt with a financial cost and which are not recorded as liabilities with payment obligations, minus cash plus the mark-to-market value of any hedging instruments apart from hedging for trading. Cash includes cash and other liquid equivalents, plus other current and non-current financial assets held either at financial institutions or with other third parties. The amount of the item of 'debt with credit institutions' is the nominal value and not its amortized cost; i.e. it does not include the impact of deferred arrangement costs. Guarantees of technical and financial capacity are not included in Net Financial Debt.
Comparable Net Financial Debt (NFD) is NFD adjusted for exceptional and non-recurring receivables and payables for comparative purposes.
Ordinary cash generation represents the difference between the NFD at the beginning and end of the period, adjusted for non-recurring and exceptional receivables and payables for comparative purposes
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Reconciliation of accounting measures and APMs
Thousand Euros | 1H20 | 1H19 | |||
Long term financial debt with credit institutions | 29,306 | 23,346 | |||
Other liabilities with long term financial cost | 496 | 662 | |||
Long term liabilities retated to lease contracts | 19,036 | 8,198 | |||
Short term financial debt with credit institutions | 4,848 | 12,031 | |||
Other liabilities with short term financial cost | 36,170 | 22,633 | |||
Short term liabilities retated to lease contracts | 2,453 | 2,675 | |||
Cash and cash equivalents | - | 25,424 | - | 20,453 | |
Other non-current payables with financial cost | - | 366 | - | 460 | |
Arrangement fee for syndicated loan | 999 | 1,701 | |||
Net financial debt (NFD) | 67,516 | 50,333 | |||
Long term liabilities retated to lease contracts | - | 19,036 | - | 8,198 | |
Short term liabilities retated to lease contracts | - | 2,453 | - | 2,675 | |
Net financial debt without the effect of IFRS 16 | 46,027 | 39,460 | |||
Net financial debt (NFD) | 67,516 | 50,333 | |||
Compensation payments in the period | - | 4,453 | - | 4,328 | |
Taxes and expenses from sale of buildings | 251 | 43 | |||
Inspection report refund | - | - | |||
IFRS 16 effect | - | 15,477 | - | 12,255 | |
Payment for renegotiation of put options and others | - | - | |||
Acquisitions of financial assets, subsidiaries and associates | - | 1,274 | - | 4,427 | |
Vocento dividends paid | - | 400 | - | 3,980 | |
Variations from the scope of consolidation | - | 2,944 | |||
Comparable net financial debt | 46,164 | 28,330 | |||
NFD at start period | 52,811 | 42,991 | |||
NFD at end of period | - | 67,516 | - | 50,332 | |
Compensation payments in the period | 4,453 | 4,328 | |||
Taxes and expenses from sale of buildings | - | 251 | - | 43 | |
Tax penalty refund | - | - | |||
IFRS 16 effect | 15,477 | 12,255 | |||
Payment for renegotiation of put options and others | - | - | |||
Business purchase | 1,274 | 4,427 | |||
Vocento dividends paid | 400 | 3,980 | |||
Variations from the scope of consolidation | - | - | 2,944 | ||
Ordinary cash generation | 6,647 | 14,663 | |||
Net financial Debt | 67,516 | 50,332 | |||
Effect of IFRS 16 | - | 21,489 | - | 10,873 | |
Net Financial debt excludig IFRS 16 effect | 46,027 | 39,459 | |||
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Thousand Euros | 1H20 | 1H19 | ||
Long term financial debt with credit institutions | 29,306 | 23,346 | ||
Other liabilities with long term financial cost | 496 | 662 | ||
Long term liabilities retated to lease contracts | 19,036 | 8,198 | ||
Short term financial debt with credit institutions | 4,848 | 12,031 | ||
Other liabilities with short term financial cost | 36,170 | 22,633 | ||
Short term liabilities retated to lease contracts | 2,453 | 2,675 | ||
Cash and cash equivalents | - | 25,424 | - | 20,453 |
Other non-current payables with financial cost | - | 366 | - | 460 |
Arrangement fee for syndicated loan | 999 | 1,701 | ||
Net financial debt (NFD) | 67,516 | 50,333 | ||
Long term liabilities retated to lease contracts | - | 19,036 | - | 8,198 |
Short term liabilities retated to lease contracts | - | 2,453 | - | 2,675 |
Net financial debt without the effect of IFRS 16 | 46,027 | 39,460 | ||
Net financial debt (NFD) | 67,516 | 50,333 | ||
Compensation payments in the period | - | 4,453 | - | 4,328 |
Taxes and expenses from sale of buildings | 251 | 43 | ||
Inspection report refund | - | - | ||
IFRS 16 effect | - | 15,477 | - | 12,255 |
Payment for renegotiation of put options and others | - | - | ||
Acquisitions of financial assets, subsidiaries and associates | - | 1,274 | - | 4,427 |
Vocento dividends paid | - | 400 | - | 3,980 |
Variations from the scope of consolidation | - | 2,944 | ||
Comparable net financial debt | 46,164 | 28,330 | ||
NFD at start period | 52,811 | 42,991 | ||
NFD at end of period | - | 67,516 | - | 50,332 |
Compensation payments in the period | 4,453 | 4,328 | ||
Taxes and expenses from sale of buildings | - | 251 | - | 43 |
Tax penalty refund | - | - | ||
IFRS 16 effect | 15,477 | 12,255 | ||
Payment for renegotiation of put options and others | - | - | ||
Business purchase | 1,274 | 4,427 | ||
Vocento dividends paid | 400 | 3,980 | ||
Variations from the scope of consolidation | - | - | 2,944 | |
Ordinary cash generation | 6,647 | 14,663 | ||
Net financial Debt | 67,516 | 50,332 | ||
Effect of IFRS 16 | - | 21,489 | - | 10,873 |
Net Financial debt excludig IFRS 16 effect | 46,027 | 39,459 |
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
1H20 | 1H19 | |||||||||
Indem | ||||||||||
Indem & | Comparable | & One | Comparable | |||||||
Thousand euros | EBITDA | One Off | EBITDA | EBITDA | Off | EBITDA | ||||
Regionals | 5.815 | 3.295 | 9.110 | 11.560 | 4.013 | 15.573 | ||||
ABC | - | 741 | 0 | - | 741 | 1.752 | 1.295 | 3.048 | ||
Suplements & Magazines | - | 258 | 145 | - | 113 | - | 307 | 210 | - | 97 |
Total Newspapers | 4.816 | 3.439 | 8.255 | 13.006 | 5.518 | 18.524 | ||||
TDT | 2.613 | 1 | 2.614 | 2.901 | - | 2.901 | ||||
Radio | 1.238 | - | 1.238 | 1.278 | - | 1.278 | ||||
Contents | 870 | - | 870 | 1.073 | - | 1.073 | ||||
Total Audiovisual | 4.722 | 1 | 4.723 | 5.251 | - | 5.251 | ||||
Classifieds | 1.928 | 65 | 1.993 | 2.331 | 522 | 2.853 | ||||
Total Classifieds | 1.928 | 65 | 1.993 | 2.331 | 522 | 2.853 | ||||
Gastronomy | 625 | 1 | 626 | 749 | 9 | 758 | ||||
Agencies & Others | 1 | 36 | 37 | - | 220 | 0 | - | 220 | ||
Total Gastronomy y Agencies | 626 | 36 | 662 | 529 | 9 | 538 | ||||
Structure | - 5.517 | 784 | - | 4.733 | - 6.726 | 589 | - | 6.137 |
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Vocento, S.A. and Subsidiaries
Results Report January-June 2020
Disclaimer
This document contains forward-looking statements regarding intention, expectations or estimates of the Company or its management at the date of issue thereof, relating to various aspects, including the growth of various lines of business and the business overall, the market share, the results of the Company and other aspects of the activity and status thereof.
Analysts and investors should bear in mind that such estimates do not amount to any warranty as to the future behaviour or results of the Company, and they shall bear all risks and uncertainties with regard to relevant aspects, and thus, the real future results and behaviour of the Company might be substantially different from what is stated in the said predictions or estimates.
The statements in this statement should be taken into account by any persons or entities who may have to make decisions or prepare or disseminate opinions on securities issued by the Company and, in particular, by the analysts who handle this document. All are invited to consult the documentation and information published or registered by the Company before the National Securities Market Commission.
The financial information contained in this document has been prepared under International Financial Reporting Standards (IFRS). This financial information is unaudited and, therefore, is subject to potential future modifications.
This document is only provided for information purposes and does not constitute, nor may it be interpreted as, an offer to sell or exchange or acquire, or solicitation for offers to purchase or accept any kind of compromise.
Certain numerical figures included in this document have been rounded. Therefore, discrepancies in tables and graphs between totals and the sums of the amounts listed may occur due to such rounding.
Contact
Investor and Shareholder Relations
C/ Pintor Losada, 7
48007 Bilbao
Bizkaia
Tel.: 902 404 073
e-mail:ir@vocento.com
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Vocento SA published this content on 28 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2020 18:00:00 UTC