The group achieves 76.3 million in revenue in a period impacted by market uncertainties, while continuing its strategy to strengthen the digital and diversification areas
Vocento closed the first quarter of 2022 with a total operating result of 76.3 million euros, 2.6% less than in the same period last year. This decrease is explained by the exit from the perimeter of NET TV and Veralia Distribución, by the inclusion of Premium Leads and by the calendar effect of MadridFusión, held in the first quarter of 2022 and in the second quarter of 2021. On the other hand, operating expenses amount to excluding depreciation, 76.3 million euros, 1.2% more than in the first quarter of 2021.
The number of digital subscribers grew in the month of March to 91,000 (+26% year-on-year), to 63,000 in Regionals (ON+ and KyM) and 28,000 in ABC (ABC Premium and KyM), further enhancing the strategy of strengthening the digital area. by the Group. The sales of copies show a decrease of -5.6% in the first quarter of 2022.
Advertising sales revenues increased by 5.8% thanks to the good performance of local ads, representing 57% of total advertising sales at EUR 18.1 million. For its part, national advertising is still affected by the uncertainty of the economy and accounts for 43% of the total, with a turnover of 13.6 million euros. It should be noted that digital advertising revenue – including e-commerce – accounts for 50% of Vocento’s total advertising.
Local ads grew by 20.7% with positive behaviour, both in digital format (+37.4%) and offline (+15.9%). During this period, Vocento’s brands showed a better evolution than the market in the Group as a whole: in the offline press Vocento closes with 11% compared to 7.2% of the market and in online advertising Vocento reaches 4% (including the activities of Ads), while the market is 2.1%.
The Group’s profitability and positive net financial position determine the evolution of the quarter. In this context, EBITDA amounts to 0.1 million euros, despite the context of macroeconomic uncertainty and the increases in paper and energy prices. It should be noted that adjusted for leaving the perimeter of NET TV and Veralia Distribución, excluding the accounting of compensation (2.5 million euros) and the change in the Madrid Fusión calendar, this would reflect an improvement of 617,000 euros.
The operating result (EBIT) during the first three months of the year was at -5.1 million euros, in addition to the operational evolution, due to the higher depreciation resulting from the investments in the new head office. The consolidated net result is positive at 3.6 million euros, an improvement of 8.4 thousand euros compared to the first quarter of last year thanks to the capital gain on the sale of NET TV and Veralia Distribución.
Ordinary cash generation amounts to 4.4 million euros, compared to 7.1 million euros a year ago. Adjusted for constant scope and for fees paid (in Q1 2021 they were considered unusual), Q1 2022 level would be higher than the previous year. The positive net financial position ex IFRS 16 amounts to 4,049 million euros compared to -1,721 million euros at the end of 2021.
‘Relevo’, Vocento’s new sports project, reflects the Group’s clear commitment to digital and diversification. Targeting three target audience segments neglected by current sports offerings (Generation Z, disgruntled users and female audience), it has a 100% digital format and uses RRSS and audiovisual content as an information channel in its own right. With a strategic plan that foresees a positive EBITDA of 4 million euros from 2027, Relevo expects a cost item of 439,000 euros in the first quarter of 2022.
In Newspapers, operating profit (including offline and online activity) amounted to 63.12 million euros in the first quarter, 0.2% higher than in the same period of 2021. Per division, the increase is 1.9% in Regional Press, 0.8 % in ABC and -9.2% in supplements and magazines.
In the evolution of the profitability of the Regionals, the growth in advertising of 1.16 million euros compensates for part of the decrease in the sales margin to readers (-1.6 million euros), influenced by the increase in the price of paper, the lower margin from printing and distribution and the increase in other costs, mainly indemnities.
In this context, the EBITDA amounts to 361,000 euros, a decrease of 88.5% compared to last year. ABC’s EBITDA is impacted by personnel costs and the printing margin, which are partially offset by an increase in advertising and an improvement in readership margin.
In Audiovisual, the operating result amounted to 1.1 million euros, 85.2% less than last year. The EBITDA amounts to 611,000 euros at the beginning of 2022. It should be noted that this area is affected by the exit from the perimeter of NET TV and Veralia Distribución, an operation that closed in January 2022. After the sale of NET TV, the activity in DTT has been limited to the exploitation of a few local DTT licenses, while the Content segment has been reduced to a marginal activity.
In Classifieds, the operating profit amounted to 6.6 million euros in this first quarter of the year, representing a growth of 10.2% compared to 2021, results derived from the inclusion of Premium Leads. Turning to verticals, there was real estate growth and a decline in auto sales, in turn impacted by the lack of vehicle inventory due to the chip supply crisis. This situation had an impact on EBITDA, which amounted to 570,000 euros.
In Gastronomy and Agencies, the operating result amounted to 6.6 million euros, compared to 2.9 million a year ago. The EBITDA is 618,000 euros. The Gastronomy division shows an increase in both turnover (+3.6 million euros) and EBITDA (+1.3 million), which is explained by the organization of the Madrid Fusión congress, which was held last year in the second quarter. held. As for the agencies and others, their activity was concentrated in the second and fourth quarters.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
