The group closes the first semester with an Ebitda of 8.8 million euros
Vocento posted an operating result of 163.7 million euros in the first half of 2022, a decrease of 2.9% compared to the same period last year. This decrease is explained by the exit of the NET TV and Veralia Distribución activities. Excluding this effect, and in comparable terms, sales grew by 4.8%.
The group highlights a relevant fact for its business in the first half of the year, having been classified by Bloomberg as a leader in the Spanish stock exchange according to its 2021 sustainability report, following an upward revision of the transparency coefficient. Vocento is making progress in the elaboration of its strategic plan in the field of sustainability.
In terms of results, copy sales declined 6.4%, while the number of digital subscribers grew 23% in the semi-annual rate to 95,000 in June. Of these, 65,000 correspond to the regional (ON+ and KyM model) and 31,000 to ABC (ABC Premium and KyM). To drive the growth of digital subscriptions, Vocento has implemented a new strategic approach with centralized management.
Advertising sales revenues grew by 4.7% thanks to the good performance of local ads, up 11.2%, with positive behavior both in digital format (24.4% increase) and offline (up 7.2% ). National advertising, meanwhile, remains stable, although the trend is improving in the second quarter. According to the group, the balance between the weight of the local and the national appears to be a strength of Vocento in the current situation.
For example, the Ebitda in the first half of the year amounts to 8.8 million euros. Excluding the changes in perimeter following the deconsolidation of NET TV and Veralia Distribución and the entry of Relevo as the group’s commitment to a new digital newspaper, the year-over-year decline is 2.5 million. Economic uncertainty, with the loss of consumption and the increase in the price of paper and energy, determine this evolution.
The operating profit (EBIT) for its part decreased by 18.5 million euros compared to the first half of 2021, a period in which the group realized capital gains of 10.6 million euros on the sale of the headquarters of ‘El Basque Newspaper’ in San Sebastian.
Ordinary cash generation amounts to 5.3 million euros, influenced by the increase in paper and energy prices. The ‘Cash Flow yield’ ratio is 28%, which measures operating cash generation in relation to Vocento’s market cap, while the net financial debt (ex IFRS 16) is 4.7 million euros. The latter gives the group complete freedom to choose the most suitable business opportunities to execute its strategy.
In the newspaper section, the operating result amounted to EUR 135.6 million, an increase of 1%. Ebitda is estimated at 9.9 million euros, 30% less.
ABC’s Ebitda is impacted by the decline in the reader margin (down EUR 646,000) and the print margin (EUR -340,000), which amounted to EUR 427,000. Both ratios are partly offset by an increase in advertising, which amounts to a growth of 118,000 euros.
The Ebitda of Supplements and Magazines is EUR 479; Worth mentioning is the celebration of the WomenNow Congress, with a media impact of 14 million euros.
In the evolution of regional profitability, advertising growth offsets some of the decline in reader sales margin, impacted by the increase in paper price, lower printer and distribution margins, and fees. The Ebitda is 10.3 million euros, 17.8% less.
As for the Relevo sports project, it is progressing according to the planned plan and, after its launch on social networks in May, it already has 150,000 followers – aiming to reach 500,000 by the end of 2022 – demonstrating statistics of interaction from this superior that of the competition. In addition, the launch of the website is planned for September.
In Audiovisual, the operating result amounts to 2.2 million euros, which is 3.8% lower in comparable terms. Ebitda stands at 1.2 million euros, compared to 1.1 million last year, also in comparable terms. This area is affected by the NET TV and Veralia Distribución perimeter exit, an operation closed in January 2022, for which the variations are expressed as comparable, excluding the impact of exiting the perimeter.
In Classifieds, the operating result amounted to 13.7 million euros, an increase of 11.9%. The Ebitda is estimated at 1.7 million euros, 28.8% less. The increase in income is influenced by the inclusion of Premium Leads in the perimeter. Likewise, real estate grew and engine power fell due to the crisis in the supply of chips, although it should be noted that a trend change with growth has been observed since June. In addition, it is worth noting the possibility for Local Digital Kit (LDK) in the digitization activities of SMEs, under the Next Generation Digital Kit program with European funds.
In Gastronomy and Agencies the operating result amounted to 14.4 million euros, 50.5% more. The EBITDA amounts to 1.1 million euros, compared to 0.8 million euros, an increase of 34.9%. Madrid Fusión had a record edition in 2022, with 16,500 visitors and media attention worth 40.4 million euros. At Agencies and Others, activity is gradually recovering and it is expected that a large part of the profitability will be concentrated in the fourth quarter of this year.
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.
