Promotora de Informaciones SA: PRISA’s revenues, EBITDA and digital activities continue to grow in the first half

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  • Between January and June, the Group achieved a turnover of 388.2 million euros, up 26.8% compared to the first two quarters of 2021 (+6.3% PRISA Media and +53.7 % Santillana).
  • The Group’s EBITDA, excluding severance pay, was multiplied by 2.8 to reach 49.7 million in the first half.
  • The digital business continues to grow, with digital revenues now accounting for 35% of the Group’s total.
  • Santillana has nearly 2.5 million students of the subscription model in Latin America (+33.3% compared to June 2021)
  • EL PAÍS reaches 219,832 subscribers, including 179,626 exclusively digital (+ 65% compared to June 2021). It recorded 79 million hours of streaming (+19%) and 47.5 million podcast downloads (+51%).
  • As of June 30, the company’s cash balance amounted to €126 million, to which was added €103 million of restricted cash.
  • The Group recorded a negative net result of 14 million euros, which represents an improvement of 75.1% compared to the loss of 56.2 million recorded in the first half of 2021.

PRISA’s results were driven by a marked improvement in commercial performance, the continuation of the digital dynamic and an advertising boom during the first half, despite the uncertain environment linked to the war in Ukraine. The Group’s turnover for the second quarter amounted to 177.6 million euros (+20.2%) and to 388.2 million euros for the first six months of the year. This represents an increase of 26.8% compared to the same period of the previous year.

PRISA President Joseph Oughourlian said that “the second quarter of the year has been a complex time and a time of socio-economic uncertainty. The full implications remain unclear and we must maintain a cautious view regarding the rest of the year. However, the Group’s results reflect the solid performance of our businesses, both in Media, where we delivered exceptional performances both locally and in Latin America, and in Education, which continues This is why, despite the geopolitical uncertainties, we see no reason to question the objectives we have set ourselves for the end of the year, which foresee a turnover of between 770 and 800 million euros, with an adjusted EBITDA margin of around 15 to 17%”.

Oughourlian added: “We continue to work on the roadmap that we presented in March as part of the strategic plan which has just been approved by shareholders. It is a plan for growth, focused on the companies, on digital transformation and on sustainability through And if we must not lose sight of our debt, on which we will focus all our reduction efforts in the years to come, I am convinced of the strength of PRISA, the potential of its businesses, its brands and its professionals”.

Results January-June

Over the first half of the year as a whole, the Group continued to record growth in its turnover and its EBITDA thanks to the improvement in commercial performance. The return to post-pandemic school normality in Latin America, where Santillana operates, as well as the growth of digital subscription models (EdTech) have boosted the accounts of the Group’s education division. PRISA Media, meanwhile, continues to maintain the positive trend seen in recent quarters despite recent geopolitical and economic uncertainties. Thus, the Group’s media division continues to consolidate its lead in the markets in which it operates, supported by advertising revenues and the good performance of the EL PAIS paywall model, which continues to experience steady growth in the number of subscribers.

The group’s turnover reached 388.2 million euros between January and June, or 26.8% more than in the same period of the previous year. The Group’s commitment to digital transformation has seen the contribution of digital revenues to the company’s revenue continue to grow, up 30% and now representing 35% of the total.

EBITDA, excluding severance pay, reached €49.7 million between January and June, or 2.8 times more than a year ago. The Group recorded a negative net result of 14 million euros for the first two quarters. But the improvement in performance enabled the Group to partially offset the impact of financial expenses. Indeed, EBITDA is up 75.1% compared to the 56.2 million losses recorded in the first half of 2021.

Foreign exchange had a positive impact – in the amount of €13.4 million – on first-half revenues, mainly due to the revaluation of the Brazilian real and the Mexican peso. But in terms of EBITDA, the impact was negative: EUR 800,000.

The Group’s net bank debt amounted to 833.5 million euros at June 30, against 756.1 million with which it closed last December, mainly due to the buyback of the package of shares from the minority shareholders of Radio.

The new financial culture implemented in the company, focused on operational improvement and optimization of liquidity, led to an improvement in cash generation, excluding exceptional items, of 19.5 million euros per compared to the first half of 2021. The total cash flow was affected, however, by the extraordinary costs derived from the purchase of the package of shares from the minority shareholders of Radio and the refinancing costs, leaving a negative balance of 65.1 millions of euros.

The company continues to work with an eye on liquidity and, as of June 30, the cash balance stood at €126 million, with an additional €103 million in restricted cash.

Santillana

The Education division recorded revenue of €74.1 million in the second quarter, 49% more than between April and June 2021. The return to school normality in Latin America and the firm commitment of the company in favor of a digital education model (EdTech) have allowed Santillana to continue consolidating its growth. Over the six months as a whole, Santillana’s turnover increased by 53.7% compared to a year earlier, for a total of 202.5 million euros.

Santillana’s EBITDA, excluding severance payments, was multiplied by 2.6 during the first half, reaching a total of 38.6 million euros. In the second quarter, gross operating income, excluding severance pay, was negative at 6.6 million euros. Nevertheless, this figure represents an improvement of 30.4% compared to the same period in 2021. It should also be borne in mind that the second quarter is not decisive due to the seasonality of the activity.

The private education sector division, at the forefront of digital transformation (EdTech), is the engine of Santillana’s activity and represents 70% of its total turnover. At the end of June, Santillana already had 2,494,000 subscribers, which represents an increase of 33.3% compared to the first half of 2021 and a rise of 26% since December. These figures confirm Santillana’s leadership in Latin America and it is the only platform present in 19 countries on the continent.

Prisa Media

The Group’s media division continues to grow. Second quarter revenues reached 103.7 million euros, representing an increase of 5.6% compared to the same period of the previous year. For the first half of the year, revenues increased by 6.3% to EUR 186.2 million.

PRISA Media’s EBITDA, excluding severance payments, amounted to €14.3 million in the first two quarters, representing an increase of 69.4% compared to the same period of the year. last year. Second quarter EBITDA was €14.4 million, 8.7% higher than in the second quarter of 2021.

Two factors are driving these numbers: advertising and strong digital engagement. Advertising represents 76% of total revenues and over the first six months these revenues are up 6.5%, remaining positive between April and June (+3.3%). Despite the uncertainty caused by the crisis resulting from the war in Ukraine, advertising performed in line with expectations in Spain and experienced extraordinary growth in countries such as Colombia, thanks to the continued growth of the Group’s market share .

Broadcasting also drives revenue from PRISA Media, representing 27 million euros in the first two quarters, which represents an annual growth of 3.2%, thanks in particular to the growth of digital subscriptions to EL PAÍS. The newspaper has a total of 219,832 subscribers, of which 179,626 are digital-only. In the first half of the year, the paywall model welcomed an additional 43,100 new subscribers. So far this year, total subscribers are up 45% from the first half of 2021, while digital subscribers are up 65% year-over-year. Meanwhile, sports newspaper AS continues to dominate the global sports media market, with nearly 100 million unique browsers and a strong presence in Spain, the United States, Colombia and Mexico.

A commitment to digital audio continues to pay off. PRISA Media recorded 47.5 million podcast downloads in the first six months of the year (+51%) and 79 million hours of streaming (+19%). These numbers solidify PRISA’s position as the world’s leading producer of audio in Spanish.

The radio continues to consolidate its lead. With 9,294,000 daily listeners in Spain, PRISA Media is the Group with the greatest reach in the national market, reaching 40% of the total radio audience and with a wide lead over its competitors, according to the latest data released. available by General Media Study (EGM). The Group’s radio stations also enjoy a clear lead in Colombia and Chile. In Mexico, Radiopolis is also posting excellent results.

A commitment to sustainability

The Group continues to deliver on its commitment to embed sustainability throughout the business. In the first quarter of the year, the Group announced the creation of a new sustainability committee within the board of directors and appointed Rosa Junquera as Chief Sustainability Officer. Over the past few months, the company has focused on developing the organization’s management strategy, a roadmap linked to the United Nations Sustainable Development Goals.

PRISA has had a strong commitment to sustainability from the very beginning. It has been part of the United Nations Global Compact since 2008, joined it as a partner in 2013 and sits on the Steering Committee of the Spanish Network since 2016. In June, PRISA received the Contigo Somos+ award, which rewards partners from the Global Compact who have succeeded in attracting new members to the network, while contributing to the dissemination of the Sustainable Development Goals (SDGs).

In addition, the Group is notably present in various indices linked to ESG criteria such as the FTSE4Good and the MSCI. And recently BME’s Technical Advisory Board approved the inclusion of PRISA in the IBEX Gender Equality Indexan index composed of the 45 listed companies with the strongest female presence, both on their board of directors and in senior management.

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