PRISA earns 13.9 million euros in the first half of 2017

Operating result is up 40% with adjusted EBITDA at EUR 136 million

PRISA posted a net profit after tax of 13.9 million euros in the first half of 2017. There was a significant improvement in margins, with adjusted EBITDA up by 40% to 136 million euros (+ 29% growth at constant exchange). These results can be chiefly attributed to excellent business performance in education and the radio business, to the digital advertising growth, and the favorable evolution of exchange rates against Latin American currencies, as well as the competitive strength of audiences across all media, with 139 million unique users (+ 13.2%).

Santillana saw robust performance in the first half of the year, registering growth of 17% for revenue and 50% for EBITDA. Campaigns in southern Latin America were successful with growth of 9.8% in constant currency, with Brazil seeing an increase of 19% in revenue. Digital learning systems (UNO and Compartir) continued their expansion with student numbers up 6%.

PRISA’s radio stations are undisputed leaders in Spain, Colombia and Chile. Advertising in Spain grew by 3% compared to last year, and there were increased margins. In Latin America a growing trend was consolidated with revenue growth in Chile, Mexico and Argentina. Radio revenues were up by 1.6% and EBITDA improved as a whole by 25%, reaching 25 million euros, thanks to growth in Spain and in Latin America.

With regards to Press, digital advertising was up 5% and now accounts for 46% of total advertising revenue. And cost control reduced expenses by 10%. Circulation revenue and traditional advertising continue to decline (-10.6%), in line with the general trend in the sector, due to the decline in traditional advertising, lower circulation and compared to the boost to revenues seen in 2016 thanks to the 40th anniversary of El País and Euro 2016.

El País, with 73.2 million unique browsers, consolidated its lead as the world’s top newspaper in Spanish and number 12 overall. In Spain, El País ranks 4th in terms of unique users just below Google, YouTube and Facebook.

AS celebrates its 50th anniversary in 2017 with a global audience of 25 million unique users and a major international expansion of newsrooms in Madrid, Mexico, Colombia, Chile, Argentina and Peru, and for its range of different editions in Spanish for the Hispanic market in the US and English for the Asian market.

Media Capital improved its operating result by + 3.3% and pòsted an adjusted EBITDA of 18.3 million euros, despite the decline in the advertising market in Portugal, which started to recover in the second quarter. Strict cost control (-10.1%) offset the drop in advertising. TVI still leads 24 hours a day (22%) and in prime time (26%). Media Capital radio saw advertising revenue increase by 5.3%, with a consolidated average audience share of 36.4% (latest figures for 2017).

The Group continues apace with its efforts to balance its books, with the Board of Directors accepting the offer tabled by Altice for the purchase of Media Capital for 440 million euros.