PRISA first half 2016 highlights

• Spain advertising revenues grow due to online advertising and events.
• LatAm activities show growth in constant currency in Education (+12.1%).
• Radio shows difficulties in LatAm due to macroeconomic weakness that the most important countries in which the group operates are facing.
• In Portugal, Media Capital shows operational improvement helped by growth in advertising revenue and sales of channels to third parties.
• The evolution of the exchange rate in the first half impacts negatively on revenues and EBITDA, maintaining a similar impact to already registered in 1Q.
• The issue of mandatorily convertible bonds into ordinary shares of PRISA announced in 1Q has been registered, reducing the debt in 100.7 million euros.
• Net bank debt stand at 1.562 million euros in the first half of 2016. Decline of 18 million euros in financial expenses in the period due to debt reduction.

EDUCATIÓN

• During 1H South Area campaigns are practically finished. All campaigns have increased in constant currency, except for Brazil whose fall is offset by the growth in Peru by institutional bidding for primary and secondary.
• North Area campaigns (Spain and Mexico mainly), take place during 3Q. In 1H, figures corresponding to the beginning of the campaigns under placement are collected.
• Digital Education Systems (UNO and Compartir) continue their expansion in Latin America, growing in number of students till reach 863,136. UNO and Compartir revenues grow by +15.8% in constant currency. Highlights the significant margins improvement.
• Adjusted revenues in constant currency grow by +12.1% and adjusted EBITDA grows by +28% in local currency (-4.4% in euros).
• Negative FX impact of 57million euros on revenues and 21.3 million euros on EBITDA in line with the impact registered in 1Q.

PRESS

• Press revenues grew 4.3% in the period. The increase in digital advertising, events and promotions offset the decline of traditional advertising and circulation.
• Advertising revenues in 1S 2016 increase by +8.6%.
  • Digital advertising increases by +20.4% (representing already 39% of total advertising revenues of the press) offsetting the fall in traditional advertising (-5%).
• Circulation revenues moderate their drop (–2.8%) helped by the price raise.
• Highlights the operating improvement of As, which consolidates its global branding strategy, with significantly growth of unique users in the different countries in which it operates.
• As of June 2016, an average of 89 million of unique browsers and 19.5 millions of unique users (as of May) has been registered.
• Press adjusted EBITDA increased by +16.8% over the same period last year to reach 7.4 million euros.

RADIO

• Advertising in Spain falls by -4%, reducing its drop in the quarter, maintaining growth in national market (+2.5%) and a fall in the local of –5.9%, which moderates its trend in 2Q (-1.5%).
• According to the latest EGM, Radio in Spain remains the leader both in generalist and musical.
• In LatAm, adjusted revenues fall in local currency, with drops of –9.1% in Colombia and of –1.7% in Chile, reflection of the macroeconomic and specific difficulties of the advertising sector faced by both countries.
• Adjusted EBITDA in constant currency falls in 6.9 M€ until 22.7 million mainly due to LatAm performance.
• Negative FX impact is -12.5 million euros on revenues and -2.2 million on EBITDA (-6.9 M € in revenue and -1.5 M € in EBITDA in 2Q).

MEDIA CAPITAL

• Total advertising revenues of Media capital increase by +5.6%.
• TVI shows a revenue increase of 3.4%. The growth of advertising revenue and channels sale to third parties continue offseting the fall in added value calls:
  • Advertising grows by + 5.5% in TVI.
  • Added value calls continue with significant falls –2.9 million euros.
  • The distribution of TVI channels in different pay platforms has a growth of 3.4 million euros.
• Radio improves its EBITDA by +10.9% (0.3M€)
• Adjusted EBITDA grows by +3% (+0.6 million euros), versus same period last year.

CONSOLIDATED P&L

During 1H 2016, excluding extraordinary items and exchange rate impact:

• Operating revenues at constant currency grow by 6.7%

Adjusted EBITDA grow by 10.4%.