PRISA reports higher EBITDA and revenues and lower debt in first-half results

• Revenues grew by 3%, EBITDA by 20% and net income improved by 33%, excluding extraordinary items that preclude comparison with the first half of 2023.
• Santillana's subscriptions approached three million, up 8% in the first half of the year, while EL PAÍS surpassed 378,000 subscribers, up 23%.
• Net debt has been slashed by 56 million euros since December 2023 and Junior debt, the most expensive tranche, has been cut by almost 150 million euros since 2022.

Grupo PRISA showed continued business growth and an improved financial situation during the year's second quarter, confirming that it remains on track with its strategic roadmap.

The first half of the year, excluding extraordinary items that preclude comparison with the same period of 2023, shows revenue growth of 3% while EBITDA is up by 20%. Even more significant is the growth in profitability, with EBIT reporting growth of 104% between January and June of this year.

H1 revenues were up thanks largely to the robust performance of Santillana's subscription models and the increase in EL PAÍS digital subscribers, which together continue to drive the Group's digital transformation and growth. In addition, advertising has also performed well, especially in radio.
 
The company continues to focus its efforts on debt reduction and cash generation. In the first half of 2024, PRISA strengthened its balance sheet and carried out a 100-million-euro convertible notes issue, which was oversubscribed.  

This enabled the early repayment of 50 million euros of Junior debt, the most expensive tranche. Since 2022, the Junior debt has been reduced by almost €150 million, from €185 million to €38 million.

In addition to the cash impact of the convertible notes operation, Free Cash Flow (FCF) has also improved, growing by 35% compared to the first half of 2023. Net financial debt has been reduced compared to December 2023 by 56 million, bringing the Net Debt/EBITDA ratio to 4.2x as of June 2024, with a liquidity position of 199 million euros of available cash. Net book income improved by 33% compared to the first half of 2023.

In short, H1 2024 results are in line with PRISA's expectations, and the Group remains on track to meet Guidance for the current year.


PRISA MEDIA

PRISA Media continues to pursue its strategy of driving the transformation of the business. Digital subscriptions to EL PAÍS continue to climb, and the company is forging ahead in the development of new lines of business in the field of Artificial Intelligence.

In the first six months of 2024, PRISA Media's revenues, driven by the solid performance of advertising, online circulation and new agreements reached in the field of Artificial Intelligence, totaled 207 million euros, up from 204 million euros in the same period of the previous year. EBITDA grew by 23% in the first half of the year.

EL PAÍS reached a total of 378,397 subscribers, of whom 362,473 are digital. As of June 30, the digital subscription model clocked up an additional 28,890 net subscribers compared to December 2023, maintaining its steady pace of acquisition. Total subscribers grew by 23% year-on-year and digital subscribers by 24%.

Audio and video consumption indicators continue to show improvement and the figures for the first half of the year confirm the positive trend. By the end of June 2024, average audio downloads per month had reached 52 million, 6% more than in the same half of last year, and listening hours reached 97 million on average per month, representing an increase of 10% compared to the first six months of 2023. In addition, the average number of audiovisual content views per month reached 181 million, up by 34%.

Figures for radio audiences show 24 million daily listeners and, in Spain, latest EGM audit figures have once again ranked SER and PRISA's music stations as leaders in their respective categories.


SANTILLANA

Santillana continued its growth trend in private-sector sales during the first half of the year, driven mainly by the growth of subscription models.

Santillana's revenues reached 209 million euros in the first half of 2024, an increase of 5%. EBITDA amounted to 40 million euros and was up by 27%, in both cases excluding extraordinary items that preclude direct comparison with the first half of 2023.

Subscription models based on learning systems are Santillana's chief source of revenue and now account for 53% of sales. During the first six months of 2024, they continued to show growth, driving the transformation process in the education sector and reached 2,945,997 subscriptions, an 8% increase over the same period last year. Revenues from subscriptions grew by 9% to 109 million euros, including Argentina.

Subscriptions increased in all system categories: Flexible systems grew by 3%, Comprehensive systems by 6%, and Supplemental systems (including English-language learning) by 21%. The Southern-region campaigns showed 4% growth and the outlook for the upcoming Northern region campaign is positive.


SUSTAINABILITY

The Group demonstrated its firm commitment to sustainability by organizing and promoting spaces for debate and reflection in the ongoing search for innovative solutions to social and environmental challenges. Events included the first Foro Ahora Regeneración (Regeneration Now Forum) and the S.O.S. Tenibilidad summit, held in Madrid and Bogota, respectively.

Environmental and social awareness-raising initiatives included the launch of the SER Podcast Claro que se puede (Of course it’s possible), which explores solutions and measures for ecological issues, and the presentation of the SER Euskadi SDG Awards for the second consecutive year. Sports newspaper AS launched Deporte en Positivo, an initiative that extols the positive values of sports, thereby demonstrating its commitment to gender equality and its stance against racism and xenophobia.

In the area of governance, PRISA is firmly committed to promoting female talent to key positions of responsibility. Following the re-election and ratification of a number of members of the Board of Directors at the last General Shareholders' Meeting, the percentage of female directors has risen to 53.3%, one of the highest ratios among listed companies in Spain.

The Group remains firmly committed to ethical and transparent business practices. Testament to this commitment is the adoption of the Policy for Managing the Responsible Use of Artificial Intelligence. PRISA has also signed the Manifesto for a responsible and sustainable Artificial Intelligence, an initiative of Forética. AI was also the focus of Santillana’s Second International Congress on Inclusive Education. Meanwhile, Santillana has been recognized as one of the top 10 most-trusted Spanish companies in Latin America according to the study 'The Image of Spanish Companies and their Executives in Latin America 2024', prepared by the independent think tank Instituto Mesías - Inteligencia de Marca España in collaboration with the firm iTRUST Country Brand Intelligence.

Finally, the UN Global Compact Spain celebrated its 20th Anniversary and paid tribute to PRISA, among other organizations, for its commitment to corporate sustainability.