PRISA Group reported comparable EBITDA (that is, at a constant exchange rate and without the temporary impact of IFRS 15) of 87.6 million in the first quarter of the year, which represents an increase of 3% compared to that posted for the same period of the year in 2017.
In line with company expectations, the Education division has been affected by the negative evolution of exchange rates, as well as by the application of IFRS 15. This, which became effective in January, establishes a new revenue recognition model under which revenue is recognised either over time, in a manner that best reflects the company’s performance, or at a point in time, when control of the goods or services is transferred to the customer. The implementation of this model temporarily affected the businesses of the UNO and Compartir learning systems, and has had a negative impact on income, of 8.2 million, and on EBITDA, of 4.6 million, from January to March. This will be corrected throughout the rest of year. Excluding this effect, and at a constant exchange rate, Santillana has reported total revenues of 215 million euros, with comparable EBITDA up by 2%.
The News and Information business continues its consolidation, with the latest figures from the EGM confirming the leadership of PRISA Radio stations in Spain. Cadena SER celebrates 25 years of uninterrupted leadership in Spanish radio and all its programs are leaders in their respective time slots. LOS40 is the leading music radio network, the second ranked station in terms of listeners after Cadena SER and the one to see highest growth, according to the EGM.
The impact of exchange rates has been negative, affecting income negatively by 2.7 million and EBITDA by 0.2 million. At a constant exchange rate, Radio's adjusted EBITDA improved by 27% to reach 7 million euros.
In the first quarter of this year, PRISA Noticias’ news media reported 125 million unique browsers, which represents 29% growth. El País maintains its lead in Spain with a market share of 41% and it remains the number one newspaper in Spanish worldwide. Meanwhile, the newspaper AS reinforces its digital lead in the Americas.
Revenues were down 9.4%, at 45.7 million euros. The increase in digital advertising and other digital businesses has failed to offset the drop in conventional advertising and fall in circulation. However, digital advertising is up by 2% and now represents 51% of total advertising revenue. In the case of AS, its digital revenues represent 79% of the total. Adjusted EBITDA for Press was -0.7 million euros compared to 0.9 million in the same period of 2017.
PRISA has reduced its debt to 818 million euros compared to 1,224 million at the end of 2017, thanks to funds obtained from the capital increase and positive cash generation. Costs associated with interest expenses have been reduced by 1.6 million euros.
The company is carrying out the efficiency plan announced last February, with the aim of saving 40 million euros over the next 3 years, chiefly in the media and corporate areas. In the period from January to March 2018, the implementation of these measures has led to savings of 8.5 million euros, with an impact on EBITDA of 6.9 million euros.
The net result for the first quarter of the year was 9.9 million, compared to 21.9 million for the same period of the previous year.
Other significant events by business units
In the area of education
In the Radio business
In the Press division
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