PRISA achieves EBITDA of 105.14 million euros (+4.7%)


  • The Pay TV business improves all its key performance indicators: growth in net subscribers (DTH, OTT and from other operators), growth in ARPU (42.38 euros on average per user) and lower churn (13.2%). It reaches an EBITDA of 26.60 million Euros (+12% adjusted by non-recurring items).


  • Santillana increases its EBITDA by 11% adjusted by non-recurring items, with a strong revenue growth from Spain and Latin America.


  • Advertising revenues in the Digital activity increase by 12.7%. Unique monthly browsers grow by 7.6% on average to 66.7 million.


  • Advertising revenues in Spain and Portugal fell by 14% and totaled 102.45 million Euros, representing less than 16% of PRISA’s revenues.


  • Latin America EBITDA grew by 9.7%, and accounts for 88% of the total (4 points above that of the same quarter in 2011).


  • The good cost control allows recurring EBITDA margins to remain stable at 16.5%.


  • The Group has generated Operating Cash Flow of 44.37 million Euros on the back of EBITDA growth and lower working capital investments. Capex was reduced by 28 million Euros compared to the first quarter of 2011.


  • PRISA has received the 150 million Euro inflow from the exercise of the 75 million warrants in the context of the refinancing of PRISA’s financial debt, which has agreed new maturities for it in 2014/15.


PRISA today announced its financial and operational results for the fiscal quarter ended March 31, 2012. In the period, the Group achieved revenues of 651.56 million Euros and an EBITDA of 105.14 million Euros. Adjusted EBITDA margin was stable (16.5%).

The Chairman of the Executive committee of the Board and CEO Juan Luis Cebrián declared: “These results continue to demonstrate the operating resilience of our businesses even in the current economic environment. Santillana and the Pay TV business are examples of how it is possible to grow in the most adverse circumstances”. He added: “This, together with the good performance of our companies in Latin America, whose EBITDA grew by 9.7%, and together with the cost reduction effort undertaken, have allowed to greatly compensate the weak performance of the advertising markets in Spain and Portugal, which are going through strong falls. The difficulties of the market in both countries make it necessary to continue with a severe austerity and cost reduction program”.

Main figures by business area:

The solid performance of the Pay TV and the Education businesses, together with the growth from our Latin America exposure, have compensated the weakness of the advertising markets in Spain and Portugal, which are being affected by the economic crisis in both countries, although they represent less than 16% of the Group’s revenues.


  • Strong cost cutting effort: PRISA maintains an important effort in cost control, looking to improve in efficiency and profitability. In the first quarter of 2012, PRISA has reduced its operating expenses (ex amortization and provisions) by 7.5% (by 5.2% excluding non-recurring items). Operating expenses have been reduced across all the business lines. This cost control has allowed PRISA to maintain relatively stable recurring EBITDA margins at 16.5%


  • Pay TV: Improving all Key Performance Indicators. In the Audiovisual division, revenues total 294.53 million Euros, and EBITDA 30.91 million Euros, with strong growth from the Pay TV business (+12% adjusted by non-recurring items).          
    The first quarter of 2012 shows important improvement in the business:
    • o 1.878 million subscribers of pay TV, of which 107.017 come grow other platforms and OTT.
    • o Net DTH adds reach by +15,051 (+13,049 on the same quarter of 2011)
    • o Average DTH ARPU increases to 42.38 Euros (41.50 of the first quarter in 2011)
    • o Churn continues to fall and stands at 13.2%, (15.1% as of March 2011)
    • o Subscribers of iPlus reach 29.9% or 529,824 (368,583 as of March 2011).


  • Education: Strong growth in Spain and Latin America: In Education, revenues (192.44 million Euros) grow by 3.6% with strong growth especially from Spain (+21.4%) and Latin America (+2.9%), where we highlight the performance of Mexico (+27.5%), Argentina (+25.3%), Chile (+10.2%) and Peru (+4.8%) and with a lower contribution from Brazil given its ciclycity. Adjusted EBITDA reaches 70.66 million Euros, (+11.0%) and with an improvement of EBITDA margins of 240 basis points, reaching 36.7%.


  • Radio: International growth compensating domestic weakness. In the Radio division revenues (78.97 million Euros) fall by 5.3% compared to Q1 2011, mainly on the back of the weakness of advertising revenues in Spain (-12.1%, with stable national advertising, +1.5%, but weak local advertising, -24.4%) and despite the strong growth of Latin America advertising (+11.6%) especially in Colombia (+7.1%), Chile (+8.0%), Mexico (+41.4%) and Argentina (+36.9%). Adjusted EBITDA totaled 12.52 million Euros.


  • Press: Weak advertising market and harder comps. In Press revenues stand at 86.15 million Euros, down by 21.5% versus the first quarter of 2011. This is explained by the weakness of press advertising (-15.0%) but also by weak circulation numbers (-13.1%) as well as the positive impact that promotions and fiscal deductions had in the first quarter of 2011. Adjusted EBITDA totaled 5.36 million Euros.


  • Digital division: Solid growth. Advertising in the digital division grew by 12.7% in the quarter. The Digital division achieves a monthly average of 66.7 million unique browsers in the first quarter of the year, a 7.6% increase versus the first quarter of 2011, thanks to strong growth recorded by Prisa TV, and cincodí


  • Advertising: Lower overall weight: Total advertising revenues reach 130.07 million Euros, down 9.7% from 1Q 2011 and represent just 20% of those of the Group. We highlight the 10.9% growth of advertising in Latin America.


  • Net debt reduction and Operating Cash flow generation: The group has generated Operating Cash Flow of 44.37 million Euros in the first quarter of 2012 thanks to the growth in EBITDA and the lower working Capital investment. Additionally. The lower capex and the inflow of 150 million Euros on the back of the warrants exercise in the context of the financial debt refinancing, have contributed to PRISA reducing its net debt by 72 million Euros.


Consolidated earnings

The comparison of 2012 and 2011 results is affected by extraordinary items recorded under expenses, essentially on the back of the redundancies in the context of the efficiency plan undertaken since December 2010.To conduct a homogeneous comparison, we are presenting a profit and loss account adjusting the extraordinary items.

 [ES][OR] Table - Consolidated results                      













* Extraordinary items for expenses in 2011 and 2012 correspond to redundancies from the efficiency plan which Prisa has undertaken since December 2010


PRISA is the world’s leading Spanish and Portuguese-language media group in the fields of education, information and entertainment thanks to its multichannel offer of top quality products. Present in 22 countries, it reaches more than 50 million users through its global brands El País, 40 Principales, Santillana and Alfaguara. As the market and audience leader in general-interest press, free-to-view TV and pay TV, spoken-word and music radio, education and publishing, PRISA is one of the biggest media groups in the Spanish Speaking World, with an extraordinarily broad range of assets.

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