PRISA posts operating profit of 139 million euros

•  Unión Radio enjoyed a turnover of more than 80 million euros and an EBITDA of 16 million. Cadena SER, with 5,070,000 listeners (+7.8%), remains audience leader, with more listeners than all its three nearest competitors combined. 40Principales beats its own record with 4 million listeners.

•  El País, despite the economic downturn, had revenues of 71 million euros, thus maintaining an EBITDA of 6 million euros and advertising revenue of 30 million. El País confirms its absolute leadership and closes the first quarter with an average daily circulation of 415,119 copies.

•  Digital+ saw EBITDA hit 80.29 million euros, with its margin now at 20.5%.

•  Cuatro had a turnover of 66 million euros and has enjoyed its best March ever with audience share now at 9%.

• Media Capital had revenues of 58 million euros and an EBITDA of 6 million. TVI has held its position as market leader with a 34.6% average audience share, and 39.4% at prime time.

• PRISA’s advertising revenues, down 21%, fared better than the current market trend, which is down 28%. Advertising revenue made up 24% of the group’s total revenues during the first quarter.

• PRISA has maintained its cost-saving drive and is now seeing savings of 8%.

• The group posted post-tax profits of 3 million euros, an EBITDA margin over revenues of 16.1% and an EBIT margin of 9.6%.

• PRISA has pacted an extension till May 14 with the banks behind the syndicated bridging loan agreement. On that date the group will sign a formal extension on the credit till March 31, 2010, as was previously announced on March 10, 2009.

The clear lead enjoyed by the different media arms of Grupo PRISA, the continued strong performance in the education sector (+8.5%), and the group’s successful cost-saving drive, mean that the company’s results are well ahead of the market average and those of its nearest rivals, despite the economic downturn.

Operating income was 862.42 million euros, down from the 958.37 million over the same quarter last year. This is due chiefly to the fall in advertising revenues which the group has tackled by aggressively reducing costs. EBITDA, is therefore, now at 139.04 million euros as opposed to 172.27 million in 2008 (down 19.3%).

Worth noting is the significant climb  of 14.7% in EBITDA in the group’s publishing division, reaching a total of 47.83 million euros. EBITDA is up 6.3% in Latin America, and 22.3% in Spain. Santillana’s EBITDA margin over revenues is up almost 2% to 30.3%.

EBIT was 83.05 million euros (against 116.25 million in 2008). EBIT margin is 9.6%.

Book and text book sales

Book and text book sales are up 10.7% reaching 153.69 million euros compared to 138.81 million over the same period in 2008.

Particularly strong was growth in Spain (+31.5%), especially in general publishing, Argentina (+37.7%), Chile (+32.6%) and Peru (+22%). Brazil was up 10.5% in local currency.

Newspaper and magazine sales

Newspaper and magazine sales revenues are down 8% at 49.39 million euros.

Average daily distribution for El País is at  415,119 copies and the paper continues to enjoy a clear lead over its nearest rival. According to EGM audit figures, El País has reconfirmed its top ranking among the non-giveaway press, recording 2,182,000 readers daily, a 63.2% lead over its nearest competitor.

Cinco Días has recorded average daily circulation totalling 36,937 copies. According to EGM figures, Cinco Días has 84,000 readers daily.

Radio

Radio broadcasting in Spain has brought in revenues of 59 million euros and, internationally, 17 million euros.

Pay TV and Free-toView TV

Subscription revenue has reached 275.36 million euros. Subscriptions to DIGITAL+, as of March 31, were at 2,001,000, with an average monthly subscriber fee of 44.3 euros during the first quarter of 2009.

Cuatro has, once again enjoyed growth, with an average audience share (24 hours) of 8.8% (8.4% in December 2008 and an average of 8.6% over the course of 2008). Cuatro has just enjoyed its best March ever, with an average audience share of 9%.

TVI, Media Capital’s free-to-view channel, maintains its market lead in Portugal both around the clock as well as during prime time. In the first quarter of 2009, TVI enjoyed a 34.6% average audience share and 39.4% at prime time. In February, TVI launched TVI24, a 24-hour news channel, which is showing very encouraging results.

From an operational perspective, the group has continued with its cost-cutting drive and has managed to lower its capital expenditure (CAPEX) by 10.9 million euros (-26.5%) as compared to the first quarter of 2008.

Financially, PRISA has today agreed on an extension till May 14 with the banks behind the syndicated bridging loan agreement. Between now and then, the group will sign a formal extension on the credit till March 31, 2010, as was previously announced on March 10, 2009.