PRISA REACHED IN 2012 AN EBITDA OF 427 MILLION EUROS (-2.3%)

The Group showed a net loss of 255.03 million Euros after having provisioned

305.28 million Euros for goodwill and fixed asset impairments

Education and Radio businesses in Latam show double digit growth while the advertising market in Spain and Portugal continued with significant falls

• Total Latam revenues grew by 7.7% representing 26.7% of the Group’s revenues (24.3% in 2011). EBITDA from this region grew by 12.8% reaching 45.0% of total Group EBITDA (38.6% in 2011).

• Santillana increased its revenues by 1.8%. We highlight the strong growth in Latam revenues (+5.4%) despite that in Brazil 2012 was the lowest year in the education cycle. Revenues in Spain fell by 8.9%, due to General Publishing development and the smaller education campaign. Santillana’s EBITDA grew by 7.7% adjusted by non-recurring items.   
• The Pay TV business increased its revenues by 6,8% and its recurring EBITDA by 11.3%.
  The number of Satellite Subscribers fell by 36,374 since December 2011, given the negative impact of weak consumption and the VAT increase. CANAL+ increased its market share by more than 2 percentage points, reaching 42%^(*). Satellite subscribers ARPU stood at 44.2 Euros on average in Q4 and churn stood at 15.4% as of December 2012.
  Following the new agreement signed in August 2012, CANAL+ offers the best football content of its history.

• The effort in Digital development was maintained during 2012. Digital advertising revenues grew by 15.1%. We highlight Press (+17.9%); which accounted for 19.8% of total advertising revenues for this division. As of December, total number of unique browsers reached 72 million (+ 9.4%).

• Press results were very impacted by the decrease of the advertising market in Spain. Throughout 2012, advertising revenues in this division fell by 20.6% (by 30.6% in Q4 standalone).

• The Radio business showed an divergent behaviour between Spain and Latam: In Spain advertising fell in 2012 by 17.1% (-20.9% in Q4 standalone), while Latam grew by 15.2% (+13.9% in Q4 standalone).   

• The company continued with a strong cost control effort in all cost lines and business units. In 2012, total expenses (excluding amortizations and provisions) were reduced by 2.2%, by -7.5% adjusted by one-offs and the impact of the new agreement on football rights.

• Net debt stood at 3,083.37 million Euros, which implies a reduction of 450.21 million Euros since December 2011. Net financial debt stood at 2,938.93 million Euros.

(*): internal estimates