2014 R&S Annual Directory Major Italian Publishing Groups and 1st Half Year 2014

Transcription

1 2014 R&S Annual Directory Major Italian Publishing Groups and 1st Half Year 2014 Comparison between studies published by R&S on major Italian Publishing Groups (owners of the main national newspapers) in the period and in the first half of 2014 The recent development of the Italian major Publishing Groups is part of a longer-term trend that has witnessed a widespread process of alienation from the printed editions of daily newspapers in Italy. According to data from FIEG- Italian Federation of Newspaper Publishers 1, at the end of 2013 sales of newspapers dropped by 45% compared to 1990, a tendency that has been especially strong since 2008 (-31%). In the period , the aggregate revenues of the seven largest Publishing Groups 2 in Italy marked a decline of 27.7%, i.e. from 5.8 bln in 2009 to 4.2 bln in 2013 (Table 1) 3. In detail, the reductions affected advertising sales (-31.3%), circulation (-29%) and ancillary revenues (-16.7%). The most substantial decline hit RCS (-40.4%), which was also weighed down by the sale of the French group Flammarion in September 2012 (its turnover being over 200 million) 4 ; the other Groups lost portions of turnover ranging from 29% of Caltagirone to 17% of Mondadori, which marked the smallest reduction. The 2013 turnover of Mondadori stood at 1,276 million, now at levels close to those of RCS ( 1,315 million), which remains the largest Italian Publishing Group by a small margin. It should be remembered that Mondadori is the only one of the seven examined Groups that is exclusively focused on periodicals (it does not publish daily newspapers), an industry where it ranks first in Italy with a market share of 38% in terms of copies sold in 2013 (34% in 2009). The sale of newspapers and periodicals represented 48% of 4.2 billion invoiced on aggregate by the major players in 2013; the remaining revenues were mostly achieved by selling advertising space (32.5%). The breakdown of revenues was varied among Publishing Groups: advertising sales were more relevant for L Espresso and Caltagirone (56% - 57% of total), circulation was more important for RCS, La Stampa and Mondadori (53-55%). Il Sole 24 ORE, a quarter of whose revenues was generated by software (which had been bringing in revenues of around 100 million before being sold in May 2014), Mondadori, which generated a quarter of revenues from books, and Monrif, which includes a hotel business accounting for about 20 million in revenues, are peculiar cases. In the five-year period, Mondadori suffered the largest drop in advertising revenues (-43.2%), but all publishers marked drops greater than 30% with the exception of L Espresso, which contained the reduction to 18.9%. As for circulation revenues, RCS and Il Sole 24 ORE marked the greatest declines (respectively, -40.8% and -35.5%, the former being affected by the sale of the Flammarion Group) and only three Groups limited the reduction under 10%. La Stampa held up better (only -4.9%), as well as less marked appear the drops of Monrif (-8%, with the newspapers Il Giorno, La Nazione and Il Resto del Carlino) and Caltagirone (-8.4%, with Il Messaggero and local newspapers). The presence in foreign markets only affects two Groups: RCS (31% of revenues in 2013, these are the Spanish operations of Unidad Editorial) and Mondadori (30%, obtained in France). Smaller sales dragged down employment, which was downsized by 22.3% in the five-year period, involving about 4,200 employees (Table 2). The contraction of the workforce was conspicuous for RCS, reaching a third 1 ASIG - Italian Association of Newspaper Printers, 2014 Report on the newspaper industry in Italy. 2 Editrice La Stampa, a subsidiary of the Fiat Group, whose newspaper was the fifth in Italy in 2013 in terms of copies distributed (225 thousand) has been added to the groups surveyed in the R&S Annual Directory. The aggregate amount does not include De Agostini as not directly comparable, given its focus on the publication of collectible editions and mail order (direct marketing). It is estimated that on the whole the seven groups considered represented about 70% of total revenues of the Italian publishing industry at the end of The 23.1% drop of the entire Italian printing-publishing industry should be remembered (Source: Mediobanca Research Department, Dati cumulativi di 2050 società italiane [Aggregate Data of 2050 Italian Companies], 2014). 4 If one excludes Flammarion, RCS revenues would fall by 30%. The RCS Group took over the publishing company Flammarion from the Flammarion family in November 2000 with a disbursement of 160 million; a dozen years later, in September 2012, the Flammarion Group was sold at a price of million, with a gain of 85 million.

2 of the resources of 2009 (-32.8%), equivalent to about 2,100 units, more than 600 exits of which taking place in France with the sale of the Flammarion Group 5, more contained for Mondadori (-7.3%), which outdistanced all the other Groups that stood around -20%. The decrease in workforce involved blue collars (-39.9%) to a greater extent than white collars (-24.4%) and journalists (-13.1%). The weight of the latter increased from 30.9% of total employees in 2009 to 34.5% in 2013, the working-class base fell from 8.9% to 6.9%, white collars from 60.2% to 58.6%. The downsizing of journalists was more significant at Caltagirone (-22.6%), smaller at Mondadori (-4%). As for the composition of the employees, La Stampa and Caltagirone marked a higher percentage of journalists (respectively, 58.9% and 49.9%), while Il Sole 24 ORE and Mondadori recorded a higher share of white collars (respectively 73.1% and 72%), also justified by the greater diversification of operations. The productivity of Publishing Groups was heavily affected by the commercial decline. In 2009, every employee on average expressed a productivity (net added value per capita) equal to 87 thousand, a figure that fell to 74 thousand in 2013 (-15%). Downsizing, turnover and contractual measures (layoffs and welfare programs) failed to affect labor costs to the same extent, down from 82 thousand on average in 2009 to 81 thousand in ULC (unit labor cost) was affected, as it grew from 94.3 % to 109.5%. This value means that the wealth produced only repaid part of the cost of labor and did not satisfy the remaining stakeholders: lenders (interest expense), the State (taxation, due for I.R.A.P., regional tax on productive activities) and entrepreneurs (dividends) or enterprises (retained earnings). The latter, having a residual position, absorbed the final loss. L Espresso was confirmed at the top in terms of labor productivity with 114 thousand per employee in 2013 (it had also marked the best value in 2009), ahead of Caltagirone with 75 thousand; all other Groups were below average ( 74 thousand) with the lowest value reported by Il Sole 24 ORE ( 54 thousand). Mondadori reported the lowest unit labor cost in 2013, amounting to 67 thousand per employee, nearly 30 thousand less than L Espresso, which recorded the highest figure at 96 thousand. The ULC is the ratio of labor costs and productivity, whose worst figure was marked by Il Sole 24 ORE which stood at 142.6%, behind La Stampa (131.3%). Five Groups out of seven reported values above 100% and only L Espresso and Mondadori stood below such threshold, but their labor cost also absorbed a significant portion of the added value (84% and 94%). The loss of competitiveness of the largest publishers between 2009 and 2013 amounted to 13.7 points (differential between the fall in productivity of 14.9% and a modest contraction in labor costs per unit of 1.2%). Mondadori and RCS marked the greatest deterioration of competitiveness (approximately - 23 points), Monrif and La Stampa the smallest ones (8 and 9 points, respectively) (Table 3). With regard to operating and net profitability (Table 4), in 2013 the overall picture was unsatisfactory and in deterioration for all Groups in the five-year period, both in terms of EBIT and in terms of income from continuing operations. L Espresso was an exception again, as it maintained a positive industrial profitability in 2009 although in decline (4.2% of EBIT over turnover in 2013, from 7.2% in 2009); negative figures were reported by all the remaining Groups, with lows for La Stampa (-14%) and Il Sole 24 ORE (-14.7%). It should be noted that in 2009 also Mondadori had a positive profitability, but in five years it lost ground significantly (7.9 pp in terms of EBIT and 8.8 pp in terms of income from continuing operations). These trends were confirmed by ROE and ROI, also all negative in 2013, always with the exception of L Espresso (ROI of 4.1%, ROE of 0.7%). The profit trend was also affected by the cost of paper that weighed more on the budget of Monrif (12.9% of sales in 2013) and had a minimum impact in the accounts of Il Sole 24 ORE (1.3% in 2013). Altogether, in the Groups examined the cost of purchasing paper decreased by 41% over the five-year period and its weight on the aggregate revenues fell from 7.4% to 6.1%. The financial structure was solid overall, but in deterioration and very differentiated between companies. The aggregate net capital was reduced by 40% in the five-year period because of accumulated losses amounting to 1,821 million 6. Two Groups excepted: La Stampa, thanks to capital contributions from the shareholder Fiat of 105 million ( 35m in 2012 and 70m in 2013), and L Espresso, which issued shares reserved for employees 5 If one excluded Flammarion, the workforce of RCS would fall by 23%. 6 Broken down as follows (in millions of Euros and in % of 2013 sales): and -89.2% for RCS, -227 and -17.8% for Mondadori, -223 and -57.9% for Il Sole 24 ORE, -200 and % for Caltagirone, -107 and -99.3% for La Stampa, -33 and -16.5% for Monrif and +142 and + 20% for L Espresso. L Espresso was the only Group that in the five-year period reported cumulative profits rather than losses.

3 amounting to 1.6 million in the period In June and July 2013, RCS also completed a capital increase in option of 410 million ( 401 net of costs incurred), but its equity still decreased in the five-year period (- 68% amounting to million). Even aggregate debts declined in the period, but by a smaller degree than equity (-36.2%). Between 2009 and 2013, all the Groups reduced their financial exposure, with the exception of Il Sole 24 ORE, whose overall payables grew from 15 to 57 million. On the whole, the weight of the aggregate financial debt on equity increased from 78.6% in 2009 to 98.3% in Monrif showed a greater fragility having financial debts amounting to almost five times its equity (they were 2.4 times as much in 2009), Caltagirone reported the lowest ratio (about 8%). Some Groups showed reasonable reserves of liquidity that reached 40.8% of equity for Monrif and just under 30% for L Espresso and Caltagirone (the latter had cash amounting to more than three times its financial debt). The publishing companies were characterized by a significant presence of intangible assets, consisting mainly in the value of publications and, at times, goodwill. These items for Mondadori reached 238.7% of equity, 165.9% for La Stampa, 147.3% for RCS. As a result, five out of the seven Groups recorded a negative tangible equity in 2013 (in 2009 there were three) and only Caltagirone and Monrif showed a positive tangible equity. With regard to the valuation of publications, excluding the write-downs made by Mondadori on French operations in the last two years ( 140 and 100 million) and by Caltagirone Editore on Quotidiano di Puglia, Gazzettino and Corriere Adriatico (totaling 32.9 million), the companies, despite a difficult context, confirmed the fairness of the values recognized in the financial statements with respect to their prospective earning capacity and thus the inappropriateness of posting any impairment losses. Based on a normalized index that summarizes three indicators of efficiency, operating profitability and financial structure (ULC, EBIT / Revenues and FD/Equity), one can derive a ranking of large companies by overall performance (Table 5). In 2013, L Espresso was the best performer, while Il Sole 24 ORE had the least diligent profile. In 2009, L Espresso occupied the same position, the bottom player being La Stampa, the only company to improve its position in the five-year period, recovering two positions in the rankings. Mondadori was confirmed as second in the rankings, followed by Caltagirone and RCS (stable in the third and fourth places); Il Sole 24 ORE lost two positions going down to the bottom of the rank. The effort made by publishers in terms of advertising and promotion does not appear to correlate with economic and capital performance. RCS and Mondadori invested more in advertising (respectively, 5.2% and 4.9% of sales in 2013), while the lowest impacts were marked by L Espresso (2.4%) and Caltagirone (1.5%). On aggregate, this figure declined marginally in the five-year period, from 3.7% to 3.5% (Table 6). Six out of seven Groups are listed on the Stock Exchange (the only one not being listed is La Stampa). RCS had the greater capitalization, followed by L Espresso. The aggregate capitalization marked a decline of 43.8% in the five-year period (capitalization on the Stock Exchange of industrial companies rose by 3.2%). Il Sole suffered the biggest fall with -68.4% (but it only floats special shares), Monrif limited the drop to -3% (Table 7). As shown in the balance sheet data, the circulation dynamic of newspapers published by the Publishing Groups being examined was negative. The number of copies decreased overall by 24.8% in the five-year period (Table 8), with lows of 28.4% for Corriere della Sera, 27.4% for La Repubblica and 26.8% for Il Sole 24 ORE. La Nazione -17.6% and Il Gazzettino -17.9% held up better. In 2013, Corriere della Sera remained firmly in the first place in terms of average circulation (386 thousand copies), ahead of La Repubblica (352 thousand, though this figure doubles to 717 thousand copies with local newspapers); Il Quotidiano Nazionale followed (Monrif, 278 thousand copies), La Stampa (225 thousand) and Il Sole 24 ORE (213 thousand). The Caltagirone Group sold 303 thousand copies, 148 thousand of which were of Il Messaggero. By way of comparison, the decline in circulation of newspapers was 23% in Europe, 10% in North America, 20% in Oceania 1 over the same period.

4 The ranking based on digital copies as at December 2013 (Table 9) 7 witnessed Il Sole 24 ORE excelling, the top national newspaper with 149 thousand copies sold, 50 thousand more than Corriere della Sera, in second place; La Repubblica and Il Fatto Quotidiano followed. Il Sole 24 ORE, more than the other publishing Groups, streamlined its printed products, so as to minimize the impact of the cost of paper on turnover, as seen above. The fact that digital editions represent the future of publishing was confirmed by the circumstance that between 2009 and 2013 the digital copies consumed in the world rose from 80 to 1,753 million, an increase of over 20 times 1. The graphs at the bottom show two indices calculated according to printed copies circulated: RCS obtained higher daily revenues per circulated copy than other Groups ( 1.14), L Espresso followed ( 1.08); Caltagirone brings up the rear ( 0.69). The journalists of La Stampa on average circulated more printed copies per day than their colleagues from other newspapers (2.73 copies), followed by L Espresso and RCS (respectively, 1.80 and 1.79, rising to 1.88 and 1.98 if one includes digital copies); the journalists of Il Sole 24 ORE (1.50 copies, rising to 2.42 if one also considers digital copies) bring up the rear. First half of 2014 (Table 10) The decline in sales continued in the first half of 2014, with aggregate sales declining by 7.4% overall. Mondadori marked the largest contraction (-10.3%), smaller for Il Sole 24 ORE (-2.4%). Profitability remained negative for all companies except for L Espresso, which was joined by Mondadori returning to a positive EBIT in the first half of The net result of Il Sole 24 ORE in 2014 was also a positive, but thanks essentially to the capital gain of 22 million on the sale of the software division. Change in % of revenues in (circulation, advertising, other and total) 80, 0 0, 4 0, 0-4, 6-8, 0-8, 4-1 3, 7-4, 9-4 0, 8-3 3, 0-4 0, 4-1 8, 9-4 3, 2-1 7, 1-2 4, 8-1 8, 9-1 9, 7-3 5, 5-3 1, 9-2 3, 5-2 0, 5-3 5, 9-3 9, 1-2 9, 1-3 4, 8-2 0, 0-5 7, 5-6 6, 7 G r u p p o R C S G r u p p o M o n d a d o r i G r u p p o Ed i t o r i a l e G r u p p o Il So l e 24 G r u p p o M o n r i f G r u p p o C a l t a g i r o n e Ed i t r i c e La St a m p a M e d i a G r o u p L'E s p r e s s o O R E Ed i t o r e C i r c u l a t i o n A d v e r t i s i n g O t h e r To t a l 7 As of January 2013, ADS also started to survey digital copies.

5 Composition of revenues in 2013 (in millions of Euros and %) RCS MediaGroup Mondadori Editoriale L'Espresso Il Sole 24 ORE Monrif Caltagirone Editore Editrice La Stampa Circulation Advertising Other 9, 0 3, 8 0, 6 4, 6 21, 8 36, 2 35, 6 56, 6 43, 2 56, 0 41, 7 11, 1 32, 7 33, 2 54, 8 53, 3 53, 7 39, 6 45, 5 43, 4 23, 6 G r u p p o R C S G r u p p o G r u p p o G r u p p o Il So l e G r u p p o M o n r i f G r u p p o Ed i t r i c e La M e d i a G r o u p M o n d a d o r i Ed i t o r i a l e 24 O R E C a l t a g i r o n e St a m p a L'E s p r e s s o Ed i t o r e C i r c u l a t i o n A d v e r t i s i n g O t h e r

6 % change in employees (journalists, blue collars, white collars and total) G r u p p o R C S G r u p p o Ed i t o r i a l e G r u p p o Il So l e 24 G r u p p o C a l t a g i r o n e M e d i a G r o u p G r u p p o M o n d a d o r i L'E s p r e s s o O R E G r u p p o M o n r i f Ed i t o r e Ed i t r i c e La St a m p a 0, 0-4, 0-6, 0-8, 4-7, 3-1 0, 0-1 2, 3-1 5, 5-1 7, 6-1 6, 7-1 8, 7-1 9, 0-1 9, 3-1 5, 4-2 2, 2-2 2, 3-2 2, 6-2 1, 0-2 1, 0-2 6, 0-2 7, 1-3 0, 2-3 2, 8-3 6, 8-3 8, 7-4 1, 6-4 4, 6-4 7, 0 B l u e co l l a r s W h i t e co l l a r s Jo u r n a l i s t s To t a l

7 Composition of employees in 2013 (in units and in %) RCS MediaGroup Mondadori Editoriale L'Espresso Il Sole 24 ORE Monrif Editrice La Caltagirone Stampa Editore Blue collars white collars and managers journalists 24, 1 21, 5 35, 9 43, 9 41, 2 49, 9 58, 9 57, 5 72, 0 45, 3 73, 1 42, 8 50, 1 31, 5 6, 6 3, 9 10, 8 5, 4 16, 0 9, 6 G r u p p o R C S G r u p p o G r u p p o G r u p p o Il So l e G r u p p o M o n r i f G r u p p o Ed i t r i c e La M e d i a G r o u p M o n d a d o r i Ed i t o r i a l e 24 O R E C a l t a g i r o n e St a m p a L'E s p r e s s o Ed i t o r e Bl u e co l l a r s w h i t e co l l a r s an d m a n a g e r s jo u r n a l i s t s

8 Productivity, labor costs per employee (in thousands of Euros) and ULC (%) in , , , , , 5 84, 2 94, G r u p p o G r u p p o G r u p p o M o n r i f G r u p p o G r u p p o R C S Ed i t r i c e La G r u p p o Il So l e Ed i t o r i a l e M o n d a d o r i C a l t a g i r o n e M e d i a G r o u p St a m p a 24 O R E L'E s p r e s s o Ed i t o r e N e t ad d e d va l u e La b o r co s t U L C (% ) EBIT in % of revenues in 2013 and ,2 7,2 5,0-2,9-4,9-1,0-6,9-3,5-2,3-9,9-11,1-13,2-14,0-14,7 Editoriale L'Espresso Mondadori Monrif Caltagirone Editore RCS MediaGroup Editrice La Stampa Il Sole 24 ORE

9 Financial debt in % of equity in 2013 and ,2 239,5 172,2 8,1 7,9 106,1 17,3 74,4 44,4 46,8 4,9 138,2 103,8 97,0 Caltagirone Editore Editrice La Stampa Editoriale L'Espresso Il Sole 24 ORE RCS MediaGroup Mondadori Monrif Overall performance - normalized ratios taken from the equally-weighted average of three economic-financial indicators (in brackets the difference with respect to 2009) 1,0 0,9 0,8 (0,00) 0,7 0,6 0,5 0,4 (-0,33) (-0,17) 0,3 (-0,27) 0,2 (+0,27) (-0,05) 0,1 (-0,22) 0,0 Editoriale L'Espresso Mondadori Caltagirone Editore RCS MediaGroup Editrice La Stampa Monrif Il Sole 24 ORE

10 % change in average circulation of major national newspapers -19,4-28,4-27,4-26,8-26,7-25,2 Corriere della Sera (RCS) La Repubblica (L'Espresso) Il Sole 24 ORE Il Messaggero (Caltagirone) La Stampa Quotidiano Nazionale (Monrif) Average circulation of major national newspapers in December 2013 (000 copies / day, print and digital) C o r r i e r e d e l l a Se r a La Re p u b b l i c a Q u o t i d i a n o N a z i o n a l e La St a m p a Il So l e 24 O R E Il M e s s a g g e r o (R C S ) (L ' E s p r e s s o ) (M o n r i f ) (C a l t a g i r o n e ) P r i n t D i g i t a l

11 Revenues per circulated copy and number of copies circulated per journalist Revenues per circulated copy (Euros) Number of daily copies per journalist 1,98 with digital copies 1,88 with digital copies 2,42 with digital copies 2,73 1,79 1,80 1,69 1,50 1,77 1,14 1,08 0,91 0,72 0,71 0,69 RCS MediaGroup Editoriale L'Espresso Monrif Il Sole 24 ORE Editrice La Stampa Caltagirone Editore

12 Table 1 - Revenues ( ) Var % Circulation including (dailies and foreign periodicals) Advertising Other Total Circulation (dailies and periodicals) Advertising Other Total millions of Euros and in % of total millions of Euros and in % of total including foreign Circulation Advertising Other Total RCS MediaGroup 1, , , , Mondadori , , , Editoriale L'Espresso (1) Il Sole 24 ORE (2) Monrif Caltagirone Editore Editrice La Stampa Totale 2,814 1, ,772 1,279 1,999 1, , , including foreign Italian publishing and printing industry (*) (1) The increase in in the item "Other" mainly refers to television. The TV section is divided into two activities: network operator owning two digital multiplexes and television publisher mainly Deejay TV channel. (2) Of which, 74 and 56 million for the daily newspaper, respectively, in 2009 and 2013 (-24.3% in the period ). (*) Source: Aggregate Data of 2050 Italian Companies (2014). Source: R&S-Mediobanca Table 2 - Employees ( ) Blue collars White collars and managers % change Journalists average number and % of total Total Of which abroad Blue collars White collars and managers Journalists average number and % of total RCS MediaGroup 542 4,096 1,854 6,492 3, ,510 1,566 4,363 1, ,8-43, Mondadori (1) 149 2, , , , ,3-3, Editoriale L'Espresso 462 1,526 1,215 3, ,129 1,093 2, ,2 0, Il Sole 24 ORE 155 1, , , , ,7 0, Monrif , , ,3 0, Caltagirone Editore , ,0 0, Editrice La Stampa ,0 0, Total 1,675 11,359 5,820 18,854 4,029 1,006 8,590 5,055 14,651 2, ,3-34, Total Of which abroad Blue collars White collars and managers Journalists Total Of which abroad Italian publishing and printing industry (*) 15,958 13, (1) Number of employees abroad at year-end (*) Source: Aggregate Data of 2050 Italian Companies (2014). Source: R&S-Mediobanca

13 Table 3 - Productivity and cost of labor per employee ( ) Productivity per employee (a) Var % Cost of labor per Productivity per Cost of labor per Productivity per Cost of labor per ULC ULC employee (b) (1) employee (a) employee (b) (1) employee employee (1) Loss of competitiveness b/a in % b/a in % (a) (b) (a)-(b) Editoriale L'Espresso ,1 Mondadori ,7 Monrif ,0 Caltagirone Editore ,8 RCS MediaGroup ,5 Editrice La Stampa ,3 Il Sole 24 ORE ,1 Average ,7 Italian publishing and printing industry (*) (1) Calculated by leaving out charges for lay-off incentives. (*) Source: Aggregate data of 2050 Italian companies (2014). Source: R&S-Mediobanca Table 4 - Financial indicators ( ) EBIT Profit on current operations ROI ROE Tangible Profit on Intangible Financial equity in % of current assets debt Cash financial debt EBIT operations ROI ROE Intangible assets Financial debt Cash Tangible equity in % of financial debt in % of revenues in % of equity in % of revenues in % of equity Editoriale L'Espresso neg neg. Mondadori neg neg. neg neg. Monrif neg neg. neg ,1 Caltagirone Editore neg. neg neg. neg ,6 RCS MediaGroup neg. neg neg neg. neg neg. Editrice La Stampa neg. neg neg. neg neg. Il Sole 24 ORE neg. neg neg. neg neg. Italian publishing and printing industry (*) -0, neg neg. neg (*) Source: Aggregate data of 2050 Italian companies (2014). Source: R&S-Mediobanca

14 Table 5 - Ranking - Normalized ratios drawn from equally-weighted average of 3 indicators (z-scores) (*) Z-score 2013 Rank 2013 Z-score 2009 Rank 2009 Editoriale L'Espresso Mondadori Caltagirone Editore RCS MediaGroup Editrice La Stampa Monrif Il Sole 24 ORE (*) ULC, EBIT/Revenues and FD/EQ. Source: R&S-Mediobanca Table 6 - Advertising and promotion expenses change in in % of revenues RCS MediaGroup Mondadori Il Sole 24 ORE Editrice La Stampa Monrif Editoriale L'Espresso Caltagirone Editore Average Source: R&S-Mediobanca

15 Table 7 - Stock exchange capitalization (1) Euro million Euro thousand % change RCS MediaGroup Editoriale L'Espresso Mondadori Caltagirone Editore Il Sole 24 ORE Monrif Total 3,116 1, (1) Calculated not including own shares in portfolio. Source: R&S-Mediobanca

16 Table 8 - Newspaper Circulation NATIONAL NEWS ORGANIZATIONS: NEWSPAPERS AVERAGE CIRCULATION (000 COPIES/DAY) % CHANGE PUBLISHING GROUP La Repubblica Editoriale L'Espresso Local newspapers (1) Editoriale L'Espresso Corriere della Sera RCS MediaGroup Il Messaggero Caltagirone Editore Il Gazzettino Caltagirone Editore Il Mattino Caltagirone Editore Nuovo quotidiano di Puglia Caltagirone Editore Corriere Adriatico Caltagirone Editore QN-Il Resto del Carlino Monrif QN-La Nazione Monrif QN-Il Giorno Monrif "Quotidiano nazionale" La Stampa Editrice La Stampa Il Sole 24 ORE Il Sole 24 ORE Total 2,822 2, In addition to 342 thousand copies in 2009 and 234 thousand copies in 2013 for La gazzetta dello Sport (RCS), the most circulated national sports newspaper (1) 18 local newspapers published in 10 different Italian regions. Source: Processing of R&S on data from ADS - Accertamento Diffusione Stampa.

17 Table 9 - Circulation of Major National Newspapers (print + digital) in December 2013 NATIONAL NEWS ORGANIZATIONS: NEWSPAPERS PRINT (000 COPIES/DAY) DIGITAL (000 COPIES/DAY) PRINT+DIGITAL (000 COPIES/DAY) digital in % of print Il Sole 24 ORE Corriere della Sera La Repubblica Il Fatto Quotidiano Italia Oggi L'Unione Sarda La Stampa Il Messaggero Il Gazzettino Il Mattino QN-Il Resto del Carlino QN-La Nazione QN-Il Giorno 51 o 51 - Total 1, , In addition to 227 thousand copies in 2013 for La Gazzetta dello Sport (RCS), the most circulated national sports newspaper (206 thousand print and 21 thousand digital). Source: ADS - Accertamento Diffusione Stampa.

18 Table 10 - Data of the first half of 2014 (in millions of Euros) 2014 in % of revenues 1H Data 2013 in % of revenues % change RCS MediaGroup Revenues ,6 EBIT neg/neg Income from continuing operations neg/neg Net profit neg/neg Mondadori Revenues EBIT pos/neg Income from continuing operations neg/neg Net profit neg/neg Editoriale L'Espresso Revenues EBIT Income from continuing operations Net profit Il Sole 24 ORE Revenues EBIT neg/neg Income from continuing operations neg/neg Net profit pos/neg Monrif Revenues EBIT neg/neg Income from continuing operations neg/neg Net profit neg/neg Caltagirone Editore Revenues EBIT neg/neg Income from continuing operations neg/neg Net profit neg/neg Total revenues 1,840 1, Source: R&S-Mediobanca on first half financial data. Editrice La Stampa n.a.