Results for January - September November 2008

Transcription

1 Results for January - September November 2008

2 Unbeatable Position for Capturing Growth Financial strength and business strength Capacity for strategy execution Sound financial position Flexible business structure (OPEX and CAPEX) Leading and reference brands in the market + = Opinion leadership Positioned to capture offlineonline migration Internet ABC Punto Radio Qué Rationalisation of audiovisual activity Restructuring underway 1

3 Highlights Content and Internet increased their contribution, and ABC circulation continues to improve: Revenues 637.1m (-3.8%) Circulation revenues +1.8% based on ABC (+16.5%) and Regional Press (+0.2%) Advertising -13.4%: general deterioration in advertising market. Internet +21.7% Other revenues +7.2%: excellent performance at Content and Classifieds EBITDA reflects the impact from financial crisis on advertising and VOC balanced between investing and strict cost control: EBITDA 7.4m (ex-non recurring items 20.7m) Impact of the fall in advertising spend ( -56.4m ex Qué!) Incorporation of Qué in the consolidation perimeter ( -8.8m) Non-recurring costs ( -13.2m) related to restructuring measures Cost reduction measures in all areas Rise in costs related to the implementation of the strategic plan in: ABC: circulation continues to improve, being the only national newspaper with double digit growth Radio: positioning to increase national coverage based on Technical Plan Internet: development of classifieds and vertical portals, leveraging in leading brands Positive impact from the rationalisation of the Audiovisual business (National DTT, Local TV, and Content) Net Profit 73.7m: capital gains from sale of land of ABC ( 30.0m) and from placing of 1.9% of Telecinco and dividend in Telecinco shares ( 143.2m) Remuneration compromise to shareholders: distribution of Telecinco shares equivalent to 2,5x 2007 dividend, modifying the payout policy for 2008 and 2009 Privileged financial position: -57.0m ( 93.8m cash) for development of the strategic plan 2

4 Highlights by Business Area Leadership in Print Media: the difficult advertising market is being offset by the good performance of circulation revenues and strict cost control High growth in ABC circulation ( +11.4% vs market -0.3% 1 ) Press leadership (5.5m readers 2nd EGM survey 08, with 2.3m readers at Qué!, +20.3%) Efficiency at Audiovisual: improvement in EBITDA losses of +5.9m Reduction in costs at loss-making areas: Local TV improves EBITDA +3.4m Implementation of national DTT model (EBITDA improves +6.3m, being positive in 2Q08 and 3Q08) Content: increase at all companies in both revenues ( +16.1m) and EBIT ( +3.8m) Internet positioning: Revenues +9.3%; B2C +14.9% Advertising revenues (+21.7%): Digital Editions +27.6% and more than doubling at Vertical Portals Other revenues (+4.8%): Classifieds +12.9% based on transactional business model Ranked 2 8th in Netview (20.7m unique monthly users, +17.7%) Major improvement in Classifieds and Verticals 2, based on development of portals: employment (u.m.u. +63%, top 2), real estate (u.m.u. +63%, top 4), auto (u.m.u. +23%, top 3) and finance (u.m.u. +333%, top 5) Note 1: Market data ex Público for comparative purposes with 2007 and ex ABC. Note 2: Source for rankings & positions Nielsen Netview. Source for unique monthly users and % of growth data Nielsen Site Census. 3

5 Consolidated Profit and Loss Account IFRS % Var Circulation revenues % Advertising revenues (13.4%) Other revenues % Total Revenue (3.8%) EBITDA (88.7%) Deprec. & Amortization (37.0) (38.5) 3.9% Net gains diposal of fixed assets n.r EBIT (98.5%) Impairment of other intangible assets (85.0) 0.0 n.a Profit of co.accounted equity method (67.8%) Net financial income (5.5) (3.2) (73.9%) Net gains disposal non-current assets (0.8) n.r. Profit Before Taxes % Corporation tax 8.6 (8.0) 207.1% Net result of assets maintained for sale n.a Net profit for the year % Minority interests (3.4) (4.8) 28.5% Net profit for the Dominant % Revenues -3.8%: Circulation revenues (+1.8%): improvement in ABC revenues (+16.5%), Supplements and Magazines (+4.3%) and stability in Regional Press (+0.2%) Advertising revenues (-13.4%): general deterioration in advertising market Advertising on Internet +21.7% Positive performance of Other Revenues (+7.2%) based on Content and Classifieds EBITDA 7.4m (ex-non recurring items 20.7m) Lower advertising revenues partly offset by generalised cost control Non-recurring costs ( -13.2m): ABC Optimization Plan and restructuring costs Perimeter: incorporation of Qué ( -8.8m) Write down of goodwill at Qué ( 85.0m) Net profit 73.7m Sale of ABC land ( 30.0m) Placing in market of 1,9% of TL5 and distribution of shares with capital gains of 143.2m 4

6 Consolidated Balance Sheet 30 September 2008 IFRS IFRS Non current assets Equity of the parent co Intangible assets Property, plant and equipment Total liabilities Investments equity method Gross Debt Other non current assets Other liabilities Current assets Cash and cash equivalents Other current assets Assets held for sale Total Assets 1, ,166.9 Total Equity & Liabiliaties 1, ,166.9 Solid net financial position -56.9m (available cash 93.8m) Variations: cash entry from incorporation of The Walt Disney Company into capital of Net TV ( 21.0m), placing of 1.9% of TL5 ( 56.6m), dividend entry from TL5 ( 39.8m), sale of ABC land ( 33.5m), and cash exit from payment of dividends (gross complementary dividend 23.8m) Intangible assets: write-down of goodwill at Qué ( 85.0m) Other non current assets: reclassification of current stake in TL5 (5.1%) at market value ( 64.8m) Assets held for sale: book value of ABC assets involved in the modernisation and technological upgrades of printing plant (Relevant Fact of 10 July) Distribution of reserves in TL5 shares (Relevant Fact 12 Sept) approved at Extraordinary General Meeting, equivalent to 2.5x 2007 dividend, modifying the pay out policy for 2008 and The current 5.1% stake in TL5 is compatible with the positioning in National DTT 5

7 Print Media ( m) (25.7) ,8 81,7 (4,9) (1,7) Revenues 2,7 (9.6) % EBITDA (75.7) % (28.8) ,6 52,3 (27,0) (8,8) Reg. Press National Press Free Press Supl.& Mag. Elimin. Highlights Press leadership: 5.5m readers (EGM 2nd survey 08). ABC the only national newspaper with increased readership vs. 1st survey 08 and 2nd survey 07. Qué! 2.3m readers (+20.3%) and Sup.&Magazines consolidates leadership, 6.8m readers (+3.0%) Revenues: 435.4m Circulation revenues (+4.3%): Regional Press (+0.2%) -rise in cover prices- significant performance of ABC (+16.5%) and Sup.&Magazines (+4.3%) Advertising revenues (-15.0%): decline in advertising spent: Free Press contributes 18.8m in a very competitive market EBITDA: 20.1m Regional Press ( 52.3m): despite the fall in advertising revenues ( -33.7m), EBITDA is reduced -29.4m, due to cost controls and lower promotion cost Continuation of Optimization Plan at ABC ( -3.2m) decreasing in promotions spending vs. Free Press ( -8.8m) cost control measures and integration process enable advertising impact on EBITDA to be partially offset Sup.& Magazines ( 3.6m): cost efficiency measures (decline in advertising -6.6m vs. EBITDA -4.2m) 6

8 Continuous Growth of ABC Circulation Development of ABC circulation 250,736 copies 263, ,088 copies 239, , , % 238, % 231, , % 4.4% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 (5.6%) (6.2)% (9.6%) Average quarterly circulation %Average variation in circulation (vs. quarter YoY) Source: OJD data are certified. Others pending certification Confirming the rising trend which started in 2007 Much higher growth than the market average, despite strong competition, based in particular on ordinary sales: Average circulation 250,736 copies, +11.4% vs. market decline 1-0.3%, and growth of ordinary sales by +12.0% vs. market decline -0.1% Average circulation September ,068 copies, +13.8% vs. market decline -0.8%, and growth of ordinary sales +5.2% vs. market +0.1% Note 1: market data ex Público and ABC for comparative purposes with

9 Audiovisual Revenues +29.0% EBITDA (5.4) (3.9) (8.2) +71.6% (2.3) (10.5) (7.2) (3.5) (7.1) (0.9) (7.9) Local TV National TV Radio Content Elim. Highlights Revenues +29.0%, 98.0m: Local TV: 10.6m Onda 6: leader Madrid Sep08 (31.5% local share) National DTT: improvement in revenues ( +8.5m) after strategic agreement with Disney and start of Intereconomía TV channel DTT penetration up to 37% (2nd EGM survey) Disney Channel: consolidating leadership among thematic channels (7th in TNSofres ranking) Radio: unfavourable comparative due to Protagonistas 10,000 in 1H07 Impact of reduction in advertising spent Audience 523,000 (2nd EGM survey 08) Content: 67.2m ( +16.1m; +31.5%): positive performance from production companies and successful premieres from Tripictures EBITDA improved by +5.9m (+71.6%) vs : Local TV: EBITDA improved +3.4m despite advertising fall ( -2.3m), thanks to cost control National DTT: EBITDA up by +6.3m with positive EBITDA in 2Q08 & 3Q08 confirming viability of business model Radio: flexible costs model (minimizing the impact of advertising in EBITDA) Content: positive performance and centralisation of corporate services (EBITDA up to 13.5m) 8

10 Internet Revenues Highlights (1.6) % EBITDA (51.7) % , (1.4) (0.7) (0,2) (0.8). Digital Edit Vertical Portals Classified B2B Elim. Note 1: Source for unique monthly users and %growth data Nielsen Site Census. Source for rankings & positions Nielsen Netview Revenues +9.3%, to 44.1m: growth of advertising +2.4m (+21.7%) based on B2C and other revenues due to Classifieds: Digital Editions: significant rise in revenues +2.3m (+26.9%), growth in advertising (+27.6%), modernisation of local portals, integration of Que.es (1.7m 1 users) and investment in ABC.es Vertical Portals: doubling of advertising (2.4x) and integration of finanzas.com after acquisition Classifieds: growth of other revenues +0.9m (+12.9%). Focus on infoempleo.com B2C represents 55% of revenues in the area (52% in ) EBITDA 2.2m vs 4.6m in due to investments in B2C platforms as strategic bet in the area Vocento holds the number 8 Netview ranking, with 20.7m 1 u.m.u. (+17.7%, 3x market growth): Digital Editions 1 : ABC.es +22.8% u.m.u.; Local Portals +24.0% u.m.u. Classifieds and Verticals 1 : employment (+63% u.m.u., top 2), real estate (+63% u.m.u., top 4), autos (u.m.u. +23%, top 3) and finance (u.m.u. +333%, top 5 ) 9

11 Other Businesses Revenues Highlights (1.5)% (1.0) (1.0) EBITDA (0.1) +10.8% Revenues 163.5m Distribution: decline of -3.0% because its links to Print Media area Printing: good performance from area thanks to higher installed capacity Start of operations at Printolid print plant (Norte de Castilla) EBITDA +10.8%; 11,1m Distribution: lower activity partly offset by cost control and by diversification in product distribution Printing 8.4m up by +14.3%, with margin expansion of +1.5pp Printing Distribution Others Elim. 10

12 Disclaimer This document contains statements that constitute forward looking statements in its general meaning and within the meaning of the Private Securities Litigation Reform Act of These statements appear in a number of places in this document and include statements regarding future growth in the different business lines and the global business. market share. financial results and other aspects of the activity and situation relating to the Company. Analysts and investors should bear in mind that such estimates do not amount to any warranty as to the future behaviour or results of the Company. and they shall bear all risks and uncertainties with regard to relevant aspects. and thus. the real future results and behaviour of the Company might be substantially different from what is stated in the said predictions or estimates. Analysts and investors are cautioned not to place undue reliance on those forward looking statements which speak only as of the date of this presentation. Vocento. S.A. undertakes no obligation to release publicly the results of any revisions to these forward looking statements which may be made to reflect events and circumstances after the date of this presentation. including. without limitation. changes in Vocento s business or acquisition strategy or to reflect the occurrence of unanticipated events. Analysts and investors are encouraged to consult the Company's Annual Report as well as periodic filings filed with the Spanish Market Regulator. The financial information contained in this document has been prepared under International Financial Reporting Standards (IFRS). This financial information is unaudited and. therefore. is subject to potential future modifications. This document is only provided for information purposes and does not constitute. nor may it be interpreted as. an offer to sell or exchange or acquire. or solicitation for offers to purchase any share in the Company. Translation of a report originally issued in Spanish. In the event of a discrepancy. the Spanish-language version prevails. 11

13 Thank You Investor Relations and Shareholders Office C/ Juan Ignacio Luca de Tena, Madrid Tel.: Fax: ir@vocento.com 12