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Vocento Social

Net profit at Vocento improves by 9.5 million euros, or 64.6%, excluding capital gains

  • ABC reduces the gap in circulation with its closest competitor
  • Improved profitability at the audiovisual business, consolidating leadership in thematic DTT
  • Online advertising increases by 25.8%, compared to 11.4% for the market

EBITDA improves by 12.9 million euros, based on cost reductions of 21.7 million euros

Madrid, May 2010.- Net profit in the first quarter of the year improved by 9.5 million euros compared to the first quarter of 2009, excluding last year's capital gains from the sale of land belonging to ABC.

In the first three months of the year, Vocento reported EBITDA of 9.5 million euros, an improvement of 12.9 million euros from the first quarter of 2009. This reflects the positive impact of the restructuring measures implemented by the group, which led to a cost reduction of 21.7 million euros.

Elsewhere, in the first quarter of the year the decline in advertising showed signs of slowing down, falling by 4.7% compared to 28.3% in the previous year. Supplements and Magazines and the Internet, with increases of 10% and 25.8% respectively, outperformed the market. Overall, the group reported sales of 175.6 million euros.

In a difficult situation for the entire sector, Vocento continues to have a solid financial position, with net debt of 94.1 million euros and cash of over 86.6 million euros.

Results by business area

In the print media area, revenues were 118 million euros, slightly lower than the previous year, because of market conditions. The restructuring measures and cost costs in this area have led to a major improvement in profitability, with EBITDA of 7 million euros, with all segments improving thanks to total cost cuts of 20.5 million euros.

A highlight of the quarter was the good performance of ABC was, with circulation sales increasing by 0.8%, based on a better circulation performance than its competitors. Vocento's flagship newspaper cut by the circulation gap with El Mundo to one third, down to just 45,500 copies, compared with 117,443 in the same quarter of 2007.

The audiovisual area had an excellent performance, with significant increases in revenues and improving profitability. Revenues increased by 5.8%, based on the strong performance of National DTT, the increased activity of the production companies, and the increase in advertising sales on the radio, following the acquisition of Onda Rambla and the rise in the Punto Radio audience, due to the increase in coverage and the investment made in leading journalists. Meanwhile, Disney Channel is the leading thematic channel on DTT, with market share of 2.2% (according to Kantar Media data for April 2010), even before any impact on numbers of the analogue switch-off.

EBITDA in the Audiovisual area was 4.5 million euros, an increase of 82.9% from the same period in the previous year. This improvement in profitability was based on cost control measures, the divestment of non-strategic assets in Local TV, and the company's business strategy for National DTT.

The Internet was the best performing area in the first quarter of the year. Advertising increased by 25.8%, well above the market average, and Internet advertising revenues now represent 10.9% of total advertising. Meanwhile, Vocento was the leading media group on the Internet for the fourth consecutive month, with close to 10 million users, and a 5.4% increase in unique monthly users, according to Nielsen NetView data for April 2010.

Highlights in the Internet area include ABC.es, which had an 11.6% increase in traffic in April, and the Classified advertising portals, which hold leading positions in their categories: Pisos.com and Autocasion.com are third in their category, while Infoempleo is the number two employment portal. EBITDA improved by 64.8% in the Internet area in the first quarter of the year.


Vocento is a leading multimedia company in Spain, thanks to the strength of its brands, which have a significant presence in all areas of information and entertainment, including the press, supplements, magazines, television, radio, audiovisual production, movie distribution, and the Internet.
The national, regional and local positioning of Vocento, its permanent commitment to innovation, and the strength of its brands, enable the company to extend its reach beyond its competitors, covering over 27.4 million people, according to the EGM. For more information, go to Vocento.com.