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Vocento Social

Vocento improves EBIT and Net Income in the first quarter of 2012

  • Significant improvement in results from ABC, DTT and Radio, and in the comparable EBIT and Net Profit of the Group, despite the cycle
  • Internet advertising revenues now represent 14.5% of the total, two percentage points more than in 1Q11.
  • Continued cost reduction, with costs down 10.3% in the quarter
  • Vocento has a financial position that differentiates it from the sector and enables it to withstand the cycle


Madrid, 10 May 2012.- Despite the difficult economic conditions, which are having a major impact on the media sector, Vocento outperformed the market in the first quarter of the year.
Vocento is investing in new engines of growth and revenue drivers and is focused on high quality, profitable circulation. In addition, its commercial strategy differentiates it and enabling it to outperform the market, while its focus on efficiency and cost discipline has also been reflected in its financial results.

Costs were reduced by 10.3% in comparable terms in the first quarter, which offset the fall in revenues and led to an improvement in profitability, especially at ABC, DTT and Radio.

Comparable EBITDA was 7.1 million euros in the quarter, a decline of just 1.1 million euros from the first quarter of 2011, despite a fall in advertising revenues of almost 10 million euros. The comparable operating profit of the Group increased by 0.4 million euros, with comparable net income increasing by 0.1 million euros.

Elsewhere, the new commercial strategy and in particular the launch of the advertising rate Única 3.0, which provides advertisers with increased coverage for their spend, led to a rise in advertising revenues and in the average price charged. In addition, it resulted in a rise in the Group's share of the advertising market, even with average price rises of 10% for national advertising in the first quarter of 2012.

Despite economic conditions and the current situation of the media sector, Vocento maintains a net financial position that differentiates it from the sector, with -144.4 million euros and cash of 36.2 million euros, enabling it to continue to implement its strategy despite the adverse cycle.

Results by business area

In print media Vocento increased its market share and consolidated its leadership of the news category in the press sector, with 4.2 million users according to the latest EGM survey, and also online, with 10.4 million unique monthly users according to the latest data from the Nielsen Online hybrid measurement system.

Advertising revenues in the area outperformed the market, declining by 18.5% compared with 21.2% for the market.

The variable net margin from the sale of ABC and the regional newspapers improved by almost one million euros. The group's new strategy is based on high quality, profitable circulation, reducing block sales and collective subscriptions and cutting costs significantly.

As a result, ABC was the only national daily to increase its kiosk sales in the first quarter of the year, by 2.1%. This strong performance at kiosks and the price rise on weekdays led to a 7.2% increase in circulation revenues. The new strategy, combined with cost reduction measures, resulted in a 1.1 million euros improvement in the comparable EBITDA of ABC.

The Regional Press of Vocento outperformed its competitors in regional markets in both advertising and circulation, with an EBITDA margin of 13.2% in the quarter, reflecting the efficiency measures and cost savings that have been implemented.

There was a significant improvement in the EBITDA of the audiovisual area, which improved to positive comparable EBITDA of 2.2 million euros from a negative 0.3 million euros in the first quarter of 2011.
The DTT business made a major contribution to this result, with an improvement in EBITDA of 3.2 million euros, reflecting the value creation in the television business. In the first quarter of 2012, the audience for the Net TV multiplex reached 5%, while in its first month of broadcasting Paramount Channel had an audience share of 1.1%.

There was also a positive improvement in the radio business, which reduced comparable losses by 0.2 million euros thanks to cost reductions and to the benefits of the new combined brand strategy for the print and online versions of ABC and the radio station. This resulted in a better advertising performance than the market.

Vocento consolidated its leadership of the news category on the Internet, and maintained the seventh position in the total ranking of online audiences and remains the leading media company in the list. ABC.es improved its market share, with a 17.8% rise in readership compared with declines at its competitors.

Advertising revenues from Internet now represent 14.5% of the total, two percentage points more than in the first quarter of 2011. In addition, the Classifieds area recorded a 16% rise in advertising, compared with 6.4% for the market. Classified advertising contributed 35.6% of total Internet revenues.

Finally, in the first quarter of the year Vocento launched Oferplan.com, a daily selection of online coupons and discounts. Combined with Kiosco y Más, this is providing a new stream of revenues in the Internet area.

Vocento

Vocento is the leading multimedia communications group in Spain, thanks to the strength of its brands, which have leading positions in all areas of information and entertainment, including newspapers, supplements, magazines, television, radio, audiovisual production, film distribution and Internet.

The national, regional and local positioning of Vocento, its permanent commitment to innovation and the power of its brands all mean that it has a much wider reach than its competitors, with total coverage of more than 30 million people according to the EGM.

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