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Vocento Social

Vocento shareholders support the management strategy that has enabled operating profit to rise by +63.4% to 60.2 million euros, double the level of 2008

  • EBITDA has improved in all business areas, with a rise in the margin by 5 percentage points to 8.4%
  • Leadership on the Internet, and the positioning in the audiovisual market, have resulted in 20.1% of advertising revenues coming from these areas
  • The financial position remains solid, clearly differentiating the company from its competitors

Madrid, 13 April 2011.- The shareholders of Vocento approved today at the General Shareholder Meeting the annual and consolidated accounts of the Company and its subsidiaries for the year ending 31 December 2010. This vote reflects the support of shareholders for the management measures that the Group has implemented, which have enabled an increase in EBITDA of more than 23 million euros (+63.4%) to 60 million euros, which is double the level reached in 2008, despite the poor economic conditions in Spain and the difficult times that the media sector is going through.


These measures have led to a sharp improvement in efficiency, with cost savings of 164 million euros, and a rise in the margin by 5 percentage points to 8.4%. As chief executive officer José Manuel Vargas said, "this effort has enabled the Company to survive and evolve in an extremely difficult time for the advertising market."

Meanwhile, the company's strategy, based on leading brands and the generation of multi-channel content, has attracted new audiences and new advertisers, and has reinforced the position of Vocento on the Internet and in the Audiovisual market, which now provide 20.1% of the Group's advertising revenues. As Mr. Vargas said, this shows that "we have to continue migrating the revenue profile of the Group from dependence on the press to a greater role for the Internet and the audiovisual area."

The CEO also highlighted the solid financial position of the Group, which has net debt of 120.6 million euros and cash of 69 million euros, which clearly differentiates it from its indebted competitors. The strength of the balance sheet, combined with the Group's multimedia leadership, its brand strategy, and its positioning on the Internet and in the audiovisual market, mean that Vocento is in a privileged position in the sector. Mr. Vargas noted that "our business model is in a process of transition that will last for some years, but we are already taking major steps forward."

And the Chairman of Vocento, Diego del Alcázar, said that "Vocento has weathered the storm well; it has not embarked on high profile projects that may grab headlines but which could threaten the survival of the Group, and it is getting through the crisis with stronger finances and more peace of mind than most of its competitors."

In terms of operating results from the businesses, the CEO highlighted the positive performance of ABC, the only major national daily to win market share, both with a 1.7% rise in circulation, and with a 25% increase in online advertising, compared to the 19.2% growth of competitors (source: i2p). Mr. Vargas said that "ABC has continuously improved its results in a very competitive market and is closing in on the number two position."

The regional newspapers confirmed their leadership, with market share in circulation of 26% (source: OJD) and leadership on the Internet in all the markets where they operate. Despite the difficult economic conditions, the regional titles have maintained their results, and improved their profitability, with an increased contribution to advertising from the online editions (+12.2%), which now provide 10.3% of the total advertising revenues of the regional press.

In the audiovisual area, Vargas highlighted the growth of the national DTT business, with the launch of MTV and La 10, which in a fragmented market now has combined audience share of 4% for the four channels. This position, the increased activity of the content producers due to the emergence of new TV channels and the production of successful formats, and the growth of the Punto Radio network of broadcasters, have all made Vocento a key player in the audiovisual market.

VOCENTO is committed to the Internet, and the area contributed 11.2% of the Group's total advertising revenues. José Manuel Vargas explained that advertising revenues on the Internet rose by 23.6%, faster than the 19.2% growth of the market. There was online growth in all the business segments, particularly in Classifieds, where advertising increased by 32.4%, consolidating its leadership position in the key categories: employment (Infoempleo top#2), real estate (Pisos.com, with over a million users, top#3), and automotive (Autocasión top#5). Mr. Vargas said that the Internet, where Vocento is consolidating itself as the leader, with over 10 million unique monthly users, is the business "in which we have placed our hopes for the future."


The Chairman of Vocento also welcomed the performance of the Group and the new business model for the media sector, and added that "the challenge now is to monetize the potential of online media - now is the time to step up our efforts to confirm the leading position of our brands with our audiences, to compete with social networks and aggregators, and to move to the next phase for the online media, confirming Vocento as the leader in the Spanish media sector."

Meanwhile, the Chairman of Vocento defended the need to remain committed to the traditional media of the Group, i.e. the print press, which, far from being obsolete, has strengths and values that are essential in today's society. Diego del Alcázar said that the print press must maintain its role in society, and said that "newspapers are the foundations of Vocento's position as a leading company, its reputation, and its standing in the world of journalism and society as a whole."

As the media sector transforms from a sector based on different media vehicles to a business of brands, Vocento stands out because of the strengths of its brands, and its position in the regional and national media.

The company ended 2010 with a significant improvement in its operating profit, maintaining its focus on cost controls thanks to the strength of its balance sheet and its solid net financial position.

And Vocento is well positioned as one of the major players that will lead the Spanish media sector into the future.