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Vocento Social

Vocento reports revenues of 448.7 million euros and net profit of 32.6 million euros

Madrid, July the 31st, 2008.- ABC continues to perform strongly, with circulation up 9.1% in the first half of the year

Vocento reported revenues of 448.7 million euros in the first half of the year, based on a rise in circulation sales (+2.5%) and on the good performance of ABC, which has consolidated its trend for rising sales, with circulation up by 9.1%. The economic deceleration and the slowdown in consumption has impacted advertising revenues, which fell by 10.8% overall, although online advertising sales rose by 22.4%.

Group EBITDA in the period was 17.7 million euros, due to the slowdown in the advertising market, the integration of the free daily Qué!, and the existence of non-recurring costs. Excluding these extraordinary costs, EBITDA would have been over 27.6 million euros. There was an improved contribution to EBITDA from the audiovisual business, where EBITDA improved by 67%, thanks to the success of the business model for national DTT, following the free-to-air launch of the Disney Channel, and also to the good performance of the audiovisual production area and cost control in all areas.

As a result of the above, net profit in the first half of the year was 32.6 million euros. This reflects the capital gains derived from the placing in the market of 1.9% of Telecinco.

Vocento closed the first half of the year with a solid balance sheet, as reflected by its level of debt. The Extraordinary General Meeting of shareholders on 30 July approved the distribution of Telecinco shares (6% of by its share capital) with a value of 127 million euros, and a cash dividend of 0.0537 per share. In total, the operation represents an advance payment of the dividends corresponding to 2008 and 2009.

Results by business area

In print media, the rise in circulation sales and cost reduction measures have led to a stabilisation in first half results, in spite of the advertising slowdown. The major highlight has been the strong performance of the national press, thanks to the progress made at ABC, which had average circulation of 256,607 copies in the period, or 9.1% more than in the same period last year, well above the market average of 2%. In addition, there was a significant rise in the readership of Qué!, up 20.3% from the second EGM survey of 2007 to 2.3 million readers. These figures are the basis for Vocento's leadership of the Spanish press, with 5.5 million readers (2nd EGM survey 08).

Audiovisual revenues increased by 28.7% and EBITDA improved by 4.7 million euros. The Content area made a major contribution, with revenues up 38.8%, based on the success of entertainment programmes produced by Vocento companies. Another strong area of the audiovisual business in the first half of the year was National DTT, which obtained positive EBITDA in the second quarter, after the start of broadcast of the Disney Channel and of Intereconomía TV. This confirms the viability of Vocento's business model for DTT.

Growth continued in the Internet business, with advertising sales rising by 22.4%, thanks to the investments made in Online Editions (+28.1%), Vertical Portals -where advertising sales doubled- and Classifieds. This increase in advertising spend accompanied the rise in audience numbers, with now over 18.1 million unique monthly users accessing Vocento portals, an increase of 41.7%. The largest increase in users was seen at the online editions (ABC.es and the local portals) and at the vertical portals.