Vocento revenues grow 4.8% during the first half of 2022

Vocento's total operating income during the first half of 2022 amounted to 163.7 million euros, with a decrease of 2.9% compared to the same period of 2021. This decrease is explained by the exit from the perimeter of NET TV and Veralia Distribution. Excluding this effect, and in comparable terms, revenues grew by 4.8%. A relevant fact for the Group during the first half of 2022 has been the rating by Bloomberg as the leader in the Spanish stock market according to the 2021 sustainability report, after revising the Transparency Coefficient upwards. In this way, Vocento advances in the elaboration of its strategic plan in Sustainability.

Copy sales show a 6.4% drop in the first half of 2022, due to paper sales, while the number of digital subscribers grows by 23% year-on-year to 95 thousand in the month of June . Of these, 65,000 correspond to the Regionals (ON+ and KyM) and 31,000 to ABC (ABC Premium and KyM). To boost the growth of digital subscriptions, Vocento has implemented a new strategic approach with centralized management.

Revenue from advertising sales grew by 4.7% in the first half of 2022 thanks to the good performance of local advertising, which increased by 11.2% as a whole, with a positive performance both in digital format (+24.4% ) and offline (+7.2%). National advertising, for its part, remains flat compared to the same period in 2021, although the trend improves in the second half compared to 2022 compared to the same period in 2022. The balance between the weight of local and national advertising proves to be a Vocento's strength in the current situation.

Other income improved 23.9% in comparable terms, driven by gastronomy, agencies and printing for third parties, among others.

EBITDA in the first half of the year amounts to 8.8 million euros. Without taking into account the changes in the perimeter after the deconsolidation of NET TV and Veralia Distribución and with the entry of Relevo as the Group's commitment to a new digital newspaper, the drop compared to the first half of 2021 is 2.5 million euros . The current economic uncertainty, with the decline in private consumption and increases in the price of paper and energy are determining factors in the operating evolution of EBITDA, as well as in the profitability of the sector in general. In this context, the Group approaches 2022 as a year of transition and advances in its strategy for growth in 2023, strengthening the Digital and Diversification areas.

The operating result (EBIT) decreased by 18.5 million euros compared to 1H21, a period in which the Group obtained capital gains of 10.6 million euros from the sale of the headquarters of El Diario Vasco. Ordinary cash generation in 1H22 stood at 5.3 million euros, affected by the increase in paper and energy prices. The Cash Flow yield ratio amounts to 28%, which measures the generation of operating cash in relation to Vocento's stock market value, while the net financial debt ex IFRS 16 is 4.7 million euros in 1H22. The latter gives the group complete freedom to choose the most convenient business opportunities to execute its strategy.

Results by business area

In newspapers, operating income stood at 135.6 million euros during the first half of 2022, which represents an increase of 1.0% compared to the first half of 2021. EBITDA stands at 9.9 million euros euros, 30% less than in the same period of 2021.

ABC's EBITDA during the first half of 2022 has been affected by the decrease in the reader margin (with a fall of 646 thousand euros) and in the print margin (-340 thousand euros), and stands at 427 thousands of euros. Both ratios are partially offset by an increase in advertising, which represents a growth of 118 thousand euros.

The EBITDA of Supplements and Magazines stands at 479 thousand euros; It is worth mentioning the celebration of the WomenNow congress, with a value of repercussion in the media of 14 million euros.

In the evolution of the profitability of the Regionals, the growth in advertising compensates part of the drop in the sales margin to readers, affected by the growth in the price of paper, lower margins in printing and distribution, and indemnities. EBITDA in the first half of 2022 stands at 10.3 million euros, 17.8% less than in the same period of 2021.

As for the Relevo sports project, it is progressing according to the planned plan and, after its launch on social networks in May, it already has 150,000 followers - with a goal of reaching 500,000 by the end of 2022 - and shows metrics of interaction of these superior to those of the competition. In addition, the launch of its website is scheduled for September.

In Audiovisual, operating income is 2.2 million euros during the first half of 2022, which is 3.8% less than in 2021 in comparable terms. EBITDA stands at 1.2 million euros, compared to 1.1 million in the first half of last year, also in comparable terms. This area is affected by the exit from the perimeter of NET TV and Veralia Distribución, an operation closed in January 2022, for which the variations are expressed as comparable, excluding the impact of said exit from the perimeter.

In Classifieds, operating income amounted to 13.7 million euros, with an 11.9% increase compared to the first. EBITDA in the first half of 2022 is estimated at 1.7 million euros, 28.8% less than in the first half of 2021. The increase in income is affected by the incorporation of Premium Leads to the perimeter. Likewise, real estate grew and motor decreased due to the chip supply crisis, although it should be noted that a change in trend has been observed with growth since June. In addition, it is worth mentioning the opportunity for Local Digital Kit (LDK) in the digitization business of SMEs, under the Next Generation Digital Kit program with European funds.

In Gastronomy and Agencies, operating income reached 14.4 million euros, 50.5% more than in the first half of 2021. EBITDA amounts to 1.1 million euros, compared to 0.8 million euros in 1H21, which represents an increase of 34.9%. Madrid Fusión has had a record edition in 2022, with 16,500 visitors and media coverage valued at 40.4 million euros. In Agencies and Others, activity is gradually recovering and it is expected that a large part of the profitability will be concentrated in the fourth quarter.

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