Vocento revenues grow 4.8% in comparable terms until June

Headquarters of Vocento. / CR

The group closes the first semester with an Ebitda of 8.8 million euros

Vocento has recorded operating income of 163.7 million euros in the first half of 2022, which represents a decrease of 2.9% compared to the same period last year. This decrease is explained by the exit from the perimeter of the NET TV and Veralia Distribución businesses. Excluding this effect, and in comparable terms, revenues grew by 4.8%.

The group highlights a relevant fact for its business in the first half of the year, having been classified by Bloomberg as a leader in the Spanish Stock Exchange according to the 2021 sustainability report, after revising the transparency coefficient upwards. Vocento advances in the elaboration of its strategic plan in sustainability.

Regarding the results, the sales of copies presented a fall of 6.4%, while the number of digital subscribers grew by 23% in the interannual rate to 95,000 in June. Of these, 65,000 correspond to the regional ones (ON+ and KyM model) 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% thanks to the good performance of local advertising, which increased by 11.2%, with a positive behavior both in digital format (increase of 24.4%) and offline ' (7.2% more). National advertising, meanwhile, remains flat, although the trend improves in the second quarter. The balance between the weight of the local and the national proves to be a strength of Vocento in the current situation, according to the group.

In this way, the Ebitda amounts to 8.8 million euros in the first half. 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 year-on-year drop is 2.5 million. Economic uncertainty, with the withdrawal of consumption and increases in the price of paper and energy are determining factors in this evolution.

For its part, the operating result (EBIT) decreased by 18.5 million euros compared to the first half of 2021, a period in which the group obtained capital gains of 10.6 million euros from the sale of the headquarters of 'El Basque Newspaper' in San Sebastian.

Ordinary cash generation stands 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. The latter gives the group complete freedom to choose the most convenient business opportunities to execute its strategy.

Results by business areas

In the newspaper part, operating income stood at 135.6 million euros, which represents an increase of 1%. Ebitda is estimated at 9.9 million euros, 30% less.

ABC's Ebitda has been affected by the decline in the readership margin (with a fall of 646,000 euros) and in the print margin (-340,000 euros), standing at 427,000 euros. Both ratios are partially offset by an increase in advertising, which represents a growth of 118,000 euros.

The Ebitda of Supplements and Magazines stands at 479.00 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 regional ones, the growth of advertising compensates part of the drop in the margin of sales to readers, affected by the growth in the price of paper, lower margins of printers and distribution, and indemnities. The Ebitda is 10.3 million euros, 17.8% less.

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, which is 3.8% less in comparable terms. Ebitda stands at 1.2 million euros, compared to 1.1 million 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. The Ebitda is estimated at 1.7 million euros, 28.8% less. 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. Ebitda amounts to 1.1 million euros, compared to 0.8 million euros, 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, the activity is gradually recovering and it is expected that a large part of the profitability will be concentrated in the fourth quarter of this year.