COFINA, SGPS, S.A. Public Company
Head Office: Rua do General Norton de Matos, 68, r/c - Porto Fiscal number 502 293 225
Share Capital: 25,641,459 Euro
1st Half 17 FINANCIAL INFORMATION (Unaudited)This document is a translation of a document originally issued in Portuguese, prepared using accounting policies consistent with the International Financial Reporting Standards and with accordance with the International Accounting Standard 34 - Interim Financial Reporting, some of which may not conform or be required by generally accepted accounting principles in other countries. In the event of discrepancies, the Portuguese language version prevails.
The consolidated financial information of Cofina for the first half of 2017, prepared in accordance with the principles of recognition and measurement of International Financial Reporting Standards (IFRS), can be presented as follows:
(amounts in thousand of Euro) | 1H17 | 1H16 | Var (%) | |
Consolidated operating revenue Circulation Advertising Alternative marketing products and others Operating income by segment Newspapers Magazines | 43,991 | 48,471 | -9.2% | |
22,810 | 25,329 | -9.9% | ||
14,454 | 15,147 | -4.6% | ||
6,727 | 7,995 | -15.9% | ||
43,991 | 48,471 | -9.2% | ||
37,117 | 39,905 | -7.0% | ||
6,874 | 8,566 | -19.8% | ||
Operating Expenses (a) | 38,368 | 42,030 | -8.7% | |
Consolidated EBITDA (b) | 5,623 | 6,441 | -12.7% | |
EBITDA Margin | 12.8% | 13.3% | ||
Newspapers EBITDA | 6,286 | 7,016 | -10.4% | |
Newspapers EBITDA Margin | 16.9% | 17.6% | -0,7 pp | |
Magazines EBITDA | -663 | -575 | -15.3% | |
Magazines EBITDA Margin | -9.6% | -6.7% | -2.9 pp | |
Restructuring Costs | -2,000 | 0 | -43.8% | |
Consolidated EBITDA after restructuring costs | 3,623 | 6,441 | ||
Amortisation and depreciation (-) | 923 | 1,265 | -27.0% | |
EB | IT | 2,700 | 5,176 | -47.8% |
EBIT Margin | 6.1% | 10.7% | ||
Net financial income / (loss) | -1,482 | -1,588 | 6.7% | |
Current Income | 1,218 | 3,588 | -66.1% | |
Current Income Margin | 2.8% | 7.4% | ||
Income before taxes and non-controlling interests | 1,218 | 3,588 | -66.1% | |
Income taxes (-) Minority interests (-) | 500 | 1,248 | -59.9% | |
Net consolidated profit / (loss) | 718 | 2,340 | -69.3% | |
Operating expenses excluding amortisation
EBITDA = Earnings before interest, taxes, depreciation and amortisation
The period in question was characterized by a decrease in total revenues compared to the same period last year (-9%), with a decrease in all its components: circulation revenues (-10%), advertising revenues (-4.6%) and alternative and other marketing revenues (-16%).
Taking into account the adverse context, Cofina is implementing a restructuring plan, which aims to prepare the company for current and future reality, guaranteeing its sustainability and adequate levels of profitability. The plan goes through the optimization of the structure and product portfolio. In this sense, the profit and loss statement for the first half includes 2 million Euro related to restructuring costs.
EBITDA before restructuring costs amounted to approximately 5.6 million Euro, which corresponds to a decrease of around 13% compared to the same period of last year.
Consolidated net profit reached approximately 0.7 million Euros.
As at 30 June 2017, Cofina's nominal net debt was 56.0 million Euro.
In operational terms, Cofina is developing new business units, particularly an online gaming platform, which is currently under approval, and is expected to be operational during the 2nd half of 2017.
Following are some indicators of the main business segments, excluding restructuring costs:
Newspaper Segment(amounts in thousand of Euro) | 1H 17 | 1H 16 | Var % |
Operating income | 37,117 | 39,905 | -7.0% |
Circulation | 19,123 | 20,605 | -7.2% |
Advertising | 12,381 | 12,567 | -1.5% |
Alternative marketing products and others | 5,613 | 6,733 | -16.6% |
Operating expenses (a) | 30,831 | 32,889 | -6.3% |
EBITDA | 6,286 | 7,016 | -10.4% |
EBITDA Margin | 16.9% | 17.6% | -0.7 pp |
(a) Operating expenses excluding amortisation
In the first half of 2017, the Cofina newspaper segment presented total revenues of approximately
37.1 million Euro, a decrease of around 7% over the same period of last year. Revenues from circulation decreased by around 7% to 19.1 million Euro. Advertising revenues declined by 1.5% to
12.4 million Euro. Revenues associated to the alternative marketing declined around 17% to 5.6 million Euro.
Accordingly, EBITDA in the newspaper segment amounted to Euro 6.3 million, a decrease of around 10% over the same period of last year. The EBITDA margin reached 16.9%.
The newspaper segment includes the results of the "Correio da Manhã TV" channel, which has consistently beaten audience records. Thus, in the first half of 2017, CMTV recorded a 2.5% share, being the channel with the highest audience in the cable and the fourth largest Portuguese channel, behind Free to Air channels, being only present in 85% of the market (not present on the Vodafone and Nowo platforms).
Magazine SegmentDuring the first half of 2017, total revenues in this segment reached approximately 6.9 million Euro, reflecting a decrease of around 20% over the same period of last year.
(amounts in thousand of Euro) | 1H 17 | 1H 16 | Var % |
Operating income | 6,874 | 8,566 | -19.8% |
Circulation | 3,687 | 4,724 | -22.0% |
Advertising | 2,073 | 2,580 | -19.7% |
Alternative marketing products and others | 1,114 | 1,262 | -11.7% |
Operating expenses (a) | 7,537 | 9,141 | -17.5% |
EBITDA | -663 | -575 | -15.3% |
EBITDA Margin | -9.6% | -6.7% | -2.9 pp |
(a) Operating expenses excluding amortisation
The circulation revenues decreased by 22% to around 3.7 million Euro, while advertising decreased by around 20%. Revenues associated with alternative marketing products fell by 12%.
The EBITDA of the magazine segment was - 663 thousand Euros.
It should be noted that in the reorganization process the printed edition of the weekly Flash magazine (keeping only the online edition) was closed, which meant non-recurring costs and less revenue compared to the same period of the previous year. On the other hand, the contract with Conde Naste was not renewed, so from September onwards, the monthly fashion magazine Vogue will no longer be published by Cofina.
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Cofina SGPS SA published this content on 27 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 July 2017 18:28:04 UTC.
Original documenthttp://www.cofina.pt/~/media/Files/C/Cofina/press/releases/2017press/Cofina2Q2017resEN.pdf
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