IMPRESA : 2nd quarter 2017 Results

IMPRESA

IMPRESA - SGPS, S.A.

Publicly Held Company Share Capital Eur 84,000,000 Rua Ribeiro Sanches, 65 1200-787 Lisbon

NIPC 502 437 464

Commercial Registry Office of Lisbon

Press Release: IMPRESA Accounts 2nd Quarter 2017

1. Main events of the 2nd quarter 2017

   • Following the trend of the last few years, net remunerated debt fell 7.5 M€ year- on-year to 189.1 M€.

   • IMPRESA achieved a positive net income of 2.8 M€, which represents less se (- 22.5% relative to the 2nd quarter of 2016, penalised by the restructuring costs of

     1.3 M€ registered during the 2nd quarter of 2017.

   • The total revenues of the IMPRESA Group reached 53.9 M€, a decline of 4.8%, although the rise in tv advertising and circulation revenues, did not compensate the decline in the IVR and advertising in the Publishing area.

   • The operating costs reduction policy continued, with a decrease of 2.6% in the 2nd quarter of 2017, in spite of the recording of restructuring costs.

   • EBITDA adjusted for restructuring costs reached 8.1 M€, representing a year- on-year decline of 6.4%.

   • Financial results improved by 13.4% to 1.9 M€.

   • SIC ended the 1st half of 2017 with an average share of 17.0%, maintaining its leadership position in the commercial target (A/B CD 25/54) during prime time, on weekdays, with a share of 22.1%.

   • SIC Notícias stood out once again as the leading information channel, with a share of 2.1%.

   • The EXPRESSO continues to be the newspaper with the highest sales in Portugal, with an average of 91,000 unit sales, according to APCT in the period between January and April 2017.

   • The continued focus on digital formats means that digital, advertising and circulation revenues currently represent 10.9% of the total turnover of the Publishing area.

   • In April 2017, the new video website of the IMPRESA Group - SMACK.pt was launched, targeting the youngest public.

     Table 1. Main Indicators (Values in €)	jun-17	jun-16	ch %	2nd Qt 2016	2nd Qt 2015	ch %
     Total Revenues	99.172.048	104.517.246	-5,1%	53.903.566	56.605.051	-4,8%
     Television	76.073.247	80.180.750	-5,1%	41.476.386	43.331.183	-4,3%
     Publishing	22.336.980	23.917.474	-6,6%	12.201.734	13.207.921	-7,6%
     InfoPortugal	1.096.541	816.060	34,4%	527.046	369.149	42,8%
     Intersegments & others	-334.720	-397.039	-15,7%	-301.600	-303.203	-0,5%
     Operating Costs	93.031.963	96.045.850	-3,1%	47.106.711	48.346.809	-2,6%
     EBITDA	6.140.085	8.471.396	-27,5%	6.796.855	8.258.242	-17,7%
     EBITDA Margin	6,2%	8,1%	12,6%	14,6%
     EBITDA Adjusted	7.739.045	9.394.112	-17,6%	8.134.098	8.686.445	-6,4%
     EBITDA Television	7.108.129	10.539.609	-32,6%	6.395.992	8.506.901	-24,8%
     EBITDA Publishing	274.995	-93.120	n.a.	998.552	465.945	114,3%
     EBITDA Infoportugal & Othe	-1.243.039	-1.975.093	37,1%	-597.689	-714.604	16,4%
     Net Profit	85.603	1.226.643	-93,0%	2.844.755	3.671.428	-22,5%
     Net Debt & Leasings (M€)	189,1	196,6	-3,8%	189,1	196,6	-3,8%

     Note: EBITDA = Operating Results + Amortisations and Depreciation + Impairment Losses. Net Debt = Loans (ST+MLT) - Cash and Cash Equivalents + Financial Leases. (1) Does not consider Amortisations and Depreciation and Impairment Losses.

     (2) Adjusted for 1.56 M€ of restructuring costs in the 1st half of 2017 and 1.38 M€ in the 2nd quarter of 2017,and 922,000 euros in restructuring costs on the 1stsemester 2016, which includes 450,000 euros registered on 2º quarter 2016.

2. Analysis of the Consolidated Accounts

   In the 2nd quarter of 2017, IMPRESA reached consolidated revenues of 53.9 M€, which represented a decrease of 4.8% in relation to 56.6 M€ recorded in the 2nd quarter of 2016. This evolution in consolidated revenues was driven by the decline in the multimedia, alternative products and advertising in the Publishing area.

   The following should be noted relative to business in the 2nd quarter of 2017:

   • 1.0% increase in advertising revenues, with the decrease in paper advertising, offset by the growth in Television and in Digital advertising.

   • 0.3% increase in advertising sales, for the 2ndconsecutive quarter.

   • 1.3% increase in channel subscription revenues, as a result of the expansion of the domestic and international market.

   • 36.6% decline in other revenues, namely in multimedia and alternative products.

In the 1stsemester of 2017, consolidated revenues reached 99,2 M€, a 5.1% decline versus the 1stsemester 2016, with the decline in other revenues, mainly multimedia.

(Values in €) jun-17

jun-16

ch %

2nd Qt 2016 2nd Qt 2015 ch %

Operating costs in the 2nd quarter of 2017, without considering amortisation and depreciation, fell 2.6% year-on-year. Without considering restructuring costs, this decrease would have come to 4.5%. In the 2nd quarter of 2017, restructuring costs reached 1.3 M€. In the 1stsemester 2017, operating costs decreased 3,1%.

In the 2nd quarter of 2017, EBITDA adjusted for restructuring costs reached 8.1 M€, representing a year-on-year decrease of only 6.4%. At the end of the 1st half of 2017, adjusted EBITDA reached 7.7 M€.

The volume of amortisations increased 5.4% to 0.9 M€ in the 2nd quarter, as a result of investments made in 2016. At the end of June 2017, the volume of amortisations reached 1.8 M€, up 4.4%.