IMPRESA : 3rd 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 of the 3rd Quarter 2017

1. 3rd quarter 2017 Main events

   • In the 3rd quarter of 2017, consolidated EBITDA reached 2.5 M€, which represents an increase of 833% in relation to the EBITDA of the same period of 2016, with gains reflected in all of the Group's segments. In accumulated terms through to the end of September, and after adjusting for restructuring costs, EBITDA reached 10.3 M€, corresponding to a year-on-year increase of 6.2%.

   • In line with the downward trend of the last few years, net remunerated debt, including financial leases, fell by 7.9 M€ year-on-year to 192.6 M€.

   • Total revenues reached 47.3 M€ in the 3rd quarter, representing an increase of 4.3%, driven by the growth in publication sales and, in particular, by the 10% surge in advertising revenues, whose positive results were transversal to all the areas of the Group.

   • The strategy of costs reduction continues, with decline of 2.3% on the 3rdquarter.

     • Net income at the end of the 3rd quarter was negative by 250 thousand euros, in spite of the 86.2% improvement relative to the loss obtained in the same period of 2016, which was negative by 1.8 M€. In accumulated terms through to the end of September 2017, net income was negative by 165 thousand euros, in comparison to the negative 585 thousand euros reached in September 2016, representing an improvement of 71.8%.

       • SIC obtained an average share of 17.4%, maintaining its leadership position in the commercial target (A/B CD 25/54) during prime time, on weekdays, with a share of 22.2%.

       • SIC Notícias stood out once again as the leading information channel, with a share of 2.0%.

       • The EXPRESSO continued to be the best-selling newspaper in Portugal, with an average of about 91 thousand copies sold, according to data from the APCT with reference to the period covering January to June 2017.

     Table 1. Main Indicators (Values in €)	set-17	set-16	ch %	2nd Qt 2016	2nd Qt 2015	ch %
     Total Revenues	146.436.619	149.825.673	-2,3%	47.264.572	45.308.427	4,3%
     Television	111.120.231	113.627.344	-2,2%	35.046.984	33.446.594	4,8%
     Publishing	34.044.572	35.334.364	-3,7%	11.707.593	11.416.890	2,5%
     InfoPortugal & Others	1.623.798	1.307.971	24,1%	527.257	554.375	-4,9%
     Intersegments	-351.982	-444.006	20,7%	-17.262	-109.432	84,2%
     Operating Costs	137.812.868	141.088.211	-2,3%	44.780.905	45.042.361	-0,6%
     EBITDA	8.623.750	8.737.462	-1,3%	2.483.666	266.066	833,5%
     EBITDA Margin	5,9%	5,8%	5,3%	0,6%
     Total EBITDA (2)	10.350.325	9.743.620	6,2%
     EBITDA Television	9.294.981	11.240.174	-17,3%
     EBITDA Publishing	1.208.789	107.773	1021,6%
     EBITDA Infoportugal & Othe	-1.880.020	-2.610.485	28,0%	-636.981	-635.392	-0,3%
     Net Profit	-165.060	-585.378	71,8%	-250.662	-1.812.021	86,2%
     Net Debt & Leasings (M€)	192,7	200,5	-3,9%	192,7	200,5	-3,9%

     2.611.588	349.508	647,2%
     2.186.852	700.565	212,2%
     933.795	200.893	364,8%

     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 1.72 M€ of restructuring costs up to September 2017 and 127 thousand euros in the 3rd quarter of 2017, and

     1.0 M€ up to September 2016, of which 83 thousand euros were registered in the 3rd quarter of 2016.

2. Consolidated Accounts Analysis

   In the 3rd quarter of 2017, IMPRESA reached consolidated revenues of 47.3 M€, which represents an increase of 4.3% in relation to 45.3 M€ registered in the 3rd quarter of 2016. This increase was due to the rise in advertising and circulation revenues, offsetting the decline in other revenues.

   The following should be noted relative to business in the 3rd quarter of 2017:

   • 10.5% growth in the Group's advertising revenues, resulting in an increase across all of the Group's areas.

   • 1.8% increase in revenues from publication sales, for the third consecutive quarter.

   • 0.7% decline in revenues from channel subscriptions, penalised by the recent depreciation of the US dollar, which had an impact on revenues from external markets.

   • 13.1% decline in other revenues, namely in IVR and alternative products.

At the end of September 2017, consolidated revenues reached 146.4 M€, representing a year-on-year decrease of 2.3%, as a result of the slump in other revenues, mainly those resulting from IVR.

Operating costs in the 3rd quarter, without considering amortisations and depreciation, fell 0.6% year-on-year. At the end of September 2017, operating costs fell 2.3%. Without restructuring costs, the decrease would have come to 2.9%

In the 3rd quarter of 2017, consolidated EBITDA reached 2.5 M€, which represents an increase of 833% in relation to the EBITDA of the same period of the previous year, with gains reflected in all of the Group's segments. At the end of September 2017, consolidated EBITDA reached 8.6 M€, which represents a decrease of 1.3%, while adjusted EBITDA jumped 6.2% to 10.3 M€.