Education and Radio businesses in Latam show double digit growth  while the advertising market in Spain and Portugal continues with significant falls

  • Press results have been extremely impacted by the decrease of the Advertising Market in Spain. During the first 9 months of the year, advertising revenues in this division have fallen by 16.3% (19,5% fall in Q3).
  • Radio shows an increasingly divergent behaviour between Spain and Latam: In Spain advertising falls in the first 9 months by 15.7% (fall of 15.9% in Q3), while LatAm grows by 15.7% (+18.5% in Q3).   
  • The Pay TV business increases its revenues by 4.2% and its EBITDA by 14.3%.          
    The number of Satellite Subscribers falls by 50,785 since September 2011, impacted by the weak economic situation and the VAT increase. Subscribers of other platforms/OTT show growth. Satellite ARPU stands at 42 euros on average in the third quarter of the year. Churn stands at 14.7% at September 2012.


In August 2012, PRISA signed an agreement with Mediapro for the exploitation of Spanish football rights which allows it to offer the best football content in its history, for the coming three seasons: 2012/2013, 2013/2014, 2014/2015.

  • Santillana increases its revenues by 6% in the first nine months of the year. We highlight the strong growth in Latam revenues (+10.8%) while Spain fall by 3.6%, led by the weakness in General Publishing. Santillana's EBITDA grows by 10% adjusted by non-recurring items.    
  • Total LatAm revenues grow by 12% and represent already 25.4% of the Group's revenues, compared to the 22.2% of the first nine months of 2011. EBITDA from this region grows by 13.4% and reaches 34.8% of total Group EBITDA (compared to 32.6% in the first nine months of 2011).
  • The company maintains its effort in the Digital development. Digital advertising revenues grow by 14.1%. We highlight the growth of the Press division (+25.2%) which accounts for 19.5% of total advertising revenues for this division. As of September, total number of unique browsers reached 71 million (+ 9.6%).
  • The company continues with a strong cost control effort in all cost lines. In the first 9 months of the year, total expenses (excluding amortizations and provisions) were reduced by 3.9% (-1.6% adjusted by one-offs). 
  • The Group has reduced its net financial debt by 274 million Euros mainly due to the convertible bonds issued on the back of the approval at its AGM and has improved total shareholders' equity in 719 million Euros.

9M 2012 Highlights:

Despite the growth of the Pay TV business in Spain and that of the Company's Latin American operations in Education and Radio, the advertising market in Spain and Portugal (in Radio, TV and printed press) continues showing significant falls, in a negative economic environment in which consumption decreases are accelerating. Advertising revenues in Spain and Portugal, which fall by 15.9%, today represent 15.0% of total revenues.

  • The fall in advertising revenues: Group advertising revenues reach 399.75 million Euros, a 9.9% fall compared to the first nine months of 2011, and account for 20% of total group revenues (compared to the 21.8% of the first nine months of 2011). We highlight the growth in Latin American advertising of +15.1% (24.9% of all advertising revenues) and the fall in Spain and Portugal, which fall by 15.9%.
  • Strong effort in cost control: the Company continues with an important cost reduction effort, aimed at all cost lines in the company. In the first nine months of 2012, operating expenses, excluding amortisation and provisions, have fallen by 3.9% (-1.6% adjusted by extraordinary items).
  • Pay TV: Strong growth in revenues and EBITDA: In the Pay TV division, revenues reach 788.12 million euros and EBITDA 175.45 million Euros, with implies a growth of 4.2% and 16.4% respectively.

Key Performance Indicators are impacted by the increase in VAT (in a very difficult economic environment) by the new commercialisation and the increased prices in Canal+ Liga, following the Mediapro agreement.

  • Net adds in satellite subscribersfall by 50.785
    • Net adds in subscribers from other operators od Canal+1 grow by 43,184.
    • Satellite ARPU stands at 42.0 Euros on average in the third quarter (40.1 in 3Q 2011)
    • Churn stands at 14.7% (vs 14.0% in June 2012)
    • iPlus subscribers already reach 33.5% or 577,986 (vs 33.2% in June 2012)
    • During September, the Group has signed agreements with all the Pay TV operators to distribute Canal+ Liga through them.
  • Media Capital: Cost control efforts: Revenues (132.13 million Euros) fall by 21%. Recurring EBITDA (24.71 million Euros) falls by 15.6%, which shows the strong effort in cost control being undertaken.
  • Education: Strong growth in Latin America: Revenues (581.84 million Euros) grow by 6% with strong growth in Latin America (+10.8%). We highlight the growth of Mexico (+11.2%), Ecuador (+19.9%), Puerto Rico (+17.3%), Dominican Republic (+78.4%), Argentina (+18.5%), Colombia (+7.9%), Peru (+114.9%), Bolivia (+19.6%) and Uruguay (+26.7%), as well as United States (+52%), and the lower contribution of Brazil on the back of its cycle (-7.4%). Spain sees its revenues fall by 3.6% including stable Education revenues (-0.5%) and a 20.1% fall in General Publishing. Recurring EBITDA reaches 183.80 million Euros (+10.0%).
  • Radio: Strong growth in Latin America and weakness in Spain. Revenues (247.73 million Euros) fall by 8.1% versus the first nine months of 2011 given mainly the lower advertising revenues in Spain (-15.7%, with weak local advertising, -23% and further deterioration of national advertising, -10%) and despite the strong growth in Latin American advertising (+15.7%) with a strong performance in Colombia (+19.1%), Chile (+8.8%), Mexico (+17.1%) and Argentina (+17.3%).
  • Press: Weakness in the advertising market and harder comps. Press revenues stand at 239.46 million euros, 18.3% lower than the first nine months of 2011. This is explained by the weakness in advertising (-16.3%), the lower circulation numbers (-12.3%), as well as the positive impact that promotions and fiscal deductions had in the first nine months of 2011 (which amounted to 15.63 million euros in 9M 2011 and 0.65 million euros in 9M 2012). Recurring EBITDA reaches 11.63 million Euros (down by 68.4%).
  • Digital Area: Solid growth. Digital advertising shows a growth of 14.1% in the first nine months of 2012.The digital area received a monthly average number of daily browsers of 71 million, which represents a growth of 9.6% versus the first nine months of 2011. This is thanks to the strong growth in Prisa Television, ElPais.com and CincoDias.com, as well as International Radio.

Consolidated Results

The comparison of 2012 and 2011 results is affected by extraordinary items recorded under both revenues and expenses:

  • Consolidation of Dédalo which from April 1st 2012 is included through global consolidation instead of equity consolidated,
  • Redundancy expenses on the back of the efficiency plan undertaken since December 2010
  • The 54.37 million Euro provision recorded on the back of the agreement with ONO (further explanation below)

To conduct a homogeneous comparison, we are presenting a profit and loss account adjusting these extraordinary items.

The new agreement on football rights leads to the allocation of revenues and expenses from these in 12 months (see further information on page 7). Compared to the previous situation, this implies a positive impact at EBITDA level of 7.8 million Euros (EBITDA would have increased by 4.2% instead of by 6.2% in the first nine months of the year).

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