Il Sole 24 ORE S.p.A. Reports Consolidated Interim Management Statement for the First Quarter Ended March 31, 2014; Provides Earnings Guidance for 2014
May 11, 2014
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Il Sole 24 ORE S.p.A. reported consolidated interim management statement for the first quarter ended March 31, 2014. For the period, the company reported revenues of 98.8 million against 98.8 million a year ago. EBITDA was 1.0 million against LBITDA of 6.7 million a year ago. LBIT was 4.2 million against 12.2 million a year ago. Pretax loss was 5.0 million against 12.5 million a year ago. Net loss from continuing operations was 5.7 million against 10.4 million a year ago. Loss attributable to owners of the parent was 5.8 million against 10.4 million a year ago; the growth in revenue was driven by a circulation revenue, increasing by 6.4% against first quarter 2013. The positive performance of electronic publishing revenue from the Tax& Legal Area; system's advertising sales, against the relevant market's contracting backdrop; revenue generated by the Culture Area rose by 3.3 million against 31 March 2013; and revenue generated by the Training Area, increasing by 32.5%, or 1.9 million, driven by the positive performance of the Business School. EBITDA achieved due to Management and all the Company's focus on the implementation of the digital strategy and integration of the platforms, and on the measures adopted to contain costs and achieve process efficiency. Total cash flow from operating activities was 3.3 million against cash outflow from operating activities of 34.0 million a year ago. Investments in intangible assets and property plant and equipment were 1.8 million against 2.4 million a year ago.
The company provided earnings guidance for 2014. The recession continues to impact negatively on revenue and margins in the publishing industry. In 2013, GDP deteriorated by 1.9%, and forecasts for 2014 point to a moderate growth (+0.6%). Forecasts on advertising market developments for 2014 remain uncertain, while latest estimates released by the main Media Centres indicate an overall market still shrinking versus 2013. Consequently, forecasts for 2014 show an improvement in EBITDA. The sale of the Group's Software Area, which is expected to be finalized within the first half of the year, will entail the recognition of a significant capital gain and proceeds of approximately 97 million.
Il Sole 24 Ore SpA is an Italy-based company engaged in the financial information sector. It is active in eight sectors: Publishing, which includes publishing of newspaper, magazines and books, among others; System, which is involved in the advertising concessionaire activity; Tax & Legal, which provides products with technical and regulatory content, such as professional magazines, books and electronic publications; Software Solutions, which develops software products, systems for public administration and management tools; Training & Events, which provides trainings for young graduates, managers and professionals, as well as organizes conferences and events; Radio 24, manages the broadcaster Radio 24; Digital, which operates a Website, an online payment platform and an e-commerce channel, and Culture, which includes realization of exhibitions and intermediation of photographic reproduction rights, among others. In May 2014, it sold a100% in24 ORE Software SpA to TeamSystem SpA.
Il Sole 24 ORE S.p.A. Reports Consolidated Interim Management Statement for the First Quarter Ended March 31, 2014; Provides Earnings Guidance for 2014