RCS MediaGroup S.p. A reported consolidated earnings results for the nine months ended September 30, 2012. For the period, the company reported group's consolidated net revenue was EUR 1,184.1 million, compared with EUR 1,364.2 million in the same period in 2011, the EUR 180.1 million declines (which, excluding the sale of Dada.net, reduces to EUR 149.4 million) is mainly attributable to the drop in circulation revenue and advertising revenue. EBITDA before non-recurring income/expense was positive at EUR 21.6 million compared with EUR 78.8 million in the same period of 2011, excluding the sale of Dada.net. EBITDA after non-recurring income/expense fell from EUR 69.2 million in the first nine months of 2011 to LBITDA of EUR 21.4 million. EBIT was negative at EUR 396.8 million, compared with a negative figure of EUR 3.7 million at 30 September 2011. The decline mainly reflected – apart from the above-mentioned factors – write-downs in the first quarter of 2012 on intangible assets recorded by Spanish Newspapers (EUR 300.9 million). The net loss for the period was EUR 380.5 million, compared with a net loss of EUR 25.5 million at 30 September 2011. Net financial debt was down EUR 938.2 million at 31 December 2011 to EUR 875.6 million, mainly due to benefits from the sale of Flammarion, which were partially offset by continued investment, costs incurred for the restructuring process and the use of cash in ordinary operations.

The Board of Directors announced Giulio Lattanzi, will be leaving the Group on 15 November. The Board subsequently appointed Alessandro Bompieri General Manager of the Newspapers Division. He already is CEO of the RCS Books Division, a role that will be maintained for the time being.

Net debt is expected to reduce due to the financial benefit realized in the third quarter of 2012 through the sale of Flammarion. Barring unforeseen events, and notwithstanding the concerns chiefly raised by the deterioration of global economic conditions and consequently the general drop in consumer spending and investment, revenue and operating results are expected to decline considerably in 2012.