The clear operational improvement of the businesses, the continuation of the digital dynamic and the positive behavior of advertising continued to boost PRISA’s figures over the first part of the year, despite the context of uncertainty caused by the war in Ukraine. Thus, the Group’s revenues between April and June reached 177.6 million euros (+20.2%), a figure which rises to 388.2 million if we take into account all of the first six months. . and which represents an increase of 26.8% compared to the same period of the previous year.
For the president of PRISA, Joseph Oughourlian, “The second quarter of the year was a complex period which brought socio-economic uncertainties of which we still do not have visibility. and which invite us to look carefully at the rest of the year. However, the Group’s results reflect good progress in our businesses, both in the media, where the local presence and our positioning in Latin America recorded exceptional performances, such as in education, which continues to grow. For this reason and despite the geopolitical uncertainties, we see no reason to modify the objectives set for the end of the year, which mark revenues between 770 and 800 million euros, with an adjusted Ebitda margin on a scale from 15 to 17%. ”.
Ughurlian explanation: “We continue to work on the roadmap presented in March in the strategic plan and recently endorsed by shareholders. A growth plan, focused on business, digital transformation and sustainability at all levels of the company. And even if we must not ignore the debt that we still have, and on which we put all the emphasis to reduce it In the years to come, I am convinced of the strength of PRISA, the capacity of its businesses, its brands and its professionals”.
Over the whole half-year, the Group continued to record growth in its turnover and its EBITDA thanks to the operational improvement of its businesses. Back to normal school in Latin America after the pandemic, where Santillana operates, as well as the evolution of digital subscription models (Ed-Tech) boosted the accounts of the Group’s education division. PRISA Media, for its part, continues to maintain the positive trend of recent quarters despite recent geopolitical and economic uncertainties. Thus, the Group’s media division continues to consolidate its leading position in the markets in which it operates, supported by advertising revenues and the good performance of EL PAIS’ subscription payment model. which continues to increase steadily.
Thus, the Group’s revenues reached 388.2 million euros between January and June, ie 26.8% more than in the same period of the previous year. Commitment to digital transformation continues to drive the weight of digital revenue across all company accounts, increasing by 30% and accounting for 35% of the total.
Gross operating income (EBITDA) excluding remuneration, reached 49.7 million euros between January and June, which amounts to multiplying by 2.8 the figure for the previous year. Regarding the net result, the Group recorded a negative amount of 14 million euros during the semester. The operational improvement makes it possible to partially offset the impact of financial costs, in fact, the figure presented represents an improvement of 75.1% compared to the 56.2 million losses in the first half of 2021.
The exchange rate had a positive effect of 13.4 million euros on the turnover of the first semester, mainly due to the revaluation of the Brazilian real and the Mexican peso. In EBITDA the effect was negative by 800,000 euros.
As it concerns the Group’s net bank debt, which amounted to 833.5 million euros at June 30, compared to 756.1 million with which it had closed last Decembermainly due to the purchase of the radio minority shareholding package.
The new financial culture implemented in the company, focused on operational improvement and the optimization of liquidity management, has enabled an improvement in cash generation, excluding exceptional itemsof 19.5 million euros compared to the first half of 2021. Total cash was however affectedmainly due to exceptional payments from the purchase of the radio minority share package or refinancing costs, leaving a negative balance of 65.1 million euros.
The company continues to work with an eye on liquidity and as of June 30, cash stood at 126 million euros, with 103 million lines of liquidity unavailable.
Analyzing the figures by business, in the second quarter, the Education division recorded revenues of 74.1 million euros, or 49% more than between April and June 2021. The return to school normality in Latin America and strong commitment to model digital education (ED-Tech) allow Santillana to continue consolidating its growth. Over the whole half-year, Santillana’s revenues increased by 53.7% compared to the previous year, recording a total of 202.5 million euros.
Santillana’s EBITDA without remuneration was multiplied by 2.6 during the semester, to 38.6 million euros. If you frequent the period April-June, gross operating income without allowances is negative at 6.6 million euros. Despite this, this represents an improvement of 30.4% compared to the same period in 2021, also considering that it does not represent a decisive quarter due to the seasonality of the activity.
The private education division, focused in particular on digital transformation (Ed-Tech), is the engine of Santillana’s activity, representing 70% of its total turnover. At the end of June, Santillana already had 2,494,000 subscribers, which represents an increase of 33.3% compared to the first half of 2021 and 26% since December. These figures confirm Santillana’s leadership in Latin America as the only platform present in 19 countries on the continent.
The Group’s media division continues to grow. Thus, the turnover for the second quarter ended reached 103.7 million euros, which represents 5.6% more than the same period of the previous year. Over the whole half-year, sales increased by 6.3% to 186.2 million euros.
Regarding gross operating income (EBITDA) excluding severance payments, PRISA Media recorded a figure of 14.3 million euros during the semester, which represents an increase of 69.4% compared to the same period. of the previous year. If we consider the EBITDA from April to June, it was 14.4 million, or 8.7% more than in the second quarter of 2021.
Two factors explain these figures: advertising and digital engagement. Advertising contributes 76% of total revenues and over the first half of the year as a whole, it increased by 6.5%, maintaining a positive figure between April and June (+3.3%). A Despite the uncertainty caused by the crisis resulting from the war in Ukraine, advertising performed as expected in Spain and presented an extraordinary evolution in countries like Colombia, thanks to the continuous improvement of the Group’s market share.
Broadcasting is another of PRISA Media’s revenue streams. They reached 27 million euros over the half-year, which represents an annual growth of 3.2%, thanks in particular to the growth of digital subscriptions to EL PAÍS. The newspaper has a total of 219,832 subscribers, of which 179,626 are digital exclusives. In the first half of the year, the subscription model racked up over 43,100 net signups. So far this year, total subscribers are up 45% from the first half of 2021, while digital subscribers are up 65% year-over-year. For its part, the AS newspaper continues to dominate the global sports press market with nearly 100 million unique browsers and a strong presence in Spain, the United States, Colombia and Mexico.
The digital bet on audio also continues to drive the numbers up. PRISA Media recorded 47.5 million podcast downloads (+51%) during the semester and 79 million hours of media streaming per month (+19%). Figures that consolidate PRISA as the leading Spanish-speaking audio producer in the world.
The radio continues to strengthen its leading position. With 9,294,000 daily listeners in Spain, PRISA Media is the Group with the greatest reach in the national market, reaching 40% of the total radio audience, and with a wide lead over its competitors, according to the latest data made public by the General Media Study (EGM). This leadership also extends to Colombia and Chile. In Mexico, Radiopolis is also posting excellent results.
Commitment to sustainability
The Group continues to make progress in its commitment to integrating Sustainable Development into all of the company’s management. In the first quarter of the year announced the creation of the specific Commission within the Board, appointed Rosa Junquera as Director of Sustainable Development and has focused in recent months on developing the organization’s management strategy, a roadmap linked to the United Nations Sustainable Development Goals.
PRISA has had a strong commitment to sustainability since its inception. It has been part of the United Nations Global Compact since 2008, it joined as a partner in 2013 and has been part of the executive committee of the Spanish network since 2016. Last June, PRISA received Contigo Somos+ recognitionwhich distinguishes the partner entities of the Global Compact which have succeeded in attracting new members to the network, while contributing to the dissemination of the Sustainable Development Goals (SDGs).
In addition, the Group is present in various indices linked to ESG criteria such as the FTSE4Good or the MSCI. And recently, BME’s Technical Advisory Board has approved PRISA’s inclusion in the IBEX Gender Equality Index, a selective index comprised of all 45 listed companies that have a greater female presence, both on their board of directors and in senior management.