The bone revenue from PRISA (ELPAÍS publishing group) amounted to 177.6 million euros between April and June, which represents an increase of 20.2% compared to the same quarter of the previous year. In the first six months of the year, the turnover amounted to 388.2 million, which represents an increase of 26.8% compared to the same period of the previous year. “The significant improvement in the functioning of companies, the continuation of the digital dynamic and the positive behavior of advertising continue to drive PRISA’s figures over the first part of the year, despite the context of uncertainty caused by the war in Ukraine”, explains the publishing group in the note registered with the National Commission for Financial Markets (CNMV).
PRISA President, Joseph Oughourlian, explained that “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 with caution at the rest of the year”. Oughourlian underlines that “however, the group’s results show a good evolution of our activities, both in the media, where the local presence and our positioning in Latin America have performed exceptionally, and in education, which continues to grow” . And he adds: “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 a margin of ‘Ebitda adjusted from a scale of 15 to 17%’.
Oughourlian specifies: “We continue to work on the roadmap presented in March in the strategic plan and recently endorsed by the 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 remains to us, and on which we are doing everything we can 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”.
The publishing group continues to record growth in its turnover and its EBITDA (gross operating income) thanks to the operational improvement of its businesses. The return to school normality after the pandemic in Latin America, where Santillana operates, as well as the evolution of digital subscription models (Ed-Tech) have inflated the accounts of the education division of the group, according to the company. For its part, PRISA Media is maintaining the positive trend of recent quarters despite geopolitical and economic uncertainties. 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 progress steadily.
The group’s revenues reached 388.2 million euros between January and June, or 26.8% more than in the same period of the previous year. Commitment to digital transformation continues to drive digital revenue weight 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 a year earlier. 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, however, the effect was negative by 800,000 euros.
The group’s net bank debt amounted to 833.5 million euros at June 30, compared to the 756.1 million with which it closed last December, mainly due to the purchase of the lump sum shareholding from the radio minority. .
“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 items, of 19.5 million euros. euros compared to the first half of 2021”, explains the company. The sum of cash flow, however, was affected, mainly, by extraordinary payments from the purchase of the radio’s 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 sectors, the Education division recorded revenues of 74.1 million euros during the second quarter, which is 49% more than between April and June 2021. The return to school normality in Latin America and the commitment to the digital education model (ED-Tech) allow Santillana to consolidate its growth. Santillana’s revenues reached 202.5 million euros in the first half, which represents a growth of 53.7% compared to the previous year.
Santillana’s EBITDA without remuneration was multiplied by 2.6 during the semester, to 38.6 million euros. During the half-year, gross operating income without compensation amounted to a negative €6.6 million. Despite this, it represents an improvement of 30.4% compared to the same period in 2021, also taking into account that it does not represent a decisive quarter due to the seasonality of the activity.
The private education division, particularly focused on digital transformation, 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”, specifies the group.
The group’s media division continues to grow. Thus, revenues reached 103.7 million euros in the second quarter, which is 5.6% more than in the same period of the previous year. Over the full half, sales increased by 6.3% to 186.2 million euros.
Concerning the gross operating result (Ebitda) excluding severance payments, PRISA Media recorded profits of 14.3 million euros during the semester, which represents an increase of 69.4% compared to the same period. of the previous year. In the second quarter, EBITDA was 14.4 million, 8.7% higher than in the second quarter of 2021.
The company explains that behind these numbers are two factors: advertising and digital engagement. Advertising contributes 76% of total revenue and rose 6.5% over the first half as a whole, also maintaining a positive figure between April and June (+3.3%). “Despite the uncertainty caused by the crisis resulting from the war in Ukraine, advertising has behaved in line with expectations in Spain and has shown an extraordinary evolution in countries such as Colombia, thanks to the continuous improvement on the part of group market”, explains the group.
Broadcasting is another of PRISA Media’s revenue streams. Revenues via this channel reached 27 million euros during the semester, 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 push the numbers up,” the company points out. PRISA Media recorded 47.5 million downloads of podcasts during the semester (+51%) and an average of 79 million monthly hours of diffusion (+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 released. published 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, he announced the creation of a specific commission within the board of directors, appointed Rosa Junquera as director of sustainable development and has focused in recent months on the development of the strategy management of the organization, a path 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, joined as a partner in 2013 and has been part of the Executive Committee of the Spanish Network since 2016. In June, PRISA received Contigo Somos+ recognition, which distinguishes the partner entities of the Compact who 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 Committee approved the incorporation of PRISA into IBEX Gender Equality Indexselection made up of 45 listed companies that have a stronger presence of women, both on their board of directors and in general management.
The group has also communicated to the CNMV the convening of an extraordinary general meeting for next September 7 on first call and September 8 on second call to formally approve the appointment by cooptation of Andrés Varela Entrecanales as owner director representing Global Alconaba. Varela will cover the vacancy on the board after the dismissal of Roberto Alcántara. The commercial register has not registered Varela’s appointment, considering that this decision must be adopted at the general meeting.