PRISA's audiovisual area returns to black numbers

The group's audiovisual area, after months of negative growth, obtained an EBITDA of 139.66 million in the first half of 2010, with a margin of 16.2%. Digital+ achieved revenues of 567.24 million and an EBITDA of 131.91 million. Its EBITDA margin improves to 23.3. By business, audiovisual represents 54.5% of income, followed by education (19%), press (13.1%) and radio (12.5%). In this first semester, 25% of the income already comes from outside Spain.

In the first half of 2010, PRISA invoiced a total of 1,577 million euros, obtaining an EBITDA of 292.49 million, an EBIT of 196 million (+7.4%) and a net profit of 60.88 million (123.6%). The Group improves EBITDA (18.5%) and EBIT (12.4%) margins compared to 17.8% and 10.9% in 2009 and maintains profits in all its business areas.

The EBITDA margin over revenue was 18.5%, compared to the 17.8% reached in the first half of 2009. Digital+ improved its margins by more than two points to reach 23.3% and Cuatro improved its EBITDA by 6.9%. Also noteworthy are the evolution of the Publishing area, which increased its EBITDA by 12.2% and its margin by one point to 24.4%, and the Radio area, which improved its EBITDA by 19.3%.

The operating result (EBIT) was 196.04 million euros compared to the 287.36 million obtained in 2009 (+7.4%). The EBIT margin on revenue improves to 12.4% compared to 10.9%.
Radio

The radio increased its turnover by 8.1% to 197.47 million euros and contributed 51.43 million to EBITDA, which grew by 19.3%. Margins improve significantly. The performance of International Radio stands out, mainly in Colombia and Chile, which improved its EBITDA by 8.72 million euros to 11.45 million, with a margin of 21.5%. International Radio invoices 35.8% more, and its advertising income improves by 39.8%.

Audiovisual

The audiovisual area had a turnover of 860.13 million euros, with an EBITDA of 139.66 million and a margin of 16.2%.

As of June 30, 2010, Digital+'s subscriber base stands at 1,784,843 subscribers, generating revenues of 465.44 million euros. Canal+ Liga exceeds 800,000 subscribers in the first half, and the trend in the second quarter of the year improves the evolution recorded during the first three months.

The average revenue per subscriber (ARPU) stood at 42.2 euros per average subscriber and month in the second quarter of 2010, which represents a 1.6% increase compared to the same period of the previous year.

In recent months there has been a positive change in the trend of Digital+ subscribers, reaching positive net additions in June. This positive trend would have even improved if there had not been a delay with respect to initial expectations in the sale to other platforms, although agreements have been closed during this period with Jazztel and Telecable that have performed very well, and conversations continue to close with the rest of the operators.

Cuatro has continued with a positive evolution during the first six months of fiscal year 2010, ending the month of June with an average audience of 8.6% in 24 hours and 12.2% in prime time, thanks to the broadcast of part of the matches of the 2010 World Cup in South Africa. It also strengthens its positioning in the most interesting profiles for advertisers, reaching 10.8% and 11.7% audience in the commercial and coretarget targets, respectively.

TVI, Media Capital's free-to-air television network, maintains its leadership in Portugal, both in 24-hour audience and in prime time. During the first half of 2010, TVI has registered a 34% average audience and 39.6% in prime time.

Advertising

Advertising revenues (494.29 million euros) have grown by 9.8% compared to the first half of 2009. Audiovisual increases by 14.5%, with an improvement of 22.2% in Cuatro, Radio grows by 11.2% (+39.8% International Radio and +2.3% Radio in Spain).