Telecinco doubles the operating result of 2009 with an EBIT of 166.6 million

In the period January-September 2010, Telecinco is once again positioned among the most profitable television stations in Europe with an adjusted EBITDA of €174.15 M (28% margin on net income) and an EBIT of €166.88 M (26.8% on net income). Grupo Publiespaña has invoiced €601.87 million in total gross advertising revenue, of which €572.89 correspond to advertising revenue from Telecinco, LaSiete, Factoría de Ficción and Boing, reaching an advertising market share of 32.5%.

The elimination of advertising on TVE, the beginning of the price adjustment of the television advertising market, the marketing capacity of Publiespaña, the good audience data of Telecinco, together with rigorous cost control, have allowed Telecinco to double its operating result until September compared to the same period in 2009, reaching an EBIT of €166.88 M (26.8% of net income), 102.3% more than in the first nine months of 2009, and an adjusted EBITDA of €174.15 M (28% margin on net income), 95.8% more than between January and September of last year. These margins once again position the Spanish group among the most profitable television networks in Europe.

Telecinco has invoiced 601.87 million euros of total gross advertising revenues until September 2010, of which 572.89 million euros correspond to television advertising revenues from Telecinco, LaSiete, Factoría de Ficción and Boing, a figure that maintains Publiespaña with a share of 32.5%. For its part, Publimedia Gestión, in charge of marketing advertising to third parties, as well as Telecinco.es, has obtained gross income of 28.98 million euros.

Net advertising income stood at 573.87 million euros while total net income amounted to 622.42 million euros. Net income includes the results of the commercial area from the sale of film co-production rights, merchandising, SMS, call TV and audiotext service, which amounted to 48.55 million euros.

As of September 30, 2010, Telecinco has increased its total operating costs to 455.54 million euros, which represents an increase of 30.2% compared to the same period in 2009. This increase is due to the increase in the cost of sales associated with higher income in the period of both advertising and cinema, the 3% tax on income to finance TVE that last year was applicable only to the last quarter of the year, and the greater investment allocated to the new channels LaSiete, Factoría de Ficción and Boing, as well as to the 2009 comparison base impacted by the reversal of certain provisions. If we isolate the exceptional impact of the reversals of said provisions and the impact of the tax to finance TVE, costs would have increased by 17.4%.

As a result, Telecinco has obtained a net profit of 32.16 million euros during the first nine months of the year, a figure that for the purposes of a homogeneous comparison with the previous year, if the impact, net of taxes, of the result of the impairment test and the amortization of intangibles of investee companies (Endemol), were isolated, would increase by 89 million euros, reaching 121.16 million euros.

Hearings

Telecinco se ha vuelto a situar como líder de audiencia de las cadenas comerciales con un 14,7% de share entre enero y octubre, una cifra que supera en 2,9 puntos a Antena 3, que con un 11,8% de cuota de pantalla registra un descenso de casi 3 puntos con respecto a 2009, frente a Telecinco, que sólo cede cuatro décimas sobre el pasado año.

La cadena ha igualado su media en el horario de prime time (14,7%), donde eleva hasta los 3,2 puntos su ventaja sobre Antena 3, que desciende hasta el 11,5% de cuota.

The strength of Telecinco's audience results has not only been evident during prime time, but also in all time slots of the day and, consequently, during day time with a 14.7% share, 2 tenths above the 2009 result.

Regarding the group of channels, Telecinco's offer has been reinforced in the children's and youth target with the launch of Boing in the month of September, adding to the progressive growth registered by LaSiete and Factoría de Ficción.

As a result, the Telecinco group of channels has accumulated between January and October an average audience share of 17.5% in total day, 17.6% in prime time and 17.5% in day time, an average of 2 points ahead of the figures achieved by the Antena 3 channels as a whole (15.6% in total day, 15.5% in prime time and 15.6% in day time).