Telecinco will distribute a dividend of 140 million euros

Telecinco has obtained an adjusted net result of 164.37 million euros, which translates into a net profit of 70.55 million after the amortization of intangibles and the test of the investee companies (Endemol). It is once again among the most profitable television companies in Europe after recording increases in its adjusted EBITDA (26.7%) and EBIT (25.7%) margins. Publiespaña Group (Publiespaña + Publimedia Gestión) has obtained €834.89 M in total gross advertising revenue.

El Consejo de Administración de Telecinco ha decidido someter a aprobación en la Junta General de Accionistas del próximo 13 de abril la distribución de 97,9 millones de euros como dividendo ordinario del ejercicio 2010, así como un dividendo extraordinario de 42,2 millones de euros con cargo a reservas de libre disposición para una distribución global de 140,16 millones de euros, una cifra que supone un porcentaje del 85,3% sobre los 164,37 millones de euros de beneficio neto ajustado alcanzado este año por la compañía. Este resultado se traduce en un beneficio neto de 70,55 millones de eruos (un 45,6% más que en 2009) después de las amortizaciones de intangibles y el test de las sociedades participadas. Esta diferencia entre el beneficio neto y su cifra ajustada se debe fundamentalmente al impacto de las amortizaciones de intangibles (al neto de los impuestos) y del test realizado dentro del Grupo Endemol en aplicación de las normas internacionales de contabilidad y que se ha recogido como menor valor de la participación. Se trata de un impacto de naturaleza contable que no afecta al cash flow del Grupo Endemol.

This decision, which is included in Telecinco's commitment to distribute as a dividend among its shareholders the part of the treasury that is not necessary to meet the operational needs of the business, highlights the solidity of the company in the current economic context.

And, 20 years after the start of its broadcasts, Telecinco has closed 2010 with a unique position in the Spanish audiovisual sector and among the most prominent at European level. The audience leadership achieved by the channel among private operators and the consolidation of the commercial strategy carried out by the Publiespaña Group has led the company to achieve solid operating results, demonstrating its ability to face the environment of growing competition caused by the definitive takeoff of DTT in our country.

During this year, notably marked by the end of advertising on TVE and by a new increase in television consumption reflecting the good health the medium is going through, Telecinco has improved its revenue margins with respect to the previous year, allowing it to achieve high profitability ratios, with an adjusted EBITDA operating result of 228.07 million euros (compared to €130.38 M in 2009), which represents a 26.7% margin on revenues. net income and an EBIT of 219.44 million euros (compared to 122.78 million euros in 2009), equivalent to a margin of 25.7% on net income.

The company's total operating costs stood at 635.62 million euros, 19.1% more than the previous year, mainly due to the costs of selling advertising and cinema; to the impact of the 3% tax on income to finance TVE and the effect in year-on-year comparison terms of the reversal of a specific provision that took place in 2009.

Publiepaña

The total gross advertising revenue of Grupo Publiespaña has grown by 34.8% over 2009, standing at €834.89 million (compared to €619.30 million in 2009). This figure includes the results of Publimedia Gestión, a subsidiary of Grupo Publiespaña in charge of marketing multi-support audiovisual content, pay television, the Internet and in the external environment.

Publiespaña maintains its leadership in gross television advertising revenues with 791.81 million euros billed for the Telecinco multiplex (30.8% more than last year), reaching a market share of 32.1%, as well as in power ratio (margin that measures the relationship between said share and the audience of Telecinco and its digital channels), with a figure of 1.81, the highest in the sector, which marks yet another year deep distance with its direct competitors.

A similar increase (+34.7%) has been recorded in Publiespaña's net advertising revenues, which stood at 794.56 million euros (589.79 last year).

Income from the sale of film co-production rights, merchandising, SMS, call TV and audiotext services has been 60.50 million euros, 9% less than in 2009, mainly due to the lower income obtained in the last quarter from film rights and the drop in income from SMS and call TV as a consequence of the change in regulation and the situation of the Spanish economy, which has reduced its consumption of this type of products.

As a consequence, total net income - which includes television advertising billing, in addition to advertising income from other media (Internet, teletext, thematic and digital channels) and those obtained by the commercial area - has amounted to 855.06 million euros, 30.3% more than last year, in which Telecinco obtained 656.26 million euros.

Telecinco, the most resistant to fragmentation

Beyond its audience leadership among commercial television stations, 2010 has yielded a very positive balance for Telecinco: it has become the commercial channel with the greatest resistance to fragmentation in the year of the definitive takeoff of the growing supply of channels in digital terrestrial television, giving up only five tenths over the previous year.

With a 14.6% share in total day, it has positioned itself as the first channel among commercial operators for another year, surpassing its immediate competitor, Antena 3, by 2.9 points, which has registered the largest drop of all television stations compared to 2009 (-3 points) to reach a 11.7% share.

Telecinco has prevailed as the second commercial television in all these slots, highlighting the distance established in the one with the highest television consumption, prime time, where it has obtained a 14.4% share, 2.9 points more than Antena 3 in its worst historical record (11.8%).

Likewise, the network has completed seven years as a reference for the commercial target on television in our country after scoring a new victory in 2010. A 14.9% share in the total day, which in prime time has reached 14.3%, has confirmed it as the television with the greatest advertising appeal to the advertiser, with a high differential compared to its immediate competitor.