Vértice 360º returns to the path of profits in 2010

The group has placed all profitability margins positive and has significantly increased cash generation. It closes the year with a net result of 0.7 million euros, compared to losses of 18.2 million in 2009. 2010 ended with the integration of Lavinia, an operation that allows it to incorporate new lines of business, such as interactive applications and the comprehensive provision of content for any support or screen, and expand its international activity.

During 2010, Vértice 360º has demonstrated its ability to grow and develop business in a very complicated economic scenario. Thanks to the plans designed in 2009 to improve the efficiency of operations, the company closed 2010 with a profit of 0.7 million euros, a figure that contrasts with the losses of 18.2 million euros recorded twelve months earlier.

The importance of the improvement becomes even more relevant given that Vértice had to record 1.9 million euros of non-recurring expenses in 2010, derived mainly from the acquisition of Lavinia.

Another fact worth highlighting is that all the main magnitudes of the income statement (Turnover, Ebitda, Ebit and Net Profit) improve compared to 2009, a circumstance that occurs for the first time since the birth of the group in 2007. In addition, Vértice 360º has placed all profitability margins in positive and has increased cash generation very noticeably.

The 2010 financial year ended with the integration of Lavinia into the Group, an operation that allows the incorporation and offering of new lines of business, such as interactive applications and the comprehensive provision of content for any support or screen, and extending activities in Europe and America. In this sense, during the past year, Vértice 360 ​​also reinforced its presence in the international market with the creation of Powwow. This company, which has offices in Miami, Los Angeles and Buenos Aires, is responsible for developing audiovisual formats and content for Spanish- and English-speaking clients in the United States and Latin America.

Increasing turnover

Vértice 360º ended 2010 with revenues of 111.3 million euros, 1% above 2009 (110.1 million). Billing shows an upward trend quarter by quarter. Thus, in 1Q10 sales fell 10.5%, in 1H10 the accumulated growth was 0.4%, in the first nine months of the year, the increase was 0.8% and at the end of 2010, the improvement was 1%. By business areas, the good performance of Audiovisual Services stands out (+13.1%), thanks to obtaining outsourcing contracts with television channels. In Television, a cut in billing was recorded (-22.8%), due to lower product deliveries. In Cinema, revenues were higher (+0.9%) due to the success of some marketed content (Shutter Island, Oceanos y Mother & Child).

Margin improvement

El efectivo desarrollo de los planes diseñados para la mejora de la eficiencia de sus operaciones, las ventajas competitivas que surgen de la prestación de servicios integrales y la positiva aceptación de los contenidos elaborados por Vértice 360º han permitido a la compañía superar el umbral de la rentabilidad tanto en Ebitda como en Ebit. Thus, the Group closed the year with an Ebitda (earnings before interest, taxes, amortization and depreciation) of 17.5 million euros, 2.7% more than in 2009. Even more important is the recovery in terms of Ebit. The company reaches the figure of 3.4 million euros, when twelve months earlier it recorded red numbers of -22.6 million euros.

These figures include the extraordinary expenses incurred in 2010 and which are mainly motivated by the integration operation of the Lavinia Group, which concluded at the end of the fourth quarter. The total extraordinary amounts to 1.9 million euros. Excluding these extraordinary expenses, margins improve substantially, reaching an Ebitda of 19.5 million, which would correspond to 17.5% of income (ex extraordinary expenses).

Cash flow from operations amounted to 9.9 million, which represents a conversion ratio over Ebitda of 56% (vs. the 5.4 million and 31% recorded at the end of 2009).

Perspectives 2011

The positive results obtained in 2010, both in business figures and in profitability margins and cash generation, demonstrate the Group's ability to develop business and be profitable in the current economic context.

The group's orientation towards generating recurring business leads its executives to have positive estimates. As highlighted by Vértice 360º, the key aspects in the evolution of the business are the strengthening as an audiovisual group after the integration of Lavinia, its internationalization, the integration of the value chain, which allows Vértice 360º to offer a comprehensive service to its clients, its competitive industrial positioning and experience, the diversification of businesses and clients, the consolidation of content, the launch of new business lines and the development of existing ones.