Vocento’s total operating income between January and September was 249,603 million euros, with a decrease of 2.4% over the same period in 2023 due to the deterioration of advertising in the press business. Diversification businesses improved 4.1% compared to the same period of the previous year.
Digital subscribers grow 14% to reach 152,000. Revenue from advertising sales decreased 2.9% compared to the same period of the previous year. Press advertising falls by 4.8%, partly due to the withdrawal of the public sector and partly due to the low advertising growth of the digital market.
He EBITDA It stands at -4.35 billion euros compared to 7.28 million euros in the first nine months of 2023. EBITDA excluding compensation is 2.71 million euros.
For business:
(i) in the Press, the drop in advertising and the lower profitability of printing presses (due to abandonment of certain activities and compensation incurred) are not offset by other items.
(ii) in the Diversification businesses, EBITDA decreases due to lower campaigns in Agencies and the impact of delays in administrative authorizations and granting of Next Gen Funds in Digital Kit.
(iii) in Structure there are greater compensations of an extraordinary nature.
He operating profit (EBIT) between January and September it stands at -21,147 million euros, with a decrease of 10,116 million euros compared to the same period in 2023, which is explained by the operational evolution, partially offset by the capital gain from a higher price in the sale of the headquarters of El Diario Vasco in 2022, and due to lower amortizations.
The generation of ordinary cash during the first nine months has been -16,419 million euros, in line with that of the same period of the previous year, reflecting the evolution of the business and its seasonality.
The net financial debt ex IFRS 16 stands at 40.7 million euros, due to the negative cash generation and compensation included in the Structure area.
Efficiency plan and strategic review
As part of the search for efficiencies, a savings plan has already been launched to be implemented in the fourth quarter of 2024, with an annual impact of 10 million euros.
Furthermore, with the arrival on November 1 of Manuel Mirat, new CEO, Vocento is reviewing all the businesses and the group’s perimeter, through strategic reflection to increase revenues and profitability.
Results by business areas
In Newspapersthe operating incomen They stand at 198.3 million euros during the first nine months of the year, which represents a decrease of 3.9% compared to the same period in 2023. The EBITDA has been -67,000 euros.
In the evolution of the profitability of the Regionals, the better evolution of the reader margin stands out despite the increase in costs and the fall in the printing and distribution margin (-1,059 million euros). ABC’s EBITDA between January and September presents a worse evolution in advertising of 1,819 million euros, which is partially offset by the improvement in the copy margin. The EBITDA of Supplements and Magazines stands at 547,000 euros, with an improvement of 305,000 euros.
Finally, Relevo improves its EBITDA by 1.25 million euros compared to the same period of the previous year, reaching -3.96 million euros between January and September. It is worth highlighting the positive evolution of its operational metrics, both in social networks and in the ‘web’ audience.
In Classifiedsoperating income amounted to 22.40 million euros in the first three quarters, 8% more than the same period of the previous year. Revenue growth is positively impacted by Classifieds engine, thanks to the launch of new products on social networks. EBITDA amounts to 4.34 million euros, compared to 4.29 million euros in the same period of 2023.
In Digital Servicesoperating income reached 1.9 million euros during the first nine months of the year vs. 2.47 million in the same period of 2023. EBITDA stands at -74,000 euros, due to the explained delays that are affecting the profitability of the business.
In Gastronomy and Agenciesoperating income reached 26.53 million euros during the first nine months of 2024, 3.6% more than in the same period of the previous year. EBITDA was 1.33 million euros compared to 2.92 million euros in the first nine months of 2023.
The Gastronomy division It presents revenues of 10.17 million euros (+4.8% compared to the same period in 2023) and a decrease in EBITDA of 190,000 euros. It is also worth highlighting the international growth of ‘Spain Fusion’ with new editions that arrived in Japan in the last quarter.
In the Agencies and Others divisionhighlight the increase in income of 2.9% (16.36 million euros) compared to the first nine months of 2023. On the one hand, they highlight the positive impact of the first results of the synergies between the agencies thanks to the creation of the & Collective, and on the other hand, among other awards, the recognition of &Rosàs as a leading creative agency according to Announcements (“Creative Agency of the Year”). The increase in costs for attracting and retaining talent impacts a decrease in EBITDA of 1.4 million euros.
In Audiovisualthe operating income They amount to 3.6 million euros between January and September, which is 2.0% more than in the same period of 2023. The EBITDA It stands at 2,010 million euros, 2.9% more than between January and September of the previous year.
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