9M22 Results
15 November 2022
Solid revenue growth in challenging market conditions
- Pro-formarevenues1 up +5.2% vs 9M21
- Advertising up +4.7%. Benefits of local/national mix with local advertising +9% (52% of total advertising)
- Other pro-forma revenues1 +25.2% driven by diversification
Main
highlights of
EBITDA impacted by increases to costs of paper and energy
- EBITDA 9M22 €10.1m. On constant perimeter, down €-2.7m, including temporary energy impact (€-2.2m)
- Margin on readers down €-6.3m, impacted by circulation and rise in paper cost
- EBITDA 2022E target maintained
9M22
A differentiated debt position
- Net financial debt €10.7m2 (€+9.0m) reflects dividend payment (€5.4m), lower free cash flow (FCF) and lower cash from divestments
- FCF €+1.4m, impacted by changes inn the perimeter and higher cost of paper stocks
- CF yield 20%3
Milestones in digital and diversification
- Digital + diversification mix is now 40% of total revenues (+5 p.p. vs 9M21)
- Launch of Relevo website: original content for monetization
- Recovery of automotive Classifieds
- Kit Digital for SMEs: 2.8k clients and 3.5k solutions. Potential revenues c.€7m
Note 1: adjusted for Relevo, national DTT and Content. Note 2: not including debt from IFRS 16 leases. Note 3: LTM free cash flow (excluding net financial | 2 |
expenses and including compensation payments and dividends), divided by market cap at close of 4 November. | |
Strategy maintained in a challenging market
Challanging market conditions (downgrades to economic growth, high inflation | and rising interest rates) | No growth in national digital advertising (migration from display to video) |
New measures at
press
New measures in
diversification
Cost
management
New
developments at
sports
publication
Relevo, website
launched
Investments in new events in Gastronomy and in Agencies (YBR influencer business, sustainability business Antrópico)
Long-term
renegotiation
with main energy
supplier
Local digital
press
strengthened
New markets, not
exposed to advertising cycle: digitalisation of SMEs
Diversification of paper suppliers, with guaranteed supply
First results of
centralised
management of
digital
subscriptions
resultados
General review of all external costs
All programmatic
advertising
migrated to Ad
Server
3
Vocento increases share of advertising market
Online | Online | ||
VOCENTO | |||
VOCENTO | |||
ex Classifieds | |||
4.7% | 4.5% | 4.5% | |
2.2%
1.7%
0.8%
(0.4%)
Total market | Offline1 | Online |
Market2 VOCENTO
Vocento demonstrates the solidity of its local/national
business model in current conditions
Note 1: offline is the market and VOCENTO is the press (not including Supplements and Magazines). Note 2: market source i2p ex social media and search engines. | 4 |
89
81
27
23
5763
Improving trend for digital subscriptions
Paying subscribers | |||
(thousand) | Var QoQ | Var | |
Var QoQ | QoQ | ||
+6% | |||
Var QoQ | +25% | ||
+5% | |||
+2% | 101 | ||
95 | |||
91 | |||
28 | 31 | 35 | |
Subscriber growth | |||
target Dec22E +23% | |||
YoY, +9% QoQ, in a | |||
strategy where the priority | |||
is to grow revenues and | |||
63 | 65 | 66 | profitability |
Sep 2021 | Dec 2021 | Mar 2022 | Jun 2022 | Sep 2022 |
Note: figures are rounded to the nearest thousand. | 5 |
. |