Huge fall in Prisa profits

Iñaki Ferreras| 06-05-2011

Spanish media group Canal+'s Prisa has reported net profit €11.47 million in Q1 2011, representing a downturn of 67.7% with regard the same period in 2010.

The poor performances is attributable in part to the fact that Prisa's former free-to-air channel Cuatro was bought out by Telecinco's Mediaset España and also due to the extraordinary effects registered in the incomes and expenses either in 2010 as in this quarter this year.

Revenues for the company reduced by 9.6% in this period, €690.93 million, while EBITDA stayed at €100.43 million, a drop of 30%. Here the company highlighted that the revenue and EBITDA showed growth of 3.2% and 2.4% respectively once adjusted the referred effects for the non-recurrent incomes.

Yet undeterred, Juan Luis Cebrián, the company’s CEO, stated that these results "reflect the excellent behaviour of our company's enterprises in Latin America, either in the radio, as in the education sectors. They also show good results of our pay-TV business Digital+. Nevertheless, the weak economic situation of Spain and Portugal goes against the advertising expenses". Advertising expenses fell to €144 million, 3% less than the corresponding period last year.

By sectors, Prisa gained revenue of €313.7 million in its audiovisual division, slightly down on last year’s figure. Also at the end of this period, Digital+ had 1.81 million subscribers meaning 13,343 new clients against a fall of 46,960 subscribers in the same period of 2010. Added value services iPlus and Multi+ grew more than 20% in this period.