Prisa loses €451 million

Iñaki Ferreras ©RapidTVNews | 01-03-2012


The Prisa division of leading Spanish media group Prisa TV has reported a poor 2011 with losses of €451.22 million for the year.
This represents a loss of about six times more than the €72.82 million reported in 2010, and has been attributed to a supply of €263 million of goodwill impairments (mainly in Portugal) and €183 million to deal with hypothetical judgments on tax litigation in progress, as reported by the group in a statement to the National Securities Market Commission (CNMV).
The group turnover of €2.724.45 billion, 3.5% less, while the gross operating profit (EBITDA) fell by 26.7% to €436.91 million. Meanwhile, the net operating result (EBIT) was a loss of €35.74 million compared to EBIT €336.15 million in 2010.
The group has clarified, however, that the comparison of the results of 2011 and 2010 is affected by special items reported in both income primarily from the sale of Travel Channel in 2011 and the judgment of Mediapro and sales buildings in Tres Cantos (Madrid) in 2010, and expenditure for the compensation of the efficiency plan carried out by the group and the process of renegotiating with suppliers in these two years audiovisual area.
Said Prisa's president and CEO Juan Luis Cebrian: "these results demonstrate the operational strength of the business even in an environment of extreme weakness of the economic cycle." Cebrian alluded to Santillana and pay TV, "examples", in his view, "of how you can grow through the most adverse circumstances", while highlighting the "great effort" made in cost reduction, coupled with a growing presence in Latin America, "has partly mitigated the fall in advertising markets in Spain and Portugal."
In the audiovisual area, Prisa's revenue amounted to €1.24 billion euros and EBITDA totalled €234.69 million, with margins adjusted for special items increased by 3.2 points to 18.3%. At year end, there were 1.84 million subscribers to pay television, of which 82,247 correspond to other platforms. High net decrease in satellite subscribers 16,671, compared with 72,949 in the fall of 2010.