Prisa Earnings: Latam Growth does not offset Spain slump
Spain’s Grupo Prisa reported substantially higher sales in Latin America during the first nine months of 2012. The higher Latin American sales did not offset a substantial advertising revenue decline in Prisa’s core Spain market
Grupo Prisa owns U.S. Hispanic broadcaster V-Me and radio company Grupo Latino de Radio as well as text book publisher Santillana. The Spanish company registered a net loss of US $41 million vs. earnings of US $23 million during the first nine months of 2011.
The difficult economic situation in Spain contrasts with strong growth in Latin America. Advertising revenues overall decreased by 9,9% over the first nine months of 2012 compared to the same period of 2011. However, Latin American ad revenues increased by 15,1% and now amount to 24,9% of overall Grupo Prisa’s ad revenues. EBITDA (Earnings before depreciation and amortization) from Latin American operations amounted to 34,8% of total Prisa EBITDA.
The Pay TV television segment revenue in Spain grew by 4,2% in large part thanks to newly obtained soccer broadcast rights.
Text book publisher Grupo Santilana increased revenues by 6%, buoyed by a strong Latin American performance (+10,8%).
Digital revenues continued to increase (+14,1%). Digital revenues on traditionally print platforms had a particularly high increase (+25,2%) or 19,5% of overall revenues of traditional print platforms.
Grupo Prisa continues to have a high debt load of more than US$ 4 billion. In order to guarantee debt interest payments in the midst of the Spanish economic slump, Prisa has been cutting costs in most of its business units. Operating costs declined by 3,9% during the January – September 2012 period.
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