The Prisa division of leading Spanish media group Prisa TV has reported a poor 2011 with losses of US 606 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.
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 also said Prisa made a great effort in cost reduction, and increased the presence in Latin America, "that has partly mitigated the fall in advertising markets in Spain and Portugal."