> Full Year results 2017 (en)

In the year of its 25^th birthdate, Media Capital presents its 2017 results, which reinforces its leadership among the Portuguese media in terms of both market share and profitability, with own contents made in Portuguese

• In 2017, net income increased by 4% to € 19.8 million

• Consolidated EBITDA reached € 40.1 million, decreasing 3% YoY, although the cost cutting effort (-5%) allowed for an increase in the margin, from 23.9% in 2016 to 24.2% in 2017.

• Advertising revenues were down 2% for the full year vs 2016, although there was a 3% recovery in Q4.

• Notwithstanding the difficult advertising market environment, the TV segment showed an improvement in EBITDA margin, from 23.6% to 24.2%. TVI kept the leadership in TV audience share, achieving an average of 21.0% and 24.7% in all day and prime time, respectively. The gap over the second most watched channel was 3.9pp in all day and 3.1pp in prime time. TVI’s leadership in audiences was also maintained when analyzing by groups of channels (TVI, TVI24, TVI Ficção and TVI Reality, in the case of TVI), with 23.8% in all day and 27.2% in prime time, i.e., respectively 3.1pp and 2.5pp above the second most watched group of channels (although TVI has a lower number of channels).

• The Radio segment achieved an EBITDA of € 6.5 million, with a margin of 35.1%, and was up 21% vs last year’s figure. Throughout 2017, Media Capital’s radios had their best performance ever in terms of average share (36.4%, thus 1.5pp better than 2016), with the fourth audience reading (out of five) providing a new record, with a 38.6% share. Such performance benefited from the success of Radio Comercial’s clear leadership in the mornings, as well as to m80’s steady but strong improvement in overall audiences.

• There are several motives to be proud of in what regards the contents produced by the Group in 2017, of which we highlight: (i) the investigative news produced by TVI’s journalists; (ii) the leading fiction contents and (iii) the innovative entertainment programs.

• On this regard, the Group kept its strategic bet on internal audiovisual production, through Plural, with the creation and production of own contents, while acquiring successful international formats. Of the internal production in entertainment, it is worth to highlight “Apanha se Puderes”, leading what had been an historically difficult time slot (7-8pm) since its debut.

• Finally, it is important to emphasize that Media Capital strictly complies with the plethora of regulations and codes that rule its activities, while at the same time having to pay out a sizeable amount of taxes and tax-like costs, both direct and indirect, that surpass the average for the Portuguese economy. Media Capital shows a continuous focus on promoting and developing both the identity and quality of national contents, thus providing a truly public service and an invaluable contribute to the development of the production activity, including the direct and indirect hiring of a high number of professional of the Portuguese audiovisual industry.