> First Half 2018 Results

FIRST HALF 2018 RESULTS

Media Capital presents its 1H 2018 results, reinforcing its leadership among the Portuguese media 

• In the first six months of the year, Media Capital kept its leadership in audiences and profitability, strengthening its position in the competitive Portuguese media sector.

• Net profit improved 26% YoY, due to the growth in operating revenues, EBITDA and financial results.

• Advertising revenues were up 3%.

• Consolidated EBITDA reached € 19.4 million, 12% above the comparable period.

• Financial results improved 31% YoY, due to the lower average volume of net debt, lower all-in interest rate and favorable FX differences.

• The TV segment had an EBITDA of € 14.8 million. TVI kept the leadership in TV audience share for the 143^th straight month, achieving an average of 20.6% and 23.8% in all day and prime time, respectively. The gap over the second most watched channel was 3.8pp 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 23.7% in all day and 26.4% in prime time, i.e., respectively 3.4pp and 2.5pp above the second most watched group of channels, although TVI has a lower number of channels.

• The Radio segment continued to improve its EBITDA, which in this period rose by 35% YoY to € 3.5 million, with a margin of 36.8%. Media Capital’s radios continued to increase their audience levels, reaching 38.3% in the third reading of 2018 – 4.4pp above the main competitor and 0.2pp higher than its own reading of comparable period of 2017. Such performance benefited from the success of Radio Comercial’s clear leadership (26.1%), which reached the highest number of listeners ever for a Portuguese radio, as well as to M80’s, which reinforced its ranking as the third most listened to radio in Portugal.

• In the Digital business there was a strong improvement in audiences and revenues. In the comparison against the comparable period of 2017, the number of visits, page views and videos rose by 21%, 18% and 46% respectively, thus decisively contributing for the 19% increase in advertising revenues. 

• It is worth highlighting the cash flow generation, with an improvement in operating cash flow from € 14.4 million to € 23.2 million, whereas net debt came down € 21.2 million and € 31.4 million when comparing against YE 2017 and June 2017, respectively. Hence, net debt stood at € 74.1 million at the end of June.

Queluz de Baixo, 20th July 2018