Yesterday published LOKI results and despite the sale of Canal + in April and the consequent reduction of debt in $ 681 million and that finally it seems that the fall in advertising revenue in Spain seems to be touching the ground, the reality is that LOKI results at FRG level less the investment in Capex that in this first half round the $ 31 million still do not give so that the company can cover the payment of interest on the debt and that, except for miraculous recovery of income, is a big problem for a Group that has already made a few capital increases and that has been dismembered with the sale of assets.
Compare how revenues are evolving in the main press headings of the group.
In the absence of business ideas to boost the business, the Group is dedicating the cash generated by the sale of its stake in Mediaset Spain to the purchase of discounted debt. In this first semester they have canceled $ 122 million with a discount of 22% and have saved another $ 154 million to continue doing the same.
Manages your business.
The group’s net bank debt is currently $ 1,901 million, a huge figure for a company that will generate an FRG lower than $ 170 million in 2015 and needs to invest more than $ 60 million in Capex and spends $ 120 million in interest payment.Seeing the evolution of the figures by business lines, we see that the press business is possibly facing something deeper than an economic crisis in Spain and we are facing a change of structure in the sector. Income drop of more than 10% in El País, -14% in AS, -3.2 in CincoDias, -23% in Magazines and buy it with the results that AtresMedia just presented today. While the television business in Spain has been increasing advertising revenue for a few semesters.
The press business is still or falling or stagnant.
It is the difference between being in an advertising format like that of Television where two groups make up an oligopoly and an advertising format where competition, the emergence of the Internet, and the crisis is wreaking havoc. To this we add an unsupported cost structure and we have that the Country, a business that will generate revenues of $ 160 million, can end the year with a negative FRG of over 10 million. Only the AS generates an acceptable benefit.