Results first quarter of 2013
Compared to the first quarter of 2012:
- Recurring EBITDA result increased from € 7.5 million to € 8.9 million (+ 18.9%).
- Recurring EBITDA margin increased from 5.4% to 6.6%.
- Revenues decreased from € 137.7 million to € 134.2 million (-2.5%).
- Operating expenses excluding depreciation and amortisation decreased from € 130.4 million to € 125.4 million (-3.8%). As such the cost reduction programme is ahead of schedule.
- The share in the result of ProSiebenSat.1 Media AG increased by 10.2% to € 3.4 million.
TMG issues an interim statement on the first quarter of 2013.TMG’s business operations are subject to seasonal fluctuations under ‘normal economic circumstances’. During the second and fourth quarter of the year, advertising revenues are higher than during the remainder of the year. The fourth quarter is the most important quarter for advertising revenues. The single-copy sales of De Telegraaf and the Keesing Media Group’s publications are significantly higher in the third quarter. The cash flow is highest in the fourth quarter when, in addition to quarterly subscription fees, semi-annual and annual subscription fees are also received and advertising revenues are relatively high. The results of Metro Nederland have been consolidated since September 2012 and those of Zoomin.TV since November 2012.
Printing for third parties
Mainly the advertising and circulation revenues of the various daily newspapers were somewhat negatively affected by the fact that the first quarter of 2013 had two fewer publication days than in 2012.
Result and margin
Both the recurring EBITDA result and net result increased, primarily thanks to operating expenses that were almost € 5 million lower.
Revenues at Print Media decreased by 5%. Advertising revenues were under further pressure in the first quarter and showed an unpredictable pattern. The announcement in January of Queen Beatrix’s abdication and the fact that Easter fell in March this year had a positive impact on advertising revenues. The cost reduction programme for 2012-2016 is ahead of schedule. Cost reductions have been realised on daily newspaper distribution and personnel costs were 3.5% below those of the comparable period last year.
For HDC Media the first quarter was dominated by preparations for the transition of the daily newspapers to tabloid format. The launch on 13 April 2013 was successful.
TMG’s cooperation with De Persgroep on daily newspaper distribution is going well and will be fully effected in the course of 2013. Thanks to the cooperation, the revenues from distribution for third parties increased to € 3.3 million.
Revenues at Online Media (including video production) grew by almost 5% in spite of a decline in revenues at Hyves. Excluding Hyves, revenues increased by 17%. A merging of a number of TMG’s online initiatives at the Hyves location was realised in order to make maximum use of Hyves’ online expertise. A key principle in Online Media is the acceleration of growth in online activities by putting a greater focus on product development for portals, classifieds and e-commerce. The first results are visible at the news sites and GroupDeal, for instance. Revenue also grew as the result of the acquisition of Zoomin.TV as of November 2012.
As a result of the increased listener figures, the Sky Radio Group realised an increase in revenues of almost 12% in the first quarter. Both spot and non-spot revenues rose. The format of Classic FM was recently changed based on cooperation between Classic FM and the editorial department of De Telegraaf. On working days between 7 and 9 am listeners are presented with classical music and news items directly from the floor of the editorial department of De Telegraaf.
At the Keesing Media Group, the targeted synergy effects between the existing puzzle activities in France and those of the Megastar Groupe which was acquired are being realised according to schedule. Low consumer confidence in the Netherlands and France had a modest negative effect on this business unit’s circulation revenues in the first quarter of 2013.
The financial income and expenses remained stable compared to the first quarter of 2012, at € 2.3 million. TMG recognises 6% of ProSiebenSat.1 Media AG’s net result as the result from participating interests. For the first quarter of 2013, the result from this participating interest was € 3.4 million, € 0.3 million higher than in the same period last year. The share price of the preference shares in ProSiebenSat.1 Media AG as at 31 March 2013 was € 27.85 per share. The book value of the TMG interest was € 234.1 million at the end of the first quarter, in other words € 17.83 per share.
The interest charges increased by € 0.3 million in the first quarter of 2013 as a result of more credit being used from the bank facility.
The net bank debt, excluding FM licensing fees owed by the Sky Radio Group, increased by € 10.1 million compared to 31 December 2012, to € 81.1 million, primarily as the result of investments in the printing plant and ICT. Headroom was € 15.1 million.
For a proforma presentation of the results for 2012 in accordance with the current organisational structure, see the presentation from the Annual General Meeting(page 31) of 25 April 2013.