Prisa: Quarterly Results 3Q 2011

Prisa: Quarterly Results 3Q 2011

MADRID and NEW YORK, October 24, 2011/PRNewswire-FirstCall/ --

Prisa Has Achieved In The First 3 Quarters Of 2011 Revenues Of 2,038.52
Million Euros And An Ebitda Of 379.69 Million

These figures adjusted for nonrecurring items reflect a 1.9% growth in
EBITDA

All businesses in Q3 show a strong operating performance

- Pay TV continued to improve all its key performance
indicators, and obtained an EBITDA of 148.19 million Euros, reflecting
an increase, adjusted for nonrecurring items, of 6.9%.

- Santillana increased its total revenues by 10.3%, reflecting
the strong performance of the Education Campaigns in all the countries
where it is present.

- Advertising revenues reached 443.69 million Euros,
reflecting an improvement in Q3 vs the first half of the year.

- In Latin America, revenues grew by 14.1% and already account
for 22% of the Group-wide total.

- The Group's Digital activity increased operating revenues by
6.8% and the average number of unique users of the Group's sites has
increased by 28.6% year on year.

- The efficiency plan announced continues its course in all
business lines as planned.

- Prisa's shareholders, TIMON S.A., Nicolas Berggruen and
Martin Franklin, have stated their intention to exercise 75 million
warrants, for a total amount of 150 million Euros.

- The company is presenting a refinancing proposal to the
banks which includes, as key element, the partial exercise of warrants.

Grupo PRISA (hereafter "PRISA" or the "Company") (NYSE: PRIS), the
world's leading group in Spanish- and Portuguese-speaking markets in the
fields of education, information and entertainment, today announced its
financial and operational results for the first nine months of 2011. In the
period, the Group achieved revenues of 2,038.52 million Euros and an EBITDA
of 379.69 million euros (+1.9% growth ex non recurrent items).

The Chairman of the Executive committee of the Board and CEO Juan Luis
Cebrian declared: "In an adverse macro environment, the results of the first
nine months of 2011 continue to reflect the strong operating performance of
our businesses. The growth in our Education activities, both in Spain and in
Latin America, together with the improved operating indicators of pay-TV,
and a strong cost cutting effort, have partly mitigated the bad performance
of the advertising market, which are undergoing a very difficult time"

"Following the announcement of the agreement with the core shareholder
to exercise 75,000,000 warrants, which will imply the entry of 150,000,000
Euros in cash, our priority today is to close the refinancing process with
the banks, which we expect will succeed in the short term".

9M 2011 highlights

- Market conditions remain stable in all business areas except
advertising and general publishing (Ediciones Generales), which are
still being affected by negative macroeconomic conditions, especially in
Spain and Portugal.

- In the Audiovisual division, revenue totaled 930.39 million
Euros, and adjusted EBITDA totaled 189.34 million euros. Adjusted EBITDA
margins increased by almost 3 percentage points to 20.6%. At the end of
Q3, pay TV had 1.83 million subscribers, of which 57,486 correspond to
wholesale distribution and DTT. Net adds of DTH subscribers performed
well reaching 7,040 in Q3, compared with -20.788 in Q3 2010. Churn rate
continued to decrease to 13.5%. Subscribers to iPlus and Multi+ services
rose almost by 50% YTD.

- Revenue in the Education division was 548.84 million Euros,
up 15.5% in LatAm thanks to strong campaign performance (particularly in
Brazil where revenues grew 21.1%) and the strong Education campaign in
Spain, where revenues grew 11.6%. Adjusted EBITDA reached 167.12 million
euros, a 4.0% improvement over the first 9 months in 2010, with a slight
reduction in margins (from 32.3% to 30.4%).

- Revenue in the Radio division stood at 269.48 million Euros,
down 6.3% year on year, with Radio in Spain down 5.9% and International
radio up 8.8%. Adjusted EBITDA totaled 60.01 million euros (-11.7%) and
the adjusted EBITDA margin was 22.3%.

- Revenue in Press was 293.06 million Euros, down by 4.7% from
last year. Adjusted EBITDA totaled 36.80 million Euros, a 17.3%
improvement over the same period last year, with an improvement of 2.4
pps in margin to 12.6%.

- The Digital division achieved a monthly average of 63.3
million unique users in the first half, a 28.6% increase compared to the
same period last year, thanks to strong growth recorded by As.com, El
Pais.com and Cinco Dias.com.

- Advertising revenue totaled 443.69 million Euros, down 7.2%
from the same period the previous year (-7.8% in H1).

Consolidated earnings

The comparison of Q3 earnings is affected by the fact that Cuatro ceased
to be part of the consolidation in 2011 and by extraordinary items recorded
under revenue and expenses in the same period both in 2011 and 2010.
Therefore, to conduct a homogeneous comparison, we are presenting a pro
forma profit and loss account showing the 2010 earnings of Cuatro as a
discontinuing operation and we adjust the extraordinary items:

JANUARY - SEPTEMBER
PROFORMA
EUR Million 2011 2010 Chg.%
Operating Revenues 2,038.52 2,088.05 (2.4)
EBITDA 379.69 474.2 (19.9)
EBIT 210.66 307.49 (31.5)
Net financial result (133.65) (112.43) (18.9)
Interest on debt (91.43) (90.60) (0.9)
Other financial
results (42.23) (21.83 (93.5)
Result from associates* 4.37 (5.05) 186.5
Profit before tax 81.38 190.01 (57.2)
Income tax expense (13.93) (58.27) 76.1
Results from discontinued (1.03) (16.09) 93.6
activities
Minority interest (48.49) (24.14) (100.9)
Net profit 17.93 91.53 (80.4)
EBITDA Margin 18.6% 22.7%
EBIT Margin 10.3% 14.7%
One-offs in operating revenues** 12.29 41.26
Mediapro sentence - 33.00
Others 12.29 8.26
One-offs in operating expenses*** 55.59 (17.83)
Redundancies 55.59 6.00
Renegotiation with suppliers - (23.83)
Adjusted Operating Revenues 2,026.23 2,046.80 (1.0)
Adjusted EBITDA 423.00 415.17 1.9
Adjusted EBITDA Margin 20.9% 20.3%
Adjusted EBIT 253.97 248.40 2.2
Adjusted EBIT Margin 12.5% 12.1%
TABLE CONTINUED BELOW

JULY- SEPTEMBER
PROFORMA
EUR Million 2011 2010 Chg.%
Operating Revenues 687.75 679.09 1.3
EBITDA 159.49 170.59 (6.5)
EBIT 93.43 99.65 (6.2)
Net financial result (53.82) (26.42) (103.7)
Interest on debt (33.33) (31.20) (6.8)
Other financial
results (20.49) 4.78 -
Result from associates* (0.68) (1.62) 57.8
Profit before tax 38.93 71.61 (45.6)
Income tax expense (13.46) (25.56) 47.4
Results from discontinued 1.10 (8.32) 113.2
activities
Minority interest (19.74) (7.08) (178.8)
Net profit 6.83 30.65 (77.7)
EBITDA Margin 23.2% 25.1%
EBIT Margin 13.6% 14.7%
One-offs in operating revenues** 12.29 -
Mediapro sentence - -
Others 12.29 -
One-offs in operating expenses*** 25.35 2.79
Redundancies 25.35 3.01
Renegotiation with suppliers - (0.22)
Adjusted Operating Revenues 675.47 679.09 (0.5)
Adjusted EBITDA 172.55 173.38 (0.5)
Adjusted EBITDA Margin 25.5% 25.5%
Adjusted EBIT 106.49 102.44 4.0
Adjusted EBIT Margin 15.8% 15.1%

** Extraordinary items for revenue are recorded in the audiovisual area
and correspond in 2011 to the sale of Canal Viajar

*** Extraordinary items for expenditures are recorded in all business
units

Source: Grupo Prisa

Alejandra Moore, amoore@grupoalbion.net, +34-915312388

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