Mecom Group announces 2011 results

Mecom Group PLC has announced its results for the year-ending 2012

HIGHLIGHTS

  • Adjusted EBITDA from ongoing operations down €7.2 million to €113.6 million
  • Non-advertising revenues up 1 per cent to €594.4 million, representing 56 per cent of total revenue
  • Advertising revenues down 7 per cent to €461.5 million
  • Net debt reduced by €52.2 million to €258.5 million. Net debt : EBITDA ratio of 1.8 times 2011 (2010: 2.0 times)
  • Group earnings per share increased to 46.2 euro cents per share
  • Final dividend of 9.9 euro cents per share; full year dividend of 15.4 euro cents per share
  • New strategy based on implementation of pay model across all platforms, including mobile, and €70 million cost reduction programme
  • Agreement on purchase of Wegener minority announced separately today – simplifies Group structure, provides operational and commercial efficiencies and will enhance earnings per share

Notes

  1. From ongoing operations, that is excluding Mecom Norway and Presspublica; stated before exceptional items and amortisation of acquired intangibles.
  2. Excluding results of Presspublica, which was sold during 2011; stated before exceptional items and amortisation of acquired intangibles.
  3. For total Group, that is including Mecom Norway and Presspublica; stated before exceptional items and amortisation of acquired intangibles.

Tom Toumazis, Chief Executive Officer, said, “The 2011 financial results emphasise again the value of our 1.2 million subscribers that deliver over 80 per cent of our EBITDA, particularly in an environment where advertising revenues continue to be under pressure. The announcements we have made on the purchase of the minority shareholder in Wegener and the termination of the De Pers contract will greatly simplify the ownership structure and management of our Dutch operations and, in the case of De Pers, will remove a considerable, and growing, operating and financial risk.  We can now focus unambiguously on the modernisation plan that we set out in our Strategy Update on 24th January. Early indications are that 2012 will be another tough year economically.  Our new strategy based on paid platforms, our cost cutting plans across our three markets and the strength of our non-advertising revenues, position us well to address the challenges that this will bring.”

More information is available here.

UK, London

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