Promotora de Informaciones (PRS) Q1 2025 earnings summary

Executive summary

• Solid operating and financial results in 1Q 2025, exceeding expectations despite a complex environment and tough comparison base due to extraordinary items in 1Q 2024.

• Focus on financial deleveraging, with Net Debt reduced to €664m, the lowest in 20 years, and strong liquidity of €306m.

• Excluding extraordinary effects, revenues grew +2% and EBITDA +5% year-over-year, driven by Santillana's Southern region and improved advertising at PRISA Media.

• Free Cash Flow improved by €18m (+41%), aided by temporary effects and a €40m capital increase to repay high-cost debt.

• Refinancing agreement reached, pending formalization, to extend maturities to 2029 and reduce average cost.

Financial highlights

• Reported revenues: €232m in 1Q 2025, down -10% year-over-year due to 2024 extraordinary items; adjusted revenues up +2%.

• Reported EBITDA: €46m (-31% YoY); adjusted EBITDA up +5% to €50m, with margin improvement to 22%.

• Net income attributable to parent: -€4m, impacted by prior-year arbitration and lower Brazil Public sales.

• Free Cash Flow: €63m in 1Q 2025, up €18m from 1Q 2024.

• Net Financial Debt (with IFRS 16): €664m, down €86m from December 2024 and €134m year-over-year.

Outlook and guidance

• Strategic roadmap aims for improved 2025 results versus 2024, with key focus on Brazil's PNLD Novelty order in Q4.

• Macroeconomic and FX volatility, especially in Latin America, remain key risks to achieving 2025 goals.

• 2025-2028 Strategic Plan to be presented at Capital Markets Day.