Promotora de Informaciones (PRS) Q3 2024 earnings summary

Executive summary

• Cash flow improved and net debt reduced by €89m year-over-year, supported by a €100m convertible notes issuance and strong liquidity of €191m as of September 2024.

• Core businesses, especially Santillana's private segment and Prisa Media, drove growth, though extraordinary items and Brazil public sales delays impacted results.

• Excluding extraordinary items, Brazil public sales delays, and FX effects, revenue grew 2% and EBITDA 12% at constant currency for the first nine months of 2024.

• Strategic focus on digital transformation, subscription models, and AI partnerships continued to support growth.

• 9M results align with expectations, and the company remains committed to FY 2024 guidance.

Financial highlights

• Revenues reached €635m, down 6.4% year-over-year; at constant currency and excluding extraordinary impacts, up 2%.

• EBITDA at €99m, down 18.2% year-over-year; adjusted EBITDA grew 12% at constant currency excluding extraordinary impacts.

• Free cash flow improved by €9m year-over-year to €10m for 9M 2024, with working capital gains from both Santillana and Media.

• Net income was -€37m, in line with 2023, as improved financial results offset lower operating income.

• Net debt stood at €717m (ex-IFRS 16), €89m lower than the previous year; net debt/EBITDA ratio at 4.7x.

Outlook and guidance

• Company reiterates commitment to FY 2024 guidance, targeting an EBITDA margin of 19–20% and free cash flow above €60m.

• 2025 guidance targets EBITDA margin of 22–25% and free cash flow above €100m.