Accounts in decisive acceleration for Cairo Communication, which approved the half-year report as at 30 June in the board of directors yesterday, exactly five years after the appointment of Urbano Cairo – it was 3 August 2016 – at the top of the board of the subsidiary RCS MediaGroup following the success of Opas on the Corriere group. These were years of change and development for the group, which regained leadership with the Corriere, renewed and relaunched the main newspapers, and the sport activity relating to the Giro d’Italia and the great cycling classics strongly developed. A great deal of development and efficiency work has also been done in Spain. These have been years of research into management efficiency, also with the review of production processes. As a result, the company returned to generate important profits, to remunerate the shareholders and at the same time the debts were almost eliminated. All while maintaining important employment levels and introducing new professional skills on digital, commented the president and CEO of RCS and Cairo Communication.
Increase in revenues and margins for RCS and La7
Cairo Communication’s half-year report – explained Cairo in the note on the accounts published yesterday – attests important results of growth in revenues and margins, as well as in Rcs of other activities, in particular La7. I am particularly pleased with the further reduction in net financial debt to around € 30 million, which confirms our strong cash generation capacity. Furthermore, the group strengthens its leadership in information for our country in the current relaunch phase. The accounts show a gross operating margin (Ebitda) of 80.7 million euros (from 11.6 million), an operating result (Ebit) of 43.9 million (from -25.2 million) and a net result of 24, 5 million (from -12.7 million). The comparison with the first six months of 2020, in the period of the lockdown. Gross consolidated revenues, to 583.3 million, rose by 124.7 million. The reduction in net debt of € 32.9 million compared to the end of 2020 and of € 73.1 million compared to June 30, 2020 after distributing dividends of € 11.6 million at group level and absorbing the effects of the consolidation of m-dis which at June 30, 2021, it had a debt of 15.1 million, also due to the seasonal trend in working capital.
Corriere first newspaper on newsstands
While Corriere is confirmed as the first Italian newspaper on newsstands, with a total active digital customer base of approximately 336 thousand subscriptions, digital subscriptions are also growing strongly in Spain: 69.5 thousand for El Mundo and 31.7 thousand for Expansion a end of June. RCS achieved a net profit of 38.7 million in the six months and continued to generate positive cash flows. Digital revenues represent approximately 22% of the total, while gross online advertising on RCS media in the half year increased by 40% in Italy and 48% in Spain. La7 confirmed the audience levels (3.49% of the total day and 4.82% in prime time) and was the sixth national network in prime time. In the first half of 2021, advertising sales on the La7 and La7d channels recorded a growth of 17%, exceeding the values of the first half of 2019. The results of listening to the information and in-depth programs of the network, we read in the note of the group, continued to be all excellent. In the first half of 2021, the periodicals publishing sector Cairo Editore achieved a gross operating margin of 3.7 million (from the previous 2.8 million).