Grupo Media Capital SGPS

Earnings Release • Jul 20, 2018

First Half 2018 Results

2017

Grupo Média Capital, SGPS, S.A.

GRUPO MÉDIA CAPITAL SGPS, SA Sociedade Aberta Sede: Rua Mário Castelhano, n.º 40, Barcarena, Oeiras Matriculada na Conservatória do Registo Comercial de Cascais sob o n.º 17831 (Oeiras) Pessoa Coletiva n.º 502 816 481 | Capital Social: 89.583.970,80 euros

FIRST HALF 2018 RESULTS

Media Capital presents its 1H 2018 results, reinforcing its leadership among the Portuguese media

• In the first six months of the year, Media Capital kept its leadership in audiences and profitability, strengthening its position in the competitive Portuguese media sector.
• Net profit improved 26% YoY, due to the growth in operating revenues, EBITDA and financial results.
• Advertising revenues were up 3%.
• Consolidated EBITDA reached € 19.4 million, 12% above the comparable period.
• Financial results improved 31% YoY, due to the lower average volume of net debt, lower all-in interest rate and favorable FX differences.
• The TV segment had an EBITDA of € 14.8 million. TVI kept the leadership in TV audience share for the 143th straight month, achieving an average of 20.6% and 23.8% in all day and prime time, respectively. The gap over the second most watched channel was 3.8pp in all day and 3.1pp in prime time. TVI's leadership in audiences was also maintained when analyzing by groups of channels (TVI, TVI24, TVI Ficção and TVI Reality, in the case of TVI), with 23.7% in all day and 26.4% in prime time, i.e., respectively 3.4pp and 2.5pp above the second most watched group of channels, although TVI has a lower number of channels.
• The Radio segment continued to improve its EBITDA, which in this period rose by 35% YoY to € 3.5 million, with a margin of 36.8%. Media Capital's radios continued to increase their audience levels, reaching 38.3% in the third reading of 2018 – 4.4pp above the main competitor and 0.2pp higher than its own reading of comparable period of 2017. Such performance benefited from the success of Radio Comercial's clear leadership (26.1%), which reached the highest number of listeners ever for a Portuguese radio, as well as to M80's, which reinforced its ranking as the third most listened to radio in Portugal.
• In the Digital business there was a strong improvement in audiences and revenues. In the comparison against the comparable period of 2017, the number of visits, page views and videos rose by 21%, 18% and 46% respectively, thus decisively contributing for the 19% increase in advertising revenues.
• It is worth highlighting the cash flow generation, with an improvement in operating cash flow from € 14.4 million to € 23.2 million, whereas net debt came down € 21.2 million and € 31.4 million when comparing against YE 2017 and June 2017, respectively. Hence, net debt stood at € 74.1 million at the end of June.

Queluz de Baixo, 20th July 2018

1. Consolidated P&L

€ thousand	1H 2018	1H 2017	% Var	Q2 2018	Q2 2017	% Var
Total operating revenue	86,876	79,033	10%	48,149	43,957	10%
Television	71,368	65,295	9 %	39,584	36,645	8 %
Audiovisual Production	15,713	12,519	26%	8,202	5,861	40%
Radio	9,536	9,143	4 %	5,504	5,193	6 %
Others	8,020	7,804	3 %	4,138	3,886	6 %
Consolidation Adjustments	(17,761)	(15,728)	(13%)	(9,279)	(7,628)	(22%)
Total operating expenses ex-D&A	67,449	61,702	9 %	33,921	31,641	7 %
EBITDA	19,427	17,331	12%	14,228	12,316	16%
EBITDA Margin	22.4%	21.9%	0.4pp	29.5%	28.0%	1.5pp
Television	14,787	15,136	(2%)	11,436	11,148	3 %
Audiovisual Production	103	(1,670)	N/A	(24)	(1,006)	98%
Radio	3,508	2,597	35%	2,391	1,798	33%
Others	237	417	(43%)	264	7 2	267%
Consolidation Adjustments	793	850	(7%)	160	303	(47%)
Depreciation and amortisation	3,028	3,838	(21%)	1,501	1,973	(24%)
Operating income (EBIT)	16,399	13,493	22%	12,727	10,344	23%
Financing Results	(1,616)	(2,334)	31%	(627)	(1,237)	49%
Profit / (Loss) Before Inc. Tax and No Contrl. Int.	14,783	11,159	32%	12,099	9,107	33%
Income Taxes	(4,292)	(2,840)	(51%)	(3,548)	(2,699)	(31%)
Profit / (Loss) from Continued Operations	10,491	8,319	26%	8,551	6,407	33%
Net Profit / (Loss) for the Period	10,491	8,319	26%	8,551	6,407	33%

In the first six months of 2018, operating revenues were up 10%, reaching € 86.9 million (€ 79.0 million in 1H 2017). Opex (excluding D&A) was also up, in this case by 9%, from € 61.7 million towards € 67.4 million.

The YoY evolution of both operating revenues and costs reflected, on top of the ordinary activity, the impact of the adoption of IFRS 15 since 1 January 2018 - Revenues from Contracts with Customers. This implied an increase in both revenues and costs in the exact same amount (€ 5.0 million), i.e. neutral EBITDA and cash flow wise. Without such impact, operating revenues and costs would have increased by 4% and 1% on a YoY basis respectively. In the second quarter, the said evolution was +4% and 0%, respectively.

Consolidated EBITDA was € 19.4 million, increasing 12% YoY. EBITDA margin went from 21.9% to 22.4% (+0.4pp). Excluding the IFRS 15 impact, there would have been an improvement of 1.8pp, from 21.9% to 23.7%. In 2Q, EBITDA jumped 16% to € 14.2 million.

EBIT was € 16.4 million, 22% better than the value of 1H 2017, benefiting also from lower depreciations and amortisations.

Net financial results improved by € 0.7 million, through the reduction in interest costs (due both to a lower average net debt and to a lower cost of debt) and to favorable FX differences.

Net income rose by 26% to € 10.5 million, whereas in the second quarter there was a 33% improvement, to € 8.6 million.

€ thousand	1H 2018	1H 2017	% Var	Q2 2018	Q2 2017	% Var
Operating revenue	86,876	79,033	10%	48,149	43,957	10%
Advertising	58,600	57,101	3 %	34,322	33,853	1 %
Other revenues	28,276	21,932	29%	13,827	10,104	37%

In 1H 2018, advertising revenues had a positive evolution, having increased 3% YoY (+1% in 2Q). In the TV segment, advertising was up 2% (0% in 2Q), whereas in the Radio segment there was an increase of 3% (+4% in 2Q), while in the Other segment (which includes Digital, Music & Events, shared services and holding) the variation was quite positive (+19% year to date and +27% in 2Q).

Other operating revenues, which comprise mainly audiovisual production, sale of contents, multimedia and retransmission revenues, increased by 29% (+37% in 2Q). This variation was mostly due to the already mentioned adoption of IFRS 15, without which the YoY change would be +6% (+14% in 2Q), benefiting from retransmission revenues, among other, such as audiovisual production and events.

2. Television

LV-
tvi 24
tvificção
tvireality
tviáfrica
TV. internacion

€ thousand		1H 2018	1H 2017	Var %	Q2 2018	Q2 2017	Var %
Operating revenue		71,368	65,295	9 %	39,584	36,645	8 %
Advertising		48,019	46,948	2 %	28,248	28,109	0 %
Other revenues		23,350	18,347	27%	11,336	8,536	33%
Operating Expenses, ex D&A		56,581	50,159 13% 28,149 25,497
EBITDA		14,787	15,136	(2%)	3 %
EBITDA margin		20.7%	23.2%	(2.5pp)	28.9%	30.4%	(1.5pp)
Depreciation and amortisation		1,236	1,451	(15%)	616	717	(14%)
Operating income (EBIT)		13,550	13,686	(1%)	10,820	10,431	4 %
All Day (%)	day and 26.4% in prime time (20h-24h). Such leadership was also maintained in the main commercial target - Adults – as shown below. UNIVERSE	ADULTS			third one. TVI leads in this time slot since 2001. A similar position was achieved in the Adults target, with TVI capturing a 24.4% share, while the second
TVI Group	23.7	24.6	and third most watched channels had 21.4% and 12.8%, respectively.
SIC Group	20.3	20.9
RTP Group	16.6	17.3			During this period, TVI based its programming on local drama (fiction), entertainment and news.
Prime Time (%)	UNIVERSE	ADULTS
TVI Group	26.4	27.1			In fiction, TVI led with the two novelas that have been aired this year: "A Herdeira", with an average
SIC Group	23.9	24.5			audience of 1 million and 273 thousand viewers,
RTP Group	16.2	16.8			being currently the most watched novela in
					Portugal, and "Jogo Duplo", airing latter in the
					night, and with an average audience of 815
					viewers, also leading its time slot.
third players, respectively.	In terms of individual channels, TVI's generalist channel confirmed yet again its #1 position for the 143th consecutive month, with a share of 20.6% in all day, 3.8pp above the closest competitor and 8.2pp above the third most watched channel. TVI is the leader in this commercial target since 2005. In 2018, TVI also ranks in the first place in the main commercial target – Adults – obtaining a share of 21.4%, i.e. 4.0pp and 8.3pp above the second and		new program "Conta-me Como És", airing Saturday		In entertainment, TVI's programmes continue to outbeat the competition, with a special emphasis on "Secret Story 7", which had audience of more than 1 million and 224 thousand viewers. "Secret Story – O Reencontro" was also a success, whereas the galas led Sunday nights, with an average audience of 1 million and 190 thousand viewers. "Apanha se Puderes" continues to be a success, as it leads audiences in access to prime since its premiere. "Masterchef Junior" also posted impressive audience figures. Finally, the		an average

All Day (%)	UNIVERSE	ADULTS
TVI Group	23.7	24.6
SIC Group	20.3	20.9
RTP Group	16.6	17.3
Prime Time (%)	UNIVERSE	ADULTS
TVI Group	26.4	27.1
SIC Group	23.9	24.5

early afternoons, had outstanding results, boosting audiences in that time slot.

TVI's news programing keeps its leading position both at lunchtime, with "Jornal da Uma" and at dinnertime, with "Jornal das 8".

TVI24 kept its #1 ranking among news channels in prime time, with an average audience of 65 thousand views. In the first six months of 2018, out of the 25 most watched programmes broadcasted on news channels, 18 belong to TVI24's.

The TVI Reality channel leveraged on the success of "Secret Story 7" and "Secret Story – O Reencontro", ranking #22 in the overall channels list, with a total audience of 363 thousand viewers.

As regards the sale of contents, in 1H 2018 it was reached a new record in the number of countries where TVI's fiction is exhibited – 75, as "Ouro Verde" and "A Única Mulher" were sold to the North American market. Also, "A Herdeira" was sold to both Angola and Mozambique, whereas TVI's miniseries were sold to the US VOD and SVOD markets.

TVI Internacional continues to increase its worldwide footprint, and is currently broadcasted in more than 40 platforms and in 22 territories around the World.

TVI Ficção is broadcasted in 14 territories, and became available in two more platforms in Luxemburg and one more in Switzerland.

TVI was the big winner of the prizes "Troféus de Televisão" ("Television Trophies"), winning 16 out of the 24 available prizes. The main highlight was in fiction, with TVI winning all the prizes in the novelas category (6 in 6), while 2 of the 3 prizes in the series category were also attributed to TVI's stars. In entertainment, the winning talk-show was TVI's "Você na TV" and the best hosts were also TVI's. In news, TVI won the prize for best investigative journalism piece, with Ana Leal being considered the best TV journalist, while José Carlos Araújo was named as the best news anchor. TVI24's sports program "Maisfutebol" won in its category.

FINANCIAL PERFORMANCE

Regarding financial performance, operating revenues were up 9% YoY (2% without the impact from the adoption of IFRS 15, which only affected the line of "other revenues" and not EBITDA nor cash flow). In the second quarter, the YoY variation was +8% (+2% excluding the IFRS 15 effect).

Advertising revenues were up 2% (0% in the second quarter).

Other revenues, which encompass, among other, retransmission fees, sale of contents and multimedia services, were up 27% (0% if IFRS 15 adoption is taken out). In April-June, the YoY growth was 33% (6% excluding IFRS 15).

Opex increased 13% YoY or 3% if excluding IFRS 15 impacts, due to the effort put in better quality contents. In the quarter, the YoY variations were +10% and +1%, respectively.

EBITDA was € 14.8 million (-2% YoY), with a margin of 20.7% (22.3% excluding IFRS 15 adoption). Nonetheless, in the 2Q, EBITDA improved 3% to € 11.4 million, with a margin of 28.9% (30.7% excluding IFRS 15).

3. Audiovisual Production

€ thousand	1H 2018	1H 2017	Var %	Q2 2018	Q2 2017	Var %
Operating revenue	15,713	12,519	26%	8,202	5,861	40%
Advertising	0	0	-	0	0	-
Other revenues	15,713	12,519	26%	8,202	5,861	40%
Operating Expenses, ex D&A	15,610	14,189	10%	8,226	6,867	20%
EBITDA	103	(1,670)	N/A	(24)	(1,006)	98%
EBITDA margin	0.7%	-13.3%	14.0pp	-0.3%	-17.2%	16.9pp
Depreciation and amortisation	954	1,614	(41%)	476	811	(41%)
Operating income (EBIT)	(851)	(3,284)	74%	(500)	(1,817)	72%

Plural continues to be one the main players in the audiovisual production sector, also with a relevant presence in the associated technical services/equipment and scenic design and

construction. In Q1 2018, it kept its leadership not only in fiction, with the production of the novelas "A Herdeira" and "Jogo Duplo", but also in entertainment, through the adaptation of the international format "Apanha se Puderes" ("Raid the Cage"), a contest which leads audience since its debut, in the 7-8pm time slot.

Furthermore, EMAV (technical services and equipment) rendered its services to several important audiovisual players in Iberia, and was responsible for the technical support to the broadcasting of various sports. In turn, EPC (scenery design and construction) was again one of the main suppliers in the Portuguese market – in the areas of entertainment, fiction and news, among other, with a special highlight for the involvement in the Eurovision Song Contest.

This segment had operating revenues of € 15.7 million (+26 YoY), primarily due to a substantial increase of content production in Portugal.

In Portugal, revenues were up 24% YoY, mostly as a result of higher content production for television.

In Spain, the activity is reduced to residual levels, with a slim and flexible structure, the necessary one to address attractive commercial opportunities.

Opex increased by 10% YoY (+20% in the quarter), due to the higher activity.

Hence, EBITDA reached a positive figure of € 0.1 million, improving € 1.8 million vs 1H 2017.

4. Radio

€ thousand	1H 2018	1H 2017	Var %	Q2 2018	Q2 2017	Var %
Operating revenue	9,536	9,143	4 %	5,504	5,193	6 %
Advertising	9,056	8,808	3 %	5,197	5,001	4 %
Other revenues	480	335	43%	307	192	60%
Operating Expenses, ex D&A	6,028	6,546	(8%)	3,113	3,395	(8%)
EBITDA	3,508	2,597	35%	2,391	1,798	33%
EBITDA margin	36.8%	28.4%	8.4pp	43.4%	34.6%	8.8pp
Depreciation and amortisation	562	490	15%	277	298	(7%)
Operating income (EBIT)	2,945	2,107	40%	2,115	1,500	41%

Audience data continues to underline the good performance of the various radio stations held by Media Capital Rádios (MCR).

In the third audience measurement published in 2018, MCR posted a leading aggregate share of 38.3%, 4.4pp better than its closest competitor and 0.2pp above the equivalent audience reading of 2017.

It is worth highlighting the performance of Radio Comercial, which improved its share to 26.1% (#1). More importantly, Radio Comercial registered the highest level ever of listeners for a Portuguese radio (18.0%, corresponding to more than 1.5 million people).

In turn, M80 had yet again a significant figure, with an average Ytd share of 8.2% (in line with the number posted in the comparable period of the last year). M80 thus continues to be not only the mostlistened-to radio station among those without a nationwide coverage, but it also stands out as the third most-listened-to radio station in the country.

As for other formats, Cidade FM had a share of 2.8% (vs 2.4% a year before).

On financial grounds, advertising revenues improved 3% YoY (4% in 2Q), while other operating revenues grew 43% to € 0.5 million (60% to € 0.3 million in 2Q), driven mostly by events and spots production.

Operating efficiency continued, with Opex decreasing 8% YoY.

EBITDA soared 35% to € 3.5 million, with a 36.8% margin (+33% to € 2.4 million in 2Q, with a margin of 43.4%).

5. Others

€ thousand	1H 2018	1H 2017	Var %	Q2 2018	Q2 2017	Var %
Operating revenue	8,020	7,804	3 %	4,138	3,886	6 %
Advertising	1,726	1,452	19%	1,032	813	27%
Other revenues	6,294	6,352	(1%)	3,106	3,073	1 %
Operating Expenses, ex D&A	7,782	7,387	5 %	3,873	3,814	2 %
EBITDA	237	417	(43%)	264	7 2	267%
EBITDA margin	3.0%	5.3%	(2.4pp)	6.4%	1.9%	4.5pp
Depreciation and amortisation	276	283	(3%)	132	146	(9%)
Operating income (EBIT)	(38)	134	N/A	132	(74)	N/A

This segment includes the remaining business areas of Media Capital, including Digital, Music & Events, holding and shared services.

Despite the strong competitive environment, MCD continued to improve the quality and audiences of its network of sites, with positive impact on several KPI's.

In the first half of the year, the digital activity of Media Capital was marked by a relevant improvement of both audiences and revenues, boosted by MCD's core projects, namely TVI and TVI Player (outstanding performance of "Secret Story 7", "A Herdeira" and "Jogo Duplo"), TVI24, Maisfutebol and the Social & Lifestyle concept "Selfie". On a YtD basis, the overall digital projects had a relevant growth in visits, page views and videos of 21%, 18% and 46%, respectively.

The reinforcement of partnerships is critical in Media Capital's both day-to-day and strategic mindset. An example of this is the exclusive representation in Portugal of the main worldwide weather brand – The Weather Channel (TWC), encompassing on screen and online differentiating solutions for advertisers and brands on TWC's website and app.

On the innovation chapter, the "Secret Story 7" app had a sizable acknowledgement by the public and several media, as well as by the software development industry – for the first time in Portugal a TV show used artificial intelligent and machine learning technologies. As a result, the app usage tripled when comparing with previous apps of the same format, while also increasing the registered number of users, towards 300 thousand.

In what concerns branded content, the highlight goes to the projects "NOS Primavera Sound", "Festival da Comida Continente" and "Millennium Estoril Open".

In sports, the first half of the year was marked by the reinforcement of the brand "Maisfutebol", with a new app, launched before the FIFA World Cup.

The first quarter was also impacted by the 25th birthdate of TVI, an event that triggered several digital initiatives, namely a dedicated website, with a video chronology of the main historical events of the channel throughout the years, and production and broadcasting for digital and for TVI Ficção channel of the programme "Alerta Gala".

In TVI Player (TVI's OTT), it is worth mentioning the support to Portuguese comedy, with the event "Mês da Comédia" (Comedy Month), which had the participation of several well-known comedians. Regarding users outside Portugal, it several new alternative were introduced for online payments regarding the subscription of the channels TVI Ficção and TVI Reality.

In terms of the presence in social networks, the Group's brands either maintained or increased their awareness vs direct competition, mostly on Instagram, Facebook and YouTube. As an example, TVI had a share of voice of 70% among FTA channels, while being the first brand in its segment to reach 1 million followers on Facebook and 250 thousand on Instagram. Still in social media, TVI became the first media company in Portugal as Partner Seller of its channels on YouTube.

On financial grounds, advertising increased by 19% YoY (+27% in 2Q), whilst other revenues were down 1% (+1% in 2Q).

The accumulated EBITDA was € 0.2 million, comparing with € 0.4 million a year ago.

6. Capex

€ thousand	1H 2018	1H 2017	% Var	Q2 2018	Q2 2017	% Var
Capex	1,025	1,262	(19%)	655	845	(23%)
Television	548	701	(22%)	347	463	(25%)
Audiovisual Production	403	410	(2%)	279	294	(5%)
Radio	2 5	5 2	(52%)	1 0	1 7	(39%)
Others	4 9	9 9	(50%) 0 %	1 8	7 2	(74%)

During 1H 2018, Media Capital registered a capex of € 1.0 million, 19% below last year's comparable period.

All segments showed a reduction of this KPI.

7. Cash Flow

€ thousand	1H 2018	1H 2017	Var %	Q2 2018	Q2 2017	Var %
Receipts	113,198	105,215	8 %	62,235	55,524	12%
Payments	(89,973)	(90,797)	1 %	(45,014)	(43,361)	(4%)
Cash flows op. activities (1)	23,226	14,418	61%	17,221	12,163	42%
Receipts	1,286		8 15171%	0	8	(100%)
Payments	(1,852)	(4,054)	54%	(495)	(1,047)	53%
Cash flows inv. activities (2)	(566)	(4,046)	86%	(495)	(1,039)	52%
Receipts	61,930	71,710	(14%)	36,783	43,647	(16%)
Payments	(84,382)	(81,965)	(3%)	(53,283)	(54,108)	2 %
Cash flows fin. activities (3)	(22,453)	(10,254) (119%)		(16,500)	(10,461)	(58%)
Cash at the begining of the period	294	1,235	(76%)	275	689	(60%)
Variation of cash (4) = (1) + (2) + (3)	207	118	75%	226	664	(66%)
Effect of FX differences	0	(1)	N/A	1	(0)	N/A
Cash at the end of the period	502	1,352	(63%)	502	1,352	(63%)

Cash flow from operating activities was € 23.2 million, which positively compares with € 14.4 million in the previous year's first half. The variation is chiefly related with both cash inflows and outflows in the television segment.

Cash flow from investing activities was € -0.6 million (€ -4.0 million in 1H 2017). Cash flow related with tangible and intangible assets was € -

1.9 million, comparing with € -4.1 million registered a year ago.

Cash flow from financing activities reached € -22.5 million (€ -10.3 million in 1H 2017), reflecting the movements in operating and investing activities, and the change in cash and equivalents.

8. Net Debt

€ thousands	Jun 18	Dez 17	Abs Var	% Var	Jun 17	Abs Var	% Var
Group financial debt	74,609	95,557	(20,948)	(22%)		106,865 (32,256)	(30%)
Bank loans / Commercial paper / Bonds	73,941	94,765	(20,824)	(22%)	106,242	(32,301)	(30%)
Other debt	669	792	(123)	(16%)	623	4 5	7 %
Cash & equivalents	502	294	207	70%	1,352	(850)	(63%)
Net debt	74,108	95,262	(21,155)	(22%)		105,513 (31,405)	(30%)

Net debt decreased € 21.2 million vs the end of 2017, standing at € 74.1 million at the end of June 2018.

When comparing against June 2017, the reduction was higher, reaching € 31.4 million.

Media Capital maintains a comfortable capital structure.

GRUPO MÉDIA CAPITAL, S.G.P.S, S.A.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2018 AND 2017

(Amounts stated in Euro thousand)

	6 months ended			3 months ended
	30.06.2018	30.06.2017	30.06.2018	30.06.2017
OPERATING REVENUES:
Services rendered	63,088	60,671	36,706	35,397
Other operating revenue	23,788	18,362	11,443	8,560
Total operating revenue	86,876	79,033	48,149	43,957
OPERATING EXPENSES:
Cost of programs broadcasted and goods sold	(8,959)	(10,704)	(3,984)	(5,669)
Subcontrats and third party supplies	(37,324)	(30,126)	(19,236)	(15,280)
Payroll expenses	(20,820)	(20,655)	(10,437)	(10,586)
Depreciation and amortization	(3,028)	(3,838)	(1,501)	(1,973)
Provisions and impariment losses	(137)	(84)	(80)	(72)
Other operating expenses	(209)	(133)	(184)	(35)
Total operating expenses	(70,477)	(65,540)	(35,422)	(33,613)
Net operating profit	16,399	13,493	12,727	10,344
FINANCIAL EXPENSES:
Financial expense	(1,754)	(2,365)	(755)	(1,252)
Financial income	138	3 1	127	1 6
Finance costs, net	(1,616)	(2,334)	(627)	(1,237)
Profit before tax	14,783	11,159	12,099	9,107
Income tax expense	(4,292)	(2,840)	(3,548)	(2,699)
Consolidated net profit for continued operations	10,491	8,319	8,551	6,407
Attributable to:
Equity holders of the parent	10,491	8,319	8,551	6,407
Earnings per share (Euros)
Basic	0.1241	0.0984	0.1012	0.0758
Diluted	0.1241	0.0984	0.1012	0.0758

GRUPO MÉDIA CAPITAL, S.G.P.S, S.A.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS OF 30 JUNE 2018 AND 31 DECEMBER 2017

(Amounts stated in Euro thousand)

ASSETS	30.06.2018	31.12.2017
NON-CURRENT ASSETS:
Goodwill	149,374	149,374
Intangible assets	10,048	10,663
Tangible fixed assets	13,777	15,166
Assets held for sale	5	5
Transmission rights and TV programs	49,969	50,971
Other non-current assets	2,544	3,937
Deferred income tax assets	2,136	2,388
	227,853	232,504
CURRENT ASSETS:
Transmission rights and TV programs	30,694	30,219
Trade and other account receivable	29,765	33,629
Current tax assets	388	340
Other current assets	5,277	4,258
Cash and cash equivalents	502	294
	66,625	68,741
TOTAL ASSETS	294,478	301,244
EQUITY AND LIABILITIES
EQUITY:
Share capital	89,584	89,584
Reserves	50,837	32,071
Profit for the period	10,491	19,787
Equity attributable to controlling interests	150,912	141,442
Total Equity	150,912	141,442
LIABILITIES:
NON-CURRENT LIABILITIES:
Borrowings	40,360	61,233
Provisions	5,737	5,798
Deferred income tax liabilities	1,125	1,159
	47,222	68,190
CURRENT LIABILITIES:
Borrowings	34,250	34,324
Trade and other payables	36,260	31,370
Current tax liabilities	-	5
Other current liabilities	25,834	25,914
	96,344	91,613
Total liabilities	143,566	159,803
TOTAL EQUITY AND LIABILITIES	294,478	301,244

GRUPO MÉDIA CAPITAL, SGPS, S.A.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2018 AND 2017

(Amounts stated in Euro thousand)

	30.06.2018	30.06.2017
OPERATING ACTIVITIES:
Cash receipts from customers	113,198	105,215
Cash paid to suppliers	(50,428)	(53,993)
Cash paid to employees	(20,483)	(21,122)
Cash generated from operations	42,287	30,101
Cash received/(paid) relating to income tax	6	326
Other cash received/(paid) relating to operating activities	(19,068)	(16,008)
Net cash from operating activities (1)	23,226	14,418
INVESTING ACTIVITIES:
Cash received relating to:
The sale of subsidiaries	1,286	-
Disposal of fixed tangible and intangible assets	-	8
Interest and similar income	0	-
	1,286	8
Payments resulting from:
Acquisition of tangible assets	(1,701)	(3,779)
Acquisition of intangible assets	(151)	(275)
	(1,852)	(4,054)
Net cash from /(used in) investing activities (2)	(566)	(4,046)
FINANCING ACTIVITIES:
Cash received relating to:
Borrowings	61,930	71,710
	61,930	71,710
Cash paid relating to:
Borrowings	(82,850)	(62,212)
Leases	(152)	(254)
Interest and other similar expenses	(1,304)	(1,675)
Dividends	-	(17,748)
Other financial expenses	(76)	(76)
	(84,382)	(81,965)
Net cash from/(used in) financing activities (3)	(22,453)	(10,254)
Cash and equivalents at the begining of the period	294	1,235
Net increase in cash and cash equivalents (4) = (1) + (2) + (3)	207	118
Exchange rate effect	0	(1)
Cash and equivalents at the end of the period	502	1,352