Earnings Release • Mar 10, 2014
Earnings Release
Open in ViewerOpens in native device viewer
10 MARCH 2014
Roularta Media Group recorded an 11% increase in current operating cash flow (REBITDA) in the second half of 2013. For 2013 as a whole, current cash flow was down 9%.
In 2013, the company took major steps to reorganise its French operations. These exceptional restructuring operations impact the net results. These will reduce wage costs by around EUR 7 million a year from 2014 onwards.
Group sales fell by 5.0% (from EUR 712 to 676 million) and current profit by 26.7% (from EUR 13,1 to 9.6 million).
The net result was negative (EUR -57.9 million) following impairments of EUR 40.6 million on the French titles and EUR 27.6 million of restructuring and non-recurring costs (after taxes) in Belgium and France. Under prevailing accounting rules, Roularta's brands and magazines are not valued, as they are own creations. Only purchased titles are accounted for, as intangible assets.
Roularta ended 2013 with slight -1.3% fall in REBIT.
Table 1: key figures second half of 2013
| In thousands of euros | H2/13 | H2/12 | Trend |
|---|---|---|---|
| Adjusted sales | 324,932 | 337,667 | -3.8% |
| REBITDA | 18,192 | 16,391 | +11.0% |
| REBIT | 10,597 | 5,657 | +87.3% |
| Current net result (1) | 2,400 | 3,583 | -33.0% |
| Current net result (excl. deferred taxes JOE fm) | 2,400 | 396 | +506.1% |
(1) In 2012 deferred tax assets on former losses at JOE fm were recorded, with a EUR 3.2 million positive effect on net income.
The current operating result of the second half was marked by Medialaan (former VMMa) regaining its position after the recent changes in the TV landscape and by the effect of further restructurings within the Group. The positive impacts of earlier reorganisations were also visible. In this way the current net result (without the 2012 deferred tax assets of JOE fm) rose from EUR 0.4 million to EUR 2.4 million.
Table 2: key figures 2013
| In thousands of euros | 31/12/13 | 31/12/12 | Trend |
|---|---|---|---|
| Adjusted sales (1) | 670,899 | 708,244 | -5.3% |
| EBITDA (2) | 34,022 | 36,987 | -8.0% |
| REBITDA (3) | 42,702 | 46,943 | -9.0% |
| EBIT | -49,194 | 5,563 | |
| REBIT (4) | 27,471 | 27,846 | -1.3% |
| Net profit RMG | -57,909 | -1,707 | |
| Current net result | 9,639 | 16,337 | -41.0% |
| Current net result (excl. deferred taxes JOE fm) | 9,639 | 13,150 | -26.7% |
(1) Adjusted sales: a sales figure that is comparable with 2012, i.e. adjusted for changes in the consolidation scope.
(2) EBITDA or operating cash flow is EBIT plus depreciations, write-downs and provisions.
(3) The non-recurring restructuring charges relate primarily to restructuring in Belgium and France.
(4) The non-recurring depreciation, amortisation and provisions relate mainly to the planned restructurings in Belgium and France, and to an impairment on French titles.
In 2013 Roularta Media Group achieved consolidated sales of EUR 676.3 million, as against EUR 712.0 million in 2012 (-5.0%).
Adjusted sales in 2013 amounted to EUR 670.9 million compared with adjusted sales of EUR 708.2 million in 2012 (-5.3%).
The decrease in adjusted sales at Audiovisual Media was 2.4%, and 6.2% at Printed Media.
Table 3: consolidated sales by division
| Division | 31/12/13 | 31/12/12 | Trend |
|---|---|---|---|
| Printed Media | 508,046 | 541,693 | -6.2% |
| Audiovisual Media | 168,745 | 172,969 | -2.4% |
| Intersegment sales | -5,892 | -6,418 | |
| Adjusted sales | 670,899 | 708,244 | -5.3% |
| Changes in the Group (*) | 5,411 | 3,801 | |
| Consolidated sales | 676,310 | 712,045 | -5.0% |
(*) Changes in the Group are eliminated to arrive at an adjusted sales figure, i.e. a sales figure that is comparable with 2012. The changes in the Group include the new participating interests in Euro DB and the sale of Paratel.
The adjusted sales of the Printed Media division, that is free press, newspapers and magazines together, declined with 6.2% in 2013 to EUR 508.0 million.
Operating cash flow (EBITDA) fell from EUR 14.9 million to EUR 9.1 million. Non-recurring and restructuring costs were recorded (see Annexe 6). REBITDA (current operating cash flow) fell from EUR 22.3 to EUR 15.8 million (-29.0%).
Operating result (EBIT) reduced from EUR -8.9 to EUR -67.6 million. A current operating profit (REBIT) of EUR 5.5 million was achieved compared with EUR 9.5 million in 2012.
EBIT was marked in 2013 by impairment losses in France and the Kempenland provision, falling as a result to EUR -67.6 million.
The net financing costs of 2012 included EUR 4.0 million exceptional early repayment interest on the U.S. Private Placement.
The net result of the division was a loss of EUR 69.9 million in 2013 as against a loss of EUR 14.6 million in 2012, while current net profit fell from EUR 1.4 to -4.4 million.
Adjusted sales by the Audiovisual Media division fell from EUR 173.0 to 168.7 million (-2.4%).
EBITDA was impacted by severance payments of EUR 0.5 million and non-recurring expenses of EUR 1.5 million.
Operating cash flow (EBITDA) increased by 12.7% from EUR 22.1 million to EUR 24.9 million, current operating cash flow (REBITDA) rose from EUR 24.7 million to EUR 26.9 million.
Operating profit (EBIT) increased from EUR 14.5 to 18.4 million and current operating profit (REBIT) increased from EUR 18.3 to 21.9 million. This gives a REBIT margin of 13.0% compared with 10.4% in 2012.
In 2012 deferred tax assets on former losses at JOE fm were recorded, with a EUR 3.2 million positive effect on net income.
The net profit of the division amounted to EUR 11.4 million in 2013 compared with EUR 12.4 million in 2012, while current net profit (excl. deferred taxes JOE fm in 2012) was up by 19.3% from EUR 11.8 to 14.1 million.
In the course of 2013 RMG invested considerably in the further development of the Group's news sites.
Knack.be/Levif.be has grown from 3 to 4 million unique visitors (UV) per month, providing 30 million page views. In France Lexpress.fr achieved almost 6 million UVs, Cotemaison.fr 1 million UVs and Letudiant.fr 2 million UVs.
Roularta today earns almost EUR 40 million of sales revenue via the Internet, of which 30 million of advertising revenue, via news sites and newsletters, lead generation campaigns, classified ads sites Immovlan.be, Autovlan.be and Streekpersoneel.be, and local advertisers who rely on Roularta for Google AdWords and Proxistore campaigns.
Roularta continues to work with the Rossel Group on developing the classifieds sites. Click your Car was recently taken over as a platform for new car sales.
Roularta has a 1/3 participation, through a cooperation agreement, in Notapolis, a new software platform for the notarial world that serves to manage all communication on premises for sale and send it out to all possible media.
Roularta recently acquired 100% of the shares of NV Business Leads which was initially set up as a joint venture.
Proxistore is a new initiative that allows parties to advertise locally through a series of large Belgian websites, enabling them to reach more than 70% of the local population. Roularta is a reseller for Flanders and has a 31.43% stake in the company that is also starting up in France and Germany. In the US the project was recently awarded the Red Herring prize for innovation on the web.
Over 10 million of sales revenue is realised through the sale of online content and business information from Trends Top, the recently acquired Euro DB (with B-information, B-legal, B-finance, B-collection), Inside Beleggen, Fiscoloog etc.
Meanwhile, everything is up and ready to go with Digilocal, a complete Internet service for local advertisers. With websites, electronic newsletters, the inclusion of Google AdWords, Proxistore and social media like Facebook and Twitter, and with their strong regional sales organisation and technical expertise, the stage is set for further growth. For two years in a row, Roularta has taken the Google European award for the best Google reseller.
In spring 2014, Roularta is launching several paid content projects over the Internet.
The Krant van West-Vlaanderen website KW.be becomes paying after a one-month get-acquainted period. KW.be is supported by a twice-a-day free newsletter to 125,000 West Flemings. The Group's magazines are waiting for the result of some experiments in France.
In France, Lexpress.be is starting a metered paywall from 20 articles upwards. It is also building a new site with exclusive surveys. The weekly Point de Vue is launching a new site with royalty news.
Roularta Events organises around 100 events – awards, gala dinners, exhibitions and seminars – every year.
In each Belgian province, this is done with the Trends Gazelles and through the Trends Business Tour. National Awards are given for general management (Manager of the Year), the IT world, manufacturing, CFOs, HR managers and fund managers. In 2014, following a recent acquisition, the Trends Legal Awards is being organised for the first time.
Roularta organises the Ondernemen/Entreprendre fair at the Heysel in Brussels (with simultaneously the e-commerce, franchising and business gifts fairs) and the Ondernemen fair at Ghent Flanders Expo. De Streekkrant organises job fairs in every province and the free lifestyle magazine Steps organises shopping days in all city centres.
In France, Groupe Express-Roularta organises 80 student fairs through L'Etudiant and around 10 job fairs with Job Rencontres. This business is evolving favourably.
The Group's magazine readers appear to be receptive to numerous cultural and lifestyle initiatives. By focusing on specific projects, Roularta is able to present exclusive offers at very favourable conditions. Several book projects and the sale of design objects and other items have produced a growth in sales. In 2014 for the first time, exclusive cruises are being organised with an original programme with Plus, Knack and L'Express. It is looking like all cruises will be fully booked.
The turnover of the free press division fell in 2013 by 8.3%. The reason lies mainly with the job ads in De Streekkrant. Since early 2014 the bottom seems to have been reached, with people realising that local print ads in newspapers delivered doorto-door are indispensable for finding work and employees in one's own region. In parallel with this, a new software platform is being prepared for Streekpersoneel.be with a highly efficient jobs and CV management system.
De Zondag and Steps continue to evolve favourably.
Advertising income from the magazines fell by 11.2% in 2013.
This figure was strongly negatively affected by the downturn in advertising by the pharmaceutical industry in the medical journals. For this reason, the frequency of Artsenkrant was reduced to once a week and the end of 2013 RMG opted for a new, paid subscription-based publishing model. Roularta has in the meantime acquired 100% of the shares of ActuaMedica.
Roularta has concluded an agreement with the Antwerp Port Authority to revive the discontinued weekly magazine De Lloyd under the name Flows and to integrate the magazine Transport Echo into Industrie.
The Dutch-language version of the The Good Life magazine was discontinued given that advertising revenue did not follow, despite positive reader reactions and good newsstand sales. The French version, however, is doing brilliantly in France and internationally and is beating all records.
In France, the printed version of the magazine L'Entreprise was discontinued. The L'Entreprise heading lives on in the magazine L'Expansion, where micro and macroeconomics issues are discussed, and online where it forms a significant section of Lexpress.fr.
The lifestyle magazines Maison Française and Maison Magazine have merged to form Maison Française Magazine, a complete homes and living magazine that combines practical information with major reports. The new formula has been well received by the advertising world and the first issues have got off to a good start.
Belgian magazine Nest (D/F) has been given a more luxurious look and is being published more often. Nest now appears monthly, alongside a series of special editions covering Recipes, the Coast etc.
Within the readers market, overall revenue from newsstand sales declined by 4.5%, with Roularta doing far better here than most publishers in Belgium and in France. Moreover, subscription sales decreased by just 1.5%. For Roularta these represent 2/3 of readers income.
Meanwhile the sale of digital-only subscriptions and single issues is slowly beginning to be significant. Already several thousand single copies are sold every week. Roularta provides a choice of two digital versions (look-alike with the same layout as the magazine, and a custom tablet version) for Apple, Android and Microsoft.
At the same time all print subscriptions automatically have access to the digital version of their magazine, which they can read on PC, tablet or mobile anywhere in the world from 21.00 on the eve of publication. Two thirds of subscribers have downloaded the app, but only 1 à 2% read their magazine digitally. New readers discover the magazine via their iPad or other tablet and sign up as subscribers via the Abonnementen.be landing page, but 85% opt for a full subscription, print version included.
Vlaamse Media Maatschappij changed its name to Medialaan and can look back on a stable year in terms of viewers and listeners and, in financial terms, on an increased contribution.
2013 brought little change in viewer ratings, with the relationship between the three broadcasting groups Medialaan, VRT, and SBS remaining almost unchanged. For the commercial target group, Medialaan is just ahead of VRT and is almost twice as large as SBS. VTM dropped back slightly (to 22.2%). 2BE took the same 9% market share as in 2012. Vitaya had its best year ever, mainly due to the scripted reality programmes in the spring. Medialaan-TV has succeeded in achieving attractive audience figures with lower broadcasting costs. In operating costs, Medialaan opted decisively for a stronger brand experience (additional investments in marketing) and innovation (development of the Innovation & Operational service).
The TV advertising market in Flanders remained almost stable (-0.3%). In the spring, the market had to cope with a sharp decline, but there has been a marked change for the better since May. Within that market Medialaan-TV has succeeded in maintaining its share.
In the distribution area, Medialaan has reached an agreement with Base (Snow) and a new agreement with Belgacom. There is still no agreement with Telenet, with legal proceedings against this company instigated at the end of 2012. The first court hearing began in early 2014. In summer, the signal integrity decree was voted, and published in mid-August in the Official Gazette. In 2014, this decree will have to be effectively implemented.
Jim Mobile also provided an attractive contribution in 2013, growing slightly in the falling Telco market.
Kanaal Z was able to build a stronger platform by creating many peripheral programmes. The audience grew to over 300,000 viewers daily and 1.3 million viewers on a weekly basis.
The future of regional TV stations is secured by a new Flemish decree that provides for a per-subscriber free from the distributors.
Q-music remained with StuBru the leader in the commercial field (both around 23%). JOE fm is at the fourth place with around 8.6%. The radio advertising market grew for the fourth consecutive year. The expenditure shares of VAR (55%) and Medialaan (40%) remained almost constant.
The additional advertising revenue was largely converted into additional contribution. The difference reflects mainly additional marketing efforts.
In spring 2013 the Stievie app was extensively tested with 10,000 users, who responded enthusiastically. During the summer, the company Stievie NV was set up as a 100% subsidiary of Medialaan. In early December Stievie was launched to the general public.
In spring 2013 Paratel was sold to CM Telecom. In the same period, it was decided to stop the Mplus project, which went into liquidation before year-end.
Equity at 31 December 2013 was EUR 298.5 million compared with EUR 357.0 million at 31 December 2012. This decrease reflects primarily the decrease in the profits carried forward. These have fallen by EUR 57.9 million, being the result for 2013 fully impacted by non-recurring charges.
At 31 December 2013, net financial debt1 amounted to EUR 76.3 million. This gives a net financial debt/EBITDA ratio of 2.24.
1 Net Financial Debt = Financial debt minus current cash.
Net cash flow from operating activities is EUR 3.8 million compared with EUR 38.2 million in 2012. On the one hand there is the gross cash flow, which is EUR 2.7 million lower than in 2012, but on the other hand, and more particularly, the change in working capital (EUR -14.5 million, compared with EUR +26.7 million in 2012). Net cash flow from investments amounts in 2013 to EUR +9.9 million, compared with EUR -52.4 million in 2012. This evolution is mainly caused by a build-up of cash investments, while these decreased in 2013. The financing activities resulted in a net cash outflow of EUR 21.5 million compared with a net cash inflow of EUR 17.9 million in 2012. This cash outflow in 2013 is primarily due to the repayment of short-term financial liabilities.
Total investments amounted in 2013 to EUR 14.7 million, of which EUR 4.7 million in intangible assets (mainly software), EUR 6.3 million in tangible assets and EUR 3.7 million in acquisitions. The acquisitions are mainly the acquisition of Euro DB and the investment in Proxistore.
The Board of Directors will propose to the general meeting of 20 May 2014 that the company will not declare a dividend.
After a year of reorganisation and restructuring with many extraordinary expenses, Roularta is looking forward to a better 2014 with its stable readers market subscription lists giving it a good starting position. Visibility on advertising revenue is still limited, with advertising campaigns visibly still decided at the last moment. But thanks to diversification, new sources of revenue are growing, and the Internet is also opening up new perspectives.
The statutory auditor has confirmed that his auditing procedures, which have been substantially completed, have revealed no material adjustments that would have to be made to the accounting information included in this press release.
Deloitte Bedrijfsrevisoren, represented by Frank Verhaegen and Kurt Dehoorne.
| 12 May 2014 | Interim announcement, first quarter 2014 |
|---|---|
| 20 May 2014 | Annual Meeting |
| 25 August 2014 | 2014 half-yearly results |
| 17 November 2014 | Interim announcement, third quarter 2014 |
| Income statement | in thousands of euros | H1/13 | H1/12 (*) | Trend | H2/13 | H2/12 (*) | Trend |
|---|---|---|---|---|---|---|---|
| Sales | 348,846 | 371,484 | -6.1% | 327,464 | 340,561 | -3.8% | |
| Adjusted sales (1) | 345,967 | 370,577 | -6.6% | 324,932 | 337,667 | -3.8% | |
| REBITDA (2) |
24,510 | 30,552 | -19.8% | 18,192 | 16,391 | +11.0% | |
| REBITDA margin | 7.0% | 8.2% | 5.6% | 4.8% | |||
| REBIT (3) |
16,874 | 22,189 | -24.0% | 10,597 | 5,657 | +87.3% | |
| REBIT margin | 4.8% | 6.0% | 3.2% | 1.7% | |||
| Net finance costs | -3,926 | -1,716 | +128.8% | -3,480 | -7,157 | -51.4% | |
| Current operating result after net finance costs | 12,948 | 20,473 | -36.8% | 7,117 | 2,545 | +179.6% | |
| Current net result of the consolidated companies | 7,239 | 12,754 | -43.2% | 2,400 | 3,583 | -33.0% | |
| Current net result of the consolidated companies - margin | 2.1% | 3.4% | 0.7% | 1.1% |
(*) Restated due to the retrospective application of IAS 19R.
(1) Adjusted sales = like-for-like, i.e. adjusted for changes in the consolidation scope.
(2) REBITDA = current operating cash flow = EBITDA + restructuring costs and one-off costs.
(3) REBIT = current operating result = EBIT + restructuring costs and one-off costs, depreciations, write-downs and provisions.
| Income statement | in thousands of euros | 31/12/13 | 31/12/12 (*) | Trend |
|---|---|---|---|---|
| Sales | 676,310 | 712,045 | -5.0% | |
| Adjusted sales (1) | 670,899 | 708,244 | -5.3% | |
| EBITDA (Operating cash flow) (2) |
34,022 | 36,987 | -8.0% | |
| EBITDA margin | 5.0% | 5.2% | ||
| REBITDA (3) |
42,702 | 46,943 | -9.0% | |
| REBITDA margin | 6.3% | 6.6% | ||
| EBIT (4) |
-49,194 | 5,563 | -984.3% | |
| EBIT margin | -7.3% | 0.8% | ||
| REBIT (5) |
27,471 | 27,846 | -1.3% | |
| REBIT margin | 4.1% | 3.9% | ||
| Net finance costs | -7,406 | -8,873 | -16.5% | |
| Operating result after net finance costs | -56,600 | -3,310 | ||
| Current operating result after net finance costs | 20,065 | 23,018 | -12.8% | |
| Income taxes | -1,758 | 1,128 | +255.9% | |
| Share in the result of the companies with equity method |
-207 | -23 | ||
| Net result of the consolidated companies | -58,565 | -2,205 | ||
| Attributable to minority interest | -656 | -498 | ||
| Attributable to equity holders of RMG | -57,909 | -1,707 | ||
| Net result attributable to equity holders of RMG - margin | -8.6% | -0.2% | ||
| Current net result of the consolidated companies | 9,639 | 16,337 | -41.0% | |
| Current net result of the consolidated companies - margin | 1.4% | 2.3% | ||
| Number of employees at closing date (6) | 2,691 | 2,828 | -4.8% |
| Consolidated key figures per share in euro |
||
|---|---|---|
| EBITDA | 2.73 | 2.96 |
| REBITDA | 3.42 | 3.76 |
| EBIT | -3.94 | 0.45 |
| REBIT | 2.20 | 2.23 |
| Net result attributable to equity holders of RMG | -4.64 | -0.14 |
| Net result attributable to equity holders of RMG after dilution |
-4.64 | -0.14 |
| Current net result of the consolidated companies | 0.77 | 1.31 |
| Gross dividend | 0.00 | 0.00 |
| Weighted average number of shares | 12,483,273 | 12,483,273 |
| Weighted average number of shares after dilution | 12,483,273 | 12,483,273 |
(*) Restated due to the retrospective application of IAS 19R.
| Balance sheet | in thousands of euros | 31/12/13 | 31/12/12 | Trend |
|---|---|---|---|---|
| Non-current assets | 549,859 | 604,675 | -9.1% | |
| Current assets | 302,208 | 333,761 | -9.5% | |
| Balance sheet total | 852,067 | 938,436 | -9.2% | |
| Equity - Group's share | 287,053 | 344,689 | -16.7% | |
| Equity - minority interests | 11,415 | 12,266 | -6.9% | |
| Liabilities | 553,599 | 581,481 | -4.8% | |
| Liquidity (7) | 1.1 | 1.1 | +0.0% | |
| Solvency (8) | 35.0% | 38.0% | -7.9% | |
| Net financial debt | 76,313 | 69,535 | +9.7% | |
| Gearing (9) | 25.6% | 19.5% | +31.3% |
(1) Adjusted sales = like-for-like, i.e. adjusted for changes in the consolidation scope.
(2) EBITDA = operating cash flow = EBIT + depreciations, write-downs and provisions.
(3) REBITDA = current operating cash flow = EBITDA + restructuring costs and one-off costs.
(4) EBIT = operating result.
(5) REBIT = current operating result = EBIT + restructuring costs and one-off costs, depreciations, write-downs and provisions.
(6) Joint ventures proportionally included.
(7) Liquidity = current assets / current liabilities.
(8) Solvency = equity (Group's share + minority interests) / balance sheet total.
(9) Gearing = net financial debt / equity (Group's share + minority interests).
| PRINTED MEDIA |
AUDIOVISUAL MEDIA |
||||||
|---|---|---|---|---|---|---|---|
| Income statement in thousands of euros |
31/12/13 | 31/12/12 (*) | Trend | 31/12/13 | 31/12/12 (*) | Trend | |
| Sales | 513,448 | 541,693 | -5.2% | 168,754 | 176,817 | -4.6% | |
| Adjusted sales (1) | 508,046 | 541,693 | -6.2% | 168,745 | 172,969 | -2.4% | |
| EBITDA (Operating cash flow) (2) |
9,127 | 14,907 | -38.8% | 24,895 | 22,080 | +12.7% | |
| EBITDA margin | 1.8% | 2.8% | 14.8% | 12.5% | |||
| REBITDA (3) |
15,811 | 22,274 | -29.0% | 26,891 | 24,669 | +9.0% | |
| REBITDA margin | 3.1% | 4.1% | 15.9% | 14.0% | |||
| EBIT (4) |
-67,567 | -8,936 | -656.1% | 18,373 | 14,499 | +26.7% | |
| EBIT margin | -13.2% | -1.6% | 10.9% | 8.2% | |||
| REBIT (5) |
5,538 | 9,501 | -41.7% | 21,933 | 18,345 | +19.6% | |
| REBIT margin | 1.1% | 1.8% | 13.0% | 10.4% | |||
| Net finance costs | -7,080 | -8,485 | -16.6% | -326 | -388 | -16.0% | |
| Operating result after net finance costs | -74,647 | -17,421 | 18,047 | 14,111 | +27.9% | ||
| Current operating result after net finance costs | -1,542 | 5,061 | -130.5% | 21,607 | 17,957 | +20.3% | |
| Income taxes | 4,930 | 2,799 | -76.1% | -6,688 | -1,671 | +300.2% | |
| Share in the result of the companies with equity method | -207 | -23 | 0 | 0 | |||
| Net result of the consolidated companies | -69,924 | -14,645 | -377.5% | 11,359 | 12,440 | -8.7% | |
| Attributable to minority interest | -463 | -449 | -193 | -49 | |||
| Attributable to equity holders of RMG | -69,461 | -14,196 | -389.3% | 11,552 | 12,489 | -7.5% | |
| Net result attribuable to equity holders of RMG - margin | -13.5% | -2.6% | 6.8% | 7.1% | |||
| Current net result of the consolidated companies | -4,429 | 1,357 | -426.4% | 14,068 | 14,980 | -6.1% | |
| Current net result of the consolidated companies - margin | -0.9% | 0.3% | 8.3% | 8.5% |
(*) Restated due to the retrospective application of IAS 19R.
(1) Adjusted sales = like-for-like, i.e. adjusted for changes in the consolidation scope.
(2) EBITDA = operating cash flow = EBIT + depreciations, write-downs and provisions.
(3) REBITDA = current operating cash flow = EBITDA + restructuring costs and one-off costs.
(4) EBIT = operating result
(5) REBIT = current operating result = EBIT + restructuring costs and one-off costs, depreciations, write-downs and provisions.
| PRINTED MEDIA |
AUDIOVISUAL MEDIA |
||||||
|---|---|---|---|---|---|---|---|
| Income statement | in thousands of euros | H2/13 | H2/12 (*) | Trend | H2/13 | H2/12 (*) | Trend |
| Sales | 245,626 | 259,174 | -5.2% | 85,417 | 85,277 | +0.2% | |
| Adjusted sales (1) | 243,103 | 259,174 | -6.2% | 85,408 | 82,336 | +3.7% | |
| REBITDA (2) |
6,840 | 9,655 | -29.2% | 11,352 | 6,736 | +68.5% | |
| REBITDA margin | 2.8% | 3.7% | 13.3% | 7.9% | |||
| REBIT (3) |
2,149 | 2,602 | -17.4% | 8,448 | 3,055 | +176.5% | |
| REBIT margin | 0.9% | 1.0% | 9.9% | 3.6% | |||
| Net finance costs | -3,338 | -6,911 | -51.7% | -142 | -246 | -42.3% | |
| Current operating result after net finance costs | -1,189 | -264 | -350.4% | 8,306 | 2,809 | +195.7% | |
| Current net result of the consolidated companies | -2,914 | -1,425 | -104.5% | 5,314 | 5,008 | +6.1% | |
| Current net result of the consolidated companies - margin | -1.2% | -0.5% | 6.2% | 5.9% |
(*) Restated due to the retrospective application of IAS 19R.
(1) Adjusted sales = like-for-like, i.e. adjusted for changes in the consolidation scope.
(2) REBITDA = current operating cash flow = EBITDA + restructuring costs and one-off costs.
(3) REBIT = current operating result = EBIT + restructuring costs and one-off costs, depreciations, write-downs and provisions.
| 31/12/13 | 31/12/12 (*) | |
|---|---|---|
| Sales | 676,310 | 712,045 |
| Own construction capitalised | 791 | 0 |
| Raw materials, consumables and goods for resale | -159,470 | -175,699 |
| Services and other goods | -284,579 | -295,564 |
| Personnel | -194,032 | -198,416 |
| Depreciation, write-down and provisions | -70,041 | -33,011 |
| Depreciation and amortisation of intangible and tangible assets | -17,443 | -15,163 |
| Write-down of debtors and inventories | -1,013 | -3,149 |
| Provisions | -5,825 | -3,232 |
| Impairment losses | -45,760 | -11,467 |
| Other operating income and expenses | 3,434 | 2,752 |
| Restructuring costs | -21,607 | -6,544 |
| Restructuring costs: costs | -8,432 | -8,131 |
| Restructuring costs: provisions | -13,175 | 1,587 |
| Operating result (EBIT ) |
-49,194 | 5,563 |
| Interest income | 2,253 | 4,536 |
| Interest expenses | -9,659 | -13,409 |
| Operating result after net finance cost | -56,600 | -3,310 |
| Income taxes | -1,758 | 1,128 |
| Share in the result of the companies accounted for using the equity method |
-207 | -23 |
| Net result of the consolidated companies | -58,565 | -2,205 |
| Attributable to: | ||
| Minority interests | -656 | -498 |
| Equity holders of Roularta Media Group | -57,909 | -1,707 |
(*) Restated due to the retrospective application of IAS 19R.
| ASSETS | in thousands of euros | 31/12/13 | 31/12/12 (*) |
|---|---|---|---|
| Non-current assets | 549,859 | 604,675 | |
| Intangible assets | 403,473 | 417,951 | |
| Goodwill | 41,087 | 71,931 | |
| Property, plant and equipment | 91,775 | 100,362 | |
| Investments accounted for using the equity method | 1,033 | 284 | |
| Financial assets | 4,515 | 5,512 | |
| Trade and other receivables | 1,939 | 1,794 | |
| Deferred tax assets | 6,037 | 6,841 | |
| Current assets | 302,208 | 333,761 | |
| Inventories | 56,132 | 58,868 | |
| Trade and other receivables | 184,898 | 186,159 | |
| Short-term investments | 22,924 | 42,828 | |
| Cash and cash equivalents | 27,954 | 35,684 | |
| Deferred charges and accrued income | 10,300 | 10,222 | |
| Total assets | 852,067 | 938,436 | |
| LIABILITIES | in thousands of euros | 31/12/13 | 31/12/12 (*) |
| Equity | 298,468 | 356,955 | |
| Group's equity | 287,053 | 344,689 | |
| Issued capital | 203,225 | 203,225 | |
| Treasury shares | -24,647 | -24,647 | |
| Retained earnings | 104,213 | 162,122 | |
| Other reserves | 4,195 | 3,931 | |
| Translation differences | 67 | 58 | |
| Minority interests | 11,415 | 12,266 | |
| Non-current liabilities | 270,693 | 266,094 | |
| Provisions | 29,215 | 7,671 | |
| Employee benefits | 8,616 | 9,846 | |
| Deferred tax liabilities | 110,302 | 117,128 | |
| Financial debts | 121,055 | 128,994 | |
| Trade payables | 1,264 | 2,184 | |
| Other payables | 241 | 271 | |
| Current liabilities | 282,906 | 315,387 | |
| Financial debts | 6,136 | 19,053 | |
| Trade payables | 162,965 | 173,145 | |
| Advances received | 46,509 | 49,744 | |
| Social debts | 37,168 | 38,695 | |
| Taxes | 5,893 | 7,415 | |
| Other payables | 16,242 | 18,405 | |
| Financial derivates | 1,121 | 1,974 | |
| Accrued charges and deferred income | 6,872 | 6,956 | |
| Total liabilities | 852,067 | 938,436 |
(*) Restated due to the retrospective application of IAS 19R.
| in thousands of euros | ||||
|---|---|---|---|---|
| Cashflow relating to operating activities | 31/12/13 | 31/12/12 (*) | ||
| Net result of the consolidated companies | -58,565 | -2,205 | ||
| Share in the results of the companies accounted for using the equity method | 207 | 23 | ||
| Income tax expense / income | 1,758 | -1,128 | ||
| Interest expenses | 9,129 | 13,409 | ||
| Interest income (-) | -1,812 | -1,331 | ||
| Losses / gains on disposal of intangible assets and property, plant and equipment | 466 | -429 | ||
| Losses / gains on disposal of business | 102 | 0 | ||
| Non-cash items | 83,580 | 29,184 | ||
| Depreciation of (in)tangible assets | 17,443 | 15,163 | ||
| Impairment losses | 45,760 | 11,467 | ||
| Share-based payment expense | 31 | 378 | ||
| Losses / gains on non-hedging derivatives | 89 | -3,205 | ||
| Increase / decrease in provisions | 19,000 | 1,645 | ||
| Unrealised exchange loss / gain | 0 | -1 | ||
| Other non-cash items | 1,257 | 3,737 | ||
| Gross cash flow relating to operating activities | 34,865 | 37,523 | ||
| Increase / decrease in current trade receivables | 4,186 | 7,332 | ||
| Increase / decrease in current other receivables and deferred charges and accrued income | -2,385 | 2,635 | ||
| Increase / decrease in inventories | 2,005 | -1,334 | ||
| Increase / decrease in current trade payables | -10,374 | 15,536 | ||
| Increase / decrease in other current liabilities | -6,246 | -90 | ||
| Other increases / decreases in working capital (a) | -1,658 | 2,659 | ||
| Increase / decrease in working capital | -14,472 | 26,738 | ||
| Income taxes paid | -9,309 | -14,748 | ||
| Interest paid | -9,002 | -12,318 | ||
| Interest received | 1,760 | 1,016 | ||
| NET CASH FLO W RELATING TO OPERATING ACTIVITIES (A) |
3,842 | 38,211 |
(*) Restated due to the retrospective application of IAS 19R.
(a) Increases and decreases in non-current other payables, non-current trade payables, provisions, non-current employee benefits and accrued charges and deferred income.
| Cash flow relating to investing activities | 31/12/13 | 31/12/12 (*) |
|---|---|---|
| Intangible assets - acquisitions | -4,689 | -3,798 |
| Tangible assets - acquisitions | -6,308 | -6,222 |
| Intangible assets - other movements | -89 | 356 |
| Tangible assets - other movements | 3,182 | 120 |
| Net cash flow relating to acquisition of subsidiaries | -2,024 | -731 |
| Net cash flow relating to disposal of subsidiaries | 186 | 0 |
| Available-for-sale investments, loans, guarantees - acquisitions | -301 | -1,558 |
| Available-for-sale investments, loans, guarantees - other movements | 603 | 68 |
| Increase / decrease in short-term investments | 19,365 | -40,631 |
| NET CASH FLO W RELATING TO INVESTING ACTIVITIES (B) |
9,925 | -52,396 |
| Cash flow relating to financing activities | ||
|---|---|---|
| Dividends paid | 0 | -4,339 |
| Other changes in equity | -186 | -201 |
| Proceeds from current financial debts | 2,616 | 0 |
| Redemption of current financial debts | -19,713 | -18,896 |
| Proceeds from non-current financial debts | 1,303 | 99,725 |
| Redemption of non-current financial debts | -5,372 | -58,175 |
| Increase in non-current receivables | -145 | -223 |
| NET CASH FLO W RELATING TO FINANCING ACTIVITIES (C) |
-21,497 | 17,891 |
| TOTAL DEC REASE / INC REASE IN CASH AND CASH EQUIVALENTS (A+B+C) |
-7,730 | 3,706 |
| Cash and cash equivalents, beginning balance | 35,684 | 31,978 |
| Cash and cash equivalents, ending balance | 27,954 | 35,684 |
| NET DEC REASE / INC REASE IN CASH AND CASH EQUIVALENTS |
-7,730 | 3,706 |
(*) Restated due to the retrospective application of IAS 19R.
The cash flows (REBITDA) from the French market as a whole in 2013 remained below expectations and the uncertainty of the French economy forced Roularta to reconsider the risk this country presents. The interest rate (WACC), which is used to discount future cash flows to a present value, was increased. The WACC used in 2012 for Belgium and France was 6.86%. It has now been decided to increase the WACC for France to 9.65%.
This results an impairment of EUR 40.1 million, taken into the net result. This can be considered as exceptional, and has no cash effect.
With this movement, management and, by extension through its approval, the Board of Directors, remains true to its own logic that the carrying amounts of its acquired brands and titles must be consistent with the estimated future revenues and risks.
Due to the continuous negative results of the French specialist magazine KR Recordings, an impairment was recorded in an amount of EUR 0.6 million.
Additional costs of severance payments and provisions for termination benefits, particularly in the context of the PSE (Plan de Sauvegarde de l'Emploi) redundancy plan in France, also had a negative impact on EBIT in 2013. The PSE related to some 95 people.
As has been reported, the plan was fully worked out and planned in FY 2013. In other words, the costs were charged in 2013. Only a small portion was actually paid in 2013. The largest portion will follow in 2014 and a small one in 2015. The overall effect on the net result amounts in 2013 to EUR 18.6 million.
Of this, around EUR 4.5 million is in EBITDA and EUR 14.1 million in provisions.
Additional costs were booked in 2013, in the amount of EUR 3.0 million at RMG and Medialaan.
With reference to previous communications, a provision was set up for the risk incurred by Roularta following the initial judgement against it in the Kempenland case. The provision amounts to EUR 7.0 million pre-tax. The overall effect on the net result, after offsetting the tax effect and the participation of a co-shareholder, amounts to EUR -3.7 million.
Roularta has appealed against this verdict.
The project Hawai has been stopped. Extraordinary charges amounted to EUR 1.2 million before tax.
Various write-downs were undertaken in an amount of EUR 2.7 million.
| Contact persons | Rik De Nolf (CEO) | Jan Staelens (CFO) |
|---|---|---|
| Tel.: | + 32 51 266 323 | + 32 51 266 326 |
| Fax: | + 32 51 266 593 | + 32 51 266 627 |
| E-mail: | [email protected] | [email protected] |
| URL: | www.roularta.be |
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.