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ATRESMEDIA: 9M’20 RESULTS (ANÁLISIS BANCO SABADELL)

3Q'20 vs. 3Q'19 Results:
Sales: € 205.2 M (+11.7% vs. +3.5% BS(e) and -0.4% consensus);
EBITDA: € 30.31 M (+33.8% vs. +2.2% BS(e) and +2.4% consensus);
Net Profit: € 17.21 M (+60.1% vs. -3.7% BS(e));
9M'20 vs. 9M'19 Results:
Sales: € 580.1 M (-19.8% vs. -21.9% BS(e) and -22.9% consensus);
EBITDA: € 73.1 M (-42.1% vs. -47.8% BS(e) and -47.8% consensus);
Net Profit: € 39.9 M (-50.3% vs. -58.8% BS(e));

The results came in far above expectations in both sales and EBITDA. 3Q’20 sales have grown +11.7% (vs. +3.5% BS(e) and -0.4% consensus) due to higher sales in the Audiovisual division due to: (i) TV advertising (with a higher market share that rose to 41.8% in 9M’20); (ii) Digital (€ +5 M of revenues above our estimate); (iii) and content sales (€ +4 M above our estimate). 3Q’20 EBITDA reflects this improvement in sales and came in a € 30.3 M (+33.8%), with a margin of 14.8% (vs. 12.3% in 3Q’19), and we must bear in mind that Q3 is the weakest quarter of the year. The cash figure reflects the negative impact from WC (€ 31 M in 9M’19), due mainly to the change in marketing (elimination of advertising discounts).
Following the stock’s poor performance (since 2019 it has plunged -58.1% in absolute terms and -32% vs. IBEX, and in 2020 it has fallen -35.6% in absolute terms), we expect the impact from these results to be positive. BUY. T.P. € 3.00/sh. (upside +36.74%).