ATRESMEDIA: FY2020 RESULTS (ANÁLISIS BANCO SABADELL)
4Q'20 vs. 4Q'19 Results:Sales: € 286.2 M (-9.4% vs. -11.5% BS(e));
EBITDA: € 1.2 M (-97.9% vs. -43.5% BS(e));
Net Profit: € -16.0 M (€ 37.75 M in FY2019 vs. € 20.8 M BS(e));
FY2020 vs. FY2019 Results:
Sales: € 866.3 M (-16.7% vs. -17.3% BS(e));
EBITDA: € 74.3 M (-59.6% vs. -42.6% BS(e));
Net Profit: € 23.9 M (-79.7% vs. -48.6% BS(e));
The results beat expectations, although hit on the EBITDA level by a provision from the voluntary layoff plan carried out (€ 37 M, no impact on cash) leading EBITDA and Net Profit to come in below expectations. Audiovisual sales’20 fell -16.3%, with TV sales (76% of total sales) down -15.5%, digital (6% of total sales) growing +7%, content (9% of total sales) falling -22.2% and other (2.5% of the total) dropping -45.7%. OPEX’20 (excluding the impact from the provision mentioned above) was reduced by € -100 M (-11.6%), in line with expectations. EBITDA’20 reached € 74.3 M, or € 110.8 M excluding the aforementioned impact from one-offs, and compared to our estimate of € 106 M.
The impact from the provision for the voluntary layoff plan carried out, along with the fact that A3M’s results have compared relatively poorly to Mediaset España’s, justify the negative reaction (-0.3% A3M vs. +5% TL5), looking at the stock’s solid recent performance (+17% in 2021 and +56% since October’20 lows). We will raise our estimates in order to include the expected improvement in the advertising market, and we reiterate our BUY recommendation. T.P. Under Revision.
Atresmedia Corporacion De Medios De Comunicacion is a television and radio broadcasting company based in Spain. Co. is engaged in the indirect management of television and radio services, which include the broadcasting, creation, production and distribution of television and radio programming, and the sale of advertising time. Group companies mainly carry on business activities relating to the production, copying and broadcasting of sounds and images, and TV and Internet home shopping. Co. provides National and World Digital Television Services. Co. is the parent company of Grupo Antena 3.
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