EUR 100.00 For Business Accounts Only

VOCENTO: FY2020 RESULTS (ANÁLISIS BANCO SABADELL)

4Q'20 vs 4Q'19 Results:
Sales: € 99.84 M (-9.4% vs. -11.1% BS(e));
EBITDA: € 10.17 M (-53.6% vs. -16.9% BS(e));
EBIT: € -3.21 M;
Net Profit: € -7.65 M (€ 9.8 M in FY2019);
Has released FY2020 vs FY2019 Results
Sales: € 341.34 M (-13.5% vs. -13.9% BS(e));
EBITDA: € 21.72 M (-48.6% vs. -29.7% BS(e));
EBIT: € -6.53 M;
Net Profit: € -21.75 M (€ 6.2 M in FY2019);

The results came in below expectations due to an impact from compensation (€ 7.2 M, from the 2021 adjustment plan) and a provision from commercial debt with Intereconomía (€ 1.2 M) as well as an impairment of goodwill stemming from Las Provincias (regional newspapers; € -9.8 M). Excluding these impacts, the figure would have been in line. The sales’20 fell -13.5% with circulation sales shedding -9.1% and advertising sales -16.4% (still hit in 4Q’20 by Covid-19). Reported EBITDA’20 reached € 21.7 M (-48.7% vs. 2019) and LfL EBITDA would have stood at € 34.3 M (-30.7% vs. 2019 and vs. -30.2% BS(e)). We highlight the cost reductions in 2020 (OPEX -9.3%), which offset 71% of the sales decrease stemming from Covid-19. We also highlight the ordinary cash generation (€ 12.9 M vs. € 25.2 M in 2019), which allowed the company to maintain pre-IFRS 16 NFD at a similar level to 2019 (€ 46.6 M in 2020 vs. € 45.7 M in 2019). Total NFD reached € 67.3 M (2x LfL EBITDA).
The reception has been lukewarm (the stock is trading flat), awaiting more visibility on how the business is going, the guidance and medium-term outlook in the conference call (Monday at 12:00 CET). We reiterate our BUY recommendation. T.P. € 1.10/sh. (+22.2% upside).