The group Atresmedia earned 39.8 million euros in the first nine months of the year, according to the results that the company has sent this Thursday to the National Securities Market Commission (CNMV).
the publisher of Antena 3 and La Sexta opens the season of business results reporting a 50.3% drop in its profit, weighed down mainly by the effect of the coronavirus pandemic on its advertising revenue.
In this way, its income between January and September reached 580.1 million euros, compared to the 723.7 million euros obtained in the same period of 2019. This represents a decline of 19.8%. The impact was greater in the Radio market, where it fell by 24.6%, than in Television, where it fell by 19.2%.
The advertising market, according to internal estimates of the company, fell 27.4% in the period when compared to what was registered in the first nine months of last year. Similarly, in the third quarter of 2020, consolidated net income grew by 11.6%, mainly due to the improvement in content production and distribution.
The television and media market has been one of the most affected by the decline in advertising investment by the main advertisers in Spain. This has led to a significant reduction in billing.
In the case of Atresmedia, this situation has been partially offset by cost reduction. Operating expenses for the accumulated to September 2020 decreased by 15.1% compared to the accumulated to September of the previous year.
Atresmedia explained that during this financial year a savings plan has been established, both in program consumption and in personnel and other operating expenses, in order to minimize the drop in the advertising market, especially accentuated since March with the global crisis of the Covid-19. He further explains that this has not affected the group’s competitive position.
“The variable costs linked to sales decrease due to the drop in advertising revenue during the months of the state of alarm. During the third quarter of 2020, operating expenses have grown by 8.4% compared to the same period in 2019, mainly due to the increase in variable costs linked to income in the production and distribution of content”, they indicate.
The accumulated gross operating result (Ebitda) as of September 2020 was 73.1 million euros, which represented a margin over net income of 12.6%.
Similarly, the Ebit in the accumulated to September was 58.8 million euros compared to 111.8 million euros obtained in the same period of 2019. A drop of almost 50%.