Editions El País SL, group newspaper publishing company Rush, has returned to profit. Your annual accounts sent to Commercial Registry indicate that The country it earned 4.8 million euros in the 2019 financial year, which is an improvement on the heavy losses of 14.7 million recorded a year earlier.
All this despite the fact that last year the newspaper reduced its total income to 128.6 million euros, three million less than the 131.3 registered in 2018. The difference is that, in 2019, the group paid only 1.7 million euros of Corporation Tax, for the 17.2 million of the previous year.
In 2018, the newspaper’s accounts were affected by the regulation that it had to execute with the Ministry of Finance. That year, the company registered a regularization of corporate tax from previous years for value of 16.3 million euros.
The newspaper explains that this impact occurred because credits corresponding to negative tax bases of the tax consolidation group, deductions for investments and deductions for double taxation were derecognized, generating a higher tax expense amounting to 15,629,000 euros.
Impact of Covid
The company has included among the events to be highlighted after the end of the 2019 financial year the impact of Covid on your 2020 accounts. An estimate has been made for the first quarter of 2020, which would mean a reduction in advertising revenue and revenue from newspaper sales of approximately 19.8% and 7.3%, respectively, compared to the same period from the previous year.
The country acknowledges that, as of March 31, 2020, the pandemic had not had a significant impact on net indebtedness. “The company will work during the year 2020 on a contingency plan with the aim of minimizing the previous effects. However, at the moment it is not possible to reliably quantify the impact of Covid-19 in future financial statements.
Regarding the rest of your accounts, personnel expenses rose slightly from 31.7 million to 32.1while operating expenses were reduced from 68 million to 62.1 million.
In this way, the results before taxes reached 6.6 million euros in 2019 compared to 2.5 million in 2018.