third quarter 2001 preliminary results

Third Quarter 2001 Preliminary Results

Consolidated Profit and Loss Account

€ Million

Advertising 77.6 72.4 7.1%

Circulation 87.4 79.0 10.6%

Others 15.0 15.6 (4.0%)

Total Revenues 180.0 167.1 7.7%

Direct Costs 139.7 115.2 21.2%

Gross Profit 40.4 51.9 (22.2%)

Central Costs 19.1 15.6 22.2%

EBIT 21.3 36.3 (41.4%)

Interest Income (Expense) (3.3) 0.7

Goodwill Amortisation (9.2) (8.2)

Associated Undertakings (0.5) 1.3

Profit on Ordinary Activities 8.3 30.0 (72.3)%

Extraordinary Results (3.5) 1.6

Profit before Taxes 4.8 31.6 (84.7%)

Income Taxes (1.4) (11.0) (87.3%)

Consolidated Net Income 3.5 20.6 (83.0%)

Depreciation 8.5 6.8 24.4%

EBITDA 29.8 43.1 (30.9%)

MARGIN GROSS PROFIT/REVENUES 22.4% 31.1%

MARGIN EBITDA/REVENUES 16.5% 25.8%

MARGIN EBIT/REVENUES 11.8% 21.7%

3Q2001 3Q2000 %Var.

• Advertising Revenues: the slowdown continues although Recoletos shows better performance than the market (+7.1% - 2.6% without Argentina, -4.2% underlying).

• Circulation: impact of increase in cover prices offsets partially decreasing circulation, significant decrease in “Business and Finance”.

• Growth in direct costs (+21.2%) due to re-launch in Argentina (+7.4% ex Argentina) and other new ventures (+7.0% underlying) and the increase in newsprint (+25%).

• Slowing down of growth in central costs (+22.2% vs. +28.2% en 1H2001 and 35.1% in 1Q2001) due to the cost cutting programme in force.

• Interest Income/Expense: includes, among others, € 2.13 million losses from the stake in Sky Point.

• Goodwill Amortisation: includes € 0.97 million corresponding to Argentina and €6.52 million to Unedisa.

• Extraordinary Results: Year 2001 includes extraordinary losses from Argentina amounting to € 3.07 million. 2000 included extraordinary gains of € 1.3 million from the sale of a stake in the holding company “Red de Distribución Editoriales” to Unedisa.

Consolidated Profit and Loss Account – Comments

Consolidated Profit and Loss Accountexcluding Argentina

COMMENTS:COMMENTS:

• Slowdown in Slowdown in Advertising Advertising RevenuesRevenues

• Decrease in Decrease in marginsmargins

€ Million

Advertising 70.5 72.4

(2.6%)

Circulation 84.9 79.0

7.4%

Others 15.0 15.6

(4.3%)

Total Revenues 170.4 167.1

2.0%

Direct Costs 123.7 115.2

7.4%

Gross Profit 46.7 51.9

(10.1%)

Central Costs 19.1 15.6

22.2%

EBIT 27.6 36.3

(24.0%)



11.1%


Profit on Ordinary Activities 14.6 30.0

(51.2%)


Profit before Taxes 14.2 31.6

(55.0%)

Depreciation 8.3 6.8

21.0%

EBITDA 35.8 43.1

(16.9%)




3Q2001 3Q2000 %Var.

€ Million

Advertising 64.7 67.5

(4.2%)

Circulation 84.7 77.7

8.9%

Others 12.5 12.1

2.8%


2.9%


7.0%


(4.4%)

Central Costs 18.0 15.0

20.0%

EBIT 36.4 41.9

(13.2%)




Profit on Ordinary Activities 23.5 35.7

(34.1%)


Profit before Taxes 23.1 37.3

(38.1%)

Depreciation 6.1 5.3

14.2%

EBITDA 42.5 47.3

(10.1%)




3Q2001 3Q2000 %Var.

Consolidated Underlying Profit and Loss Account

COMMENTS:COMMENTS:

• Decline in Decline in advertising advertising revenuesrevenues

• Slight Slight deterioration in deterioration in marginsmargins

Note: Excludes Radio Marca, Expansión TV, Expansión & Empleo, Ganar.com, Sadei & Mind Opener, and Internet activities. The “underlying” account includes Golf Digest and Estadio Deportivo.

Consolidated Cash Flow Statement

€ Million

Net Income 3.3 20.3 (83.7%)


Goodwill Amortisation 9.2 8.2 12.2%

Other Adjustments 6.8 1.6 NA

Net cash provided by 27.8 36.9 (24.7%)

Operating Activities

Change in Working Capital (3.0) (1.3) 123.1%

Net Capex (8.8) (23.3) NA

Net cash used in Investment (11.8) (24.6) (52.0%)

Activities

Equity Financing (0.4) (0.1) NA

Net Debt Financing - -

Dividend Payment (10.5) -

Net Cash provided by (10.9) (0.1) NA

Financing Activities

Net Increase in Cash and 5.1 (12.2) NA

Cash Equivalents

3Q2001 3Q2000 %Var.

Fixed Assets 194.5 200.7

- Tangible Assets 60.1 63.3

- Intangible Assets 8.0 7.1

- Financial Investments 126.4 130.2

Goodwill on Consolidation 47.5 54.1

Accounts Receivable 41.5 53.9

Stocks 10.3 4.5

Cash and Cash Equivalents 65.4 60.3

Other Assets 1.8 0.9

Total Assets 361.0 374.4

Shareholders’ Equity 294.3 300.5

Minority Shareholders 0.6 0.8

Provisions 13.7 8.4

Long-term Liabilities 3.8 6.0

Short-term Liabilities 48.6 58.7

Total Equity and Liabilities 361.0 374.4

2001 2000September December

€ Million

Consolidated Balance Sheet

Revenue Breakdown

Sports 54.6%

Business& Finance 29.1%

Youth 1.5%

Others 6.9%

Others 4.5%

Sports 53.4%

Business& Finance 32.7%

Youth 1.1%

Medical 3.2%

Medical 3.1%

Women’sInterests 4.7%

Women’sInterests 5.2%

Revenues 3Q2000 Revenues 3Q2001

Sports Area

COMMENTS:COMMENTS:

• Significant decrease Significant decrease in advertising in advertising revenuesrevenues

• Slight decrease in Slight decrease in MARCA copy salesMARCA copy sales

• Maintenance of Maintenance of Gross ProfitGross Profit

Advertising 27.2 29.8 (8.9%)


Others 0.7 0.9

(13.2%)


Direct Costs 63.0 58.1 8.4%

Gross Profit 33.2 33.1 0.2%

Gross Margin 34.5% 36.3%

Underlying* Gross Profit 37.0 34.3 7.8%

Underlying Gross Margin 38.9% 37.9%

Accum. Marca Copy Sales 378,771 397,624 (4.7%)

Accum. Golf Digest Copy Sales 13,974 12,674 10.3%

Last Month Page Views (000) 77,344 55,161 40.2%

3Q2001 3Q2000 %Var.

€ Million

* Note: Excludes Radio Marca and Marca. com.

Business and Finance Area

COMMENTS:COMMENTS:

• Remarkable increase in Remarkable increase in revenues but fall in revenues but fall in Gross Margin due Gross Margin due mainly to Argentinamainly to Argentina

Advertising 36.3 29.3 23.9% 29.3 29.3 0.0%

Circulation 16.4 14.9 9.8% 13.9 14.9 (6.7%)

Others 6.2 4.3 42.6% 6.1 4.3 41.8%

Total Revenues 58.9 48.6 21.3% 49.3 48.6 1.4%

Direct Costs 56.4 38.1 48.1% 40.5 38.1 6.3%

Gross Profit 2.5 10.5 (76.1%) 8.8 10.5 (16.2%)

Gross Margin 4.3% 21.6% 17.8% 21.6%

Underlying* Gross Profit 11.6 14.3 (18.6%)


Accum. Copy Sales Expansion 53,979 64,385 (16.2%)Accum. Copy Sales Act. Economica 21,824 22,838 (4.4%)Accum. Copy Sales ganar.com 11,804 16,470 (28.3%)

Last month Pag. Views Expdir (000) 24,897 11,917 108.9%Last month Pag. Views Ex&Em. (000) 1,517 NA NALast month Pag. Views Ganar.com (000) 1,052 923 14.0%

3Q2001 3Q2000 %Var.

€ Million

EXCLUDING ARGENTINA

3Q2001 3Q2000 %Var.

* Note: Excludes Expansion TV, Expansion y Empleo, Sadei & Mind Opener, Ganar.com and Expansiondirecto.com

€ Million

Revenues 168.1 171.3 (1.9%)

Operating Expenses 170.3 167.1 1.9%

EBIT (2.1) 4.3 NA

Interest Income (Expense) (1.3) (0.2)

Goodwill Amortisation (0.3) (0.4) (5.8%)


Profit on Ordinary Activities (6.4) 3.7 NA

Extraordinary Results (0.1) (0.1)

Profit before Taxes (6.5) 3.6 NA


EBITDA 6.8 11.0 (37.9%)

Average Daily Copy Sales El Mundo 320,385 302,672 5.9% Last month Pag. Views 100,000 40,000 146.3%

3Q2001 3Q2000 %Var.

General Interest Area -Profit and Loss Account of Unedisa

COMMENTS:COMMENTS:

• Slight decrease in Slight decrease in revenues despite revenues despite strong downturn in strong downturn in advertising marketadvertising market

COMMENTS:COMMENTS:

• Strong growth in Strong growth in Advertising and Advertising and

CirculationCirculation

• Improvement in Improvement in Gross Gross MarginMargin

• Remarkable Remarkable increase in Copy increase in Copy

salessales

Advertising 6.6 5.3

23.2%

Circulation 2.7 2.4

10.0%

Others 0.1 0.0

NA


20.2%


19.9%


21.2%


Underlying* Gross Profit 2.5 1.9

29.9%


Accum. Copy Sales TELVA 142,654 132,245

7.9%

Last Month Page Views (000) 2,531 382

562.6%

* Note: Excludes estarguapa.com

3Q2001 3Q2000 %Var.

€ Million

Womens’ Interest Area

COMMENTS:COMMENTS:

• Increased revenues in Increased revenues in Medical despite Medical despite adverse conditions adverse conditions market market

Medical and Youth Areas

3Q2001 3Q2000 %Var.

3Q2001 3Q2000 %Var.

Advertising 5.5 5.3 2.7%


Others 0.0 0.0



Gross Profit 0.7 1.5 (52.8%)


Underlying* Gross Profit 1.3 1.7 (20.4%)


* Note: Excludes Onda Salud. Diario Médico and tuGUeb.com

€ Million MEDICAL

€ Million YOUTHAdvertising 2.0 2.5 (19.8%)

Circulation 0.0 0.0

Others 0.0 0.0

Total Revenues 2.0 2.5 (19.8%)


Gross Profit (0.3) 0.4 (177.5%)

Gross Margin (15.6%) 16.1%

Underlying* Gross Profit (0.2) 0.4 (145.8%)

Underlying Gross Margin (9.4%) 16.2%

www.recoletos.es

third quarter 2001 preliminary results

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