Release Date: July 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Atresmedia Corporacion de Medios de Comunicacion SA (AIOSF, Financial) reported a 10.6% increase in total revenue, reaching EUR523 million year-on-year.
- The company led the TV audience market with a 27.1% share, outperforming its main competitor, Mediaset España.
- Atresmedia's video on-demand platform, Atresplayer, saw a 23% increase in video hours consumed, reaching 22 million hours by the end of June.
- The company's SVOD offer, Atresplayer Premium, reached nearly 625,000 subscribers by the end of the semester.
- Net profit increased by 15.5% compared to the first half of 2023, reaching EUR69 million, with a positive net cash position of EUR64 million after dividend distribution.
Negative Points
- The growth pace in advertising revenue slowed in the second quarter compared to the first quarter of 2024.
- There is uncertainty regarding the advertising market trends for the third quarter, with expectations of flattish performance in TV and digital advertising.
- The potential introduction of a new DTT channel in the Spanish market could increase competition.
- The company does not plan any share buybacks despite a strong cash position, focusing instead on dividend payouts.
- There is no significant change expected in capital allocation strategy, which may limit potential growth opportunities.
Q & A Highlights
Q: Can you explain the working capital performance during the first half of the year?
A: Fernando Costi Perez, CFO, explained that the strong market performance in the first half led to good sales results. There was better performance in inventory management, with consumption outpacing production. Payments were generally deferred to July, contributing to positive working capital, but nothing unusual was noted beyond standard business operations.
Q: What are your views on the start of the third quarter, given the different performances in the first and second quarters?
A: Fernando Costi Perez noted that July showed mid-single-digit growth in radio, while TV and digital advertising were flat to slightly negative. There is limited visibility for August, but overall, the advertising revenue is expected to remain stable.
Q: What is your perspective on the potential new DTT channel in the Spanish market?
A: Fernando Costi Perez stated that while there are discussions about a new channel, Atresmedia does not see it as a significant issue. The company is accustomed to competition with over 25 channels currently in the market. They will evaluate the terms if the government decides to launch the new channel.
Q: How do you view the competitive landscape in the second half of the year, especially with new programs from competitors?
A: Fernando Costi Perez expressed confidence in Atresmedia's programming, which has consistently been competitive. The company does not anticipate margin deterioration and is prepared to compete effectively, maintaining its leadership in audience and market share.
Q: Could you provide more visibility on your stake in Fever and any potential movements this year?
A: Fernando Costi Perez mentioned that Fever is performing well, exceeding growth expectations. There are no plans for transactions or changes regarding this investment, and Atresmedia is satisfied with its current position.
Q: With a strong cash position, is there any plan for share buybacks or changes in capital allocation?
A: David Gomez, Head of Investor Relations, stated that while the cash position is positive, the focus remains on dividend distribution. There are no current plans for share buybacks or changes in capital allocation strategy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
