Prisa TV survives tough year

Spanish pay TV and media group Prisa TV reported a net loss of €451 million after provisions to cover investments in Portugal and tax risks for the 2011 financial year.

Recurring revenues were €2.7 billion, down 1.3%. Reported EBITDA was €437 million, down 1.7%. The group registered a goodwill impairment charge of €252.94 million and a tax provision of €183 million.

Prisa had 1.84 million subscribers at the end of the year. DTH customers fell by 16,671 compared with a fall of 72,949 in 2010 and ARPU remained above €41, with churn rates falling to 13.6% from 15.8% in 2010, iPlus DVR customers grew by 65% over the year to reach 503,202.

Prisa saw strong growth in Latin America and digital revenues, while advertising revenues in Spain and Portugal totaled €498.1 million. The group completed an efficiency plan that should see it make annualised savings of €64.5 million on an investment of €94.8 million, and the group’s debt was refinanced, extending its maturity to 2014-15.

In line with the efficiency plan, 92% of the group´s management accepted a 7% reduction in fixed salary.

“These results demonstrate the operating resilience of our businesses even in an environment with extreme economic cycle weakness,” said chairman and CEO Juan Luis Cebrián.