Vocento has closed 2022 with a net profit of 12.9 million euros thanks to an improvement in the group’s income and despite the increase in costs such as energy and raw materials (paper, plates…) and the investment made in Relevo. With all these data, the increase in income has been 5.2% compared to 2021, consolidating the phase of diversification of activity and growth that began in 2017 on its new perimeter, according to the company, which presented its annual results on Monday.
Operating income reached 345 million euros, with a 5.2% increase compared to 2021, consolidating the diversification and growth phase that began in 2017 on its new perimeter. In addition, the operating result (Ebitda) has been 33.5 trillion, which exceeds the pro forma figure of the previous year, despite the increase in the cost of energy, raw materials (paper, plates…) and the investment made in Relevo.
For its part, the sales of copies reached 106.4 million in 2022, 5.6% less than the previous year. However, during the past year, the number of paid digital subscribers increased by 28%, to 115,000, contributing to a greater weight of the digital readership margin.
In the case of advertising revenue, they grew to 152.5 million euros, 4.1% more than in 2021. Vocento brands recorded a better performance in 2022 in advertising than the market as a whole (an increase of 4 .1% compared to 0.8%), as has happened in ‘online’ advertising (5.2% of the company compared to 3.7% of the market). Adding to the income of digital advertising those of ‘e-commerce’, the digital weight on the total of advertising reaches 50.7%.
For its part, Relevo continues to meet all its milestones in accordance with its business plan. It should be noted that it has exceeded the target set in 2022 with more than 0.5 million users on social networks, setting the target for 2023 to reach 1.5 million. The sports newspaper is the leader in ‘engagement’ (loyalty) on Twitter, Instagram and TikTok and in followers on Twitch.
In this context, the ‘other income’ chapter increased by 25.2% due to the Diversification businesses, which represents 17.3 million more compared to 2021. The increased activity in the Gastronomy divisions stands out (37% more) and Agencies (33% higher). By 2023, the group expects that 33% of Ebitda (without counting the structure) will come from Diversification (Classifieds, Agencies, Digital Services and Gastronomy), compared to the current 21%.
The acquisition of the creative agency &Rósas, combined with Tango, Melé and ProAgency, will allow Vocento to boost its position in the advertising industry and create the most relevant network of independent agencies in the Spanish market. In Classifieds, in addition to boosting LDK’s digital services business, the Group is contemplating the possibility of acquiring leading companies in the digitization of SMEs. And as for the Gastronomy area, in 2023 the first promotion of the MACC (Madrid Culinary Campus) Degree in Gastronomy and Culinary Innovation will begin to study, after the AIE was established 50-50 between the Comillas Pontifical University and Vocento.
With a consolidated balance sheet of 430 million euros at the end of the year, Vocento’s net financial debt was 8.9 million euros, excluding capitalized rents (20.8 million euros), reflecting the payment of the 2021 dividend (5 .4 million euros) and lower ordinary cash generation. During 2022, a positive cash flow of 4.5 million euros has been generated from ordinary operations, with the aggregate impact of the higher prices of raw materials and energy, and the commitment to Relevo, being -15.8 million euros. .
Also noteworthy is the approval of the 2023-2026 Sustainability Plan, which is structured around three lines of action: Environmental, Social and Corporate Governance. Regarding the Environmental objectives, Vocento is committed to the Paris Agreement and to circularity, advancing towards a Zero Waste company. The Social axis is committed to quality employment, creating a more diverse culture with 40% women in management positions and with more intergenerational diversity. And, within Corporate Governance, the Group is committed to reinforcing the culture of Sustainability involving the entire supply chain.
Acquisition of &Rosàs
In this context, Vocento has announced the acquisition of &Rosàs, one of the most prestigious agencies in the country, in an operation with which the group has boosted its position in the advertising industry. It is the independent creative agency that has won the most Eficacia Awards throughout the history of the awards; Chosen by professionals in the sector as the first agency in the Best Creative Agency to Work For ranking and the second independent agency in creativity, according to the Scopen study. In addition, it has been the second independent agency that has won the most awards in 2022, according to the magazine Anuncios.
With this operation, Vocento boosts its position in the advertising industry. The CEO of the group, Luis Enríquez, has indicated that «we are always looking for the best talent and &Rosàs is unappealable proof. It is one more step in our commitment to communication in all its forms while we continue to consolidate the diversification of the group in this and other sectors”. Vocento entered the world of agencies in 2017 and, since then, it has been improving the data until reaching aggregate results of 26 million euros at the end of 2022.