Wednesday, May 11, 2016

RCS, low loss at 22 million Progress on the revision of the debt – BBC

RCS, which in the first quarter reduced the net loss to 22 million from 35.2 million in the first quarter of 2015, takes a step forward in the negotiations with the financing banks on debt restructuring, with the first go-ahead to the revision of the conditions by two creditor banks, and within a month it expected the OK from the other institutions. “Today – said in a statement issued after the council approved the accounts – two banks have confirmed to the company that their decision-making bodies have approved the remodeling, the remaining banks will present the Term Sheet with the approval of their respective deliberative bodies within a month”. An important step, since the approval of the reorganization of the conditions of the loan agreement by the banks must be made unanimously.
The new agreement between RCS and the lending banks has no controls for the company to realize a capital increase, he said the financial director Riccardo Taranto presenting the results to analysts. “In the new term sheet there are no covenants linked to a capital increase,” he explained, adding, however, that the company is confident it can still comply with the covenants.

The quarterly accounts

with regard to the accounts, RCS closed the quarter with warm consolidated revenues by 4.2% to 219.8 million euro, compared to 229.4 on a comparable basis (excluding books Area) for the same period in 2015 . Advertising revenues compared to the same period in 2015 showed an improvement of 1.1%, which increases to about 2% excluding discontinued operations from the comparison of China and Journal TV Sphere: advertising revenues thus amounts to 97.4 million Euro, with an improving trend also in the assumptions for the period of the Business Plan 2016-2018. Circulation revenues amounted to 94.7 million, a decrease of 12.4 million.
Operating income before non-recurring income and expenses (EBITDA) amounted to € -3.4 million compared to 15.5 million for the first quarter of 2015. The significant improvement of over 12 million compared to the same period of the year former is achieved thanks to the contribution of all business areas. “The excellent performance recorded in the first quarter of 2016 accounting for more than 40% to the increase expected by the RCS Group for the full year, further confirming the target set for 2016,” the statement said. EBITDA after non-recurring income and expenses amounted to EUR -3.7 million, compared to 16.2 million at 31 March 2015.
Net debt at 31 March 2016 amounted to 509 million (508 million at 31 March 2015, 487 million at 31 December 2015), while it amounted to 411 million by considering the effects of the Area assignment books, on April 14 last year (cash collected 127.1 million and net financial position at March 31, in 2016 to 29.1 million positive).

“Return to profit in 2016″

“The Strategic Plan 2016-2018 is in full process: all projects that we announced in December are started and they are giving good results. The first evidence about half allow us to confirm results in marked improvement over the same period in 2015 and the objective of a return to profit by 2016, “said Laura Cioli, CEO of RCS. Confirming among other things “the strong commitment on reducing costs both in terms of external costs, both in relation to labor costs.” If there will be no unexpected year-end the group provides for a reduction in the debt / ebitda to about 4 times.

” at a discount Cairo offer »

The board shared” further preliminary considerations “on offering public exchange (OPS) launched by Cairo Communication, reiterating that once the offer to acquire control of RCS would be at a discount, “where typically the offers aimed at acquiring control contemplate a premium to market advantage.” In particular, explains RCS, “as noted above, the public exchange offer consideration is at a discount and with respect to the target price by analysts (the media, before the announcement of the offer, amounted to EUR 0.81 per action), both compared to historical courses of action in 3, 6 and 12 months prior to the release of Cairo Communication of 8 April 2016 “. In addition, the fulfillment of its absolute commitment standstill condition of the financing banks of RCS “is ultimately subject to the Cairo Communication convenience and discretion.” The board then “reiterates the difficulties of assessing the Cairo Communication entitled, however, it characterized by low trading volumes, in light of the lack of availability of public information released by Cairo Communication on financial targets, as well as a medium-term plan of the same Cairo Communication and explicit quantitative or measurable goals (or at least comparable with the level of information disclosed to the market by RCS MediaGroup). “

the 6.4% in the hands of Giovanni Agnelli

Meanwhile, it was officially announced the reshuffling among the shareholders of RCS after the withdrawal of Fiat Chrysler Automobiles from the capital. Giovanni Agnelli & amp; co has held 6.444% of the RCS after the distribution to shareholders of Fca of the publishing company’s shares that were owned by the automotive group. In detail, as stated in the notifications to Consob, the 4.879% of the capital is payable to Exor while the 1,565% to Interim One, the company which had been awarded the Fca share. Exor, which has already announced its intention to sell the share on the market within the first quarter of 2017, placing it among the shareholders of the group just before Urbano Cairo, who has the 4.724% stake. The first of the RCS shareholder is Diego Della Valle, with 7,325%, followed by Mediobanca (6.247%) and from the bottom Schroeder (5.015%). Then they place Exor and Cairo.

May 11, 2016 (modified May 11, 2016 | 20:35)

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