SOCIETÀ EDITORIALE IL FATTO S.P.A.:
The Board of Directors approves the Half Year Financial Report at June 30, 2019
Relevant investments in new strategic projects
Doubled revenues in the media content sector, key factor in the company's growth plan
Growth in revenues from digital products and advertising
Total lack of financial and banking indebtedness
Revenues at Euro 15,159 thousand
EBITDA at Euro 398 thousand
Positive net financial position at Euro 3,288 thousand
Shareholders' equity at Euro 4,778 thousand
Rome, 30 September 2019 –SEIF S.p.A. (the “Company” or “SEIF”) media content provider and publisher of several editorial and multimedial products, announces that, today, the Board of Directors has approved the half financial report at June 30, 2019.
The Company has started its development process as outlined in the business plan, aiming at the growth of the digital and media content sector as well as at the promotion of editorial content also distributed through traditional channels.
The final trends of the first half of the year ended June, 30 2019 confirm the value of the analyses and strategic decisions undertaken. In the medium - long term, the Company believes that technological innovation, the digital revolution and the search for as well as the introduction of new information languages will be a significant element in the Company's growth.
Cinzia Monteverdi, Chairman and CEO of SEIF, commented: "The results for the half year just ended show a strong growth in the media content and digital products sectors in line with the business plan. Revenues, influenced by a decrease in sales of the printed daily newspaper, reflect the general trend of the publishing market, which is increasingly evolving towards an innovative trend and a multi-channel approach. For this reason, we are investing and working on the launch of new products that we will announce in the following months and we expect a highly profitable 2020". The following table shows the trend in revenues from sales and services of the Company, indicating the percentage of variation with respect to the same data for the six-month period ended June 30, 2018.
Revenues from sales and services | Value at 30.06.19 | % on revenues | Value at 30.06.18 | % on revenues | var % |
Publishing sector | 9,499 | 73,31% | 11,257 | 80,56% | -15,62% |
Media content sector | 1,284 | 9,91% | 610 | 4,37% | 110,48% |
Advertising sector | 2,175 | 16,78% | 2,106 | 15,07% | 3,25% |
Total | 12,958 | 100,00% | 13,973 | 100,00% | -7,27% |
Analyzing the change in revenues from sales and services, the following should be noted:
Publishing sector: this category includes revenues from sales in the publishing sector (sales at newsstands of paper copies of the newspaper Il Fatto Quotidiano and of the monthly FQMillennium, sales at newsstands and bookstores of the Paper First publishing series, as well as sales of subscriptions to the paper and digital versions of the newspaper); with reference to this category, the change in revenues is due to a decrease in sales at newsstands of the newspaper partially offset by an increase in revenues from subscriptions to digital publishing products.
Media content sector: this category is made up of revenues from the granting of rights to use television content, both to national television broadcasters and through the LOFT TV App, as well as revenues from the sale of theatre shows. With reference to this category, the volume of revenues more than doubled compared to the same period of the previous year, despite the postponement of some projects that should have started in the first half of 2019.
Advertising sector: this category essentially includes two types of revenues deriving from (i) advertising on the newspaper Il Fatto Quotidiano and on the monthly FQ Millennium and, (ii) advertising on the website. With reference to this category, it should be noted that the overall volume of advertising increased by around 3% compared with the previous year, although it was still up (by around 17%) compared with the downward trend in the sector. This figure confirms the strategy undertaken by the Company to improve the competitive positioning of the brand within the reference advertising market; in this respect, there was an increase in the value of the average RPM (average revenue per page) of over 6%. Advertising on the newspaper also increased by more than 30% on a like-for-like basis.
The analysis of the income statement shows that the incidence on production value of the main production costs increased slightly following the planned expansion of the organizational structure, both technical (new spaces and premises) and logistical, with reference to the television studios in Rome and the offices in Milan. The cost of sales has an incidence on the value of production below 5%, in line with the past data, thus showing a trend in line with the decreased value of sales at newsstands. Costs for services have an impact of about 50%, with a slight increase of 2% in percentage terms. Within the item expenses for services, industrial and variable costs relating to the publishing sector decreased as a result of the lower sales volumes recorded, while there was an increase in general consulting services, also in relation to compliance with the status of listed company on AIM Italia (“AIM Italia”), a multilateral trading facility organized and managed by Borsa Italia S.p.A.. The cost for use of assets owned by others are in line with the development of the structure for technological development and marketing activities in Milan and with that of LOFT in Rome. Finally, personnel costs increased in line with the planned growth in the size of the Company's human resources structure to support production developments. The incidence on the production value increased by about 3% also due to a lower growth in revenues following the postponement of the start of some projects that should have been started in the first half of the year and which, instead, will be implemented by the end of 2019.
The table below shows the Company's main financial data for the six-month period ended 30 June 2019.
Main financial data
Financial Balance Sheet | ||||||||
USES | 30.06.2019 | 31.12.2018 | SOURCES | 30.06.2019 | 31.12.2018 | |||
intangible fixed assets | 5,922,966 | 4,312,978 | share capital | 2,500,000 | 2,500,000 | |||
tangible fixed assets | 202,464 | 123,260 | reserves | 3,104,100 | 186,660 | |||
financial fixed assets | 1,141,021 | 800,631 | profit (losses) carried forward | 35,407 | - | |||
profit (losses) for the year | -861,928 | 35,407 | ||||||
Fixed asset | 7,266,451 | 5,236,869 | Shareholders' equity | 4,777,579 | 2,722,067 | |||
cash equivalents | 341,194 | 280,058 | consolidate liabilities | 2,696,260 | 2,553,107 | |||
deffered liquidity | 6,222,123 | 5,462,629 | ||||||
current liquidity | 2,690,040 | 2,211,814 | current liabilities | 9,045,969 | 7,916,196 | |||
Current Assets | 9,253,357 | 7,954,501 | Liabilities | 11,742,229 | 10,469, 303 | |||
Invested capital | 16,519,808 | 13,191,370 | Financing capital | 16,519,808 | 13,191,370 |
The reclassification of the Balance Sheet shows an increase in net fixed assets of Euro 2,029 thousand, mainly due to intangible fixed assets (equal to Euro 1,609 thousand) and financial fixed assets (equal to Euro 340 thousand).
Gross investments in intangible fixed assets were equal to Euro 3,009 thousand and essentially refer to the production of television contents for Euro 2,005 thousand, for which the Issuer is the holder of all the privative and economic exploitation rights over time, as well as investments for the Issuer's corporate, technological and structural development.
Shareholders' Equity increased by Euro 2,055 thousand net of the result for the first half of 2019. The change is due to the reduction in the negative reserve for own shares of Euro 2,914 thousand, following the placement of a 16.21% stake in the share capital through the admission of the Company's shares to AIM Italia.
Net Financial Position
The Net Financial Position, equal to Euro 3,288 thousand, is composed exclusively of cash and cash equivalents, with total absence of financial payables; it increased by Euro 478 thousand compared to its value as at December 31, 2018.
Cash flow at the six-month period ended at June, 30 | ||
(in thousands of Euro) | ||
30.06.19 | ||
Profit (loss) of the year before taxes on the income, interests and dividends | (1,078) | |
Adjustments for non-monetary elements | 1,878 | |
Changes in net working capital | 100 | |
Other adjustments | (87) | |
Cash flow from operating activities (A) | 813 | |
Cash flow from investment activities (B) | (3,252) | |
Cash flow from financing activities (C) | 2,917 | |
Increase (decrease) of cash and cash equivalents (A±B±C) | 478 | |
Cash and cash equivalents at the begging of the year | 2,212 | |
Cash and cash equivalents at the end of the year | 2,690 | |
Changes in cash and cash equivalents | 478 |
Significant events during the six-month period ended at June, 30 2019
On 14 March 2019 the Company's shares were admitted for trading on AIM Italia.
Significant events occurring after the end of the six-months period ended on 30 June 2019
During the six-month period ended June 30, 2019, the Company began the process of admission to trading of its own ordinary shares on the Euronext Growth market, managed by Euronext Paris S.A., which ended on July, 18 2019.
Other information
The Half-Yearly Financial Report at 30 June 2019 is available to the public at the company's registered office and on the website www.seif-spa.it, in the company documents/investor relations section. The report of the external auditors KPMG S.p.A. will be made available to the public as soon as it is issued.
***
SOCIETA? EDITORIALE IL FATTO S.P.A. (SEIF) is an independent media company, founded in Rome in 2009 and led by Cinzia Monteverdi, Chairman and CEO. The company publishes several editorial and multimedia products, including Il Fatto Quotidiano, founded by Antonio Padellaro and directed by Marco Travaglio, the website ilfattoquotidiano.it and the monthly magazine FQ Millennium, directed by Peter Gomez, the publishing company Paper First and the TV and multimedia content platform Loft. Recently, SEIF has undertaken a process of diversification to become more and more a media content provider at 360° degrees, starting a strategy of development of its products in digital key and data driven.
For further information: Press Office Close to Media – Company founded by Elisabetta Neuhoff Via Caradosso 8 – 20123 Milano Tel: 02.70006237 Fax: 02.89694809 www.closetomedia.it Luca Manzato, Sofia Crosta, Giorgia Cococcioni luca.manzato@closetomedia.it, sofia.crosta@closetomedia.it, giorgia.cococcioni@closetomedia.it SEIF - Investor relations Cinzia Monteverdi 06 32818514 - ir@seif-spa.it | Nomad Alantra Capital Markets Via Borgonuovo, 16 – 20121 Milano tel. +39 02 63671613 Mail: stefano.bellavita@alantra.com |
Statement of Assets and Liabilities
30/06/2019 | 31/12/2018 | |
---|---|---|
Assets | ||
B) Fixed assets | ||
I – Intangible fixed assets | - | - |
1) start-up and capital costs | 1,036,819 | 588,818 |
4) concessions, licenses, trademarks and similar rights | 53,657 | 63,833 |
6) assets under construction and payments on account | 450,684 | 241,515 |
7) other | 4,381,806 | 3,418,812 |
Total intangible fixed assets | 5,922,966 | 4,312,978 |
II – Tangible fixed assets | - | - |
4) other assets | 202,464 | 123,260 |
Total tangible fixed assets | 202,464 | 123,260 |
III – Financial fixed assets | - | - |
1) shareholdings in | - | - |
b) parent companies | 932,939 | |
d-bis) other companies | - | 712,939- |
Total shareholdings | 932,939 | 712,939 |
2) receivables | - | - |
b) receivables from parent companies | 120,000 | - |
due within the next year | 120,000 | - |
due after the next year | - | - |
d-bis) other receivables | 88,082 | 87,692 |
due within the next year | 4,334 | 4,034 |
due after the next year | 83,748 | 83,658 |
Total receivables | 208,082 | 87,692 |
Total financial fixed assets | 1,141,021 | 800,631 |
Total fixed assets (B) | 7,266,451 | 5,236,869 |
C) Current asset | ||
I - Inventories | - | - |
1) raw, subsidiary and consumable materials | 277,121 | 188,320 |
4) finished products and goods | 64,073 | 91,738 |
Total inventories | 341,194 | 280,058 |
II - Receivables | - | - |
1) trade receivables | 3,622,281 | 3,923,629 |
due within the next year | 3,622,281 | 3,923,629 |
5-bis) tax receivables | 489,483 | 296,496 |
due within the next one year | 489,483 | 296,496 |
5-ter) pre-paid taxes | 483,594 | 264,116 |
5-quater) from third parties | 595,812 | 276,225 |
due within the next one year | 595,812 | 276,225 |
Total receivables | 5,191,170 | 4,760,466 |
III – Financial assets not of a fixed nature | - | - |
6) other assets | 598,328 | 598,142 |
Total financial assets not of a fixed nature | 598,328 | 598,142 |
IV – Cash and cash equivalents | - | - |
1) bank and postal deposit | 2,689,530 | 2,211,105 |
3) cash at bank and in hand | 510 | 709 |
Total cash and cash equivalents | 2,690,040 | 2,211,814 |
Total current assets (C) | 8,820,732 | 7,850,480 |
D) Accrual and deferred income | 424,440 | 104,021 |
Total assets | 16,511,623 | 13,191,370 |
Liabilities | ||
A) Shareholders' equity | 4,777,579 | 2,722,067 |
I – Share capital | 2,500,000 | 2,500,000 |
IV – Legal reserve | 500,000 | 500,000 |
VI – Other reserves, indicated separately | - | - |
Extraordinary reserve | 3,694,856 | 3,694,856 |
Total other reserve | 3,694,856 | 3,694,856 |
VIII – Profit (loss) carried forward | 35,407 | - |
IX – Profit (loss) of the year | (861,928) | 35,407 |
X – Negative reserve for purchase of own shares | (1,090,756) | (4,008,196) |
Total shareholders' equity | 4,777,579 | 2,722,067 |
B) Provisions for risks and charges | ||
4) other | 756,339 | 763,989 |
Total for risks and charges | 756,339 | 763,989 |
C) Employee severance indemnity | 1,939,921 | 1,789,118 |
D) Payables | ||
7) trade payables | 4,222,972 | 3,161,220 |
due within the next year | 4,222,972 | 3,161,220 |
12) tax payables | 291,891 | 412,475 |
due after the next year | 291,891 | 412,475 |
13) amounts payable to social security institutions | 844,829 | 942,302 |
due within the next year | 844,829 | 942,302 |
14) other receivables | 2,483,115 | 2,129,611 |
due within the next year | 2,483,115 | 2,129,611 |
Total receivables | 7,842,807 | 6,645,608 |
E) Accrual and deferred income | 1,194,977 | 1,270,588 |
Total liabilities | 16,511,623 | 13,191,370 |
Income statement
30/06/2019 | 30/06/2018 | |
---|---|---|
A) Production value | ||
1) revenues from sales and services | 12,957,602 | 13,973,196 |
2) variations of inventory of raw and auxiliary materials, consumables and supplies | (27,665) | (13,461) |
4) increases in fixed assets for internal works | 2,104,429 | 1,663,970 |
5) other revenues and income | - | - |
other | 124,662 | 238,421 |
Total other revenues and income | 124,662 | 238,421 |
Total production value | 15,159,028 | 15,862,126 |
B) Cost of production | ||
6) for raw and auxiliary materials, consumables and supplies | 822,205 | 624,815 |
7) for services | 7,603,847 | 7,566,500 |
8) for use of assets owned by others | 654,808 | 569,270 |
9) for personnel | - | - |
a) salaries and wages | 4,001,847 | 3,739,193 |
b) social security | 1,283,288 | 1,193,622 |
c) employee severance indemnity | 219,960 | 201,733 |
e) other costs | 75,164 | 105,945 |
Total personnel costs | 5,580,259 | 5,240,493 |
10) amortization, depreciation and impairment | - | - |
a) depreciation of intangible fixed assets | 1,399,354 | 1,098,530 |
b) depreciation of tangible fixed assets | 32,152 | 37,347 |
Total amortization, depreciation and impairment | 1,431,506 | 1,135,877 |
11) variations of inventory of raw and auxiliary materials, consumables and supplies | (88,801) | 118,585 |
12) provisions for risks | 45,000 | 26,800 |
14) other operating costs | 188,320 | 163,040 |
Total of cost of production | 16,237,144 | 15,445,380 |
Difference between value and costs of production (A - B) | (1,078,116) | 416,746 |
C) Financial revenues and expenses | ||
16) other financial revenues | - | - |
c) from securities included under the working capital which are not shareholdings | 6,599 | 18,777 |
d) revenues different from the previous | - | - |
other | 1,196 | 14,096 |
Total revenues different from the previous | 1,196 | 14,096 |
Total of other financial revenues | 7,795 | 32,873 |
17) Interests and financial expenses | - | - |
other | 3,162 | 6,432 |
Total interests and financial expenses | 3,162 | 6,432 |
17-bis) exchange gains and losses | 76 | (207) |
Total financial revenues and expenses (15+16-17+-17-bis) | 4,709 | 26,234 |
D) Value adjustment on financial assets | ||
18) revaluations | ||
c) of securities included under assets forming part of working capital which are not investments | 186 | |
Total revaluations | 186 | |
19) devaluations | - | - |
c) of securities included under assets forming part of working capital which are not investments | 6,160 | |
Total devaluations | 6,160 | |
Total value adjustments to financial assets (18-19) | 186 | (6,160) |
Result before taxes (A-B+-C+-D) | (1,073,221) | 436,820 |
20) Current, deferred and prepaid taxes on the income of the year | ||
current taxes | 8,185 | 219,693 |
taxes related to previous years | - | 18,536 |
deferred and prepaid taxes | (219,478) | 15,719 |
Total current, deferred and prepaid taxes on the income of the year | (211,293) | 253,948 |
21) Profit (loss) for the year | (861,928) | 182,872 |