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  SEIF S.p.A company press release from 31/03/2021

  31/03/2021 - 19:15

SEIF - The Board of Directors approves the draft financial statements at December 31, 2020


PRESS RELEASE

SOCIETÀ EDITORIALE IL FATTO S.P.A.:

The Board of Directors approves the draft financial statements at December 31, 2020

Strong Ebitda growth and return to net profit for the year

Increased revenues in every business area, advertising revenues in line with prior year

Shareholders' Meeting called to appoint the new Board of Directors and the new Board of Statutory Auditors

  • Production value equal to Euro 38,027 thousand (Euro 31,985 thousand as at December 31, 2019 + 18,89%)
  • EBITDA equal to Euro 5,266 thousand (Euro 1,239 thousand as at December 31, 2019 + 325.10%)
  • Net financial position Euro 1,373 thousand (Euro 1,139 thousand as at December 31, 2019 + 20.57 %)
  • Shareholders' equity of Euro 4,420 thousand (Euro 4,147 thousand as at December 31, 2019 + 6.58%)
  •  

Rome, March 31, 2021 - The Board of Directors of SEIF S.p.A. (the "Company" or "SEIF") media content provider and publisher of several editorial and multimedia products, a company whose shares are traded on AIM Italia, a multilateral system organised and managed by Borsa Italiana S.p.A. and Euronext Growth Paris, announces that, today, the Board of Directors approved the draft financial statements for the year ended December 31, 2020.

Cinzia Monteverdi, Chairman and CEO of SEIF, stated: "In 2020, a particular and challenging year, SEIF has achieved very positive results, with the achievement of important milestones that confirm that we are moving forward on the right path. In fact, the 2020 budget shows a return to profit in the operating result, and a strong growth in EBITDA. The decision to embark on a path as a media company, and to invest in technological innovation and digital proved rewarding, generating revenue growth across all business divisions: the print newspaper and digital subscriptions, books, television production. Advertising revenues, heavily affected by the pandemic in the first half, recovered almost entirely in the second half of the year, closing substantially in line with financial year 2019.

In the economic and social context severely tested by the COVID-19, we have been able to pursue our development plans as per the industrial plan presented at the IPO, without cutting back on staff, and adapting to new working models based on the use of smart working. The results obtained show that our forecasts have proved to be correct, that the investments made can generate growth and be recovered in subsequent years; we are working to continue in this direction".

Main financial data

(in thousands of Euro)      
Financial Year 2020 % revenues on P.V. Financial Year 2019 % revenues on P.V.    
   
A) Production value            
1) revenues from sales and services 31,244 82.16% 26,768 83.69%    
2) variations in inventories of work in progress, semi-finished and finished products 34 0.09% -15 -0.05%    
4) increases in fixed assets for internal works 6,255 16.45% 4,504 14.08%    
5) other revenues 494 1.30% 728 2.28%    
Total (A) 38,027 100% 31,985 100%    

The table shows a significant increase in the value of production led by a 17% growth in the value of sales and services and increased investments in fixed assets.

Analyzing the variations in Company's revenues from sales and services, the following should be noted:

A.1 Revenues from sales and services
 
Value at 12.31.2020 % on revenues Value at 12.31.2019 % on revenues variations var%
Publishing sector 23,809 76.20% 19.914 74.40% 3,894 19.56%
Media content sector 3,004 9.61% 2.329 8.70% 674 28.95%
Advertising sector 4,431 14.18% 4.524 16.90% -93 -2.05%
Total 31,244 100.00% 26,768 100.00% 4,476 16.72%

Publishing sector: revenues from the publishing sector grew by almost 20% overall. They are essentially made up by (i) newsstand sales of the newspaper amounting to k/euro 17,370, which increased by over 15% compared with the previous year; (ii) sales of the monthly magazine FQMillennium, amounting to k/euro 585, decreasing by 17% on the previous year; (iii) sales of Paper First books at newsstand and bookstores amounting to k/euro 1,432, which increased by 40%; (iv) sales of subscriptions of the publishing products and digital content amounting to k/euro 4,421, which increased by 39% compared to fiscal year 2019.

Media content sector: revenues from the media content sector grew by a total of around 29% and are essentially made by (i) the granting of rights to the exploitation of television content amounting to k/euro 2,940, which increased by 47% compared to the previous fiscal year; (ii) sales of theatrical performances and events amounting to k/euro 64, decreasing by 80% compared to fiscal year 2019 due to the inability to organize events and performances with the public, in compliance with the restrictions issued as a result of the Covid-19 pandemic.

Advertising sector: advertising revenues substantially matched the 2019 result at -2% only and k/euro 93, almost entirely recovering the loss reported in the first half. Considering the significant negative impact on the domestic advertising market, which has experienced double-digit reductions in advertising sales across all media, we can positively assess the attractiveness of our channels and the management structure, which has achieved a goal that was by no means taken for granted, with a considerable effort. Revenues are made up of (i) advertising revenues from the newspaper amounting to k/euro 903; (ii) advertising revenues from the website amounting to k/euro 3,492; (iii) advertising sales for the magazine amounting to k/euro 37.

Analysing the marginality of company management, the following should be noted:

(in thousands of Euro) Financial Year
2020
% PV Financial Year
2019
% PV
Production Value 38,027 100.00% 31,985 100.00%
EBITDA 5,266 13.85% 1,239 3.87%
EBIT 162 0.42% -2,037 -6.37%
EBT 479 1.26% -2,026 -6.34%
Net Result 301 0.79% -1,492 -4.67%

EBITDA is defined as: operating results, adjusted for the following components: (i) income taxes for the financial year, (ii) financial components, and (iii) depreciation and amortization of tangible fixed assets and intangible fixed assets, impairments and other provisions.

EBIT is defined as: operating results, adjusted for the following components: (i) income taxes for the financial year, (ii) financial components.

EBT is defined as: operating results, adjusted for the following components: (i) income taxes for the financial year.

Financial Statement of Assets and Liabilities

Use     12.31.20 12.31.19 Sources   12.31.20 12.31.19
                 
Intangible fixed assets   8,263,277 6,635,247 share capital 2,500,000 2,500,000
tangible fixed assets   201,916 223,703  reserves   3,076,103 3,104,100
financial fixed assets   215,478 1,144,098 profit (loss) carried forward - (1,456,976) 35,407
        profit (loss) of the year profit (loss) of the year 300,925 (1,492,384)
  Fixed assets 8,680,671 8,003,048 Shareholders' equity 4,420,052 4,147,123
                 
non-liquid assets   160,038 250,720 Non-current liabilities 5,175,472 2,739,000
deferred liquidity     7,570,677 7,079,725        
immediate cash     3,264,387 540,435 Current liabilities 10,080,249 8,987,805
                 
  Current assets 10,995,102 7,870,880 Liabilities   15,255,721 11,726,805
                 
  Invested capital   19,675,773 15,873,928 Financing capital   19,675,773 15,873,928

Equity increased by k/euro 273, as a result of the 2020 profit and the change in the negative reserve for own shares. The item Reserves in Equity amounts to k/euro 3,076 and consists of the Extraordinary Reserve of k/euro 3,695, the Legal Reserve of k/euro 500 and the Negative reserve for own shares in portfolio of k/euro 1,121.

 
Cash flow
   
(in thousands of Euro)  
2020 2019
Profit (loss) of the year before taxes on the income, interests and dividends 162 (2,036)
Adjustments for non-monetary elements 5,731 3,781
Changes in net working capital 936 18
Other adjustments (438) (345)
Cash flow from operating activities (A) 6,373 1,418
Cash flow from investment activities (B) 6,109 (6,006)
Cash flow from financing activities (C) 2,460 2,917
Increase (decrease) of cash and cash equivalents (A±B±C) 2,723 (1,671)
Cash and cash equivalents at the beginning of the year 541 2,212
Cash and cash equivalents at the end of the year 3,264 541
Changes in cash and cash equivalents 2,723 (1,671)

The above cash flows show a significant increase in cash flow from operating activities, which contributed to the rise in cash and cash equivalents (+ 2,723 K/euro), in line with cash flows from investment and financing activities.

Net Financial Position 12.31.2020 12.31.2019
Current financial receivables    
cash and cash equivalent (3,862,715) (1,138,763)
Current financial payables    
current financial payables 298,415 0
Net current financial debt (3,564,300) (1,138,763)
Non-current financial payables    
Non-current financial payables 2,191,255 0
Net financial debt - NFP (1,373,045) (1,138,763)
Days sales outstanding (DSO) 56 52
Days payables outstanding (DPO) 61 63

Allocation of profit for the year

The Board of Directors resolved to propose that the Shareholders' meeting allocate net income for the year, amounting to 300,925 euros, to partially cover previous losses.

Activities carried out in 2020

Despite the fact that our country, in the year just ended, was hit by a tragic health emergency and a consequent economic crisis, we were capable of implementing our plans, moreover without any reductions in personnel, notwithstanding that working models were suddenly overturned due to the pandemic and set up on smart working. The operating result we submitted to the shareholders' meeting has several positive aspects. First and foremost, the operating result.

In fact, the financial statements for the year ended 12/31/2020 show a return to net profit (k/Euro 300), which represents a significant achievement. It should be noted that the achievement of this result is mainly attributable to revenues from sales and services which recorded a total of k/euro 31,200, compared to approximately k/euro 26,700 in the previous year, representing an overall increase of approximately 17%, equal to approximately k/euro 4,500. It should be pointed out that each division achieved an increase in revenues (print newspaper and digital subscriptions, books, television production). Revenues from advertising also remained basically in line with the previous year, despite the fact that, due to the pandemic, the sector registered a significant drop, especially in the first half of the year. The increase in revenues also enabled a significant rise in EBITDA, amounting to k/euro 5,265 (13.85% of the value of production), compared with k/euro 1,239 (3.87% of the value of production) in the previous year.

The Company's decision in 2019 to continue to implement the planned investments as per the industrial plan presented in the IPO, even in the presence of declining sales volumes and even at the expense of margins, in order not to suspend or interrupt the corporate development process that it was convinced would trigger corporate growth in future years in all the various business units, has provided the positive effects on the Company's financial and economic situation. The final result recorded in the 2020 financial year demonstrates that the forecasts made by management have proved to be correct, and also shows that the investments made generate growth and can therefore be recovered in subsequent years.

The path of growth as a Media Company, has therefore proved to follow the correct strategies. The current year still brings with it several challenges on technological innovation and the digital revolution, aimed at the continuation of growth in all divisions and the consequent increase in revenues and margins.

 Significant events occurred after the end of the year

No significant events occurred after the end of the year. The Company proceeded with its normal operating activities, which also include the implementation of development projects.

The Company constantly monitors the evolution of the situation related to the health emergency. Italy is still one of the countries most affected and the spread of the virus has required drastic government interventions to contain the epidemic. The sectors in which the company operates have not been subject to restrictions by the various measures issued by the Government and Parliament in Italy since the beginning of the spread of the pandemic.

During the first quarter of 2021 production activities continued with the adoption of all the necessary measures to safeguard the safety of workers, also in compliance with the protocol signed between the government and social partners. The Company continued to manage the work organization program with the use of smart working applied to all tasks, reducing the physical presence of workers at offices and editorial offices to a minimum. As mentioned above, the information sector, remaining among the primary sectors, did not suffer any stoppages and/or significant falls in production.

Foreseeable evolution of operations

After December 31, 2020 and up to the date of approval of these financial statements, no corporate events have occurred that would have an impact on the equity and economic results shown. As of the date of preparation of these financial statements, the Company has not recorded any reductions in operating activities or in the related volumes of revenues and cash flows. Therefore, the Company is continuing to implement the management and production programs foreseen, implementing all the necessary precautions and interventions for the purposes of maximum containment of the risks connected with the epidemic situation. The Company constantly monitors the evolution of the pandemic, continuing to equip its organizational and production structure with the tools needed to maintain the highest possible levels of safety in the workplace, favoring smart working wherever possible and adopting a continuous program of swabbing at company offices. The Company operates in the Publishing and Information sector, which are among those sectors that have not been subject to restrictions by the numerous Legislative Decrees issued in the last 12 months. On the basis of the information currently available, there are no real and current risks of a significant reduction in production and management activities, and it is ruled out that the sector in which the Company operates will be subject to regulatory restrictions due to the containment of the pandemic that could lead to the suspension of the entire business and/or individual production divisions.

Notice of call of the Ordinary Shareholders' Meeting and filing of the documentation

The Board of Directors resolved to call the ordinary shareholders' meeting to resolve, inter alia, on the approval of the financial statements for the year ended December 31, 2020 on April 29, 2021 (on first call) and on May 12, 2021 (if necessary, on second call).

It should be noted that the Shareholders' Meeting will also be called upon to appoint the members of the management and control bodies, whose term of office will expire upon the approval of the financial statements as of December 31, 2020.

The documentation required by current regulations will be available at the registered office at Via Sant'Erasmo 2, 00184 Rome, and on the company's website www.seif-spa.it, Investor Relations section, within the terms provided by current regulations. Please note that the draft financial statements have been audited by KPMG S.p.A.

Further information

In addition to the financial information referred to above, the statement of assets and liabilities, the income statement and the cash flow statement are hereby attached.

***

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 Milan
Tel: 02.70006237 
Fax: 02.89694809
www.closetomedia.it
Luca Manzato -
[email protected],
Sofia Crosta -
[email protected],
 
 
 
Nomad
Alantra Capital Markets
Via Borgonuovo, 16 – 20121 Milan tel. +39 tel: +39 02 63671613
Stefano Bellavita
mail: [email protected]
SEIF - Investor relations
06 32818514
Cinzia Monteverdi (CEO) [email protected]
Luigi Calicchia (CFO) [email protected]
 

1.Ordinary Statement of Assets and Liabilities

  12/31/2020 12/31/2019
Assets    
B) Fixed assets    
I – Intangible fixed assets - -
1) start-up and capital costs 829,554 988,893
4) concessions, licenses, trademarks and similar rights 98,830 24.073
6) assets under construction and payments on account 1,044,596 807,607
7) other 6,290,297 4,814,674
Total intangible fixed assets 8,263,277 6,635,247
II – Tangible fixed assets - -
4) other assets 201,916 223,703
Total tangible fixed assets 201,916 223,703
III – Financial fixed assets - -
1) shareholdings in - -
b) associates companies - 932,939
Total shareholdings - 932,939
2) receivables - -
b) receivables from associates - 121,277
due within the next year - 27,000
due after the next year - 94,277
d-bis) other receivables 212,960 89,882
due within the next year 212,960 4,124
due after the next year - 85,758
Total receivables 212,960 211,159
4) active derivative financial instruments 2,518 -
Total financial fixed assets 215,478 1,144,098
Total fixed assets (B) 8,680,671 8,003,048
C) Current asset    
I - Inventories - -
1) raw, subsidiary and consumable materials 49,448 174,342
4) finished products and goods 110,590 76,378
Total inventories 160,038 250,720
II - Receivables - -
1) trade receivables 5,050,536 4,087,782
due within the next year 5,050,536 4,087,782
5-bis) tax receivables 499,375 1,027,014
due within the next one year 499,375 1,027,014
5-ter) pre-paid taxes 777,529 798,216
5-quater) from third parties 421,364 328,082
due within the next one year 421,364 328,082
Total receivables 6,748,804 6,241,094
III – Financial assets not of a fixed nature - -
6) other assets 598,328 598,328
Total financial assets not of a fixed nature 598,328 598,328
IV – Cash and cash equivalents - -
1) bank and postal deposit 3.260.371 538,023
3) cash at bank and in hand 4,016 2,412
Total cash and cash equivalents 3,264,387 540,435
Total current assets(C) 10,771,557 7,630,577
D) Accrual and deferred income 223,545 240,303
Total assets 19,675,773 15,873,928
Liabilities    
A) Shareholders' equity 4,420,052 4,147,123
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
VII-Reserve for hedging operations of expected cash flows 1,914  
VIII – Profit (loss) carried forward (1,456,976) 35,407
IX – Profit (loss) of the year 300,925 (1,492,384)
X – Negative reserve for purchase of own shares (1,120,667) (1,090,756)
Total shareholders' equity 4,420,052 4,147,123
B) Provisions for risks and charges    
2) tax provisions, including deferred tax liabilities 604 -
4) other 663,289 641,989
Total for risks and charges 663,893 641,989
C) Employee severance indemnity 2,320,324 2,097,011
D) Payables    
4) bank financing 2,489,670 -
due within the next year 298,415 -
due after the next year 2,191,255 -
7) trade payables 3,727,114 3,718,577
due within the next year 3,727,114 3,718,577
12) tax payables 551,583 444,255
due after the next year 551,583 444,255
13) amounts payable to social security institutions 1,021,870 1,012,179
due within the next year 1,021,870 1,012,179
14) other receivables 2,836,588 2,531,000
due within the next year 2,836,588 2,531,000
Total receivables 10,626,825 7,706,011
E) Accrual and deferred income 1,644,679 1,281,794
Total liabilities 19,675,773 15,873,928

2.Ordinary Income Statement

  12/31/2020 12/31/2019
A) Production value    
1) revenues from sales and services 31,243,512 26,767,687
2) variations of inventory of raw and auxiliary materials, consumables and supplies 34,212 (15,360)
4) increases in fixed assets for internal works 6,255,486 4,503,896
5) other revenues and income - -
other 494,100 728,296
Total other revenues and income 494,100 728,296
Total production value 38,027,310 31,984,519
B) Cost of production    
6) for raw and auxiliary materials, consumables and supplies 1,133,515 1,488,422
7) for services 17,170,893 16,251,673
8) for use of assets owned by others 1,795,058 1,490,026
9) for personnel - -
a) salaries and wages 8,610,079 7,791,923
b) social security 2,696,310 2,514,242
c) employee severance indemnity 462,774 427,072
e) other costs 303,604 244,384
Total personnel costs 12,072,767 10,977,621
10) amortization, depreciation and impairment - -
a) depreciation of intangible fixed assets 4,964,237 3,163,222
b) depreciation of tangible fixed assets 82,737 76,730
Total amortization, depreciation and impairment 5,046,974 3,239,952
11) variations of inventory of raw and auxiliary materials, consumables and supplies 124,894 13,978
12) provisions for risks 57,394 35,442
14) other operating costs 464,312 524,075
Total of cost of production 37,865,807 34,021,189
Difference between value and costs of production (A - B) 161,503 (2,036,670)
C) Financial revenues and expenses   -
15) financial income from investments: -  
financial income from investments 333,061  
Total financial income from investments 333,061  
16) other financial revenues   -
a) from receivables recorded as fixed assets - -
from affiliated companies - 1,277
other 1,800  
Total financial income from receivables recorded as fixed assets 1,800 1,277
c) from securities included under the working capital which are not shareholdings 12,515 12,008
d) revenues different from the previous - -
other 37 3,583
Total revenues different from the previous 37 3,583
Total of other financial revenues 14,352 16,868
17) Interests and financial expenses - -
other 31,343 6,667
Total interests and financial expenses 31,343 6,667
17-bis) exchange gains and losses 1,061 (201)
Total financial revenues and expenses (15+16-17+-17-bis) 317,131 10,000
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
Total value adjustments to financial assets (18-19) - 186
Result before taxes (A-B+-C+-D) 478,634 (2,026,484)
20) Current, deferred and prepaid taxes on the income of the year    
current taxes 157,022 -
deferred and prepaid taxes 20,687 (534,100)
Total current, deferred and prepaid taxes on the income of the year 177,709 (534,100)
21) Profit (loss) for the year 300,925 (1,492,384)

3.Cashflow statement, indirect method

  Amount at 12/31/2020 Amount at 12/31/2019
A) Cash flows from operating activities (indirect method)    
Profit (loss) for the year 300,925 (1,492,384)
Income taxes 177,709 (534,100)
Payable (receivable) interest 15,930 (10,000)
(Gains)/Losses on disposal of assets (333,061)  
1) Profit (loss) for the year before income tax, interest, dividends and capital gains/losses from conveyances 161,503 (2,036,484)
Adjustments to non monetary items that were not offset in the net working capital.    
Allocation to preserves 666,433 541,012
Depreciation of fixed assets 5,046,974 3,239,952
Other adjustments to increase/(decrease) non-monetary items   (186)
Total adjustments for non-monetary items that were not offset in the net working capital 5,713,407 3,780,778
2) Cash flow before changing net working capital 5,874,910 1,744,294
Changes in net working capital    
Decrease/(increase) in inventory 90,682 29,338
Decrease/(increase) in payables to customers (962,754) (164,153)
Increase (decrease) in trade payables 8,537 557,357
Decrease/(Increase) in accrued income and prepayments 16,758 (125,076)
Increase/(Decrease) in accrued expenses and deferred income 362,885  
Other decreases/(Other increases) in net working capital 1,419,810 (279,329)
Total changes in net working capital 935,918 18,137
3) Cash flow after changes in net working capital 6,810,828 1,762,431
Other adjustments    
Interest received/(paid) (15,930) 10,000
(Use of funds) (421,820) (355,119)
Total other adjustments (437,750) (345,119)
Cash flow from operating activity (A) 6,373,078 1,417,312
B) Cash flow from investment activity    
Tangible fixed assets    
(Investments) (62,775) (177,173)
Intangible assets    
(Investments) (6,974,730) (5,485,491)
Financial fixed assets    
(Investments)   (343,467)
Divestitures 928,620  
Cash flow from from investiment activity (B) (6,108,885) (6,006,131)
C) Cash flow from financing activity    
Third party resources    
Increase/(Decrease) in short-term payables to banks 298,415  
Starting financing 2,191,255  
Own resources    
Transfer/(purchase) of own shares (29,911) 2,917,440
Cash flow from financing activity (C) 2,459,759 2,917,440
Increase (decrease) in cash and cash equivalents (A ± B ± C) 2,723,952 (1,671,379)
Cash and cash equivalents at the beginning of the year    
Bank and postal deposits 538,023 2,211,105
Money and equivalents on hand 2,412 709
Total of cash and cash equivalents at the beginning of the year 540,435 2,211,814
Cash and cash equivalents at the end of the year    
Bank and postal deposits 3,260,371 538,023
Money and equivalents on hand 4,016 2,412
Total cash and cash equivalents at the end of the year 3,264,387 540,435

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  Original Source: SEIF S.p.A