Cairo care for Rcs accounts
How are the quarterly accounts of RCS going and what does the choice of the group headed by Urbano Cairo of the increased vote mean
The effects of the Cairo treatment continue on the accounts of RCS (Rizzoli-Corriere della Sera).
The summary was provided on Twitter by the journalist expert in finance and media, Andrea Montanari:
More revenues, strong growth in EBITDA, halving the loss and cutting the debt. The #Cairo cure for RCS continues
– andrea montanari (@IlMontanari) May 11, 2021
Here are all the details.
HOW THE ACCOUNTS OF RCS DO IN THE FIRST QUARTER WITH CAIRO
RCS closes the first quarter with consolidated net revenues of the group amounting to 174.4 million, an increase of 3.1 million compared to March 31, 2020. Digital revenues, which total approximately 41 million, reached a incidence of 23.5% on total revenues (19.9% at March 31, 2020).
ADVERTISING FOR RCS
Online advertising on RCS media in the quarter grew by 18% in Italy and by 19.3% in Spain compared to the first quarter of 2020. EBITDA was positive and equal to 9.5 million (0.3 in the first quarter of 2020) .
GROUP NET RESULT
The net result of the group was negative for 3.2 million (negative 6.1 million at March 31, 2020 when it was positively impacted by the capital gain of approximately 5.8 million from the sale of equity investments, net of this benefit, the improvement is approximately 8.7 million).
RCS 'FINANCIAL DEBT DOWN
Net financial debt is 48.9 million, a further reduction of 10.7 million compared to 31 December 2020.
THE CHOICE OF THE INCREASED VOTE BY CAIRO
The accounts for the first quarter come after a significant decision taken by the controlling shareholder Urbano Cairo, who owns 59.8% of the shareholding in the publishing group of Corriere della Sera and Gazzetta dello Sport and who is both president and CEO. RCS, in fact, has chosen the increased vote, as emerged from the documents for the April 29 assembly. The introduction of the increased vote is proposed by a Board of Directors which considers it, as the documents read, "aimed at encouraging a medium-long term approach to investment, thus favoring the presence of stable investors". In this context, according to the simulations, the percentages of voting rights would see Cairo rise to 65.300%, followed by Diego Della Valle (with 8.295%), Mediobanca (7.122%), Unipol (5.322%) and China National Chemical Corporation with 5.149%. The RCS group, as reported in the Annual Financial Report, has grown to 90% of the company (newsstand channel) m-dis Distribuzione Media Spa.
SCENARIOS AND RUMORS ON CAIRO'S STRATEGIES AND MOVES
In fact, RCS becomes less contestable: in essence, Cairo is armored. Perhaps – it has been rumored for some time in the Milanese square – to pass a package of shares to some entrepreneur in the North. Leonardo Del Vecchio ? We will see.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/cura-cairo-per-i-conti-rcs/ on Tue, 11 May 2021 13:58:35 +0000.