By Enza Tedesco
Italian publisher RCS MediaGroup SpA (RCS.MI) said late
Wednesday its board has approved two rights issues for a total of
as much as 600 million euros ($766.8 million) in an effort to
improve the company's weak financials.
In a press release, the company said it is proposing a capital
increase of at least EUR400 million to be completed by July 2013,
and will have the option to launch a second rights issue, which
will increase the original amount to EUR600 million, by December
2015.
The company, which publishes one of Italy's most influential
daily newspapers--Il Corriere della Sera--also said it is
negotiating the terms of a maturing loan with a group of Italian
banks, which entails a new medium-term loan for a total of EUR575
million.
The attainment of the loan is tied to the successful completion
of the first rights issue of at least EUR400 million, it added.
RCS MediaGroup also released Wednesday preliminary 2012 results.
Its 2012 full-year revenue dropped to EUR1.597 billion from EUR1.86
billion due to a fall in advertising and circulation, among other
things.
Its earnings before interest, taxes, depreciation and
amortization, or Ebitda, after non-recurring expense/income fell to
EUR1.3 million from EUR142.3 million. Non-recurring net expenses
came to EUR59.7 million in 2012 compared with EUR21.1 million in
2011.
Also, its net debt stood at EUR845.8 million at the end of
December, down EUR92.4 million from the previous year thanks to the
sale of French publisher Flammarion.
The company also said its board approved an updated 2013-15
strategic plan, which entails the transition of RCS Group from a
publishing group to a multimedia company.
It expects its 2015 revenue to be in line with the 2012 figure
of around EUR1.5 billion on a like-for-like basis, benefiting from
strong growth in digital revenue. It also expects to raise some
EUR250 million from its non-core asset disposals in 2013-14.
A significant loss is expected in the first quarter of 2013
mainly affected by negative market conditions, seasonality and
restructuring expenses.
RCS Mediagroup's stakeholders include Fiat SpA (F.MI),
Assicurazioni Generali (G.MI), Intesa Sanpaolo (ISP.MI) and
Mediobanca (MB.MI).
Write to Enza Tedesco at enza.tedesco@dowjones.com
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