Spain's biggest media group Prisa, which publishes the leading daily El Pais, said Monday it had slumped into the red in 2010 as sales dropped and it cut heavy debt, Agence France-Presse (AFP) has reported. Prisa reported a net loss of 72.9 million euros ($101 million) in 2010 after making a net profit of 50.5 million euros in 2009. Revenue tumbled 14.8 percent to 2.69 billion euros.
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"In 2010, Prisa implemented much of its financial restructuring plan, with the consolidation and control of all its companies with the exception of Cuatro," it said in a statement. Prisa sold Cuatro television in 2010 to rival Telecinco, owned by Italy's Mediaset, and 44 percent of its pay television channel Digital+ to Telecinco and Telefonica, for a total 976 million euros.
It announced 2,500 job losses worldwide, equal to 18 percent of its total staff spread across Spain, Portugal and Latin America. Shareholders also approved on November 27 a merger with US investment group Liberty Acquisitions Holdings, which was to inject some 650 million euros into the Spanish firm.
"The divestment plan and the reinforcement of capital structure has seen a capital injection of nearly two billion euros, which has enabled the group to significantly reduce its debt," Prisa said. Prisa ended the year with debt of 2.9 billion euros, compared to 4.8 billion euros at end-2009.
