RCS, SHORT TRUCE BETWEEN SHAREHOLDERS IN VIEW OF A NEW BOARD OF DIRECTORS
2013 CLOSES IN THE RED FOR 218 MILLION, REVENUES DOWN
Resignation from the RCS board? “No, absolutely not” informs a councilor at the exit after a five-hour meeting. So there was no feared resignation of the president Angelo Provasoli, which in cascade would have led to the forfeiture of the entire board, with dramatic effects for the company which, after the dissolution of the syndicate agreement, it is difficult to pay the CEO Pietro Scott Jovane, wanted by John Elkannthe necessary trust. This does not mean that the disagreements between the shareholders have been settled but that an attempt will be made, from here to the budget meeting, to find an agreement that allows for the renewal of the board of directors (today made up only of independent directors) in the light of the shareholder balance, in full evolution after Mediobanca's drop below 10% and Carlo Pesenti's disengagement from top management (“for now” still a shareholder).
The question will be devoted another board meeting, scheduled for March 24th precisely "to complete the examination of the items on the agenda and arrange for the convening of the shareholders' meeting" scheduled for 8 May in a single call, in order to allow, in the light of the expansion of the free float, the widest possible participation in the works shareholders". That is, the weights in the council will be reviewed in the light of the new balances, which are still evolving. On the one hand Fiat climbed, Urbano Cairo emerged (candidate from Diego Della Valle to lead the group), mister Tod's paws. On the other hand, historical shareholders have fallen or are about to fall, see Piazetta Cuccia, or almost (like Pandette, expression of the heirs).
It will not be easy to find a synthesis between the various positions, also because the management of Scott Jovane has so far been characterized by some discussed acquisitions, such as the recent one of Youreporter, and by stormy relations with the management of Corriere della Sera, culminating in rumors of distrust towards Ferruccio De Bortoli. On the other hand, Diego Della Valle has repeatedly threatened to bring liability action against the CEO, a proposal that favors neither peace nor an armistice. But the hatchet remains, for now, buried under the building in via Solferino, now Blackstone's, which was owned by the publishing house. How wise it should be, given that the accounts are still far from happy and that, as Rcs anticipates, they will also be in the red at the end of 2014. RCS closed 2013 with losses of 218,5 million euro, compared to the negative result of 507,1 million in 2012. Consolidated revenues amounted to 1.314,8 million, down compared to 1.513 million in 2012. Both advertising revenue equal to 476 million (-18,8%), and those of circulation. 720,3 million (-11%). The gross operating margin before non-recurring charges and income of the publishing group was 2013 million in 27,6 (50,19 in 2012). Net financial debt at the end of 2013 amounted to 476 million (845,8 million at the end of 2012), solely due to the 400 million collected with the capital increase.
However, the efficiency and cost containment actions exceeded the forecasts in the development plan by 10 million, the company explains, bringing benefits of approximately 2013 million at the end of 92. As a result of the "reorganization plans" the workforce fell by 528 units, or 343 units net of assets destined to be sold or already sold.
The acceleration of the efficiency plan implemented in 2013 and expected in 2014, concludes the note, will make it possible to achieve the three-year cost-cutting target envisaged in the 2013-2015 plan one year in advance. But first it will be necessary to appoint a board of directors capable of sanctioning the end of bad moods, disagreements or cannon shots among the shareholders. And it won't be easy.
