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Atresmedia Corporacion de Medios de Comunicacion (ATVDY)
OTHER OTC:ATVDY
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Atresmedia Corporacion de Medios de Comunicacion
(OTC:ATVDY)
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Rating:66Neutral
Price Target:
$6.50
▲(12.85% Upside)
Action:ReiteratedDate:02/28/26
ATVDY scores in the mid-range primarily due to weakened recent fundamentals (margin and cash flow decline) and a cautious near-term advertising outlook from the earnings call. These are partially offset by a solid balance-sheet position and attractive valuation support from a moderate P/E and very high dividend yield, while technical signals suggest muted momentum.
Positive Factors
Audience leadership
Sustained #1 TV market share and broad digital reach create a durable competitive moat for ad sales and cross‑platform packages. High audience scale supports pricing power, advertiser relationships and resilience versus smaller rivals, underpinning long‑term core revenue stability.
AtresPlayer subscriber growth
Material growth in streaming subscribers and registered users diversifies revenue away from spot TV ads toward recurring and platform monetization. This structural shift to SVOD/AVOD supports higher long‑term revenue visibility and potential margin uplift as digital monetization scales.
Manageable leverage & cash returns
A positive year‑end net cash position and substantial shareholder distributions reflect strong balance sheet flexibility. Low net debt and a sizable equity base provide scope for M&A, investment in content and dividend sustainability even amid cyclical ad weakness.
Negative Factors
TV/audiovisual revenue decline
A material drop in audiovisual/TV revenue hits the heart of Atresmedia’s ad‑driven model. Given TV remains a large revenue base, structural advertiser shifts and cyclic ad softness materially reduce earnings power and increase dependence on slower monetizing segments.
Earnings and margin compression
Sharp year‑on‑year EBITDA and net profit declines indicate weaker core profitability and reduce internal funding for content and growth. Persistent margin pressure raises sensitivity to ad cycles and limits the buffer for reinvestment or unexpected costs, weakening long‑term resilience.
Acquisition & regulatory/integration risk
Pending regulatory approval and integration timing create execution and cash‑flow uncertainty. The planned acquisition plus dividends are expected to move net debt negative in 2026, increasing leverage risk and complicating near‑term financing and integration of outdoor/digital assets.
Atresmedia Corporacion de Medios de Comunicacion (ATVDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.27B
Dividend Yield11.81%
Average Volume (3M)0.00
Price to Earnings (P/E)17.0
Beta (1Y)0.27
Revenue Growth-2.66%
EPS Growth-35.85%
CountryUS
Employees2,662
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding225,733,000
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)1.44
Price to Sales (P/S)1.18
P/FCF Ratio16.12
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue1.09
Enterprise Value/Gross Profit3.02
Enterprise Value/Ebitda6.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.58
Revenue Forecast (FY)$1.27B
Atresmedia Corporacion de Medios de Comunicacion Business Overview & Revenue Model
Company DescriptionAtresmedia Corporación de Medios de Comunicación, S.A., an audiovisual company, engages in the television, digital and multimedia development, advertising, cinema, radio, cinema, and events organization businesses in Spain and internationally. The company is involved in the production, distribution, and sale of TV series; and management of music rights, as well as produces and distributes channels on pay-TV platforms; and operates Atresplayer, an on-line video platform. It operates under the Antena 3, La Sexta, Onda Cero, Europa FM, etc. brands. The company was formerly known as Antena 3 de Televisión, S.A. Atresmedia Corporación de Medios de Comunicación, S.A. was incorporated in 1988 and is based in Madrid, Spain.
How the Company Makes MoneyAtresmedia generates revenue primarily through advertising sales, which constitute a significant portion of its income. The company's television and radio channels attract advertisers looking to reach a broad audience, and it offers various advertising formats, including traditional spots and digital advertising. Additionally, Atresmedia earns revenue from content production, selling original programming and formats both domestically and internationally. The company also monetizes its digital platforms, including streaming services and its online content, through subscription fees and advertising. Strategic partnerships with other media companies and advertisers further enhance its revenue potential, allowing for cross-promotional opportunities and expanded reach.
Atresmedia Corporacion de Medios de Comunicacion Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture. Positives include clear audience leadership, strong radio performance, meaningful digital subscriber growth (AtresPlayer), healthy shareholder returns (EUR 146M dividends, 26% TSR), a positive net cash position at year‑end, and strategic M&A to diversify revenue. Offsetting these are meaningful declines in TV/audiovisual revenue, a sharp drop in EBITDA and net profit year‑on‑year, higher OpEx partly driven by perimeter additions and restructuring costs, pressure in digital advertising, and regulatory uncertainty around the Clear Channel acquisition. Management guidance targets margin recovery (~15% EBITDA margin) and stable revenues at constant perimeter, but near‑term advertising softness and integration/transaction timing risks keep the outlook cautious.Q4-2025 Updates
Positive Updates
Audience Leadership Across TV and Digital
Atresmedia remained the sector leader in audience for the fifth consecutive year with a TV market share of 26.1% (overall market share cited ~28.15% including premium), widening the gap vs. its main commercial competitor. Digital reach includes ~22.6 million average (web/portal traffic) and AtresPlayer leadership in AVOD/SVOD.
Strong Radio Performance
Radio delivered record-like audiences: >3 million listeners per day (best since 2015) and standout shows (e.g., a program with >1.7 million listeners). Radio revenues rose from EUR 83M to EUR 86M (+~3.6% year‑on‑year).
AtresPlayer Growth and Engagement
AtresPlayer reported ~2.5 million monthly video users, ~18 million registered users, ~750,000 subscribers (subscribers up ~10% year‑on‑year), and ~20 million hours of video consumed—demonstrating notable digital monetization progress.
Solid Cash Position and Shareholder Returns
Net financial position at year‑end was positive (+EUR 58M). Dividends paid totaled EUR 146M (EUR 0.64 per share), complemented by a further EUR 47M (EUR 0.21 per share). Dividend yield was cited at ~13% and total shareholder return for 2025 was +26%—noted as the best year for shareholders in company history.
Content Investment and International Reach
Annual content production investment targeted at ~EUR 400M, underpinning leadership in fiction and cinema (Atres Cine accounted for ~32% of Spanish box office distribution with 14 films). International footprint expanded to ~58 million households (+7.3% year‑on‑year).
M&A to Diversify and Bolster Growth
Acquired Last Lap (~EUR 17M) and integrating it with Atresmedia Events to create an events business with expected turnover ~EUR 50M. Agreed price to acquire 100% of Clear Channel Spain for EUR 115M (pending CNMC approval), intended to strengthen outdoor/digital offerings.
Operational Cash Conversion and Efficiency Focus
High cash conversion metrics and an operating cash flow to EBITDA ratio of ~0.9. Company executing cost discipline measures including a voluntary redundancy plan (136 people) and structural efficiency programs with a target to improve EBITDA margin toward ~15% in 2026.
Outdoor and Non-TV Advertising Growth
Outdoor advertising continued to grow (cited +6.7%), and management expects mid-single-digit outdoor growth to continue—supporting diversification away from pure TV ad exposure.
Negative Updates
TV/Audiovisual Revenue Decline
Audiovisual revenue experienced a material decline (-EUR 49M year‑on‑year) with TV advertising down (cited ~-4.4% in the market). Overall audiovisual segment weakness was the main driver of the company’s lower profitability.
Group Revenue Slightly Lower
Total revenues declined to EUR 1,002.3M from EUR 1,017.9M in 2024 (≈-1.5% year‑on‑year), reflecting softer advertising demand primarily in TV and uncertainty among large advertisers.
Significant EBITDA and Net Profit Compression
Pro forma EBITDA fell to EUR 133.3M from EUR 178M in 2024 (≈-25.3% year‑on‑year). Pro forma net profit declined to EUR 96.3M from EUR 120.3M (≈-20.0% year‑on‑year), driven largely by the audiovisual advertising slowdown and restructuring provisions.
Rising Operating Costs and Restructuring Charges
Pro forma OpEx increased to EUR 868.9M (+3.4% year‑on‑year). The group provisioned ~EUR 45M for the redundancy plan; restructuring costs impacted reported results even if cash effects are spread over the period.
Digital Advertising Headwinds and Challenging Units
Digital advertising was described as a complicated market; specific unit Smartclip faced difficulties—profitability maintained but under pressure from the weak digital ad environment.
Regulatory/Transaction Uncertainty (Clear Channel)
Clear Channel Spain acquisition (EUR 115M) is subject to CNMC approval and has experienced unexpected delays and in‑depth review, creating timing and integration uncertainty.
Early 2026 Ad Market Softness
Management reported January‑February 2026 TV advertising down ~5% (although better than initially feared), highlighting continuing macro and advertiser uncertainty that could pressure near‑term revenue visibility.
Cash and Balance‑Sheet Impact From Planned Spend
Management expects net financial position to move to ~-EUR 25M in 2026 after dividend payments and the Clear Channel acquisition, increasing leverage risk relative to the current +EUR 58M position (also dependent on a pending EUR 45M tax cash‑in expected in H1).
Company Guidance
Management guided 2026 assuming the audiovisual advertising market will be roughly flat, radio revenue growth of c.2–3%, and outdoor growth of c.5–6%, leading to broadly stable total revenues at constant perimeter (with additional contribution from Last Lap and the expected Clear Channel integration); they forecast an EBITDA margin around 15% and to finish 2026 with a net financial position of about -€25m (after dividend payments and the Clear Channel cash outlay), while awaiting a ~€45m tax cash‑in in H1. The Board approved a complementary dividend of €47m (€0.21/share), January–February ad spend was down c.5% but better than feared, and management reiterated continued cost discipline (including a 136‑person voluntary redundancy) amid ongoing macro and regulatory uncertainty.Atresmedia Corporacion de Medios de Comunicacion Financial Statement Overview
Summary
Financials are stable but weakened in the latest year: revenue slipped and profitability compressed sharply (net margin down to ~6.9% in 2025 from ~13.1% in 2024), while free cash flow remained positive but fell materially year over year. Offsetting this, leverage metrics are manageable (debt-to-equity improved to ~0.27 in 2025) and the equity base remains sizable.Income Statement
Revenue has been broadly stable over the past several years but slipped in 2025 (down 6.5% year over year). Profitability weakened meaningfully in 2025 versus 2023–2024, with net margin falling to ~6.9% from ~13.1% in 2024 and ~19.3% in 2023, and operating profitability also compressing. Gross margin remains solid (~52.6% in 2025), but the sharp drop in earnings power in the latest year drives a mid-range score despite a still-profitable base business.62
Positive
Balance Sheet
Leverage looks manageable, with debt-to-equity improving from ~0.59 (2020) to ~0.27 (2025), supported by a sizable equity base (~€733M in 2025). Total debt is relatively contained (~€199M in 2025) versus total assets (~€1.48B). A key watch-out is profitability on equity cooling in 2025 (~8.5%) after much stronger levels in 2023–2024, which reduces the balance sheet’s earning efficiency even as leverage metrics remain healthy.74
Positive
Cash Flow
Cash generation remains positive, with 2025 operating cash flow of ~€82M and free cash flow of ~€66M, and free cash flow still covering net income (about 0.80x). However, cash flow weakened sharply in 2025 versus 2024 (free cash flow down ~34.9% year over year), indicating higher volatility and a lower cushion for dividends, reinvestment, or debt reduction. Prior years show stronger cash flow levels, but the latest downshift pulls the score down.58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 956.07M | 893.75M | 918.95M | 886.11M | 867.29M | 877.87M |
| Gross Profit | 346.43M | 469.87M | 466.08M | 315.16M | 484.50M | 482.30M |
| EBITDA | 166.90M | 108.80M | 187.08M | 175.93M | 177.95M | 183.37M |
| Net Income | 115.06M | 62.11M | 120.28M | 171.16M | 112.91M | 118.54M |
Balance Sheet | ||||||
| Total Assets | 1.42B | 1.48B | 1.50B | 1.46B | 1.51B | 1.41B |
| Cash, Cash Equivalents and Short-Term Investments | 222.97M | 270.00M | 314.78M | 206.55M | 262.82M | 286.54M |
| Total Debt | 151.64M | 199.29M | 190.21M | 208.57M | 281.84M | 278.77M |
| Total Liabilities | 646.16M | 745.49M | 673.38M | 703.74M | 823.84M | 864.01M |
| Stockholders Equity | 770.31M | 732.91M | 830.10M | 759.98M | 685.13M | 548.17M |
Cash Flow | ||||||
| Free Cash Flow | 100.80M | 65.57M | 165.71M | 137.26M | 104.20M | 176.19M |
| Operating Cash Flow | 129.59M | 81.55M | 186.72M | 167.04M | 124.18M | 193.77M |
| Investing Cash Flow | 28.87M | -20.85M | 33.04M | 45.20M | -106.66M | -37.34M |
| Financing Cash Flow | -172.40M | -112.76M | -118.56M | -182.64M | -109.57M | -61.22M |
Atresmedia Corporacion de Medios de Comunicacion Technical Analysis
Negative
5.76
Price Trends
5.96
Negative
5.96
Negative
6.01
Negative
Market Momentum
-0.06
Positive
38.02
Neutral
6.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATVDY, the sentiment is Negative. The current price of 5.76 is below the 20-day moving average (MA) of 6.02, below the 50-day MA of 5.96, and below the 200-day MA of 6.01, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 38.02 is Neutral, neither overbought nor oversold. The STOCH value of 6.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATVDY.
Atresmedia Corporacion de Medios de Comunicacion Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $7.39B | 56.54 | 4.26% | 3.66% | -1.42% | -8.99% | |
66 Neutral | $1.27B | 17.02 | 14.41% | 11.81% | -2.66% | -35.85% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $1.10B | -9.44 | -21.83% | 6.52% | -0.98% | 82.16% | |
57 Neutral | $13.74B | -1.44 | -4.43% | 1.48% | -0.48% | 97.09% | |
51 Neutral | $1.43B | -64.47 | -1.55% | ― | -10.68% | -127.54% |
* Communication Services Sector Average
ATVDY
Atresmedia Corporacion de Medios de Comunicacion
5.71
0.70
13.95%
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245.53
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SBGI
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IQ
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1.45
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-37.50%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.