In 2014, the Spanish economy grew by 1.4%, emerging out of a long recession that has had a severe impact on the businesses of the main media companies operating in the country.
This improvement in the macroeconomic environment has led to a recovery in the advertising market, although not at the same rate as the economy. The advertising recovery has been driven mainly by Internet advertising, which increased by 5% in the year.
The outlook for 2015 is for a year of sustained growth in the main economic indicators and in advertising revenues, which are still fundamental to the media sector despite the investments made by companies such as Vocento in identifying and exploring other business development opportunities.
In the year, Vocento continued to execute a corporate strategy based on three differentiating elements: leading brands, profitability and effectiveness, and cash flow generation. We consolidated our leadership of the general press in terms of both circulation and readership, we progressed in our digital strategy, and we continued to invest in the audiovisual and classified advertising areas.
In 2014, Vocento complied with all its targets, with advertising revenues stabilizing, profitability improving, and debt reduced.
Advertising revenues in the year were stable for the first time since the start of the crisis, increasing by 0.9% thanks to a rise in advertising spend at the newspapers and in particular a rise in digital spend, which as in previous years has offset the fall in market share of the print press. Thanks to this performance, we have steadily evolved our revenue profile towards digital. Internet advertising revenues and e-commerce now contribute 25.2% of total revenues.
In terms of comparable Ebitda, earnings rose by 19.3% to 44.1 million euros because of the improvement in advertising and the effect of our cost savings plan. The Ebitda margin expanded by 190 basis points to 8.9%, and the operating result (Ebit) doubled because of the rise in Ebitda and the decrease in amortization. The gearing ratio (NFD/Ebitda) was reduced significantly, to 2.9x from 4.0x in 2013. We generated positive cash flows of 14.8 million euros.
In 2014, we strengthened our leadership position in the general press segment, with a 25.1% share of circulation, more than 10 p.p. more than the number two media group.
We also improved our reach on the Internet, with 17 million unique monthly users. In addition, we consolidated our position as the leading media company in regional markets, thanks to the deep roots and positioning of our 11 regional newspapers.
Another flagship publication, ABC, continued to increase its market share of ordinary circulation in Spain and was the best performing national daily in terms of kiosk sales. The newspaper is focused on two objectives: increasing its market share as one of the main players in the Spanish press, and achieving this on a profitable basis.
Each year, Vocento becomes more of a multimedia company. This is reflected in the diversification of our revenues, in our sales strategies, in the launch of new digital products and content solutions using new technologies, and in strategic partnerships such as the agreement with COPE in the radio sector. Other examples of this are Kiosko y Más, an online pay platform for newspapers and magazines, and our selective presence in the television and audiovisual production businesses.
In 2015, Vocento will remain focused on its strategy of profitability and maintaining market share.
The development of the information industry demands continuous investment in high quality content to differentiate media properties, as well as investment in new revenue sources. The increased consumption of news from mobile devices is an opportunity for our group, allowing us to access greater audiences and develop complementary content and new business models.
As well as disclosing our financial and operating performance, Vocento remains committed to reporting on and developing its strategy for sustainability and to building a dialogue with its stakeholders, so that we can incorporate in a responsible way their priorities and expectations.
In 2014, we made progress in areas such as developing internal codes of conduct, quantifying our social actions, and monitoring our commitments under the Global Compact. We implemented a sustainability plan which discloses our social, financial and environmental performance and we published the Mission, Vision and Values that define our company.
A highlight in the area of corporate responsibility is our continued commitment to leading educational and training programmes, including the two Master's in Journalism courses that we support and the Vocento Media Lab project, which trains our professionals in digital journalism.
The measures that we have taken in recent years, and the improvement in economic conditions, have strengthened our business model. The hard work and commitment of our management team and of our workforce in general have contributed to the continued strong reputation and profitability of the company. I would also like to thank our shareholders for their support as we look to achieve our ambitious goals for the future, a future in which all of us at the Board of Directors are committed to creating ever greater shareholder value.
Santiago Bergareche Busquet
