Mediaset in the black but Q1 profits collapse
Editor ©RapidTVNews | 10-05-2012
Italian markets have reacted badly to the first quarter results of broadcaster Mediaset, 40% owned by Silvio Berlusconi’s Fininvest, which have shown a fall of almost €100 million in the group’s EBITDA.
For its first financial quarter ended 31 March, Mediaset Group consolidated net revenues of were €977.8 million, a 12% fall on that posted a year ago with the group’s EBIT collapsing to €38.9 million, compared with €135.8 million in the same period of the previous year. Operating profitability stood at 4.0%, compared with 12.2% in Q1 2011 whilst net profit attributable to the Group amounted to €10.3 million, compared with €68.4 million in the first quarter of the previous year
Looking at the performance on a country by country basis, in Italy the company posted net revenues of €760.2 million and a net profit of €1.5 million. Mediaset claimed that in Italy its channels confirmed their leadership in prime time and across the whole day among the 15-64-year-old audience with Canale 5 Italy’s most popular channel in the commercial target in all time bands.
Crossing the Mediterranean, in Spain Mediaset posted net revenues of €218.0 million which drove a net profit of €21.2 million. Leading the charge for Mediaset in the Iberian peninsula was Telecinco which it claimed was Spain’s leading channel in prime time. In the first three months of 2012 consolidated net revenues generated by the Gruppo Mediaset España amounted to €218.0 million, compared with €266.1 million in the same period of the previous year.
In terms of sales operations, total gross advertising sales by Publitalia '80 and Digitalia '08, including digital pay-TV channels and video content distributed on the web portal Mediaset.it, came to €622.7 million, a 10% fall compared with Q1 2011. Sales from Mediaset Premium Premium’s characteristic business—such as card sales, re-charges, Easy Pay subscriptions– amounted to €131.1 million, a dip of €3.9 million on the same period of 2011.
Commenting on the results, Mediaset sasy that on the basis of how it performed in Q1, unless there is some improvement in market conditions, it expects to close FY 2012 with lower levels of consolidated net profit and cash generation than in 2011.