Antena 3 sees profits slump to €4.6 million

Iñaki Ferreras | 02-11-2012

Spanish Grupo Planeta’s Antena 3 made a profit of €4.6 million in the first nine months of 2012, 91.1% less than in the same period last year (€51.9 million).

The group’s net income totaled €512.9 million, compared with €577.5 million for the same period in 2011, representing a decrease of 11.2%. The group points out that its advertising spending in the third quarter of 2012 fell 19.6%, while net revenues fell 18.1%. The decline, says the group, is mainly due to falling advertising sales, but also lower revenues from film production.

In the television division, the gross operating profit amounted to €21.9 million compared to €74.5 million for the same period in 2011. In radio, the first nine months profit was €8.2 million compared with €13.6 million in the previous year.

Operating expenses for the year to September 2012 through the entire media group fell by 1.7% from the same period in 2011. "The cost savings of television programming, the systematic and rational cost containment policy of the company, and the decrease in amortization of films, have reduced the overall operating expenses compared to the same period last year ago to offset the extra cost incurred by the purchase of rights of Formula 1," said an Antena 3 press release.

The Antena 3 September results come days after its main competitor, Mediaset Spain, Telecinco and Cuatro owner, declared a net profit of €40.7 million in the first nine months of the year, representing a decrease of 60.2% compared to that of the same period last year.

On Thursday the public merger between Antena 3 and Audiovisual Investment Manager La Sexta was signed in the Commercial Registry of Madrid's, with the consequent extinction of the latter and the block transfer and universal title all their assets to Antena 3.

The channel has been reported as announcing that in the coming days 13,438,704 newly issued ordinary shares that correspond to the former shareholders of Mediapro’s LaSexta will be offered. La Sexta shareholders will also receive other 1,181,296 shares of a new class, which won’t be able to receive dividends for 24 months from the date of registration of the merger. After the merger, the capital of Antena 3 will have a total of 225,732,800 shares.