MediaForEurope sees brighter advertising prospects

Source: Mediaset

MediaForEurope (MFE) expects an improvement in the advertising market in Italy in the last part of the year to help lift its results after it posted revenues slightly down and earnings slightly up for the first nine months of the year.

The group, which encompasses Mediaset Italy and Spain along with a 26.28% stake in Germany’s ProSiebenSat.1, posted net revenues of €1.862 billion for the nine months to September, slightly down on the €1.9 billion reported last year.

Gross advertising revenues were €1.825 billion, down from €1.846 billion, which the company said represented a better performance than many of its peers.

MFE posted EBIT of €98.3 billion, slightly up on the €97.6 million reported last year thanks to cost control measures. Net profit was €71 million, down from €78.5 million last year.

The group said it expected improvement on last year in the ad market both in Italy and Spain, impacted by the absence of last year’s football World Cup, to which it did not hold the rights.

Ad sales are expected to grow robustly in Italy following an 8% lift in the group’s sales in October. MFE said that Spanish ad sales had also outperformed in October but warned of the impact of political uncertainty following the inconclusive result of the general election there.

The company confirmed its existing forecast of positive EBIT, net profit and free cashflow by year-end.