MFE cautiously confirms guidance after strong first quarter

Source: Mediaset

MediaForEurope (MFE) has confirmed its full-year guidance after reporting a rise in operating profit and revenue in the first quarter on the strength of an advertising recovery in Italy and Spain.

MFE, owner of Mediaset in Italy and Spain and the largest shareholder in Germany’s ProSiebenSat.1, posted revenues of €699.8 million for Q1, up 8.2%.

Gross ad revenues were up 6.3% to €669.4 million, while other revenues jumped from €93.4 million to €111.8 million on the strength of its consolidation of ad sales outfit Mediamond.

MFE turned in an operating profit of €23.5 million, up 21.8% on the prior year.

In Italy, gross ad revenues were up 5.7% to €489.2 million, while in Spain, ad sales were up 8% to €180.2 million.

Following its failure to secure a split-up of Germany’s ProSiebenSat.1, MFE said that it was focused on “the continuous monitoring of its investment, supporting the company’s management in the implementation of its strategy to focus on its core entertainment business and to increase the value of its non-strategic assets”, with an expectation of improved performance based on the implementation of efficiency measures put in place last year.

The group is maintaining its outlook for the full year, cautioning that the general context was still “extremely unstable”. Mediaset also does not hold rights to the big sporting events happening over the summer – the Paris Olympics and the European football championships.