Press releases

Mediaset SpA: Board approves the Group's Results for the first nine months of 2020

Mediaset Board of Directors Meeting 10 November 2020

BOARD APPROVES THE GROUP'S RESULTS 

FOR THE FIRST NINE MONTHS OF 2020:
THANKS TO PROMPT ACTION ON COSTS,
GROWTH IN TELEVISION RATINGS AND
STRONG REVENUES GENERATED BY THE ADVERTISING COMPANIES
MEDIASET ENDED A VERY POSITIVE THIRD QUARTER
WITH EUR 29.4 MILLION NET PROFIT

THE FIRST NINE MONTHS OF 2020 REMAIN IN PROFIT
DESPITE THE COVID-19 EMERGENCY

Mediaset Group

Net revenues: EUR 1,722.8 million 

Total costs: EUR 1,635.2 million (-11.2%)

Operating profit (EBIT): EUR 87.6 million

Net profit: EUR 10.5 million

Free cash flow: EUR 236.0 million

Ratings: Mediaset, the only broadcaster with a growing audience, 
strengthens its leadership in the commercial target in both Italy and Spain



The Board of Directors of Mediaset today(unanimously) approved the Group's interim report for the period to 30 September 2020.

Group operating costs reduced by 11.2% in the first nine months, EUR 196.3 million improvement in cash generation in the last 12 months, ratings growth in Italy of 1.5% in prime time: the Mediaset Group ended both the third quarter and first nine months of 2020 with extremely positive results that were also much better than expected despite the Covid-19 emergency.

The results for the first nine months of 2020 can be summarised as follows:

- Consolidated net revenues came to EUR 1,722.8 million, compared with EUR 2,030.4 million in the same period of 2019.
Revenues in Italy for the first nine months totalled EUR 1,176.2 million, compared with EUR 1,371.9 million in the first nine months of the previous year, but the positive contribution of the third quarter, which saw revenues of EUR 384.8 million, an increase of +4.1% compared with the same period of 2019 should be underlined. 
In Spain revenues for the first nine months came to EUR 546.6 million, compared with EUR 660.7 million in 2019. 
During the third quarter, despite the ongoing decline across the entire media sector, consolidated gross advertising revenues saw an increase of 1.6% compared with the same period of 2019.
In the nine-month period, the figure for Spain was EUR 488.3 million, compared with EUR 644.0 million for the same period of last year. Meanwhile, in Italy, gross advertising revenues amounted to EUR 1,107.7 million, compared with EUR 1,332.4 million in 2019: with an excellent performance in the third quarter that saw revenues rise to EUR 363.4 million (+4.7%).

- The Group's total operating costs (personnel, other operating costs, amortisations and depreciations) were reduced to EUR 1,635.2 million, compared with EUR 1,841.8 million in 2019 (-11.2%). 
In Spain, operating costs were down to EUR 413.8 million compared with EUR 470.5 million in the same period of the previous year. In Italy, the figure was down to EUR 1,222.0 million, compared with EUR 1,371.7 million in 2019.

- Group EBIT, while recording an expected fall on the EUR 188.6 million of 2019, was, nevertheless, positive at EUR 87.6 million. 
In Italy the EBIT result was -EUR 45.8 million, compared with EUR 0.2 million in the first nine months of 2019. In Spain the figure amounted to EUR 132.9 million, compared with EUR 190.2 million in the same period of 2019.

- The Group's net profit remained positive at EUR 10.5 million, compared with EUR 92.1 million for the same period of 2019. The figure for the third quarter, unlike the usual seasonal trend, was positive (+EUR 29.4 million). It should be noted that the consolidated net profit figure for 2019 was adjusted to take account of the impact of the goodwill generated by the public offering on Ei Towers launched in 2018 by 2i Towers Holding, with retroactive effect from 1 October 2018. 

- The Group's consolidated net debt fell to EUR 1,173.3 million from the figure at the beginning of the year (EUR 1,348.3million). Excluding losses identified from 2019 pursuant to IFRS 16, and financial debt resulting from the acquisition of a stake in ProSiebenSat.1 Media, consolidated net financial debt amounted to EUR 572.4 million, compared with EUR 768.8 million at 31 December 2019.
Despite the impact of Covid-19, free cash flow was significant at EUR 236.0 million, compared with EUR 243.4 million in the first nine months of 2019 (an improvement of EUR 196.3 million compared with the level 12 months earlier). During the period, an investment of EUR 72.9 million was made to increase the stake in ProSiebenSat.1. 

- Ratings: Even in the first nine months of 2020, the free to air television confirmed its deep roots in people's habits. This can be seen from the significant growth in TV consumption, both in Italy and in Spain, countries in which the Group's channels strengthened their clear leadership in the commercial target in all time bands.
In Italy, Mediaset reached a 34.2% share in the 24 hours and 36.1% in Prime Time (+1,5%) in the commercial target, with an increase in the audience greater than that of all other competitors. In particular, the first place of Canale 5 and the third place of Italia 1, in all time bands in the target of viewers in the15-64 age range, should be noted.
In Spain, the Group's channels are leaders with a 29.6% share in the 24 hours in the commercial target while Telecinco is Spain's leading channel, with a 14.5% share in the 24 hours across the whole audience.

FORECAST FOR THE FULL YEAR


In the first part of the current fourth quarter, the Group's advertising sales in Italy showed an improvement, a further recovery of the decline recorded in the first nine months.

At the end of October, a progressive rise in the infection rate in the main European countries made it necessary for government authorities to adopt new restriction measures. In Italy, the government decided to adopt, until the beginning of December, a regional and progressive approach based on specified parameters and different contingent situations, with the aim of minimising the economic and social impact.

This uncertain and constantly evolving scenario has not as yet had any particular repercussions on the advertising market in Italy. On the other hand, visibility remains low for the remaining part of the year, a period, under normal conditions, characterised by high seasonality in demand ("Black Friday" and the Christmas period).

In this context, the Group will continue to operate, applying and adapting security protocols in order to guarantee operational and managerial continuity in all its business areas, as well as continuing to pursue its economic objectives and the maximisation of cash generation.

Despite the circumstances, and considering the Group's ability to adapt rapidly and flexibly on the cost side to any additional slowdowns in the advertising market, we think that our operating performance in the fourth quarter will contribute to a positive net consolidated result for the full year.


The executive responsible for the preparation of the Mediaset S.p.A. accounts, Luca Marconcini, declares that, as per para. 2 art. 154-bis, of the Single Finance Bill, that the accounting information contained in this press release corresponds to that contained in the company's books

Cologno Monzese, November 11, 2020

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Tuesday November 24, 2020 12:51 AM

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Download document 10.11.20202020 9M Results Presentation
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