Mediaset SpA: Board approves the Group's Results for the first nine months of 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
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,
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.
- 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%).
- Group EBIT, while recording an expected fall on the EUR 188.6 million of 2019, was, nevertheless, positive at EUR 87.6 million.
- 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.
- 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 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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