Spain’s Mediaset Reports Net Profits Down 13% in First Half of 2011
Net revenue was down 14%, in accordance with analyst expectations.
MADRID – Mediaset Espana, Spain’s leading private broadcaster, announced on Thursday its net profit in the first six months of the year slipped by 13 percent to €85 million ($123 million), ahead of analysts’ predictions.
Net revenue was €540 million ($776 million), for a decrease of 14 percent over H1 2010, in accordance with analyst expectations.
In a results statement, the group blamed the slump on a poor advertising market with net ad revenues down 13 percent compared to the same period last year at €508 million ($730 million).
Other revenue, which included sales of co-production film rights, merchandising licenses, SMS, call TV and audiotex services came in at €32 million ($46 million).
Total operating costs were €438 million ($630 million), down 12 percent from January-June 2010, with Mediaset Espana crediting lower programming costs and cost synergy savings from its purchase of rival broadcaster Cuatro.
In audience numbers, the group claimed a 26 percent share over the reporting period from its flagship channel Telecinco and the rest of its portfolio of free-to-air channel: Cuatro, LaSiete, Factoria de Ficcion, Boing and the newest addition, Divinity, launched in April.
Italian prime minister and media mogul Silvio Berlusconi’s Mediaset owns 50.1 percent of the group, with Spanish media group Vocento holding a 13 percent stake.