Mediaset Continues to Cut Costs Amid Falling Revenues
Revenue is down only slightly from last year, thanks mainly to Mediaset Spain
Silvio Berlusconi’s Mediaset on Tuesday released nine-month results for the year, with profits remaining stagnant. Acknowledging the difficult economic climate in Italy, with a very weakened advertising market, Mediaset claims they’re reacting aggressively with significant reductions in operating costs and debt.
Revenue is down only slightly from last year, thanks mainly to Mediaset Spain, whose core earnings shot up 68 percent in one year. With a rebounded ad industry, Mediaset Spain has risen from $56.5 million EBIT last year to $104.8 million this year.
Still struggling, Mediaset Italy’s operating profit has fallen from $79.9 million last year to $29.5 million. The resulting combined EBIT is $133.9 million, compared to $136.5 million last year.
Consolidated net revenues of the Mediaset Group came to $2.975 billion in the first nine months of 2014 on par with $2.979 billion in the same time frame last year.
Canale 5 remains Italy’s leading prime time and 24-hours channel, and Mediaset Italy channels have a major lead in the 15-64 age range. Mediaset Spain also leads in both prime time and the 24-hours share. Total advertising revenue is down only 4.9 percent, compared to competitor revenues, which are down as much as 18 percent.
Mediaset claims they’re focused on regaining profitability and developing a full range of cross media advertising solutions. They’ll continue to cut operating costs to reduce debt and expect to end the year with a positive net result. The company was valued at $4 billion at the close of the market in Milan on Tuesday.