Spain's Telecinco's Profit Jumps 46% to $96.8 million
2010 revenue rose 34.8% to $1.14 billion, below analyst projections.
MADRID -- Spanish broadcaster Telecinco saw profit jump 46 percent in 2010 results to €70.55 million ($96.8 million), maintaining its top spot as Spain's most profitable television network as it posted results Thursday.
The group's advertising revenue fell short of analyst expectation, though it grew 34.8 percent to €834.89 million ($1.14 billion), with €791.81 million ($1 billion) coming from television, compared to 2009's €589.29 million. Telecinco accounted for 32.1 percent of the television ad market, with a "power ration" (which measures the relationship between ad market share and audience share) of 1.81, the highest in the sector.
Adjusted net profit sat at €164.37 million ($225 million), of which the broadcaster said it would distribute 85 percent -- or €140 million ($192 million) -- in dividends to shareholders.
Operative costs grew 19.1 percent over the previous year to €635.6 million ($871 million), which the company blamed directly on the 3 percent of revenues the broadcaster must pay to offset financing costs of pubcaster Television Espanola -- which removed advertising from its financing model in 2010.
Telecinco boasts 14.6 percent of the overall audience, compared to private channel Antena 3's 11.7 percent. Both fall behind Television Espanola's 15.2 percent.
In addition to a high profile merger with rival broadcaster Cuatro, creating the largest TV advertising portfolio in Spain, Telecinco Group added a handful of channels to its offer in addition to its flagship channel Telecinco in 2010. The group also airs Factoria de Ficcion, LaSiete and Boing.