Mediaset Board Meeting - Press Release

Cologno Monzese, 8 May 2007
Mediaset Board Meeting

BOARD EXTENDS POWERS OF THE DEPUTY CHAIRMAN

PIER SILVIO BERLUSCONI
APPROVAL FOR THE RESULTS OF THE FIRST QUARTER OF 2007
Consolidated Results
Net revenues: €964.9 million
Operating profit: €255.7 million
Net profit: €124.5 million
Italy
Television costs: -1.2%
Mediaset Premium: revenues double with a positive operating result
Ratings: Mediaset channels and Canale 5 confirm leadership
in the 15-64 year-old audience
Spain
Operating profitability: 47.0%
Ratings: Telecinco Spain’s leading channel

The Board of Directors of Mediaset, which met today under the Chairmanship of
Fedele Confalonieri, has extended the powers of the deputy chairman Pier Silvio
Berlusconi.
The broadening of the responsibilities of Pier Silvio Berlusconi is a response to the
need to face a number of challenges in terms of content, technology, advertising
sales and to take advantage of new opportunities in Italy and abroad..

MEDIASET GROUP: CONSOLIDATED RESULTS

Performance in the first three months of 2007 can be summarised as follows:
• consolidated net revenues came to €964.9 million, compared with €955.2
million in Q1 2006.
• EBIT came to €255.7 million, a €9,9 million reduction on the same period of last
year (€265.6 million).
2
• operating profitability, operating profit as a proportion of consolidated net
revenues, amounted to 26.5%, compared with 27.8% in Q1 2006.
• profit before taxation and that attributable to third-party shareholders,
amounted to €247.6 million, compared with €261.5 million in Q1 2006.
• net profit attributable to the Group, after estimated taxation, came to €124.5
million, compared with €145.1 million in the first quarter of the previous year.
• the Group’s net financial position went from -€568.3 million on 31 December
2006 to -€357.6 million on 31 March 2007. In the first three months of the year
net cash generation totalled €210.7 million, compared with €243.1 million in the
same period of the previous year. Excluding the non-recurring component
generated in 2006 by the disposal of the company’s stake in Hopa, net cash
generation in the first quarter of 2007 was higher than that of Q1 2006.

A BREAKDOWN OF RESULTS BY GEOGRAPHIC AREA
Italy

• In the first quarter of 2007 consolidated net revenues amounted to €714.2
million, compared with €728.1 million in the same period of the previous year.
Television advertising revenues came to €720.4 million, compared with €776.8
million in Q1 2006. This was due to a reduction in advertising investments by a
number of important groups that had already made marked cut backs in their
campaigns in the last months of 2006. March, however, saw a recovery that
improved sales for Mediaset’s channels.
• EBIT came to €137.7 million, compared with €164.0 million in Q1 2006. This
result was affected by the previously mentioned trends in the advertising market.
• total television costs saw a significant fall (-1.2% on the first three months of
the previous year) against a 2007 budget that foresees costs in line with those of
2006.
• pre-tax profit came to €125.0 million, compared with €157.2 million in Q1 2006.
• net profit amounted to €81.2 million, compared with €108.2 million in Q1 2006.
• there were excellent results for the pay-per-view business, “Mediaset Premium”
as it entered its second year. First quarter 2007 revenues were double those of
the same period of 2006, up from €22.8 million to €45.3 million with an already
positive operating result.
• TV ratings during the period were also positive: in the first three months of 2007
Mediaset’s channels confirmed their national leadership in all the time bands
among viewers in the 15 to 64 year-old age range (the commercial target) that
account for 70% of the Italian population and on which 80% of TV advertising
investments are aimed: overall, Mediaset channels had a 43.7% share in prime
time and 43.2% in the 24 hours.

Canale 5 is Italy’s most popular channel in the commercial target with
consolidated net revenues 24.0% and 23.6% in the 24 hours.
Spain
• In the first three months of 2007 consolidated net revenues generated by the
Telecinco Group came to €251.1 million, compared with €227.8 in the same
period of the previous year.
• Telecinco’s operating profit rose to €118,0 million, on the €101.6 million of Q1
2006.
• operating profitability (operating profit as a proportion of consolidated net
revenues) reached an international record at 47.0% (44.6% in Q1 del 2006).
• pre-tax profit came to €122.6 million, compared with €104.4 million in the first
quarter of 2006.
• net profit amounted to €86.1 million, compared with €73.3 million in Q1 2006.
• Telecinco’s ratings were also up, consolidating its position as Spain’s absolute
leader with a prime time share of 20.4% and 20.3% in the 24 hours.

FORECAST FOR THE YEAR

For the current year, given an objective for a marked containment in TV costs in Italy
and increased revenues over the whole year from DVBH-related activities (which, in
2006 contributed only from the second half of the year), the company continues to
expect to generate a level of consolidated operating profit that is higher than that of
2006. The scale of the increase will depend on the trend in TV advertising revenues
in Italy and Spain.

Italy

Also after the first four months of 2007, the leadership in the commercial target (15-
16 year-olds) of Mediaset’s channels has been confirmed across all time bands.
Canale 5 consolidated its absolute leadership, while Italia 1 confirmed its position as
Italy’s third most popular channel.

In the first two months of the year advertising sales for Mediaset’s channels was
affected by continuing weakness in the advertising market. On the basis of Nielsen
figures, advertising investments in Italy in the first two months of 2007 saw a sharp
overall fall (-5.3%), with television particularly hit (-5,9 %). However, from March,
there were some clear signs of a recovery that was consolidated in April, a month in
which advertising sales for Mediaset’s channels saw growth of 4% compared with the
same period of the previous year. Given this result, advertising revenues for
Mediaset’s channels, which at the end of the first quarter showed a fall of –7.3%, at
the end of the first four months showed a fall of 4.6%, compared with the same
period of the previous year.

Meanwhile Mediaset Premium continued to perform exceptionally well: since the
beginning of the year more than 300,000 new re-chargeable cards and around 2.2
million re-charges have been sold.

Spain

In April, Telecinco further reinforced its ratings leadership, both in the total audience,
with a daily average of 21.1%, and in the commercial target, extending, in all of the
main time bands, its advantage over its historic competitors Antena 3 and TVE1.

Department of Communications and Media Relations
Tel. +39 0225149251
Fax +39 0225149286
e-mail: ufficiostampa@mediaset.it
www.mediaset.it/corporate/

Investor Relations Department
Tel. +39 0225147008
Fax +39 0225148535
e-mail: ir@mediaset.it
http://www.mediaset.it/investor

The Board then went on to approve the company’s report on the first quarter of 2007.