Cologno Monzese, 11 September 2007
Mediaset Board of Directors’ Meeting 11 September 2007
BOARD APPROVES RESULTS FOR FIRST HALF 2007
Net revenues: €2,077.0 million
Operating profit: €699.9 million
Net profit: €340.8 million
Television costs: -3.1%
Mediaset Premium: revenues more than double
with growing operating profit
Ratings: Mediaset channels and Canale 5 confirm leadership
in the 15-64 year-old audience
Operating profitability: 51.2%
Ratings: Telecinco Spain’s leading channel
The Board of Directors of Mediaset, which met today under the Chairmanship of
Fedele Confalonieri, has approved the interim report for the first six months of 2007.
MEDIASET GROUP: CONSOLIDATED RESULTS
Performance in the first six months of 2007 can be summarised as follows:
• consolidated net revenues came to €2,077.0 million, compared with !1,994.1
million in the first half of 2006.
• EBIT came to €699.9 million, a !48.2 million increase on the same period of the
previous year (!651.7 million). This result was affected by non-recurring income of
!23.0 million resulting from legislative changes introduced from the beginning of
2007 regarding the destination of funds for severance payments.
• operating profitability, operating profit as a proportion of consolidated net
revenues, came to 33.7%, compared with 32.7% in the first half of 2006.
• profit before taxation and that attributable to third-party shareholders, amounted
to €681.9 million, compared with !646.3 million for the same period of 2006.
• net profit attributable to the Group, after estimated taxation, came to €340.8
million, compared with !332.5 million in the first half of the previous year.
• the Group’s net financial position went from -!568.3 million on 31 December
2006 to -€760.8 million on 30 June 2007. This deficit is mainly due to the
distribution of dividends by the parent company and the subsidiary Telecinco (for a
total of !644.6 million).
• In the first six months of the year the Group’s net cash generation amounted to
€451.7 million, compared with !165.8 million in the same period of the previous
year: in fact, in 2006 expenditure included !260 million for the acquisition of the
DVBH network and the acquisition of encrypted rights for the 2009/2010 football
season of leading Serie A clubs.
A BREAKDOWN OF RESULTS BY GEOGRAPHIC AREA
• In the first half of 2007 consolidated net revenues recorded growth of 2.3% to
reach €1,505.8 million, compared with !1,472.2 million in the same period of the
previous year. This increase was mainly the result of higher revenues from the
Mediaset Premium pay-per-view service and network operator activities.
Television advertising revenues came to €1,522.6 million, a fall of 3.4% on the
first half of 2006. This was the result of a shortfall in advertising investments by a
number of big groups that had already reduced their budgets in the last six months
of 2006. Starting in March, however, there was a recovery which led to an
improvement in sales for Mediaset’s channels which, in the second quarter, grew
by 0.4% compared with the same period of 2006.
• EBIT came to €407.0 million, an increase on the !387.8 million of the first half of
• total television costs were down in the period (-3.1% on the first six months of
the previous year) where the objective for 2007 is to be essentially in line with the
costs of 2006. This result was affected by extraordinary income of !21.6 million
generated by legislative changes introduced at the beginning of 2007 on the use of
funds for severance payments.
• pre-tax profit came to €379.9 million, compared with !377.6 million in the first
half of 2006.
• net profit amounted to €234.7 million, compared with !239.0 million in the first
• there were excellent results for the pay-per-view business, “Mediaset Premium”
which saw a marked increase in revenues in the first six months of 2007, which
reached €92.5 million, well over double the !36.3 million of the first half of last
year. This figure includes income !22.6 million for the sale of encrypted football
rights for use on other platforms.
Only two years since its launch, and for the second quarter in a row, Mediaset
Premium has recorded a positive operating profit.
In the first six months of 2007 more than 420,000 new re-chargeable cards and
more than 2.5 million re-charges were sold..
• TV ratings during the period were also positive: in the first six 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: Mediaset had a 43.0% prime time
share and 43.3% in the 24 hours.
Canale 5 is Italy’s most popular channel in the commercial target with a 23.3%
prime time share and 22.9% in the 24 hours.
• In the first six months of 2007 consolidated net revenues generated by the
Telecinco Group came to €571.9 million, an increase on the !523.3 for the same
period of the previous year.
• Telecinco’s operating profit rose to €293.0 million, from the !264.4 million of the
first half of 2006.
• operating profitability (operating profit as a proportion of consolidated net
revenues) reached a record level of 51.2% (50.5% in the first half of 2006).
• pre-tax profit came to €302.0 million, compared with !269.1 million in the first
half of 2006.
• net profit amounted to €211.6 million, compared with !186.4 million in the first
• Telecinco’s ratings were also up, consolidating its position as Spain’s absolute
leader with a prime time share of 20.6% and 20.4% in the 24 hours.
FORECAST FOR THE YEAR
On a like-for-like basis and excluding the contribution generated by legislative changes
concerning the use of funds for severance payments, for the current year the Group expects to
generate a higher level of operating profit than last year. The scale of the increase will depend
of the trends in advertising sales both in Italy and in Spain.
From the beginning of the third quarter the companies of the Medusa Group will be fully
consolidated, on a net equity basis, as will the 33.3% stake in the consortium that controls
Endemol (held by Mediacinco). These factors are not expected to have a significant impact of
the consolidated results for the current year, given the positive operating results that will be
generated by the various businesses and the financial structure of the Endemol operation that
sustains the cost of the acquisition.
Ratings. At the end of the period January-August 2007 Mediaset channels confirmed their
leadership in the commercial target (15-16 year-olds) in all time bands, with an average prime
time share of 42.9% and a 43% share in the 24 hours. Canale 5 consolidated its absolute
leadership, while Italia 1 confirmed its position as Italy’s third most popular channel.
Advertising sales. The trend in sales for Mediaset channels in the two-month period
July/August was up on the figure for the same period of the previous year, confirming the
progressive improvement that began in March. As a result of this performance, advertising
sales, which at the end of the first half was down by -3.4%, after eight months were down by
about -2% compared with the same period of the previous year. A further increase in
advertising sales is expected in the coming months and should lead to consolidated
advertising revenues for the year in line with those of 2006.
Mediaset Premium. Excellent sales have been recorded since the end of June, coinciding with
the launch of the new pay-TV service. To date, around 1.1 million pre-paid cards and 1.4
million re-charges have been sold.
Telecinco confirmed, also in the two-month period July/August its leadership, both in terms of
share, with a further increase at the end of 8 months in the gap from its main competitors.
The executive responsible for the preparation of the Mediaset S.p.A. accounts,
Andrea Goretti, 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.
Department of Communications and Corporate Image
Tel. +39 0225149251
Fax +39 0225149286
Investor Relations Department
Tel. +39 0225147008
Fax +39 0225148535
Tuesday, September 11, 2007
Cologno Monzese, 11 September 2007