Mediaset Board Meeting 6 November 2007
APPROVAL FOR REPORT FOR FIRST NINE MONTHS 2007
Net revenues: €2,816.1 million
Operating profit: €787.8 million
Net profit: €372.3 million
October sees sharp recovery in advertising sales
Television costs: -1.1%
Mediaset Premium: revenues doubled
Ratings: Mediaset channels and Canale 5 confirm leadership
in the 15-64 year-old audience
Operating profitability: 46.9%
Ratings: Telecinco Spain’s leading channel
The Board of Directors of Mediaset, which met today under the Chairmanship of
Fedele Confalonieri, has approved the Group’s report for the nine months to 30
MEDIASET GROUP: CONSOLIDATED RESULTS
Included, from July 2007, as a result of the acquisitions made in the current year, are the companies of the Medusa Group, which have been fully consolidated, and, on a
net equity basis, the 33.3% stake held, through Mediacinco in the consortium that
controls the Endemol Group.
Also taking account of the new area of consolidation, the performance of the group in
the first nine months of 2007 can be summarised as follows:
• consolidated net revenues rose to €2,816.1 million, compared with €2,671.5
million in the first nine months of 2006, an increase of 5.4%.
• EBIT rose to €787.8 million, an increase of €47.6 million on the figure for the same
period of the previous year (€740.2 million).
• operating profitability, operating profit as a proportion of consolidated net
revenues, went up to 28.0%, from the 27.7% recorded in the first nine months of
• profit before taxation and that attributable to third-party shareholders rose to
€756.5 million, compared with €727.1 million at 30 September 2006.
• net profit attributable to the Group, after estimated taxation, rose to €372.3
million, from the €369.1 million of the first nine months of the previous year.
• the Group’s net financial position went from -€568.3 million at 31 December 2006
to -€1,167.1 million at 30 September 2007. The deficit is mainly due to the
expenditure in the third quarter (for a total of €598 million) for the acquisition of the
Medusa Group and the capitalisation of the vehicle established for the acquisition
of Endemol. as well as the distribution of dividends by the parent company and the
subsidiary Telecino (for a total of €644.7 million).
• In the first nine months of the year, the group’s net cash generation amounted to
€681.3 million, up from the €356.4 million for the same period of last year: in fact,
2006 recorded expenditure of €290 million for the acquisition of a dedicated
network for mobile TV services (DVBH) and the acquisition of options on encrypted
football rights for the 2009/2010 season of a number of important Serie A clubs.
A BREAKDOWN OF RESULTS BY GEOGRAPHIC AREA
• In the first nine months of 2007 consolidated net revenues recorded an increase
of 3.7%, reaching €2,045.9 million compared with €1,972.4 million in the same
period of the previous year. The increase is largely the result of higher revenues
from the pay-per-view activities of Mediaset Premium, network operator activities
and the consolidation of the revenues of the Medusa Group.
Gross television advertising revenues came to €2,002.5 million, a fall of 3.1%
on the same period of 2006. During the first nine months, this result was affected
by a reduction in advertising investments by a number of key clients who had
already made marked reductions in their budgets during the closing months of
If the examination is extended to the first 10 months of the year, and consequently
including the brilliant start to the new autumn TV season, advertising sales show a
marked recovery that brings the cumulative figure essentially in line with that of the
first 10 months of 2006 (-0.4%).
Mediaset Premium showed a marked improvement in revenues with the first nine
months pushing the total up to €142.8 million, well over twice the figure of €61.0
million for the first nine months of 2006. The figure includes the figure of €48.7
million from the sale of encrypted football rights for use on other platforms.
The first nine months of 2007 also recorded sales of more than 1.8 million new rechargeable
cards and more than 4.4 million re-charges.
• EBIT rose to €426.3 million, compared with €423.3 million to 30 September 2006.
• total television costs saw a significant fall (-1.1% compared with the first nine
months of the previous year and on a like-for-like basis) and in the face of a 2007
target that was in line with the costs of 2006.
• pre-tax profit came to €385,6 million, compared with €402.8 million in the first
nine months of 2006.
• net profit amounted to €239,7 million, compared with €253.9 million in the first
nine months of 2006.
• The impact on the group’s consolidated results of the recently acquired activities
(Medusa and Endemol) already show a positive contribution, net of acquisition
TV ratings: were positive in the first nine months of 2007 with Mediaset channels
confirming their national leadership in all time bands among viewers in the 15 to 64
year-old age range (the commercial target): in fact, Mediaset recorded 42.8% in
primetime and 43.1% in the 24 hours.
Canale 5 is Italy’s most popular channel among the commercial target, with a 21.2%
share in primetime and 20.6% in the 24 hours.
• In the first nine months of 2007 consolidated net revenues generated by the
Telecinco Group rose to €771.0 million, compared with €700.9 in the same period
of the previous year.
• Telecinco’s operating profit rose to €361.5 million, on the €317.3 million of the
first nine months of 2006.
• operating profitability (operating profit as a proportion of consolidated net
revenues) rose to 46.9% (45.3% in the first nine months of 2006).
• pre-tax profit came to €371.0 million, compared with €324.6 million in the first
nine months of 2006.
• net profit amounted to €262.8 million, an increase on the €229.3 million in the
same period of 2006.
• Telecinco’s ratings were also up, consolidating its position as Spain’s absolute
leader with a primetime share of 20.5% and 20.3% in the 24 hours.
FORECAST FOR THE YEAR
In the current year, on a like-for-like basis and excluding the contribution generated by
changes in leaving entitlements, the company expects to confirm an operating profit
that is higher than that of the previous year, the extent of the improvement will depend
on TV advertising sales in Italy and Spain in the last two months of the year.
The effect of the consolidation of the companies of the Medusa Group and the
inclusion, on a net equity basis, of the 33.3% held, through Mediacinco, in the
consortium that controls Endemol are not expected to have a significant impact on the
consolidated result of the current year. Also taking account of the positive operating
results and the financial structure of the operations.
Ratings. At the end of the first ten months of 2007, Mediaset channels confirmed their
leadership in the commercial target (15-64 year-olds) in all time bands, with average
ratings of 42.9% in primetime and 43.1% in the 24 hours. Canale 5 consolidated its
position as Italy’s most popular channel and Italia 1 as the third.
Mediaset Premium. Sales were also excellent in the month of October: in fact, to date,
around 2.0 million pre-paid cards have been sold and 4.9 million re-charges.
Ratings. Also in October, Telecinco confirmed its leadership in terms of share, further
extending its advantage over 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
Cologno Monzese, 6 November 2007
Department of Corporate Communications and Image
Tel. +39 0225149251
Fax +39 0225149286
Investor Relations Department
Tel. +39 0225147008
Fax +39 0225148535
Highlights from the consolidated income statement (*)
Cumulative to 30 September
2007 2006 2007 2006
Consolidated net revenues 2,816.1 2,671.5 739.1 677.5
Labour costs 328.5 336.7 111.0 104.2
of which non-recurring charges (23.0)
Procurement, services and other costs 1,005.4 954.8 293.2 272.5
Operating costs 1,333.9 1,291.5 404.1 376.7
Gross operating profit 1,482.2 1,380.1 334.9 300.8
Amortisation and depreciations 694.4 641.1 247.1 212.4
Operating profit 787.8 739.0 87.9 88.5
((Losses)/gains from equity disposals - 1.3 - -
EBIT 787.8 740.2 87.9 88.5
Financial income /(charges) (34.4) (13.5) (14.9) (8.1)
Income/(charges) from investments 3.1 0.3 1.6 0.4
Profit before taxation 756.5 727.1 74.6 80.8
Income taxes (254.2) (243.7) (18.5) (23.0)
Net profit from operations 502.4 483.4 56.2 57.8
(Net profit from discontinued activities)
(Minority interest (profit)/loss
Profit for the Mediaset Group 372.3 369.1 31.5
Highlights from the consolidated balance sheet (*)
Television rights 2,323.8 2,388.2
Goodwill and consolidation differences 393.7 368.7
Other tangible/intangible assets 1,100.2 1,085.2
Financial assets 570.4 93.9
Net working capital & other assets/liabilities (414.8) (304.1)
Severance indemnity reserve (106.2) (130.3)
Net invested capital 3,867.0 3,501.7
Net Group assets 2,443.6 2,634.1
Shareholders’ equity and minority interest 256.4 299.2
Net assets 2,700.0 2,933.3
Net financial position (1,167.1) (568.3)
(*)The reclassified figures in the report are not subject to certification by the external auditors