Mfe in the spotlight following its financial results; analysts highlight cost savings and synergies
According to experts, sustained profitability and ‘the realisation of synergies more quickly than expected’ offset the fall in revenue
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(Il Sole 24 Ore Radiocor) - Mfe-MediaForEurope is under the spotlight of traders on the Milan Stock Exchange following the results published yesterday (Mfe A ; Mfe B). The market is, in fact, looking beyond the weakness in advertising revenue. Analysts were particularly impressed by the resilience of profitability, operational efficiencies and the realisation of synergies with the German company ProSieben, which has been faster than expected.
In the first half, consolidated revenue stood at 2.95 billion euros (-6.1 per cent) and advertising revenue at 1.99 billion (-5.2 per cent). Adjusted EBIT, however, rose to 145.7 million, compared with a loss of 7.3 million in the first half of 2025, coming in around 28 million above the expectations of Banca Akros, which maintains its ‘Buy’ rating. According to the broker, the results are beginning to show signs of improved profitability, with synergies progressing ‘faster than expected’, although they are ‘concentrated in the initial phase; therefore, the company has confirmed its target’ for 2026. Caution remains regarding advertising: the third quarter is still expected to see a decline, partly due to the impact of the World Cup, whilst net debt, at 2.7 billion, was ‘50 million’ better than analysts’ forecasts.
It is precisely cost control that Intermonte has highlighted as the key factor, whilst maintaining its ‘Outperform’ rating, although it has reduced the target price from 3.8 to 3 euros for Class A shares and from 4.7 to 3.7 euros for Class B shares. According to analysts, Mfe “has responded swiftly and effectively to a weaker-than-expected advertising market, achieving cost efficiencies at more than double the rate initially anticipated”. And, should the advertising market stabilise in the coming months, they anticipate that “there would be significant scope for a re-rating”. The second quarter is “in line with our estimates across all geographical areas, with Spain confirming its recovery”.
Furthermore, adjusted Entertainment EBIT for the last quarter stood at 142.8 million (+200 per cent year-on-year), “more than double our estimate”. This improvement was “driven by a reduction in entertainment costs, which more than offset the fall in revenue”, explain Intermonte, specifying that the reduction includes ProSieben’s TV rights amortisation policy; however, “even net of this benefit, underlying EBIT for Q2 2026 was broadly in line with our estimate”.
Equita is also in line with these valuations and has confirmed its “Buy” rating. According to the securities firm, “the results confirm the validity of the consolidation strategy, with synergies being realised faster than expected”, adding that the share is trading “at attractive valuations”.
