Mfe, half year of growth in advertising, profitability and profits
First-half accounts for the Mediaset group released. CEO Pier Silvio Berlusconi: "Increasingly international dimension and cross-media system in continuous evolution".
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Key points
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Accounts improved and exceeded analysts' consensus for the Mediaset group in the first half of the year. Mfe's CEO Pier Silvio Berlusconi had already said this when interviewed on Wednesday evening, 18 September by Tg5 in the 8pm evening edition, and he reiterated the concept in the note with which the company's accounts were released: "Thanks to the Group's international dimension, a geographical diversification that cushions the imbalances in the various markets, and thanks to our increasingly evolved cross-media system, we have once again achieved results this half-year that exceeded all forecasts. In a period that has also seen the accounts of the entire media sector contract internationally, with drastic cuts in employment, Mfe has recorded steady growth in terms of advertising sales, profitability and profits'.
Accounts above consensus
In fact, the figures approved by the Board of Directors show consolidated net revenues for the Cologno group at €1,476.5 million (+7.8%); a positive operating result (EBIT) of €136.3 million (+12.7%); and net profit up to €104.7 million (+20.2%). Analysts' consensus had assumed group revenue of EUR 1,473 million, Ebit of EUR 129 million and net profit of EUR 99 million. Consolidated net financial debt as at 30 June 2024 amounted to EUR 662 million, down sharply from EUR 902.8 million as at 31 December 2023: precisely EUR 240 million less.
"The growth in advertising revenue, supported in the period by excellent publishing results, was stronger than initially estimated and contributed to the achievement of positive consolidated profit margins (Operating Profit and Net Profit) in the period under review, which were higher than those recorded in the same period of the previous year," reads the Mfe-Mediaforeurope note.
Operating costs up
.Total consolidated operating costs (personnel costs, costs for purchases, services and other charges, amortisation and depreciation of rights and other fixed assets) rose by 7.3% to EUR 1,340.3 million (EUR 1,248.7 million in the same period of 2023), with the change, the group writes, 'mainly related to changes in the scope of consolidation'.
Advertising 'above expectations'
.A profitable result, however, with advertising sales, Mediaset explains, that 'maintained a trend above expectations and in line with that of the first half of the year, despite the concomitance of international sporting events (the European Football Championship until mid-July and the Paris Olympics between the end of July and the first part of August) not in the Group's reach in both Italy and Spain'.
