FIRST QUARTER 2014 RESULTS APPROVED

Transcription

1 Press Release Mediaset Board of Directors Meeting 13 May 2014 FIRST QUARTER 2014 RESULTS APPROVED Consolidated results Net revenues: million Operating profit (EBIT): 29.6 million Net debt: down to 1,378.7 million Italy Net revenues: million Operating costs: down to million Operating profit (EBIT): 7.0 million Ratings: audience grows in the 24-hours Canale 5 Italy s most popular channel in prime time and the 24-hours in the commercial target Mediaset channels confirm their leadership in all time bands in the age range Spain Net revenues: 200,4 million Operating profit (EBIT): 22,6 million Ratings: Mediaset España channels leaders in prime time and the 24-hours The Board of Directors of Mediaset, which met today under the Chairmanship of Fedele Confalonieri, has approved the report for the first quarter of In the context of a persistent economic crisis, the Mediaset Group ended the first quarter of the year with a further marked reduction in operating costs, a progressive recovery in advertising revenues and a continuing reduction in its level of indebtedness thanks to positive cash generation. The performance of the Mediaset Group in the first three months of 2014 is summarised in the following results: MEDIASET GROUP: CONSOLIDATED RESULTS The consolidated net revenues of the Mediaset Group came to million, compared with the million in the first quarter of

2 The Group s EBIT amounted to 29.6 million, compared with 53.4 million in the same period of the previous year, despite higher amortizations for TV sports rights. The net loss attributable to the Group amounted to 12.5 million, compared with a net profit of 9.3 million in the first quarter of the previous year There was a fall in the Group s net debt from 1,459.0 million at 31 December 2013 to 1,378.7 million at 31 March 2014 as a result of a free cash flow of 87.7 million. The figure does not take account of the impact of the sale of a stake of EI Towers finalised in the second quarter. A BREAKDOWN OF RESULTS BY GEOGRAPHIC AREA Italy In the first quarter of 2014 consolidated net revenues amounted to million, compared with million in the same period of the previous year. In particular: Advertising revenues in the period were affected by a market that remained slightly negative. During the period total gross advertising sales by Publitalia '80 and Digitalia '08 came to million, compared with million in Q1 2013, a fall of 1.8%. On the basis of the most recent Nielsen figures, in the first two months of the year the total advertising market was down by 3.2% It should be noted, however, that the fall in revenues in the first quarter of last year was much more marked (-19.4%) while there were already signs of an improvement in the last quarter of 2013 that has been largely confirmed in Q Mediaset Premium Revenues: sales from Premium s characteristic business - card sales, re-charges, Easy Pay subscriptions amounted to to million, compared with million in the same period of 2013, with a number of subscribers essentially the same as at 31 December The revenues of EI Towers came to 57.9 million (in line with the 57.7 million in Q1 2013). Total operating costs were down to million, compared with million in Q (-0.8%) consolidating the efficiency levels achieved in the last two years. EBIT came to 7.0 million, compared with 34.6 million in Q This result was affected by an increase in amortization of pay-tv sports rights for Serie A due to the higher number of matches played and broadcast compared with the first quarter of There was a net loss of 17.7 million, compared with a net profit of 4.2 million in the first quarter of

3 Ratings: despite the recent multiplication of the number of channels, the Mediaset channels improved their ratings in the total audience over the 24- hours, reaching 33.3% compared with 32.9% in Q Mediaset s leadership remained solid in the commercial target in all the main time bands: 36.4% in prime time and 35.9% in the 24-hours. Canale 5 was the most popular channel in the commercial target, both in prime time (17.4%) and the 24-hours (17.3%). Spain In the first three months of 2014 consolidated net revenues generated by the Gruppo Mediaset España amounted to million, compared with million in the same period of the previous year. Gross television advertising revenues came to million, compared with million in Q EBIT for the period came to 22.6 million, compared with 18.8 million for the first three months of Net profit amounted to 12,8 million, compared with 12.5 million in Q Ratings: in the first three months of the year the channels of the Group Mediaset España maintained their absolute leadership across the 24-hours in the commercial target with a 31.5% share. Telecinco confirmed its position as the country s most popular commercial channel across the entire day (14.2%). FORECAST FOR THE YEAR In Italy, there was an essentially unstable trend in the advertising market also at the beginning of the first quarter and the sector is still not benefitting from any clear signals of a recovery in consumer demand. In this context, Publitalia s commercial strategy remains focused on the long-term sustainability of the advertising market, through the defence of profitability and avoiding driving down prices, a practice that has been adopted by some competitors. This strategy will enable the Group to consolidate its overall market share - even if in the short term there could be a temporary reduction in the share of the television market - ensuring a faster and more solid recovery when the expected growth in the sector begins. In Spain, where economic recovery is much clearer and has already begun, advertising revenues are expected to see moderate growth also in the second quarter. Moreover, at the end of the period, Mediaset España will also benefit from exclusive coverage of the matches of the Spanish national football team during the World Cup in Brazil. 3

4 The poor visibility for the remainder of the year makes it difficult to make reliable predictions on the consolidated result for the full year. In the coming months, the Group will remain focused on the multiplatform development of its content, the strategic evolution of the pay-tv business, as well as operating efficiency, cash generation and medium term profitability also by taking advantage of the structural reduction in operating costs made in the last two years. The executive responsible for the preparation of the Mediaset S.p.A. accounts, Luca Marconcini, 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. Cologno Monzese, 13 May 2014 Department of Communications and Media Relations Tel Fax direzionecomunicazione@mediaset.it Investor Relations Department Tel Fax investor.relations@mediaset.it 4

5 Highlights from the consolidated income statement (*) in m Q1 1 trimestre Consolidated net revenues Labour costs Procurement, services and other costs Operating costs Gross operating profit (EBITDA) Amortisation of rights Other amortisation and depreciations Total amortisation and depreciations Operating profit (EBIT) Financial income /(charges) (22.4) (13.8) Income/(charges) from investments (4.7) (2.3) Profit before taxation Income taxes (4.4) (17.7) Net profit from operations (1.9) 19.5 Risultato netto attività discontinue - - Minority interest (profit)/loss (10.6) (10.2) Profit for the Mediaset Group (12.5) 9.3 Highlights from the consolidated balance sheet (*) in m 31/03/ /12/2013 Television rights 1, ,830.3 Goodwill and consolidation differences Other tangible/intangible assets 1, ,218.9 Financial assets Net working capital & other assets/liabilities Severance indemnity reserve (91.7) (92.5) Net invested capital 4, ,436.7 Net Group assets 2, ,119.9 Shareholders equity and minority interest Net assets 2, ,977.7 Net financial position 1, ,459.0 (*) Reclassified figures in the interim report on operations. 5