Media Capital sees revenues fall

Portuguese media group Media Capital, which operates free-to-air broadcaster TVI, reported falling revenues as a result of a tough advertising environment and increased programming costs.

The company saw its television operating revenues fall by 5% over the year from €158.6m million to €151.4 million. Advertising income fell by 10% from €134.9 million to €121.4 million. The group’s overall revenue fell by 10% to €224.4 million,

TVI saw programming costs rise slightly during the year; a 1% increase in 2011 as a result of the acquisition of Superliga football rights, the coverage of the presidential elections and the production of new entertainment formats and local drama. The broadcaster has subsequently reduced the amount it spends on international series. “This evolution was partially offset but a cut in the remaining parts of the programming grid, especially in international drama,” it noted in its annual financial results statement.

Despite its financials, the company’s main channel TVI increased its market share to 35% in the last quarter, against commercial rival SIC’s 30% share and public broadcaster RTP1’s 29%.