Mediaset hit by softening ad market

Italian broadcaster Mediaset saw its revenues for the first nine months fall significantly as the soft advertising market and the group’s loss of football rights in Italy took their toll. However Mediaset posted better than expected operating profits, boosted by lower costs thanks to lower expenditure on rights.

Mediaset posted revenues of €2.434 billion for the nine months, down from €2.473 billion last year, with lower advertising sales in Italy in particular taking a toll.

Operating costs were down from €2.394 billion to €2.319 billion, contributing to better than expected operating profits. Mediaset Italy posted an operating loss of €66.8 million, compared with a loss of €61.7 million last year, while Mediaset Spain posted an operating profit of €181.7 million compared with €185.2 million.

Mediaset pointed to an improved third quarter, with a 3.5% increase in advertising revenue in Italy thanks to the World Cup, as well as a €71 million reduction in costs.

Despite concerns about the direction of travel of the advertising market overall, Mediaset said that it expected to gain market share and to turn in a net profit slightly above that of last year.