MFE sees revenues edge up and profits fall as outlook darkens

MediaForEurope (MFE), the media outfit that owns Mediaset’s Italian and Spanish operations, saw its revenue increase slightly in the first half despite a gathering economic storm fuelled by inflation, rising energy costs and the war in Ukraine thanks to a solid performance in Italy.

MFE’s revenues for the first half amounted to €1.388 billion, up from €1.387 billion for the same period last year, an increase of 1.1%.

The uplift was fuelled by Italy, which saw revenues rise from €963.7 million to €974.6 million.

Mediaset España, on the other hand, saw revenues slide from €423.6 million to €415.2 million over the same period, driven down by a 5% decline in the overall Spanish TV advertising market.

Costs in Italy were pushed up by a number of factors including energy costs, while costs in Spain were stable. MFE turned in an operating profit of €112 million, down from €198.7 million, while net profit dropped from €226.7 million in 2021, when the bottom line was boosted by the sale of MFE’s El Towers stake, to €84.6 million this year.

MFE admitted that the second quarter had proved particularly tough. The group said its ad sales in the coming months could be affected by the Eurozone economic downturn and continued uncertainty about the impact of the war in Ukraine.

The group said it aimed to achieve positive economic and financial results, and positive free cash-flow generation for the full year, on the back of its “solid content positioning” and ability to “promptly adjust costs” if required to do so.