MFE-MediaForEurope earned 71 million until September, 9.5% less, and reduces income by 2%

MADRID, 23 Nov.

MFE-MediaForEurope earned 71 million until September, 9.5% less, and reduces income by 2%


The media conglomerate MFE-MediaForEurope (MFE), parent of Mediaset Spain, recorded a net profit of 71 million euros in the first nine months of 2023, which represents a decrease of 9.5% compared to the profits of 78.5 million euros recorded in the same period of the previous year, as reported by the company this Thursday.

The firm has explained in a press release that this figure, which is "very positive", must also be examined taking into account some differential elements, such as the increase in financial expenses due to the increase in underlying interest rates, and the increase of participation in the group's Spanish operations.

MFE-MediaForEurope received a total of 1,862.2 million euros between January and September, almost 2% less than the 1,900.1 million obtained until the ninth month of 2022. Thus, MFE has highlighted that it has been able to achieve " an important consolidated net result, thanks to the editorial strategy focused on national television products and careful cost control.

In this sense, regarding total consolidated operating costs (personnel, purchases, services and others), the company has indicated that they decreased to 1,763.9 million euros, compared to 1,802.5 million in the first nine months of 2022. with a reduction of 2.1%.

"A great result is also the savings obtained ahead of schedule, thanks to the synergies expected from the merger with Spain, even more significant if we consider that in the two countries of activity inflation has reached a historical maximum since the introduction of the euro ", has manifested.

The operating result (Ebit) of the media company, for its part, increased slightly to 98.3 million euros, compared to 97.6 million in the same period of 2022.

The conglomerate obtained gross advertising revenues of 1,824.8 million euros, compared to 1,846.2 million euros in 2022, a result that, according to the company, "exceeds that of many European stations."

In this sense, MediaForEurope (MFE) has detailed that in Italy advertising revenues reached 1,299.1 million euros, compared to 1,309.2 million in the same period of the previous year, while in Spain they stood at 525.7 million euros compared to 538.1 million in 2022.

Specifically, with respect to the Italian and Spanish markets, the company has assured that it has continued to be "quite weak" despite the fact that advertising revenues in Spain showed a "gradual" improvement in the third quarter, "after the difficulties of the market in the first half of the year".

The consolidated net financial debt as of September 30, 2023 stood at 877.5 million euros compared to 873.3 million on December 31, 2022, as highlighted, "despite the investments in development in Spain and Germany (145.9 million euros) and the remuneration to shareholders (140 million for the distribution of MFE dividends that took place in July)".

MFE-MediaForEurope has detailed that, excluding liabilities recognized from 2019, in accordance with IFRS 16, and remaining financial debt for the acquisition of the stake in ProsiebenSat.1 Media SE, the adjusted net financial debt amounts to 741.6 million of euros. Cash generation ('free cash flow') was positive at 285.8 million euros, compared to 359.1 million in the first nine months of 2022.

The Board of Directors of MFE-MediaForEurope, chaired by Fedele Confalonieri, has unanimously approved the periodic financial information corresponding to the first nine months of 2023.

"Thanks to the increasingly international dimension of MFE, the Group's accounts have recorded better than expected results despite the presence of critical elements such as the complex geopolitical situation around the world, the desire of the ECB to continue with its policy of rate increases, the effects of inflation and advertising trends in the different countries where it operates," the company noted.

MFE-MediaForEurope has stated that, "in a general context conditioned by the conflict in Ukraine, by the new serious crisis in the Middle East and from a European economic situation that remains extremely uncertain and volatile, the market panorama in Italy and Spain continues being better than that of the other main countries".

Specifically, the media conglomerate has highlighted that the Group's advertising sales in Italy registered sustained growth in October, equivalent to 8% more than in the same month of 2022, "an increase that is the largest in the last 7 years." . "As for the month of November, the estimated growth should be similar to that of October, thanks also to the good evolution of the ratings of all the Group's Italian media," he stressed.

In Spain, "in a context still uncertain after the July elections", MFE-MediaForEurope has stated that "advertising revenues in October, however, had recorded a better performance compared to the first half of the year." "In recent weeks, political events related to the appointment of the new Government have created new uncertainties and volatility in consumption and the advertising market," he noted.