Nightmare day in Piazza Affari for the Mediaset stock, which in mid-morning dropped 6,6%, to 3,466 euros. This is the worst drop on the Ftse Mib. Triggering the sell-off were the accounts released last night by the company, which ended the first quarter with a loss of 12,5 million euros compared to the profit of 9,3 million recorded in the same period last year.
Net revenues amounted to 820,8 million, from 831,6 in the first quarter of last year. As for the operating result, it amounted to 29,6 million, down from 53,4 million in the same period of 2013. Financial debt decreased from 1,459 billion as at 31 December 2013 to 1,378 billion as at 31 March 2014 .
As far as Italy is concerned, “the trend in advertising revenues was affected in the first three months by a still slightly negative trend in the advertising market – writes the company -. Inflows amounted to 492,5 million, compared to 501,8 million in the first quarter of 2013 (-1,8%)", even if, Mediaset notes, in the first quarter of 2013 "the decline was 19,4% ” compared to the first quarter of 2012.
On the other hand, advertising revenues improved in Spain, to 194,6 million compared to 191,2 in the first quarter of 2013. As regards forecasts, Mediaset informs that "in Italy, the trend of the advertising market fluctuates even in the initial part of the second quarter. The sector is not yet benefiting from clear signals attributable to the start of a phase of recovery in demand and consumption”.
“In this context, the commercial strategy of the Publitalia concessionaire remains focused on the long-term sustainability of the advertising market, through the defense of profitability. And avoiding pursuing bearish behavior on the prices charged by some competitors”, adds Mediaset.
In Spain, on the other hand, where the economic recovery is more outlined and underway, advertising revenues should show moderate growth also during the second quarter. Period at the end of which Mediaset España will also have the exclusive rights to the matches of the Spanish national team at the World Cup.
In the coming months, the group will remain focused on the multiplatform development of its content, on the strategic evolution of the pay business, as well as on operational efficiency, cash generation and profitability in the medium term. Leveraging on the structural reduction of operating costs pursued in the last two years.
