Bad day for Mediaset in Piazza Affari. The biscione group records one of the worst performances of the entire Milanese price list, -2,2% at noon. Towing Mediaset towards the red are the tensions that run through the company on the eve of a week of fire. The general meeting will be held on Wednesday shareholders where the management will have to account for the worst profit for 10 years at this point, about 220 million euros. Shares hit an all-time low last week at 1,8 euro.
The troubles on Cologno Monzese's table don't end there: Minister Passera's statements regarding the frequency auction are certainly not good news for shareholders. Add to this the Endemol affair that has just ended and the worrying data on the crisis of traditional channels which see their audience increasingly eroded by the different realities of the digital platform and by Sky. The average share of Mediaset networks is currently around 35%, given which, if combined with that of the Rai networks, gives a good picture of the change underway in the television market which is no longer characterized by a duopoly.
The consequences of these changes on advertising revenues are evident and risk weighing on Mediaset's balance sheet in 2005 as well. Furthermore, the Pay sector is unable to produce profits. Despite Mediaset Premium has increased the number of subscribers and has a strategic defensive value against the advance of Sky, lost around 2011 million euros in 70, negative results determined by the ever increasing price of rights to broadcast football.
The climate of the meeting does not promise to be relaxed and the uncertainties about the company's plans to get out of the negative economic situation increase the uncertainty and determine the negative performance of the stock.
