Cairo Communication closes the first quarter with a Group net result of 3,8 million, down by 20,5% compared to the first quarter of 2012. Consolidated gross revenues amounted to approximately 67,5 million (88,6 million in the first quarter of 2012), including operating revenues of 6 million and other revenues of 1,5 million, overall down by 23,8% compared to 2012 due to the performance of the advertising market. The consolidated net financial position as at 31 March 2013 was positive by approximately 68,7 million (approximately 61,2 million as at 31 December 2012).
The current economic situation of the company La7, (purchase transaction from Telecom Italia Media completed on 30 April last), entails the need to implement "a restructuring plan aimed at reorganizing and simplifying the corporate structure and reducing costs, preserving the high quality level of the programming", says Urbano Cairo's company. The Group will undertake a restructuring plan for the company, with the aim of containing its losses as early as 2013 and pursuing its turnaround by operating according to the following main guidelines: confirmation of the current editorial line and programs which represent the strengths of the network; cost containment, intervening in particular on "unproductive" expense items and to recover efficiency; valorisation of the highly qualitative audience target of La7, to maintain and develop the high level of advertising revenues in consideration of the general market trend.
The evolution of the general situation of the economy "could condition the full achievement of these objectives", underlines the company.
