While the tug of war with Vivendi continues, Mediaset announces accounts for the first semester of 2020, numbers that reveal all the difficulties experienced due to the coronavirus pandemic. Immediately after the publication of the accounts, the title reacts. At the opening, the shares remain stuck in the volatility auction with a theoretical fall of -13%. Entering into negotiation, at 10.18 they yield 4,2% to 1,76 euros. In the middle of the day, the recovery, with the stock going positive, scoring +1,4 percent. At the same time, Agcom announced that it had asked the State Attorney's Office for an opinion on the Vivendi dossier.
THE SEMESTER OF MEDIASET
Going back to the accounts, the first semester closed with one net loss of 18,9 million euros at consolidated level compared to the 102,7 million profits recorded last year. THE revenues fell by 21% to 1,166 billion (-36,6% in the second half), of which 791,3 million made in Italy (from 1,002 billion in the first half of last year) and 375,1 (from 482,5) in Spain.
La advertising revenue gross revenues fell by 24,5% to around 744,2 million euros, recording a slightly better performance than the -26,8% of the overall advertising market indicated by Nielsen. "While in the first two months of the year in Italy Mediaset had recorded an advertising growth of 2,1% - adds il Biscione - the following four months saw the suspension of numerous campaigns and the consequent drop in turnover". Advertising sales in Spain were also down, standing at 325,1 million compared to 985,2 in the same period of 2019.
Down also i operating costs, down by 12,1% at the consolidated level, while theoperating profit it dropped from 191,6 million a year ago to 31,7 as at 30 June: however, the EBIT was made up of +88,9 million from Spanish assets and -57,6 from Italian ones. L'net financial debt of group drops to 1,197 billion (1,34 at the beginning of the period).
SECOND SEMESTER ESTIMATES
Despite the accounts at a loss, Mediaset remains positive for the future and estimates that, "should the conditions of the health emergency not require further restrictive measures in the coming weeks and the expected consolidation of the general economic situation occurs, the economic results of the group in the second semester they should gradually improve compared to those of the first six months of the financial year”. On the advertising front in Italy, July has already seen revenues return to a positive level compared to a year ago (even without considering the Champions League broadcast this year) and September first shows positive evidence in a "fragile" general context.
THE WORDS OF THE CFO
During the conference call following the publication of the half-yearly accounts, the CFO of Mediaset, Marco Giordani, answered questions from journalists on the hot topics of the moment: Vivendi and single network. On the first dossier, the manager stated "we are available to discuss and Mediaset's intention is to find a solution that "maintains an alignment of the interests of all shareholders", said the CFO, adding that "'We are working in the best interests of all shareholders'.
On the single network and on the interest shown by the Biscione company in the project led by Tim and Cdp, Giordani underlined that for Mediaset "the neutrality, independence and efficiency in terms of costs" of the network are crucial " so that our contents can be transmitted”: “we could consider an investment” in the network but when the situation will be “clearer”.
AGCOM ON VIVENDI
In the middle of the day, Agcom announced that it had asked the State Attorney's Office for an opinion on the procedural profiles to follow after the ruling of the EU Court of Justice on the Vivendi case. As reported by Radiocor, the Authority has started the examination of the assessments on the Court's ruling and has decided to "investigate some juridical profiles regarding the procedural aspects inherent to the non-application of paragraph 11 of article 43 of the Tusmar and the related consequences administrations, also acquiring the opinion of the State Attorney's office". The objective, the Authority specified, is in any case to arrive at a decision in the short term.
We recall that last week the EU Court rejected the Agcom resolution which established that Vivendi could not have cross-shares in Tim of which it has 23,4% and in Mediaset of which it has 29,9% bringing the French group, consequently to freeze a 19,9% stake in a trust without voting rights in the Alfa meeting. Under penalty of violating the Tusmar. Vivendi had appealed to the Tar which in turn had turned to the EU Court of Justice which in fact agreed with the French.
(Last update at 15.50 on 9 September)
