Mediaset slips into the red - TV advertising business weakens
The slump in the TV advertising market is pushing the Italian television group Mediaset into the red. According to figures released Wednesday, the group posted a net loss of about 19 million euros in the first half of the year, compared with a profit of about 103 million euros a year ago.
Like its German competitors RTL Group and ProSiebenSat.1, the Italians are feeling the effects of the reluctance of important advertising customers to spend as a result of the recession caused by the coronavirus crisis, despite rising viewer numbers. As a result, Mediaset's revenues fell by 21 percent to EUR 1.17 billion and ultimately led to a decline in operating profit of 83 percent to EUR 32 million.
Hope for a better second half of the year
Mediaset, which is controlled by the family of former Italian head of government Silvio Berlusconi, is counting on better business in the second half of the year. The management justified this with a noticeable increase in advertising sales in July and August. "With the start of the new television season in September, the first signs for advertising in Italy are positive, but the market situation remains extremely fragile." In addition, the company is taking a short-term and medium-term view. The shares of ProSieben's major shareholder were down a good three percent at midday.
Settle dispute with Vivendi
Meanwhile, Mediaset wants to make contact with its major shareholder Vivendi in order to resolve a long-standing dispute. Mediaset CFO Marco Giordani said that the company was prepared to discuss solutions with the French company that would be advantageous for all shareholders. Mediaset boss Pier Silvio Berlusconi wants to talk to Vivendi boss Arnaud de Puyfontaine on the phone in the next few days, insiders said recently. Among other things, Vivendi is skeptical about the merger of Mediaset and the Spanish arm to form the new Mediaset umbrella company Media for Europe (MFE). The dispute is also before the courts. (SDA)
