Mediaset Q219: better results than expected, but almost 6% fall in advertising revenues

The Spanish media company published its results for the first half and second quarter of 2019. The principle figures compared with the Bloomberg consensus are: Income 256.4 M€ (-7.9%) vs 253€ estimated; EBITDA 92.7 M€ (+0.8%) vs 87.3 M€ estimated; EBITDA margin 36.1% (vs previous 33.0%); EBIT 87.7 M€ (-1.2%) vs 84.3 M€ estimated; EBIT margin 34.2% (vs previous 31.9%); NAP 74.3 M€ (+3.1%) vs 65.9 M€ estimated and EPS 0.24€ (+9.0%) vs 0.18€ estimated.

Telefonica Q219: anaemic growth in results; best is increase in cash flow (+4%)

Telefonica published its Q219 results. According to Bankinter market watchers, they are slightly better than expected: Income +0% to 12.142 Bn€ vs 11.981 Bn€ expected by the consensus. Operational profits -12% to 1.802 Bn€ vs 1.755 Bn€. Net profits -4.5% to 862 M€ vs 880 M€. Net debt 40.230 Bn€ vs 40 Bn€.

The possible consolidation of European telecoms drives the sector-and Telefonica-upwards

Cellnex, Masmovil y Telefonica, among top picks in the European telecoms sector

Morgan Stanley | We reviewed the European telecoms sector where we thought, confronted by an environment where there have been numerous profit warnings in the global technology sector (Ericsson, Hexagone, Netflix, Software AG, Tieto), together with our global recommendation downgrade from RV to UW, that the telecoms are well positioned to offer a better performance than seen in Q418.


Holidays in the sun

Chris Iggo (AXA IM) | Sensible economic and monetary policies don’t necessarily go hand in hand with populism (see the recent sacking of the Turkish central bank head). In a world of more extreme policy agendas, a resort to manipulating currencies could be seen. No-one wants a strong currency now and the costs of devaluation are not really recognised in a low inflationary world. But attempting to override markets in setting the international price of currency is a difficult policy, especially if done unilaterally.

European brochure norm comes into effect: end to more burdensome regime for Spanish issuances

From 21 July the regulator (CNMV) will no longer require an expert report on the emission of bonds or structured products aimed at retail investors to ensure the accuracy of the associated brochure. The new European norm on brochures will come into effect on 21 July, so the need for this requirement, which CNMC decided to seek in 2005 for Spanish shares, will disappear.

Moody’s focuses on the Spanish banking sector and its rate of reduction of NPLs

Link Securities | The ratings agency Moody´s downgraded its rating outlook for the Spanish banking sector as a whole from “positive” to “stable”, as a consequence of the banks´ slowing reduction of non-performing loans (NPLs).
The agency expects fewer disinvestments in 2019 than registered in 2018, when banks accelerated the sanitisation of their balance sheets.