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

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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.

For Bankinter analysts:

Results beat the consensus expectations, but which show a significant weakening in income. Analysis of the figures shows a fall of about -6% in advertising revenues. Logical in light of the fall in advertising expenditure published by Infoadex during the half year. In concrete, -5.6% in television and 1.9% in television and the digital environment. All of this weighs despite the company still being a leader in audience (28.6% share in total individual total day vs 26.7% AtresMedia) and in publicity (32.6% share in digital and 43.2% in television). However, the company´s traditional operational efficiency has led to a greater fall in operational costs and, therefore, an improvement in margins. The balance sheet continues to show significant solidity. Mediaset presents a positive net cash flow (87.3 M€, +7.2% yoy), which allows it to maintain high levels of shareholder remuneration through dividends and share buy back. Returns per dividend are 5.5%. In short, better figures than expected but which show the difficulties the traditional media sector faces. The entrance of major internet content companies implies that publicity will be re-directed towards this new and powerful market sector and gain high levels of penetration.”

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.