Renta 4 | Mediaset España has issued a communiqué on its results for July and August, again characterised by cost flexibility (savings of almost 20 million euros because of the absence of the world cup) and the reinforcement of incomes not depending on conventional publicity.
In any case, there is no mention of the evolution of the TV publicity market during the summer months, which would have been weak and is the main focus of attention for the year. For 2019 we expect a fall in the TV advertising market of -3% (downgraded from the previous -1.5%). We expect a positive reaction in the share price, getting close to the price of the execution of the separation rights (6.5444 euros/share). We consider it necessary that there are signs of stabilisation in the market to hold a more positive posture. Additionally, in the short term uncertainty will continue over the merger agreement with Mediaset Spa as Vivendi has launched a judicial challenge. O.P. 6.76 euros/share. Maintain.