Italian media group Mediaset posted its worst-ever loss in 2016, amounting to €294.5 million, largely due to the dispute with Vivendi over Mediaset Premium. This is in contrast to a profit of €3.8 million in 2015.

Net revenues were slightly up at €3.66 billion, of which €2.67 billion (+4.8 per cent) were achieved in Italy and €992 million (+2.1 per cent) in Spain. Advertising revenues were positive in both countries – €2.05 billion in Italy and €962.9 million in Spain.

Revenues at pay-TV unit Mediaset Premium were sustained in the first six months (+16.7 per cent) before the Vivendi affair that in the second half led to a slowdown. In particular, in Q3 (the peak season for subscriptions to the Italian Serie A and Champions League) growth was limited to +5.8 per cent.

Due to operational uncertainty, the pay-TV business suffered from April to October 2016, generating an additional loss of €72 million.

Overall, Mediaset expects to see “a positive result” for total advertising revenues in the Q1 2017 and the whole of 2017. Growth should remain moderate in both Italy and Spain.

Share Button

By Expat