MEDIASET BOARD APPROVES THE GROUP S 2013 FINANCIAL STATEMENTS

Transcription

1 PRESS RELEASE MEDIASET BOARD APPROVES THE GROUP S 2013 FINANCIAL STATEMENTS In an economic climate that remains negative, the Mediaset Group generated cash, produced profit and reduced its indebtedness without abandoning investments Consolidated Results Net revenues: 3,414.7 million Operating profit (EBIT): 246,3 million Net profit: 8.9 million Italy Net revenues: 2,588.5 million Total costs: down to 2,412.4 million Operating profit (EBIT): million Free cash flow: million Ratings: Canale 5 Italy s leading channel in prime time and the 24 hours in the commercial target Mediaset channels confirm their leadership in all time bands among the audience in the age range Premium pay TV revenues: up to million Spain Net revenues: million Operating profit (EBIT):): 70.2 million Ratings: Telecinco Spain s leading day across the whole day The Board of Directors of Mediaset, which met today under the Chairmanship of Fedele Confalonieri, has approved the annual report of Mediaset SpA and the consolidated annual report of the Mediaset Group for the year ended 31 December MEDIASET GROUP: CONSOLIDATED RESULTS Performance in 2013 can be summarised as follows: The consolidated net revenues of the Mediaset Group came to 3,414.7 million, compared with the 3,720.7 million of The Group s generated EBIT of million, compared with a loss of million the previous year. Net profit came to 8.9 million, compared with net loss of million in Thanks to the effectiveness of cost cutting efforts, the Group s net debt fell from 1,712.8 million on 1 January 2013 to 1,459.0 million on 31 December

2 A BREAKDOWN OF RESULTS BY GEOGRAPHIC AREA Italy Consolidated net revenues amounted to 2,588.5 million, compared with 2,834.9 million in In particular: The trend in advertising sales was affected by the continuing recession that also in 2013 led, in line with Nielsen end-of-year projections, to a marked slump in advertising spending. All of the main media, including the internet, recorded a downturn compared with the previous year. In this context, overall advertising sales by Publitalia '80 and Digitalia '08 amounted to 2,061.5 million, a fall of 11.4% on 2012 ( 2,327.2 million), a less marked fall than the advertising market as a whole. Mediaset Premium revenues: sales generated by Premium s characteristic business subscriptions and pre-paid cards amounted to million, (+6.6% on the million of 2012). This decidedly positive result was in contrast with the negative performance of the pay TV market as a whole due to the continuing fall in consumer spending. EI Towers revenues: were stable at million ( million in 2012). Efficiency measures: the savings generated from television activities totalled million, compared with the cost base of The figure is significantly ahead - by a whole year - of the 2012, the target of 450 million of the three-year efficiency plan ( ) efficiency plan. Total operating costs, including amortisations, fell to 2,412.4 million, compared with 3,118.9 million in 2012 (-22.7%). This figure is of considerable significance that is the result of precise efforts that have not impacted either the quantity or quality of the television product offered to viewers EBIT came to million, compared with a loss of million in Pre-tax profit came to million, (compared with a loss of million in 2012, while net profit came to 7.3 million, compared with a net loss of million in The difference between pre-tax profit and net profit highlights a tax rate that is disproportionate with current applicable rates. The gap is the result of a marked difference (of around 27 million) in resources used for the closure of tax disputes. Free cash flow during the period came to million, essentially in line with the figure for 2012 ( million) despite the aforementioned crisis in the market. Ratings: in an increasingly competitive television market, Mediaset channels kept a firm grip on their leadership in the commercial target in all time bands: 36.7% in prime time, 35.1% in the 24-hours. Canale 5 was the most popular channel in the commercial target both in prime time (17.2%) and the 24-hours (16.1%). Development actions: during the year, significant investments were made in film, television production and new distribution technology. Of particular note were the films Sole a catinelle, which achieved all time box office takings for an Italian film, and La Grande Bellezza which won the 2014 Oscar for Best Film in a Foreign Language, the launch of a new free thematic channel ( Top Crime ) and the brand new offer of content in streaming online ( Infinity ) with over 5,000 on-demand titles available. 2

3 Spain In 2013 Gruppo Mediaset España generated consolidated net revenues of million, compared with million of the previous year (-6.8%). Gross television advertising revenues came to million, compared with the million of EBIT for the period came to 70.2 million, compared with 48.8 million in Net profit amounted to 4.2 million, compared with 50.1 million in Ratings: In 2013 the TV channels of Gruppo Mediaset España maintained their absolute leadership in the commercial target in the 24-hours with a 31.0% share. Telecinco also confirmed its position as the most popular channel in the whole day (13.5%). RESULTS OF THE PARENT COMPANY: MEDIASET S.p.A. The parent company Mediaset S.p.A. ended the year 2013 with a net loss of 16.5 million, compared with a net profit of million in FORECAST FOR THE YEAR The trend in the advertising market in the first months of the year reflects greater general macroeconomic stability. There are still not, however, perceptibly clear signals of a recovery in domestic demand and consumer spending. In line with this scenario, in the first three months of 2014, advertising revenues in Italy remained slightly negative, with a marked improvement in the month of April. From the advertising point of view of the business strategy of Publitalia has focused on defending profitability and avoiding the tendency to push down prices adopted by some competitors. This strategy, even if it were to result in a temporary shortfall in market share in TV, will ensure a more rapid and solid recovery as soon as the expected growth of the advertising market begins to materialise. In this context, the Group s primary objective in 2014 is to strengthen market share in Italy and Spain, with particular attention to the long-term sustainability of the advertising market. Despite the still uncertain economic and competitive environment, even in 2014 the Group s attention is focused on the multi-platform development of contents, the strategic development of the pay TV business, as well as operational efficiency, cash generation and medium term profitability, supported by the structural reductions in operating costs made over the past two years. The results of the Group in 2014 will be affected by the performance of the advertising markets in Italy and Spain, for which at the moment it is very difficult to produce reliable estimates. The executive responsible for the preparation of the Mediaset S.p.A. accounts, Luca Marconcini, declares that, as per para. 2 art. 154-bis, of the Single Finance Bill, that the accounting information contained in this press release corresponds to that contained in the company s books. 3

4 REMUNERATION REPORT The Board of Directors has approved the Remuneration Report pursuant to Art. 123-ter of the Consolidated Law on Finance and the implementation provisions issued by Consob. At the forthcoming Annual General Meeting the Board will recommend the approval of the first section of the report, outlining the company's policy on the remuneration of directors and executives with strategic responsibilities, in compliance with the provisions of Art. 123-ter of the Consolidated Law on Finance. Cologno Monzese, 25 March 2014 Department of Communications and Media Relations Tel Fax Investor Relations Department Tel Fax

5 Highlights from the consolidated income statement (*) in m Consolidated net revenues 3, ,720.7 Labour costs Procurement, services and other costs 1, ,826.9 Operating costs 2, ,451.2 Gross operating profit (EBITDA) 1, ,269.5 Amortisation of rights ,329.8 Other amortisation and depreciations Total amortisation and depreciations 1, ,504.9 Operating profit (EBIT) (235.4) Financial income /(charges) (73.2) (60.8) Income/(charges) from investments (72.9) 8.8 Profit before taxation (287.4) Income taxes (77.4) 37.6 Net profit from operations 22.8 (249.8) Net result from discontinued operations - - Minority interest (profit)/loss (13.9) (37.3) Profit/Loss for the Mediaset Group 8.9 (287.1) Highlights from the consolidated balance sheet (*) in m 31/12/ /12/2012 Television and film rights 1, ,284.1 Goodwill Other tangible/intangible assets 1, ,311.7 Financial assets Net working capital & other assets/liabilities 97.9 (258.2) Severance indemnity reserve (92.5) (97.9) Net invested capital 4, ,677.9 Net Group assets 2, ,121.9 Shareholders equity and minority interest Net assets 2, ,965.1 Net financial debt 1, ,