Mediaset Shares Rise After Strong 3Q Marked by Advertising Rebound – MarketWatch

By Mauro Orru

Shares in Mediaset NV rose Wednesday after the Italian broadcaster posted better-than-expected results for the third quarter, with advertising revenue for the rest of the year now expected to benefit from a seasonal upturn in demand from Black Friday and the Christmas ho…….

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By Mauro Orru

Shares in Mediaset NV rose Wednesday after the Italian broadcaster posted better-than-expected results for the third quarter, with advertising revenue for the rest of the year now expected to benefit from a seasonal upturn in demand from Black Friday and the Christmas holidays.

At 0925 GMT, Mediaset shares were up 6.3% at EUR2.63.

Mediaset, steered by the family of former Italian Prime Minister Silvio Berlusconi, said net profit jumped to 47.1 million euros ($54.6 million) from EUR29.4 million a year earlier.

Earnings before interest and taxes rose to EUR76.3 million from EUR55.9 million, while earnings before interest, taxes, depreciation and amortization rose to EUR190.3 million from EUR184 million, it said.

Quarterly revenue climbed to EUR605.4 million from EUR556.4 million, the company said.

Equita Sim analysts said results are ahead of expectations of EUR30.5 million for profit, EUR62.5 million for EBIT, EUR181.8 million for Ebitda and EUR584.7 million for revenue.

Gross consolidated advertising sales reached EUR534.8 million, confirming a positive trend that Mediaset has seen for five consecutive quarters. Cumulative growth in advertising revenue in Italy was also higher than 2019 levels, the company said.

Mediaset said that in October there was a continuing positive trend for advertising sales in Italy, and that it expects the trend in group advertising revenue to continue thanks to a seasonal upturn in demand from Black Friday and the Christmas holidays.

Citi analysts said Mediaset’s “4Q advertising commentary appears to be ahead of our estimate,” as the U.S. bank expects Mediaset’s fourth-quarter gross advertising revenue to fall 2% from 2020 levels but grow 1% from 2019.

For the year, Mediaset said it expects a decisive strengthening in EBIT, net profit and free cash flow compared with figures from the past two years.

Write to Mauro Orru at [email protected]; @MauroOrru94


Source: https://www.marketwatch.com/story/mediaset-shares-rise-after-strong-3q-marked-by-advertising-rebound-271636537186

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