Mediaset’s new pay-TV unit now operational
December 2, 2014
From Branislav Pekic in Rome
Mediaset Premium Spa, the new unit within which all pay-TV activities of Italy’s Mediaset Group have been placed, is now operational.
A total of 267 employees already working for RTI/Mediaset will be transferred to Mediaset Premium Spa. The balance sheet, dated 30 September 2014, shows a total turnover of more than €2 billion and EBIT for the last quarter estimated at €19 million. The number of subscribers amounts to 1.72 million, with break-even expected in 2017. According to data from the end of 2013, Mediaset Premium had 19 per cent of the Italian pay-TV market and growing, while leader Sky Italia had 78 per cent.
The management structure of the new company consists of CEO Franco Ricci to whom will report the director of Content Yves Confalonieri; commercial director Marco Rosini; director Technology Eugenio Pettazzi and director Information Systems Domenico Alesssio. The Chairman of the Board is Marco Giordani.
Last July, Telefónica signed a binding commitment to take up – by the end of December – 11.1 per cent of Mediaset Premium (the remaining 88.89 per cent will remain in the hands of RTI/Mediaset) for a total investment of €100 million, reflecting a total equity value of the new company – on 30 September – close to €900 million.
On that occasion, RTI/Mediaset emphasised that the imminent entry of the Spanish partner in the corporate structure of Mediaset Premium was only the beginning of a wider process of opening the Italian pay-TV operator to further international partners.
In recent months, there have been rumours on potential interest by financial or strategic investors, including Vivendi’s possible interest in taking over Telefónica’s 11 per cent stake in Mediaset Premium.