The revenues of the main TV operators in Italy during the period 2012-2016 increased by about €220 million (+2.5 per cent) to €8.98 billion, while the growth in the period 2015-2016 was 7.5 per cent.
According to a report published by Italy’s Communications Regulatory Authority (AgCom), the positive performance is mainly due to the increase in revenues from the TV licence fee (+€180 million from 2012 to 2016) and pay-TV (+€70 million), while advertising revenue, although increasing in 2015, decreased by €160 million over the five-year period.
Over the past year, there has been a growth in advertising (+5.5 per cent), pay-TV (+3.2 per cent) and revenues from the TV licence fee (+16.6 per cent).
EBITDA dropped from 24.9 per cent of revenues in 2013 to 18.3 per cent in 2016, due to both falling revenue and an increase in operational and personnel costs.
EBIT went from +1.6 per cent in 2013 to -3.5 per cent in 2016, mostly because pubcaster RAI saw a significant drop in advertising and sustained high costs for the transmission of major sports events.
The net result has seen a downward trend, especially in 2012, when total losses amounted to €568 million, largely due to RAI, and the TV sector has not been capable of generating profits.