Bank: “Mediaset in recovery”

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Italian broadcaster Mediaset seems to be recovering well from the past year and the Covid problems.

As revenues for its Q2 were up 66 per cent (against a miserable 2020) but importantly only 2 per cent down on the same period in 2019.

“Mediaset,” says investment bank Berenberg, “[is enjoying] both the top-line recovery and the large cost savings achieved over the last two years due to efficiencies put through as a result of Covid-19 but also structural reductions that were envisaged even prior to the pandemic. This is the strongest H1 in terms of profitability for many years.”

“As far as H2 is concerned, we note that Mediaset faces tough comparables, with both Q3 and Q4 up y-o-y in 2020 (by 4.7 per cent and 3.5 per cent respectively). However, management is confident of delivering 1 per cent growth over the first nine months, which implies close to 6 per cent growth in Q3 advertising (versus 2019). The company also has a base case forecast of 1 per cent growth versus 2019 on a full-year basis, implying another 1 per cent growth versus 2019 in the fourth quarter, or a 2 per cent decline versus 2020. Should momentum be maintained, however, there is potential for this to come in higher. We believe that Mediaset’s decision to acquire the Coppa Italia rights should work in its favour in this respect,” adds Berenberg.


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