MEDIASET REGISTERED LOSSES BUT EXPECTS GOOD RESULTS AT THE END OF THE YEAR

The Board of Directors of Mediaset has presented the company's Interim Report of the first half of the year where they indicate that after the first two months of the year, that were characterised by a markedly positive performance, the subsequent months saw a big drop in advertising sales, in both Italy and Spain, following the introduction of restrictive lockdown measures.

Net revenues amounted to EUR 1,166.4 million, compared with the EUR 1,482.5 million in the first half of 2019. In Italy, total revenues came to EUR 791.3 million, compared with EUR 1,002.2 million in the same period last year. In Spain, revenues came to EUR 375.1 million, compared with the EUR 482.5 million in the same period of the previous year.

Despite these numbers, the television sector demonstrated positive signals: TV ratings during the lockdown period saw increases of up to 50% compared with the same period of 2019. A clear indication of the centrality of TV in the life of citizens which, from January to June 2020, saw Mediaset record the most significant increases in the audience for both news and current affairs and entertainment programmes which continued to be broadcast even during the months of total lockdown: a scheduling mix that fully responded to and satisfied public demand.

The positive performance of television, as well as demonstrating the company's broadcasting know-how, did not affect Mediaset's capacity to pursue its business objectives: in fact, the results for the first half of the year show that there was not a fall proportional to the fall in advertising revenues. The impact of the lockdown was decisively mitigated by prompt action to reduce cost: a strong reaction which led to an increase in cash generation and a consequently marked reduction in the level of indebtedness.

FORECAST FOR THE YEAR

In the July-August period, the trend in the Group's advertising revenues continued to improve, reflecting the gradual normalisation of the market and the general economic situation after the lockdown.

In particular, in Italy, from July advertising revenues returned to positive territory compared with the same period of the previous year, also without considering the benefits in the month of August of the availability of some of the matches in the final stages of the UEFA Champions League.

In Spain, in a period that continued to be conditioned by unpredictable trends in the level of infections, the trend in advertising revenues showed a net improvement compared with the fall recorded in the second quarter, with a result which, despite still being down on the first half of 2019, was nevertheless significantly contained.

In September, along with the launch of the new TV season, initial signals in Italy regarding advertising revenues are positive, even though the general market context remains extremely fragile and with very limited mid-term visibility.

Provided that the health emergency in the coming weeks does not demand further restrictive measures and the expected economic rebound in the overall economy proceeds, the Groups results in the second half of the year are expected to gradually improve compared with the first six months.