Share Price Down Sharply at Mediaset

MILAN: Mediaset saw its share price drop dramatically after reporting flat revenues and lower profits for the first nine months of the year against a backdrop of political uncertainty in Italy.

Revenues for the period were down 0.17 percent to 3 billion euros, with EBIT down to 368.2 million euros from 534.7 million euros and net profit down from 192.6 million euros to 166 million euros.

Italian revenues were down to 2.3 billion euros, with free-to-air ad revenues down almost 3 percent to 1.9 billion euros. The company did see an increase in revenues from its Mediaset Premium service, which rose 16.5 percent to 449.2 million euros. Net profit for the Italian business fell from 207 million euros to 121.2 million euros.

The operations in Spain delivered revenues of 731.6 million euros, a gain on the year-ago period’s 622.4 million euros, with TV ad revenues up to 706.7 million euros. Net profit for the Spanish business was 107.7 million euros.

Looking ahead, the company notes: "In the light of the consolidated results at the end of the first nine months and expectations for both television advertising sales and the performance of other business areas in the Group, the company expects to end 2011 with a consolidated net profit that is lower than that recorded in 2010."

The news came just a few hours before Silvio Berlusconi announced his intention to resign as PM, a move some analysts said could put the company at a disadvantage.