In This Article:
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Revenue: Consolidated revenue up almost 8% compared to 2023.
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EBIT: Grew 13% compared to last year, reaching EUR136 million.
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Net Profit: Increased by almost 20%, reaching EUR104.7 million.
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Cash Generation: Generated EUR241 million in cash in the first half.
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Net Financial Position: Ended the first half with EUR554 million.
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Free Cash Flow: EUR223 million, with free cash flows from activities amounting to EUR344 million.
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Advertising Performance: Overall MFE total results up 7.2%, with MFE Italy up 8.6% and MFE Spain up 6%.
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Operating Segments: Italy's EBIT increased by more than 50% year on year, reaching almost EUR60 million. Spain's EBIT reached EUR76 million.
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Financial Charges: Negative for EUR8 million in the first half, better than last year.
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CapEx Guidance: Total CapEx around EUR420 million, with EUR270 million in Italy and EUR140 million in Spain.
Release Date: September 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MFE-MediaForEurope (WBO:MFE2) reported an 8% increase in consolidated revenue compared to the previous year, driven by better-than-expected advertising collections and excellent performance in other revenue streams.
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The company achieved a 13% growth in EBIT and a 20% increase in net profit, showcasing strong financial performance.
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MFE-MediaForEurope's cross-media approach has led to a significant increase in clients investing in multiple media platforms, with Italy seeing a rise from 66% in 2019 to 78% in 2023, and Spain from 30% to 70% in the same period.
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The integration process between Italy and Spain has been successful, with cost synergies expected to be fully realized by the end of 2024 and revenue synergies anticipated to exceed initial targets in the coming years.
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The company's digital strategy is yielding positive results, with significant growth in digital inventory and higher revenue per hour for digital content compared to linear content.
Negative Points
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The advertising market visibility remains low due to geopolitical instability, including conflicts in Ukraine and the Middle East, as well as the upcoming US presidential election.
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The last quarter of the year is expected to be challenging, especially in Italy, due to strong advertising revenue performance in the same period of 2023 and the absence of Champions League broadcasting rights.
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Despite the positive economic outlook in Italy and Spain, fluctuations in consumer confidence indices pose a risk to future performance.
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The OTT (over-the-top) platform penetration in Italy and Spain shows a paradox of high penetration but low time spent viewing, indicating a structural constraint on OTT offerings.
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Inflation and increased labor costs in both Italy and Spain have put pressure on maintaining cost control, despite the company's efforts to manage expenses efficiently.