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Telecinco's profit down 77% -
Telecinco's profit down 77%
Written by Iñaki Ferreras
Sunday, 28 February 2010 08:05
Spanish broadcaster Telecinco, backed by Italy’s Mediaset, reported poor results for 2009 but even so, the company ended the year in the positive.
With earnings before interest and taxation (EBIT) of €122.78 million and net adjusted profit of €88.84 million, the channel reported net profit for 2009 of €48.44 million, a drop of 77% compared with 2008. Net profit was lower due to its stake in production company Endemol which following international regulation had to readjust its results meaning a smaller participation on Telecinco's side.
Telecinco's 2009 benefits will be distributed totally among its shareholders as dividends. This decision doubles the company's promise to share 50% of its profits among its shareholders.
As happened with other TV companies with results made public over the last few days such as Grupo Planeta's Antena 3, Telecinco's policy during 2009 was tight control of its expenses. That led to a reduction in operating costs of 10.3% which allowed it to maintain high profitability ratio resulting in an EBITD of €122.78 million, equal to a margin of 18.7% on net revenues. EBITDA of €130.38 million maintained a margin of nearly 20% although the total figure was 67% down on 2008's.
Telecinco's gross advertising revenues, managed by Publiespaña, amounted to €619.30 million last year while net advertising revenues were €589.79 million.