WORLD
Berlusconi`s media empire slips to first ever annual loss
Baku, March 28 (AZERTAC). Silvio Berlusconi`s media empire has slipped to its first ever annual loss, as a weak Italian advertising market forced the company to scrap its dividend.
Impairments and provisions, including a write-down on the value of Mediaset`s sports rights, totalled €307.8m, the company said in a statement.
However, the shares jumped more than 10pc on Wednesday morning to €1.70 as Mediaset said it had exceeded its €250m cost-cutting goal. Savings reached €307.2m in 2012. The company has said it plans to cut costs by €450m a year within three years
Sales also beat analysts estimates. Revenues fell 12pc to €3.72bn, against expectations for revenues of €3.59bn.
“Since the start of economic crisis Mediaset`s management has moved quickly on cost cuts,” Claudio Aspesi, an analyst at Sanford Bernstein, told. “But the problem of revenue growth remains unresolved because the traditional advertising market continues to slump and the company probably should diversify more on digital advertising.”
On Tuesday, Marco Giordani, Mediaset`s chief financial officer told a conference call that the company would not pay a dividend for the first time in its history.
Mr Berlusconi, who began his career by selling vacuum cleaners and singing in nightclubs, has risen to become one of Italy`s richest men.
He launched Telemilano, a local cable television station, in the 1970s. The empire now known as Mediaset controls the country`s three largest private TV stations.
Mr Berlusconi, who also owns stakes in Italian football club AC Milan, and movie maker Medusa has built a fortune estimated at $6.2bn (£4.1bn) by US business magazine Forbes.