MFE-Mediaforeurope (MFEB) Q1 2025 earnings summary

Executive summary

• Consolidated net revenues for Q1 2025 were €671.8M, down 4.0% year-over-year from €699.8M.

• Operating Result (EBIT) was €6.3M, a sharp decline from €23.5M in Q1 2024.

• Group net profit rose to €51.4M from €16.8M, mainly due to a €63.1M gain from the partial reversal of goodwill on the ProSiebenSat.1 investment.

• Free cash flow increased 19.1% year-over-year to €253.6M, reducing net financial debt to €460.9M from €691.5M at year-end 2024.

• Operational cost reductions in Italy contributed to improved profitability and efficiency.

Financial highlights

• Gross advertising revenues were €662.2M, down 1.1% year-over-year; net advertising revenues were €580.6M, down 1.3%.

• EBITDA was €114.8M, down from €140.4M year-over-year.

• Profit before tax was €51.6M, up from €22.3M in Q1 2024.

• Adjusted group net profit (excluding ProSiebenSat.1 impacts) was €6.8M, down from €16.3M.

• Investments in Q1 2025 totaled €189.6M.

Outlook and guidance

• Advertising revenues in Italy grew over 2% in April and May, exceeding expectations.

• Spanish advertising sales remain negative for the first five months, reflecting a tough comparison with strong prior-year growth.

• Group expects a strongly positive operating result, net result, and free cash flow for the full year, contingent on improved economic conditions in H2.

• Secured free-to-air TV rights for the Club World Cup in both Italy and Spain for summer 2025.

• Performance will depend on macroeconomic conditions, especially in the second half of 2025.