MFE-Mediaforeurope (MFEB) Q2 2024 earnings summary

Executive summary

• Net profit increased by 20.2% year-over-year to €104.7 million, with EBIT up 12.7% to €136.3 million and consolidated net revenues rising 7.8% to €1,476.5 million, driven by strong advertising growth in Italy and Spain.

• Free cash flow was robust at €223.4 million, supporting a significant reduction in net financial debt to €662.0 million from €902.8 million at year-end 2023.

• The Board approved a €0.25 per share dividend, totaling €140.1 million, paid in July 2024.

• Integration between Italy and Spain delivered cost and revenue synergies, with further opportunities identified.

Financial highlights

• Consolidated net revenues: €1,476.5 million (+7.8% year-over-year); like-for-like growth was 5.6%.

• Group net profit: €104.7 million (+20.2% year-over-year); EBIT: €136.3 million (+12.7%).

• EBITDA: €357.0 million (+2.1% year-over-year); gross advertising revenues: €1,434.2 million (+6.7%).

• Free cash flow: €223.4 million; net financial debt: €662.0 million (down from €902.8 million at 31 Dec 2023).

• Investments in fixed assets: €254.2 million; workforce increased to 5,184 employees.

Outlook and guidance

• Full-year guidance reconfirmed, with positive EBIT, net profit, and free cash flow expected, though visibility remains low due to geopolitical and macroeconomic uncertainties.

• Free cash flow for 2024 expected between €300–350 million, dependent on Q4 advertising market.

• Advertising revenue in the first nine months of 2024 remained above expectations, despite not holding rights to major sporting events.