MFE-Mediaforeurope (MFEB) Q3 2024 earnings summary

Executive summary

• Consolidated net revenues for the first nine months of 2024 reached €2,004.7 million, up 7.7% year-over-year, driven by strong advertising revenues in both Italy and Spain.

• Net profit increased to €96.2 million, up 35.6% from €71.0 million year-over-year; excluding ProsiebenSat1, net profit rose 38.7%.

• EBIT improved to €126.6 million, up 28.7% year-over-year, reflecting better profit margins and cost management.

• Free cash flow was €318.8 million, supporting a significant reduction in net financial debt to €718.6 million at 30 September 2024.

• Growth was primarily driven by Italian operations, validating the cross-media strategy and offsetting a challenging international context.

Financial highlights

• Gross advertising revenues grew 6.5% to €1,943.3 million; net advertising revenues rose 6.3% to €1,708.9 million.

• Other revenues increased to €295.8 million, mainly from third-party digital and DOOH sales.

• Total costs rose to €1,878.1 million, mainly due to expanded consolidation and content renewal in Spain.

• Group net financial position improved to (€718.6 million) from (€877.5 million) as of 30/09; adjusted net financial debt (excluding IFRS 16 liabilities) was €613.1 million.

• Free cash flow rose to €318.8 million from €285.8 million year-over-year.

Outlook and guidance

• Full-year consolidated net profit for 2024 is expected to exceed 2023’s €217.5 million (excluding P7S1 earnings).

• Advertising revenues in Italy are projected to grow over 6% for the year, with Spain expected to match prior-year levels.

• Annual EBIT and free cash flow are forecasted to show significant progress over last year.

• Full-year advertising revenues expected to grow around 5%, exceeding prior expectations.

• Spanish market saw a post-summer slowdown; advertising revenues expected to be in line with 2023.