MFE-MEDIAFOREUROPE Reports Strong Q1 2024 Results, Boosted by Advertising Growth

 MFE-MEDIAFOREUROPE Reports Strong Q1 2024 Results, Boosted by Advertising Growth
The Board of Directors of MFE-MEDIAFOREUROPE N.V. (MFE) Group, chaired by Fedele Confalonieri, unanimously approved the interim financial report for Q1 2024. Despite a challenging international economic and geopolitical environment, the Group saw strong growth in advertising sales, particularly in Italy, continuing the positive trend from late 2023. Spain also showed improvement with ongoing renewal efforts.

Key results for Q1 2024 include:

Consolidated net revenues of €699.8 million, up 8.2% from Q1 2023.
Gross advertising revenues rose by 6.3% to €669.4 million.
Other revenues increased to €111.8 million due to the consolidation of Mediamond.
Total operating costs were €676.3 million, with stable growth below inflation.
Operating profit (EBIT) of €23.5 million, up 21.8%.
Consolidated net profit of €16.8 million, up 66.5%.
Free Cash Flow grew by 34% to €213.0 million.
Consolidated net financial debt reduced to €676.9 million from €902.8 million as of December 31, 2023.
Advertising revenue performance:

Italy: Advertising revenues grew by 5.7% to €489.2 million, supported by strong viewership.
Spain: Advertising revenues increased by 8.0% to €180.2 million, with a recovering TV advertising market.

For the full year, the Group expects continued strong advertising sales in both Italy and Spain, with a growth of 7.1% in the first four months of 2024. MFE aims to maintain a positive consolidated EBIT, net result, and free cash flow, depending on H2 advertising sales. The Group remains focused on its investment in P7S1, anticipating improvements in the DACH region's advertising environment and efficiency measures leading to better economic results, cash generation, and reduced debt in 2024.