Mediaset España posted revenues of €491.1 million for the first half and EBITDA of €159.1 million.
Berenberg noted that while Mediaset’s Q2 performance was an improvement on Q1, with the broadcaster benefiting from its coverage of World Cup football, its 4.1% growth in advertising revenue was disappointing.
The analyst said they now expected TV advertising revenue growth of only 0.2% for the full year, with the weak advertising market introducing an element of risk for investors.
Rival Atresmedia saw a 2.3% rise in revenues on Q2 on a reported basis, but a reduction of 0.3% excluding the impact of its acquisition of Smartclip, with advertising revenues down 0.6%.
Berenberg said that the company had underperformed a relatively weak advertising market and had made insufficient cost cuts to maintain its EBITDA, which was down 10% to €68 million.
The analysts said that an improved performance would depend on Atresmedia being able to raise prices in the second half.
Berenberg said that “the Spanish advertising market continues to disappoint”, justifying lack of confidence from investors.
The analysts maintained ‘hold’ recommendations for both stocks.