UPDATE: Mediaset Sees 2010 Italy Ad Revenue Up 5%

Italy's largest commercial broadcaster Mediaset SpA (MS.MI, MDIUY) expects its Italy advertising revenue to grow by about 5% in 2010, its chief executive, Giuliano Adreani, said Monday.

Speaking to reporters on the margins of an event, Adreani said the growth rate for the year would be in line with the one for the first nine months.

"(The year) 2009 was a difficult year and the first months of 2010 closed with a rebound of 5%," he said. "It was a result that was reached by regular broadcasting but we are also doing well with digital. We are going towards the close of the year with the same result."

Adreani said it was too early to forecast how 2011 would play out.

Mediaset has previously said it expected revenue growth in its home country to grow at the same pace in the first 10 months with expectations for the trend to continue for the final two months of the year.

Mediaset, owned by the family of Italian Prime Minister Silvio Berlusconi, faces growing competition in its home market from News Corp's (NWS, NWSA) satellite unit Sky Italia, and it is struggling to defend its dominant position in the free-to-air TV market.

News Corp owns Dow Jones & Co, publisher of this newswire and The Wall Street Journal.

-By Gilles Castonguay, Dow Jones Newswires, [phone]; [e-mail].