Mediaset Plans to Keep Dividend Unchanged

ROME—Mediaset SpA, Italy's biggest private TV broadcaster by market share, said it plans to pay an unchanged dividend on 2015 results compared with the year earlier, despite net profit tumbling 83% due to a special tax charge.

In a statement, Mediaset said Tuesday net profit slipped to €4.0 million ($4.5 million) from €23.7 million in 2014 after taking a €24.9 million special tax charge. If it excluded the one-off charge, net profit would have been €29.0 million, it added.

Net consolidated revenue gained 3.2% at €3.52 billion as advertising picked up after Italy emerged in 2015 from its longest postwar recession. Higher revenue strengthens hopes of a trend reversal after years of declines.

Domestic advertising revenue in the first two months of 2016 rose at levels posted in the last quarters of 2015, Mediaset said. In 2015 third quarter, advertising revenue in Italy grew 3.1%.

The Milan-based company, which is controlled by the family of Italy's former prime minister, Silvio Berlusconi, said it would propose to shareholders a dividend of €0.02 per share on 2015 earnings. The dividend is unchanged from the previous year.

Mediaset said its earnings before interest and tax, EBIT, fell 7% to €231.4 million, while net debt lowered to €859.4 million as of December, compared with €861.3 million a year earlier.

Mediaset is spending on programs aimed at enticing viewers to its pay pay-TV platform, such as the Champions League soccer rights.

Monday, Mr. Berlusconi told an Italian radio station that France's Vivendi SA is interested in working with Mediaset on content.

Mediaset shares closed 1.2% higher at €3.78, outperforming Italy's unchanged benchmark index.

Last week, a Milan appeals court sentenced Mr. Berlusconi's son, Mediaset's Deputy Chairman and Chief Executive Pier Silvio Berlusconi, to jail for tax evasion over broadcasting rights allegedly bought by Mediaset through offshore companies. Mediaset denied any wrongdoing by its executives.

Write to Liam Moloney at [e-mail]

(END) Dow Jones Newswires

March 22, 2016 14:55 ET (18:55 GMT)

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