Mediaset touches the Spanish park again. The owner of channels such as ‘Telecinco’ or ‘Cuatro’ returns to the national stock market after a month and a half of absence in which it has ceased to be a ‘made in Spain’ firm to operate as a company with headquarters in the Netherlands. It also does so by renaming itself MFE-Mediaforeurope after its parent company has absorbed it to create a pan-European media giant with tentacles that stretch across Italy, Germany and Spain. Thus, return within a ‘holding’ that doubles the price registered for this value before acquiring ‘Dutch’ nationality and listing on Euronext Amsterdam.
The group originally founded as ‘Tele 5’ left the Madrid market on May 2 after 19 years with a market capitalization of 905 million euros, at a rate of 2.89 euros per share. Six weeks later, he returns integrated into a media empire valued at 1,834 million, although with the most diluted share price (0.56 euros). All these titles fall within the category of ‘class A’, which are those that will be negotiated in the Madrid market and will guarantee one voting right for each unit.
The nuance is important, since the control of the main shareholders is guaranteed thanks to the so-called ‘loyalty shares’, which give them greater political power within the conglomerate. At present, the group is 49% controlled by the Berlusconi family through Fininvest, as well as by the French magnate Vincent Bolloré, who holds slightly less than 24% of the capital divided between Vivendi (4.4%) and Simon Trustee (18.5%).
For its inclusion in the Spanish stock market, the closing of this Tuesday in Milan will be taken as a reference, for which it will debut renamed as MFE at a price of 0.56 euros, after the ‘rally’ of almost 20% experienced in the last two sessions, which lead it to fly more than 51% in the annual calculation (after absorbing Mediaset España) and is placed at levels of twelve months ago. In this way, in its debut 2.0 it will start with a price similar to that of NH (1,950 million) and above Ibex firms such as Solaria (1,650 million) or Meliá (1,400 million), with data at the close of the markets yesterday.
It should be remembered that the old Mediaset España abandoned the Spanish stock market reference in mid-2022 and was replaced by Almirall, which is now worth 1,491 million, 400 less than the new member. With this movement, it is even ahead of Ferrovial, which will be excluded from BME this Thursday to give entry to a new Parent Company, Ferrovial SE, on Friday. In less than a week, the Spanish stock market will have two originally Spanish firms that come with a new name from Amsterdam.
Uncertainty looms over falling revenue
The new giant, which also owns around a quarter of the German media conglomerate ProsiebenSat.1, has seen its net profit triple between January and March of this 2023, up to 10.1 million euros, a figure that it gained weight due to the increase in its participation in Mediaset España, which went from 55% to 84% in that period before merging it. However, the impact of this operation will be fully reflected in the quarterly accounts for April and June.
Doubts fall on revenue, which has fallen slightly from 654 million in the first quarter of 2022 to 646 million. In this sense, the drop in advertising billing in Spain stands out, from the 175 million at the start of the previous year to the 166 obtained in the first three months of 2023 in a context that showed that it has been “difficult”.
With Sálvame -the star program of Telecinco and of the group at a national level- coming to an end and with the expectation of whether the two eldest children of the late Silvio Berlusconi -Marina and Pier Silvio, current CEO of MFE- will finally take the reins of the group, Analysts who follow the stock are cautious about the future of this company, which is trading 7% above the ‘Bloomberg’ consensus estimate.