2007 Annual Report

2007 Annual Report –Report on Operations
ability rose from 27.7% in 2006 to 28.1% in 2007, still the best performance at the corporate consolidated
level among continental broadcasting companies;
� Earnings before tax and minority interest totalled EUR 1095.4 million, up sharply from EUR 1,019.6
million in 2006;
� Net profit for the Group totalled EUR 506.8 million against EUR 505.5 million in 2006, due to a significant
increase in the tax rate mainly attributable to extraordinary charges concerning the re-adjustment of advanced
tax assets to the lower tax rates enforced starting from 2008;
� As of 31 December 2007, the Mediaset Group had 6,332 employees in the companies included in the consolidation
area (5,839 employees as at 31 December 2006);
The consolidation from the second half year of the Medusa Group generated higher consolidated net revenues for a
total amount of EUR 82.7 million and increased EBIT by EUR 11.0 million. The net equity evaluation of the 33.3%
shareholding held in Edam Acquisition I Coöperatief BV, a company that controls the Endemol Group, instead had a
negative impact on the consolidated net result equal to EUR – 2.3 million. Such effect was attributable, against a posi-
tive trend of Endemol’s operating activities, to the charges concerning the acquisition and, in particular, EUR 6.2 mil-
lion for the amortisation of the intangibile assets identified upon the provisional allocation of the price paid.
� The consolidated net financial position increased from EUR -568.3 million as at 31 December 2006 to
EUR -1,208.8 million as at 31 December 2007. The consolidated net financial debt also reflected liabilities
resulting from the payout of dividends by the parent company and the subsidiary Telecinco for a total of
EUR 644.7 million, expenses equal to EUR 628 million borne for the acquisition of the Medusa Group and
for the capitalization of Edam Acquisition in the context of the operation for the acquisition of Endemol ac-
complished by the latter. In 2007, free cash flow, calculated on the gross amount of gains and losses from
dividend payouts, equity investments and disposals of shares and treasury shares, totalled EUR 666.7 mil-
lion, against EUR 363.6 million in 2006. In the previous fiscal year costs were borne, comprehensively
equal to approximately EUR 290 million, for the acquisition and development of the DVB-H technology-
based mobile digital television and the acquisition of the options on encrypted rights of some important
“Serie A” football clubs for the 2009/2010 season.
� Mediaset S.p.A., the holding company, closed the fiscal year with a net profit of EUR 481.6 million against
EUR 522.4 million of the previous year.
Breakdown of data by Geographical Area:
Italy:
� Mediaset gross television advertising collection grew in 2007 by 1.1% after a year marked by steady
growth that hit the record levels in the last 4 months with double-digit growth in advertising revenue.
� Mediaset Premium revenues peaked at EUR 225.9 million, more than twice the figure reached in 2006.
� Consolidated net revenues totalled EUR 3,002.1 million, showing a 9.1% increase on a Y/Y basis and a
7% growth excluding the effect of consolidation of the Medusa Group.
� Television costs dropped by 0.8%; net of the extraordinary revenue resulting from the re-adjustment of
the post-employment benefit plan as at 31 December 2006. The Y/Y increase was extremely limited and
equal to 0.4%.
� The Mediaset Networks achieved a comprehensive, 24 Hours and Prime Time aggregated average audience
share in 2007 equal to 40.6%, up from the previous year and consolidating for the seventh consecutive
year its leadership in relation to the 15-64 year old commercial target.
� EBIT totalled EUR 663.8 million, consistently growing against EUR 597.1 million of the previous year; operating
profitability rose from 21.7% in 2006 to 22.1% in 2007.
� Net proft totalled EUR 330.8 million, dropping against EUR 347.2 million in 2006 due to the already mentioned
extraordinary effect on the tax rate.
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