Cao Mfe after Prosieben’s Warning | EUROtoday

Listen to the audio model of the article

(Il Sole 24 Ore Radiocor) – Negative session for the Mfe-MediaForEurope group (Mfe A and Mfe B) after the revenue warning of Prosiebensat1 Media. The German subsidiary has reported that the 2025 adjusted Ebitda will cease at round 405 million euros, beneath the 420 million set final November because the minimal restrict of the vary.

The German broadcaster – which since October has been led by CEO Marco Giordani, former CFO of Mfe and Pier Silvio Berlusconi’s trusted man – revealed, on the night earlier than preliminary outcomes for the 2025 monetary 12 months (the ultimate ones will probably be launched on 26 March 2026) highlighting a generalized contraction in investments in tv promoting in Germany additionally within the fourth quarter (-4% at market stage), essentially the most vital seasonally. Revenues for the entire of 2025 amounted to roughly 3.68 billion, down 6% per 12 months (-2% on a continuing foundation), however inside the steerage communicated to the market. Despite the marginally lower-than-expected outcomes, web debt ought to scale back to round 1.34 billion (from 1.51 billion in 2024), with a leverage ratio of three.3 instances, in keeping with steerage.

According to Intermonte analysts, it’s clear that “the actions taken by management to reorganize advertising sales could not have an impact as early as the fourth quarter of 2025”. But «we count on that the pattern can enhance ranging from the primary quarter of 2026″. Furthermore, “we view the development in debt positively regardless of a weaker than anticipated working pattern.” Intermonte confirms ‘Outperform’ recommendation with target price of 5.7 (Mfe B). In light of these results, Equita reduces the estimates of revenues, Ebit and adjusted net income of Mfe for 2025 and 2026, assuming «greater caution on the rebound in German advertising (now expected at +5% from the previous +7%), which we expect to be weak at the beginning of the year”, write the analysts, who decrease the goal worth of the Mfe B (5.7 euro) and Mfe A (4.6 euro) costs by 5%. However, the ‘Buy’ suggestion was confirmed as “we expect a recovery of the top-line supported by the recovery of the German economic cycle”. Furthermore, specialists imagine that “current valuations do not reflect the benefits resulting from consolidation.” From Banca Akros they count on Giordani to «proceed with the sale of non-strategic belongings throughout the 2026 monetary 12 months, which may additional enhance Prosieben’s monetary leverage.”