MFE FY 2024 presentation: Revenue up 5%, adjusted profit soars 27%

Introduction & Market Context

MFE MediaForEurope (MTA:MFEB) presented its fiscal year 2024 results on April 16, 2025, revealing strong financial performance amid a moderately positive economic backdrop in its key markets of Italy and Spain. The company’s shares rose 1.12% following the presentation, closing at €4.51.

The presentation highlighted how consumption patterns in both Italy and Spain remained positive throughout 2024, creating a favorable environment for advertising growth. As shown in the following chart of goods and services consumption trends, Italy saw a 0.7% increase while Spain experienced a more robust 2.2% growth:

This economic resilience translated into positive advertising market trends in both countries, with the total advertising market including OTT growing by 3.9% in Italy and 4.2% in Spain. Television advertising performed particularly well, showing 7.3% growth in Italy and 6.0% in Spain, as illustrated in this market overview:

Executive Summary

MFE delivered impressive financial results for FY 2024, with consolidated net revenues reaching €2,949.5 million, a 5% increase from €2,810.4 million in FY 2023. The company’s adjusted EBIT rose to €370.3 million, up 22.5% year-over-year, while adjusted net profit (excluding a ProsiebenSat.1 write-down) surged 27.2% to €266.1 million.

The company’s strong cash generation capabilities were evident, with free cash flow reaching €343.3 million, a 23% increase from the previous year. This allowed MFE to reduce its net financial position to €691.5 million from €902.8 million at the end of 2023, despite distributing €140.1 million in dividends during the year.

The following chart illustrates MFE’s key financial metrics for FY 2024:

Based on these strong results, MFE’s Board of Directors proposed a dividend of €0.27 per share for both Class A and Class B shares, representing an 8% increase from the previous year.

Detailed Financial Analysis

MFE’s advertising revenues, which form the core of its business, grew by 4.7% to €2,897.8 million in FY 2024. This growth was primarily driven by the Italian market, which saw a 6.8% increase to €2,120.3 million, while the Spanish market experienced a slight decline of 0.4% to €778.0 million. The following chart details the advertising revenue performance:

Looking at segment performance, the Italian business delivered particularly strong results with total net revenues of €2,124.9 million and adjusted EBIT of €220.9 million, representing a nearly 50% increase in operating profit. The Spanish business, while facing more challenges, maintained high profitability with an EBIT of €149.4 million, representing an impressive 18% EBIT margin that MFE claims is the highest among European broadcasters.

The company’s investment strategy remained disciplined, with total investments of €374.5 million in FY 2024, down from €466.4 million in the previous year. The majority of investments (€323.4 million) were directed toward TV rights and cinema content, reflecting MFE’s focus on content as a key driver of audience engagement:

MFE’s cash flow statement further highlights its financial strength, with a net cash flow of €211.3 million in FY 2024, a significant improvement from the negative €29.5 million in FY 2023:

Digital Transformation & Audience Metrics

A key focus of MFE’s presentation was its digital transformation progress. The company highlighted impressive growth in digital metrics, particularly in total hours viewed, which increased by 43% year-over-year in Italy and 8% in Spain. Monthly logged unique users in Italy grew by 21% to 8.0 million, while Spain maintained a 2% growth to 925,400 users.

The following chart illustrates MFE’s digital transformation metrics:

The company emphasized how its digital strategy is creating value, with revenue per hour for addressable TV showing a 57% premium over linear TV. This indicates that MFE’s digital transformation is not only growing audience but also enhancing monetization capabilities.

Another important aspect of MFE’s strategy is revenue diversification through cross-media offerings. In Italy, clients using six different media platforms now represent 25.5% of revenues, up from previous years, while those using just one medium have declined to 8.4%:

A similar trend is evident in Spain, where clients using multiple media platforms represent a growing share of revenues:

Market Position & Competitive Landscape

MFE maintains a strong market position in both Italy and Spain, with total audience shares of 39.8% and 27.0% respectively. This leadership position is illustrated in the following charts:

Notably, MFE highlighted its competitive strength against major tech platforms, claiming higher monthly reach than both Google (NASDAQ:GOOGL) and Meta (NASDAQ:META) in its markets. In Italy, MFE reaches 98.3% of adults compared to 79.9% for Google and 72.6% for Meta. In Spain, MFE reaches 89.3% compared to 87.7% for Google and 84.1% for Meta.

The presentation also emphasized that traditional broadcasters still dominate viewing time, with OTT services accounting for only 6.1% of audience share in Italy and 15.3% in Spain:

Forward-Looking Statements

Looking ahead to 2025, MFE provided limited specific guidance but indicated that other revenue is expected to remain flat compared to 2024. On costs, the company expects its Italian operations to see cost growth of no more than 1%, while Spanish costs are projected to increase by approximately €20 million due to changes in labor rules and investments in local content.

The company aims to maintain its net debt to EBITDA ratio below 1x in 2025, continuing its focus on financial discipline. MFE also mentioned securing broadcasting rights for the FIFA Club World Cup, which it expects will bolster its content strategy in the coming year.

During the earnings call, CFO Marco Giordani emphasized the company’s ability to generate significant cash flow even during challenging periods, stating, "We have proved to manage good years and bad years always generating remarkable cash flow." Meanwhile, Managing Director Matteo Cardani highlighted the strategic importance of television and cross-media integration, saying, "Television at the core and cross-media reach offering the best in terms of maximizing investment is a safe harbor in times of uncertainty."

While acknowledging the uncertain macroeconomic environment, MFE expressed confidence in its business model and strategic positioning to continue delivering strong results in 2025.

Full presentation:

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