You will be redirected back to your article in seconds

Telecinco notches record revs

Ad growth slows a touch

The years of dramatic TV ad growth at Spanish terrestrial broadcaster Telecinco look finished. But the Media-set-controlled network is still pumping margins beyond the reach of most broadcasters in western Europe.

Per today’s early morning trading update, first-half earnings rose 6% to Euros 186.4 million ($235.4 million) off record Janu-ary-June net revenues of $661 million, up 2%, both in line with market expectations. Operating profit (EBITDA) stood at $337.5 million, another record; EBITDA margins reach a robust 51%.

Audience fragmentation hasn’t punctured Telecinco’s bottom line, but it is slowing growth. A 6% drop in audience share to 21.8%, still significantly above Antena 3 (20.4%) and TVE-1 (18.7%) was off set by a first six month hike of 10.7% in the cost of advertising on Telecinco.

That figure is way down on previous double-digit ad growth at the web, as Spain’s TV ad boom begins to cool.

“The days of large ad pricing increases at Telecinco look as if they’re over,” said Javier Marin at Morgan Stanley.

Though slowing, Spanish first half TV ad growth of 7.5% still outpaces France (predicted at a first-half 4%) and Germany (forecast for 2006 at about 2%). Critics carp that Telecinco, a pure play youth-skewing channel, has no real plans on how to offset the slow erosion of its core ad bizz.

That may be true. But with franchise fiction series hits such as “CSI,” new Disney hit “Criminal Minds,” “Central Hospital,” “The Inspector” and “The Serranos,” plus “Big Brother” and “Operacion Triunfo,” Telecinco has a daunting primetime lineup for the summer and 2006/07.

Sustained TV ad growth looks good for a year or two more. For the time being, Telecinco can make hay while the sun shines.

More TV

  • Cinema Audio Society 2018 Winners: 'Dunkirk,'

    'Dunkirk,' 'Game of Thrones' Win Cinema Audio Society Awards for Sound Mixing

    The years of dramatic TV ad growth at Spanish terrestrial broadcaster Telecinco look finished. But the Media-set-controlled network is still pumping margins beyond the reach of most broadcasters in western Europe. Per today’s early morning trading update, first-half earnings rose 6% to Euros 186.4 million ($235.4 million) off record Janu-ary-June net revenues of $661 million, […]

  • 'Seven Seconds' TV show premiere

    Regina King Talks Heaviness of Role in 'Seven Seconds'

    The years of dramatic TV ad growth at Spanish terrestrial broadcaster Telecinco look finished. But the Media-set-controlled network is still pumping margins beyond the reach of most broadcasters in western Europe. Per today’s early morning trading update, first-half earnings rose 6% to Euros 186.4 million ($235.4 million) off record Janu-ary-June net revenues of $661 million, […]

  • John Oliver Lawsuit Dismissed: 'Last Week

    John Oliver Victorious: Coal CEO's Defamation Suit Dismissed

    The years of dramatic TV ad growth at Spanish terrestrial broadcaster Telecinco look finished. But the Media-set-controlled network is still pumping margins beyond the reach of most broadcasters in western Europe. Per today’s early morning trading update, first-half earnings rose 6% to Euros 186.4 million ($235.4 million) off record Janu-ary-June net revenues of $661 million, […]

  • Baz Luhrmann

    Olympic Figure Skating Revives 'Moulin Rouge' and Baz Luhrmann Is Loving It (EXCLUSIVE)

    The years of dramatic TV ad growth at Spanish terrestrial broadcaster Telecinco look finished. But the Media-set-controlled network is still pumping margins beyond the reach of most broadcasters in western Europe. Per today’s early morning trading update, first-half earnings rose 6% to Euros 186.4 million ($235.4 million) off record Janu-ary-June net revenues of $661 million, […]

  • UnReal Athena Film Festival

    How Trump Beating Clinton Impacted the Gender Politics of 'UnReal' Season 3

    The years of dramatic TV ad growth at Spanish terrestrial broadcaster Telecinco look finished. But the Media-set-controlled network is still pumping margins beyond the reach of most broadcasters in western Europe. Per today’s early morning trading update, first-half earnings rose 6% to Euros 186.4 million ($235.4 million) off record Janu-ary-June net revenues of $661 million, […]

  • Al Pacino as Joe Paterno

    TV News Roundup: Al Pacino's HBO Film 'Paterno' Releases Full Trailer, Premiere Date (Watch)

    The years of dramatic TV ad growth at Spanish terrestrial broadcaster Telecinco look finished. But the Media-set-controlled network is still pumping margins beyond the reach of most broadcasters in western Europe. Per today’s early morning trading update, first-half earnings rose 6% to Euros 186.4 million ($235.4 million) off record Janu-ary-June net revenues of $661 million, […]

  • Nanette Fabray Broadway?s First Lady, Nanette

    Nanette Fabray, TV Star of the '50s and '60s, Dies at 97

    The years of dramatic TV ad growth at Spanish terrestrial broadcaster Telecinco look finished. But the Media-set-controlled network is still pumping margins beyond the reach of most broadcasters in western Europe. Per today’s early morning trading update, first-half earnings rose 6% to Euros 186.4 million ($235.4 million) off record Janu-ary-June net revenues of $661 million, […]

More From Our Brands

Access exclusive content