Berlusconi
MADRID -- Spanish private broadcaster Telecinco will launch an initial public offering of 35% of its shares before the end of the year, its board announced Wednesday.
Telecinco, which is 52% owned by Italian Prime Minister Silvio Berlusconi's Mediaset, has mulled going on the open market for years. The present timing, however, cashes in on a conjunction of circumstances.
"Media values have rallied significantly this year, and Spain's ad market is expected to recover," said Maria Munoz Rojas, an analyst at Banesto Bolsa.
Stock in pay TV leader Sogecable has appreciated 23% this year, media group Prisa's 18%.
Having plunged in 2001 and bottomed out in 2002, TV advertising in Spain appears to be turning a corner.
Total ad spend on Spain's terrestrial broadcasters rose 3.9% in 2003 against a year earlier, according to a report by Zenith Media. Zenith predicts a further 4% growth for this year.
Telecinco has also posted healthy fiscal results: Pretax net profits for the first nine months of 2003 reached e102.6 million ($125.4 million) off ad revenues of $511.8 million.
The stock market launch also comes as rival commercial web Antena 3, having launched a successful IPO last October, faces a legal claim of $220 million-$232 million over the purchase of Kiss FM radio net by A3 radio subsid Onda Cero.
There is also a political wild card that may affect the future shareholding of Telecinco.
After a stunning defeat in Spain's general elections Sunday, the center-right Popular Party has lost its media power base at pubcaster RTVE.
Working with friendly right-wing media groups, it may now seek to tilt news coverage at one of the private broadcasters. Telecinco has been resolutely independent to date, but archconservative Berlusconi holds its controlling shares.
Contact the Variety newsroom at
news@variety.com