MADRID -- Spanish broadcaster Telecinco increased net profits in 2003 by 43% to E122.6 million ($151.3 million) on $793.7 million in revenues, thanks in part to cutting its acquisition of U.S. pics.
"They're excellent results -- reflecting good programming of live shows, brilliant ad management and cost containment," said Enrique Jimenez, an analyst at Ibersecurities.
The full-year results come as Telecinco, 52% owned by Italian Prime Minister Silvio Berlusconi's Mediaset, announced it will launch an initial public offering of around 35% of its shares before year's end. Analysts value Telecinco at around $3.7 billion.
Company attributes much of its cost reduction to nixing output deals with U.S. studios -- it passed on renewing a Disney deal in summer 2003.
Telecinco cut its acquisition budget from $120 million in 2002 to $90 million last year, and it looks set to maintain pickups at this lower level.
Ad revs at the private web rose 12% to $781.7 million, outpacing the 3.3% hike in total TV ad revs in Spain last year.
It was the second most-seen network in Spain, its 21.4% market share only surpassed by that of pubcaster RTVE's commercial channel TVE-1, a 23.4% share.
However, Telecinco was Spain's only nationwide broadcaster to increase market share in 2003. It also claims the highest share of its targeted ad demo: 24.5% of young urban auds.
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