Mediaset's net profits dip in Q1
Revenues in the quarter rose 13.9%
The company, owned by Italian Prime Minister Silvio Berlusconi, blamed the drop on charges linked to its purchase of Endemol and Medusa in the second half of 2007.
Some analysts said, however, that the expansion of Mediaset's pay TV division caused the reduction in profit.
In January the Milan-based broadcaster launched three pay TV channels to challenge Rupert Murdoch's Sky Italia and signed distribution deals with NBC Universal and Time Warner. Observers expect the pay TV unit to break even by 2010.
Revenues in the quarter rose 13.9% to $1.7 billion and earnings before interest and tax were virtually unchanged at $396.5 million.
Analysts say the group has been buoyed by last month's re-election of owner Berlusconi to prime minister.
Mediaset's advertising chief Giuliano Adreani was confident about ad revenues, which he said were up 3% in the first quarter and "might get better."
