MILAN Italian broadcaster Mediaset (MS.MI) poured cold water on Tuesday on speculation it was planning to sell part of its pay TV unit to French group Vivendi (VIV.PA).
Chief Financial Officer Marco Giordani told analysts Mediaset Premium was part of the company’s core business and was also doing well.
There has been speculation that Mediaset, which is controlled by former Prime Minister Silvio Berlusconi, could sell Premium to French group Vivendi (VIV.PA).
Vivendi, controlled by French financier Vincent Bollore, is the biggest shareholder in Telecom Italia (TLIT.MI) and is keen to create a southern European media empire.
Pressed by analysts, Giordani said the group did not comment on market rumours. But he added: “As soon as information is available then the market will be informed.
The European television market is facing structural changes and “the direction to be taken is either international consolidation or integration between telecom companies and pay television, like in the UK or in France”, he said.
Berlusconi told a radio station on Monday that Vivendi is interested in collaborating with Mediaset on content but it was not after buying Mediaset.
Mediaset Premium has 2 million subscribers and posted revenue of 558.8 million euros in 2015, up from 538.4 million the year before. Its sports channel has the highest number of viewers among peers.
The unit last year won exclusive rights to broadcast Champions League football matches in Italy for an estimated 700 million euros ($760 million), stretching its cost base but giving it a commercial advantage over Sky Italia.
Mediaset said on Tuesday its net profit in 2015 fell to 4 million euros from 23.7 million euros a year earlier.
(Reporting by Giulia Segreti- editing by Susan Thomas)
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