Mediaset SpA: Board approves the Group's Results for the first nine months of 2020

THIS PRESS RELEASE AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO CANADA, SOUTH AFRICA, AUSTRALIA, JAPAN, OR IN OR INTO ANY JURISDICTION WHERE SUCH PUBLICATION OR DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW.

PRESS RELEASE

Mediaset Board of Directors Meeting 10 November 2020

BOARD APPROVES THE GROUP'S RESULTS

FOR THE FIRST NINE MONTHS OF 2020:

THANKS TO PROMPT ACTION ON COSTS,

GROWTH IN TELEVISION RATINGS AND

STRONG REVENUES GENERATED BY THE ADVERTISING COMPANIES

MEDIASET ENDED A VERY POSITIVE THIRD QUARTER

WITH €29.4 MILLION NET PROFIT

THE FIRST NINE MONTHS OF 2020 REMAIN IN PROFIT

DESPITE THE COVID-19 EMERGENCY

Mediaset Group

Net revenues: €1,722.8 million

Total costs: €1,635.2 million (-11.2%)

Operating profit (EBIT): €87.6 million

Net profit: €10.5 million

Free cash flow: €236.0 million

Ratings: Mediaset, the only broadcaster with a growing audience,

strengthens its leadership in the commercial target in both Italy and Spain

The Board of Directors of Mediaset today(unanimously) approved the Group's interim report for the period to 30 September 2020.

Group operating costs reduced by 11.2% in the first nine months, €196.3 million improvement in cash generation in the last 12 months, ratings growth in Italy of 1.5% in prime time: the Mediaset Group ended both the third quarter and first nine months of 2020 with extremely positive results that were also much better than expected despite the Covid-19 emergency.

The results for the first nine months of 2020 can be summarised as follows:

• Consolidated net revenues came to €1,722.8 million, compared with €2,030.4 million in the same period of 2019.
  Revenues in Italy for the first nine months totalled €1,176.2 million, compared with €1,371.9 million in the first nine months of the previous year, but the positive contribution of the third quarter, which saw revenues of €384.8 million, an increase of +4.1% compared with the same period of 2019 should be underlined.

1

THIS PRESS RELEASE AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO CANADA, SOUTH AFRICA, AUSTRALIA, JAPAN, OR IN OR INTO ANY JURISDICTION WHERE SUCH PUBLICATION OR DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW.

In Spain revenues for the first nine months came to €546.6 million, compared with €660.7 million in 2019.

During the third quarter, despite the ongoing decline across the entire media sector, consolidated gross advertising revenues saw an increase of 1.6% compared with the same period of 2019.

In the nine-month period, the figure for Spain was €488.3 million, compared with €644.0 million for the same period of last year. Meanwhile, in Italy, gross advertising revenues amounted to €1,107.7 million, compared with €1,332.4 million in 2019: with an excellent performance in the third quarter that saw revenues rise to €363.4 million (+4.7%).

• The Group's total operating costs (personnel, other operating costs, amortisations and depreciations) were reduced to €1,635.2 million, compared with €1,841.8 million in 2019 (- 11.2%).
  In Spain, operating costs were down to €413.8 million compared with €470.5 million in the same period of the previous year. In Italy, the figure was down to €1,222.0 million, compared with €1,371.7 million in 2019.
• Group EBIT, while recording an expected fall on the €188.6 million of 2019, was, nevertheless, positive at €87.6 million.
  In Italy the EBIT result was -€45.8million, compared with €0.2 million in the first nine months of 2019. In Spain the figure amounted to €132.9 million, compared with €190.2 million in the same period of 2019.
• The Group's net profit remained positive at €10.5 million, compared with €92.1 million for the same period of 2019. The figure for the third quarter, unlike the usual seasonal trend, was positive (+€29.4 million). It should be noted that the consolidated net profit figure for 2019 was adjusted to take account of the impact of the goodwill generated by the public offering on Ei Towers launched in 2018 by 2i Towers Holding, with retroactive effect from 1 October 2018.
• The Group's consolidated net debt fell to €1,173.3 million from the figure at the beginning of the year (€1,348.3million). Excluding losses identified from 2019 pursuant to IFRS 16, and financial debt resulting from the acquisition of a stake in ProSiebenSat.1 Media, consolidated net financial debt amounted to €572.4 million, compared with €768.8 million at 31 December 2019.
  Despite the impact of Covid-19,free cash flow was significant at €236.0 million, compared with €243.4 million in the first nine months of 2019 (an improvement of €196.3 million compared with the level 12 months earlier). During the period, an investment of €72.9 million was made to increase the stake in ProSiebenSat.1.
• Ratings: Even in the first nine months of 2020, the free to air television confirmed its deep roots in people's habits. This can be seen from the significant growth in TV consumption, both in Italy and in Spain, countries in which the Group's channels strengthened their clear leadership in the commercial target in all time bands.
  In Italy, Mediaset reached a 34.2% share in the 24 hours and 36.1% in Prime Time (+1,5%) in the commercial target, with an increase in the audience greater than that of all other competitors. In particular, the first place of Canale 5 and the third place of Italia 1, in all time bands in the target of viewers in the15-64 age range, should be noted.
  In Spain, the Group's channels are leaders with a 29.6% share in the 24 hours in the commercial target while Telecinco is Spain's leading channel, with a 14.5% share in the 24 hours across the whole audience.

2

THIS PRESS RELEASE AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO CANADA, SOUTH AFRICA, AUSTRALIA, JAPAN, OR IN OR INTO ANY JURISDICTION WHERE SUCH PUBLICATION OR DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW.

FORECAST FOR THE FULL YEAR

In the first part of the current fourth quarter, the Group's advertising sales in Italy showed an improvement, a further recovery of the decline recorded in the first nine months.

At the end of October, a progressive rise in the infection rate in the main European countries made it necessary for government authorities to adopt new restriction measures. In Italy, the government decided to adopt, until the beginning of December, a regional and progressive approach based on specified parameters and different contingent situations, with the aim of minimising the economic and social impact.

This uncertain and constantly evolving scenario has not as yet had any particular repercussions on the advertising market in Italy. On the other hand, visibility remains low for the remaining part of the year, a period, under normal conditions, characterised by high seasonality in demand ("Black Friday" and the Christmas period).

In this context, the Group will continue to operate, applying and adapting security protocols in order to guarantee operational and managerial continuity in all its business areas, as well as continuing to pursue its economic objectives and the maximisation of cash generation.

Despite the circumstances, and considering the Group's ability to adapt rapidly and flexibly on the cost side to any additional slowdowns in the advertising market, we think that our operating performance in the fourth quarter will contribute to a positive net consolidated result for the full year.

The executive responsible for the preparation of the Mediaset S.p.A. accounts, Luca Marconcini, declares that, as per para. 2 art. 154-bis, of the Single Finance Bill, that the accounting information contained in this press release corresponds to that contained in the company's books

Cologno Monzese, 11 November 2020

Department of Communications and Media Relations

Tel. [phone]

Fax [phone]

e-mail: [e-mail] www.mediaset.it/corporate/

Investor Relations Department

Tel. [phone]

Fax [phone] e-mail: [e-mail] http://www.mediaset.it/investor

US investors disclaimer

The transaction is made for the securities of a foreign company. The transaction is subject to disclosure requirements of a foreign country that are different from those of the United States. Financial statements included in the documents, if any, have been prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of United States companies.

It may be difficult for you to enforce your rights and any claim you may have arising under the federal securities laws since the issuer is located in a foreign country, and some or all of its officers and directors may be residents of a foreign country. You may not be able to sue a foreign company or its officers or directors in a foreign court for violations of the U.S. securities laws. It may be difficult to compel a foreign company and its affiliates to subject themselves to a U.S. court's judgment.

You should be aware that the issuer may purchase securities otherwise than in the transaction, such as in open market or privately negotiated purchases.

3

THIS PRESS RELEASE AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO CANADA, SOUTH AFRICA, AUSTRALIA, JAPAN, OR IN OR INTO ANY JURISDICTION WHERE SUCH PUBLICATION OR DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW.

Highlights from the consolidated income statement		in €m
	To 30 September	Q3
	2020	2019(*)	2020	2019(*)
Consolidated net revenues	1,722.80	2,030.40	556.4	548.0
Labour costs	334.6	363.0	106.6	117.4
Procurement, services and other costs	903.9	1.069.3	265.7	306.4
Operating costs	1,238.5	1,432.2	372.3	423.8
Gross operating profit (EBITDA)	484.3	598.2	184.1	124.1
Amortisation of rights	319.0	335.8	102.3	101.6
Other amortisation and depreciations	77.7	73.7	25.9	25.5
Total amortisation and depreciations	396.7	409.6	128.2	127.1
Operating profit (EBIT)	87.6	188.6	55.9	(3.0)
Financial income /(charges)	(1.1)	9.5	(2.3)	0.2
Income/(charges) from investments	10.2	12.7	4.9	3.0
Profit before taxation	96.7	210.9	58.5	0.2
Income taxes	(40.5)	(46.0)	(14.2)	2.8
Minority interest (profit)/loss	(45.7)	(72.8)	(14.9)	(13.5)
Net profit from operations	10.5	92.1	29.4	(10.6)
Net result from discontinued operations	-	-	-	-
Profit/Loss for the Mediaset Group	10.5	92.1	29.4	(10.6)

1. Financial results for the first nine months of 2019 restated to retroactively acknowledge the impact of the allocation in the accounts of goodwill attributable to subsidiaries.

Highlights from the consolidated balance sheet			in €m
	30/09/2020	31/12/2019
Television and film rights	1,060.1	974.7
Goodwill		805.2	796.7
Other tangible/intangible assets		890.8	968.8
Financial assets		1,057.9	1,026.6
Net working capital & other assets/liabilities		376.6	541.0
Severance indemnity reserve		(67.2)	(69.2)
Net invested capital		4,123.3	4,238.7
Net Group assets	2,496.0	2,477.9
Shareholders' equity and minority interest		454.0	412.5
Net assets		2,950.0	2,890.4
Net financial debt		1,173.3	1,348.3

4