Mediaset, the leading private Italian network owned by Italian premier Silvio Berlusconi, recorded a sharp drop in net profits in 2001 on the back of losses linked to its 2.3% stake in KirchMedia. Net profits were down to Euros 248.4m, compared to Euros 423.5m in 2000.

Overall, the group's net financial position on December 31st 2001 showed a deficit of Euros 247.8m (compared with a surplus of Euros 125.3m on December 31st 2000). Mediaset attributed the loss to "expenditure related to financial investments and rights acquisitions."

Gross profits fell from Euros 648m to Euros 418.1m in 2001, while consolidated net revenues dipped 0.5% to Euros 2.3511 billion from Euros 2.3636 billion the previous year.

Gross operating profit (EBITDA) was Euros 1,3205 billion, a slight drop (-2.7%) from the Euros 1,3572 billion recorded in 2000, while operating profit (EBIT) went from Euros 691.5m to Euros 587.2m.

Operating profitability, however, remained high at 25.0% (29.4% in 2000).

Significantly, the group's advertising revenue increased, marking a contrast to an industry characterised by a general slowdown in investments since September 11th. Mediaset's advertising revenues from third parties for its channels amounted to Euros 2.42 billion, up Euros 0.9 million on 2000.

Meanwhile, Mediaset's three channels - flagship channel Canale 5, Rete 4 and Italia 1 - recorded a 43.2% share in 2001, largely due to the performance of Canale 5 which had a record-breaking year with a 24.1% prime time share (up 1.6%) and an overall share of 23.3% (+1.1%).