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Mediaset Espana Sees Ad Market Rebound in Second Half 2013

Mediaset Espana Comunicacion SA, Spain’s biggest commercial television station operator, predicts the Spanish TV advertising market may start to improve in the second half of next year.

“The ad market has been and remains very difficult this year,” Chief Financial Officer Javier Uria said in an interview at a conference organized by Morgan Stanley in Barcelona. “The first half of next year will be tough, but there might be an improvement in the second half, or at least a change in trends, which is usually anticipated by the ad market.”

Mediaset Espana has 45.4 percent of Spain’s advertising market and expects that figure to remain stable next year, Uria said. “Unless you are able grab market share from smaller stations or there’s a big sports event, which isn’t the case,” he said.

As Spanish businesses deal with the country’s economic crisis and overall consumption slumps, commercial television station profits are tumbling. Mediaset Espana and Antena 3 de Television SA led consolidation in the industry by merging with channels Cuatro and La Sexta, respectively, in order to gain market share and boost savings.

Antena 3 expects to have more than 43 percent of the Spanish TV advertising market at the end of the year, CFO Antonio Manso said in an interview yesterday. The value of the market will be about 20 percent less this year than in 2011, and may shrink 5 percent next year, he said.

The shares added 0.8 percent to 4.18 euros at 11:17 a.m. in Madrid.

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