Mediaset SpA: Boards approves the Group's results for the first nine months of 2017

• Consolidated net revenues came to EUR 2,532.8 million, compared with EUR 2,563.9 million of the first nine months of 2016. In particular, revenues in Italy totalled EUR 1,832.2 million, compared with EUR 1,853.0 million in the same period of the previous year. In Spain revenues came to EUR 701.3 million, compared with EUR 711.7 million in 2016. These figures were impacted by a slowdown in the advertising markets in both countries The gross advertising revenues of Mediaset España amounted to EUR 689.3 million, essentially in line with the EUR 693.0 million of the previous year. In Italy, where - according to the most recent Nielsen data sales in the sector, in the period January-August were down by 4% - Mediaset's gross advertising revenues bucked the trend with a rise from EUR 1,411.8 million in the first 9 moths of 2016, to EUR 1,423.3 million, (+0.8%).
• The Group's total operating costs were down 7.7% (from EUR 2,534.4 million in 2016, to EUR 2,338.1 million), also here in advance of the Mediaset 2020 plan. In Spain total costs were down by 4.6%, from EUR 541.0 million to EUR 516.1 million. In Italy the fall was even more marked, with an 8.6% fall, from EUR 1,994.2 million to EUR 1,822.8 million.
• Gross operating profit (EBITDA) rose to EUR 957.9 million, compared with EUR 892.9 million, in 2016.
• The Group's operating profit (EBIT) amounted to EUR 194.7 million, compared with EUR 29.5 million in same period of the previous year. In Italy the EBIT result was EUR 9.4 million, compared with -EUR 141.2 in 2016. In Spain the figure rose to EUR 185.2 million, compared with EUR 170.7 million in the first nine months of last year.
• There was a decided turnaround in the Group's net profit, which came to EUR 35.9 million, compared with a loss of EUR 118.0 million for the same period of 2016.
• The Group's net debt went fromEUR 1,162.4 million on 31 December 2016 to EUR 1,395.8 million on 30 September 2017. The change was affected by investments in business combinations, equity stakes and other strategic assets (Studio 71, LCN20, Radio Subasio and Radio Aut, M&A operations of EI Towers's Group) for a total of EUR 75.3 million, as well as cash outlays by Mediaset España and EI Towers related to share buy-backs (EUR 139.5 million) and dividend payments (EUR 175.6 million). There was also a net improvement in characteristic cash generation during the period, which amounted to EUR 151.0 million, compared with EUR 69.3 million for the first 9 months of 2016. generation
• Ratings: In the first nine months of the 2017 Mediaset channels confirmed their net leadership among viewers in the commercial target, both in Italy and Spain. In Italy, Mediaset is the leader in the 15-64 age-range with a 32.9% share in the 24-hours with Canale 5 the most popular channel in all time bands. In Spain, the TV channels of Mediaset España maintained their absolute leadership in the 24-hours with a 29.1% share. Telecinco also confirmed its position as the most popular channel both in the whole day (13.6%) and in prime time (13.8%).

It should also be noted that the Board of Directors today approved the project for the merger by incorporation with Mediaset of Videotime S.p.A., a subsidiary already held at around 99.2%. This operation is part of a process aimed at simplifying the corporate structure of the Group.
On the basis of the balance sheet figures as of 30 June 2017 and the number of shares of the merging companies (net of treasury shares), the exchange ratio was fixed at 0.294 Mediaset shares for 1 share of Videotime. Following the merger, Mediaset will not increase its share capital, given that the exchange of shares held by minority shareholders will be offset by Mediaset's own shares, in line with the authorisation issued by the Mediaset Shareholders' Meeting on 28 June 2017.
The merger decision will be duly submitted for approval to the Board of Directors of Mediaset SpA, pursuant to Article 2505, paragraph 2, of the Civil Code and Article 23 of the Articles of Association.
The merger documentation will be made available to the public, as foreseen by law, at the company's registered office, on the website www.mediaset.it (Corporate Governance section) and at the authorised storage mechanism www.emarketstorage .com.

In the last part of the year, the trend in the Group's advertising revenues is expected to make possible to maintain a positive trend compared with the previous year and to gain market shares both in the tv and in the total market.
On the basis of these expectations, and the results already achieved at the end of the first nine months, the objective remains that of achieving positive results in terms of both consolidated operating and net profit at the end of the financial 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, November 7, 2017