A write down of Mediaset’s sports rights has contributed to the Italian media company posting its first annual loss since going public in 1996, according to the Daily Telegraph newspaper.
The company said that impairments and provisions, including a write down on the value of its sports rights, totalled €307.8 million ($400.1 million) in 2012.
Mediaset reported a 2012 net loss of €287.1 million in comparison with a profit of €225 million a year earlier, and said that it would not be paying a dividend to shareholders.
Revenues fell by 12 per cent to €3.72 billion due to a weak advertising market, but this was still above projected sales of €3.59 billion.
Mediaset also exceeded its goal of cutting costs by €250 million in 2012 as savings reached €307.2 million last year. The company plans to cut costs by €450 million per year within three years, according to the report.
Mediaset’s pay-television arm, Mediaset Premium, has rights for a number of sports properties, including the top Italian domestic football division, Serie A, and the Uefa Europa League club football competition.