Ladies and gentlemen, welcome to the first quarter 2021 results of Mediaset. Today, the speakers are Marco Giordani, CFO of the company, and Matteo Cardani, Managing Director of Publitalia '80. Given the restriction of time, I will hand over immediately to the speakers. Thank you. Thank you, Simone. Good morning to everybody. Thank you for your attendance. Today we comment on Q1 results with a short outlook at Q2 ongoing indicators. I start as usual, with a quick view of the economic scenario, commenting number chart three. With regard to confidence index, the monthly evolution, both for consumers and business, shows a continuous gradual improvement of the economic scenario. We are not far from a sort of normalization of the situation, as you can see from this chart. We move to the advertising market, commenting chart number four. As you can see, Q1 2021 is slightly below flattish results, -1.4%. With regard to our addressable market, TV and digital are performing definitely well, positive medium single digit. While radio is still suffering from restrictions applied throughout all the three months of Q1. Restrictions whose impact is definitely stronger on out of home. Moving next to chart number five. Here you have the Q1 2021 result, is +6.1%, as we announced and anticipated 2 weeks ago in our fiscal year call. The interesting thing is that now you can appreciate the fact that we are performing seven points better than the market. The other interesting thing is that we outperform the market in each single segment of our addressable market. We are doing better than market by far in TV and digital, and our decrease in radio is definitely lower compared to radio market trend. In chart number six, we comment on stronger positive evidence. Q1 is the third quarter in a row that is positive, and Q2 will be the fourth positive quarter in a row. After three positive quarters in a row, we are facing a fourth positive quarter with results honestly better than expected. Try to understand the pillars of this good business performance and this business resilience throughout all the four quarters of the last moving year. I would like to remind and share with you that there are three advertising key drivers. Total audience and total video growth, the balance dynamics among economic sectors, and last but not the least, the high level of media diversification in our client base. Let's comment shortly on these three points. I'm commenting chart number eight. Here you have on a 2-year basis the growth and our audience evolution. Here you have linear television, connected television and online video, in order to normalize the comparison with Q1 2020 that was affected by the COVID restrictions, the hard restriction we have experienced. We made this comparable on a 2-year basis in order to normalize, so you can get from here the medium term growth trend of the three screens. We have a good performance in total video. If we take a look at chart number nine, here you have our linear performance, so 34.8%. We start on the same level of 2020. While on digital, non-linear audience share performance, we are now 41.6% and we are growing almost four points compared to the consolidated 2020 results that were 37.9%. Our total audience profile is definitely in a good shape, in good health. Last two charts I want to comment on. With regards to sector dynamics, we are using this device of the CR model, so the restricted and restarting sectors. If you take a look at chart number 11, our combined result in Q1, +6.1%, is the weighted average outcome of the different dynamics. We have a very well-balanced portfolio. For example, the fact that fast-moving consumer goods and pharma are suffering a little because of the counter digit versus positive sales in Q1 2020, this is more than compensated by telco, retail, and over-the-top in the resilient sector clusters. In a similar way, while we do expect an important restart in tourism and travel sector from now on, among those sectors that were restricted last year, consumer durables, mainly those devices for home electronics, are doing good. People over the past months invested more in valuable goods for their homes and waiting to come back and spend out of home in restaurant and travel. Even from this perspective, the Q2 perspective from the point of view of sector contribution should be positive because there will be the still restricted sectors that will join us with their ad spending. Last but not the least, 2 weeks ago, during our fiscal year 2020 call, the issue of the degree of diversification of our business was raised. As you can see in chart number 12, of course, we don't give individual data on a monthly basis or individual data by medium, but in order to highlight and give insights on the good health of our business from a revenue diversification perspective, we adopted the viewpoint of the revenue breakdown by medium. To make it clear, in this chart, we have a clear picture. If we consider the whole of our business, 100% of our advertising revenue, today, 75% of our revenue are developed by clients that choose from two to five different media within our offer. They enter, let's say, our outlet, Mediaset outlet, and they are used to buy, to put in their basket, TV, connected TV, digital radio, and digital audio. On average, they choose from two to five different media, and the most important thing is that they are used to be both linear and digital clients. They have a combined purchase from their media buying perspective. This is the degree of diversification of our client base. Completing the comment, in the chart only 7% of our revenues are developed by clients that are buying only linear, I mean, TV and radio, and 18% of our revenues are developed by linear TV-only clients. The so-called traditional clients. The interesting thing, this is the last thing, then I hand over to Marco, is that among these clients, those that buy linear TV only, one-third are new clients, they are new businesses. TV, let's say, represents the main gateway to enter into our full portfolio, we develop our clients into a more diversified media mix. Okay, I hand over now to Marco. Thank you, Matteo. Welcome to everybody. I will take you through the quarter results briefly, starting from page 14, where you have the net consolidated results of the group. As you can see, revenue were slightly down versus last year. You have to remember that the COVID, let's say, emergency started in Italy in the beginning of March and a little bit later in Spain. Clearly, the comparison in terms of revenue are still affected by non-comparable numbers. In any case, we were able to stay very close to 2020. If you look at EBIT on the other hand, we were able to increase our EBIT by 63%, moving up from EUR 41 million to almost EUR 68 million. Going further down in the P&L, you can appreciate the net profit growth that has been in the first quarter 2021 of EUR 52.5 million. That is 3.5x higher than the 2020 result. Just to remind you that this number is even higher than 2019 number. As far as the financial position, the deleverage is still going on. We improved our position by almost EUR 90 million, and this is an incredible number also because during the quarter, we have acquired the 3.5% of ProSiebenSat.1 stake for an amount close to EUR 100 million. Moving down in the Italian P&L, Matteo already commented the advertising revenue. In terms of total revenue, we were almost flat on last year. This is because in the other revenue line last year, we had the extraordinary performance of a movie that went out in the cinema. Clearly, this is something that cannot be replicated in the first quarter 2021. As far as the total revenue line, we still guide the full year for a number close to the 2020 line. Clearly, we are starting from a quarter where we had a lower performance, but our aim and challenge is to catch up this number in the remaining months of the year. Moving to cost, was a very outstanding performance in the quarter. Total costs were lower by EUR 40 million than last year. With a decrease in the region of 9%, and the operating profit line went up from a negative performance of 2020 to a positive EUR 20 million in 2021 with an improvement of EUR 40 million. This number, compared to 2019, it's almost double. Again, a great performance, not only versus last year that was in a certain sense affected by the pandemic, but it's also remarkable if you compare it with 2019, so a pre-COVID performance. As far as cost line for a full year, we can maintain our guidance that we gave just a couple of weeks ago. Our aim is to keep the cost flat on 2020. This performance will grant us a decrease between 6%- 8% versus the total cost line in 2019. Clearly this is something we will try to outperform during the year, but that's the guidance we still have, taking consideration, for instance, that there are going to be quarters that will have a strange comparison versus 2020. For instance, as you can remember, Champions League cost in 2020 has been accounted in the third quarter, while clearly in 2021 will be in the second. I can confirm the guidance for the full year, flat cost on 2020. Moving below EBIT line, financial income was positive by EUR 17 million. In this line, we are accounting a positive one-off impact coming from some hedging position on ProSieben's stake. That's clearly something will not be replicated in the remaining quarter, but is something that has been cashed in in the first quarter 2021. As far as guidance on the full year, we can say that we are going to be flat on 2020. To that flat number, we have to increase the one-off we just mentioned. As far as associate is concerned, and giving the guidance for a full year, you have to consider the positive impact of the EI Towers, let's say, disposal of TowerTel, that will generate around EUR 89 million extraordinary profit on this line for MFE-MediaForEurope. That's the reason for which we can improve our guidance of the associate line from EUR 50 million to around 110. Moving to investment. Another, let's say, pretty cash-saving quarter. Investments were, let's say, EUR 100 million lower than last year. Clearly, COVID impacted them. As you can imagine, the numbers of, let's say, movies and series delivered in the first quarter has been pretty lower than last year one. In any case, we are still guiding the full year with an investment line in the region of EUR 340 million-EUR 360 million, that will account for a decrease versus 2020 in the region of 15%-20%. Lastly, cash. Again, a very remarkable performance in the quarter. Cash flow from operation grew by more than 30%, reaching the level of EUR 130 million in the first quarter 2021, while the net financial position at the end of the quarter was slightly lower than EUR 700 million, with an improvement of almost EUR 120 million in the quarter. As we said in the last call, we are not guiding the full year because many things are going to happen in any case on that line. The only thing that I would like to remind you are two elements that in the last 15 days has happened. One is the dividend payment that will be cashed out in July for EUR 314 million, the cash-in of the special dividend paid by EI Towers we cashed in at the end of an amount of EUR 134 million. I believe that's all. We are now ready for the Q&A session. Thank you. Thank you. Your first question comes from the line of Julien Roch from Barclays. Yes. Good morning. First question for Matteo. Can you give us some indication of the Q2 trends? You're saying it's going to be better than 6.1, color on April, color on May. Second question for Matteo again. Thank you very much for page 12, how do they buy, though? Do they buy channels separately, but buy several channels? Or do they buy a bundle where you sell them GRP and they don't know where it's coming from? That's my second question. Third question again for Matteo, page eight. Year-on-year growth is great, we have no idea of the base. Your audience could be 97% linear, 1% radio, 1% web, 1% video on-demand. Can you give us some idea of the split of your audience in either 2019, 2020, or Q1? The last one, sorry, I know four questions is a lot. Marco, peace with Vivendi, relocation to the Netherlands. When do you think the relocation will be effective? The second question on that is next step after that. Thank you. Thank you. I'll start to answer to the last question. The calendar for re-domiciliation in Holland, it's pretty, let's say, fixed. The re-domiciliation should happen in September. As far as what's going to happen after, we cannot give any disclosure on that. We believe that the re-domiciliation, it's a leverage to start the consolidation in the media space. We consider it a strategic move to execute what we are saying in the last two years. Matteo, maybe you can have then the long list of Julien questions. Yes. Thank you, Julien, for your questions. I start from the first question. Q2 trend, just to add some color on April and May. As we wrote in our press release, the first four months are above +21%. It's quite easy for you to calculate that the month of April is absolutely positive. I can state that is two times compared to April 2020. April 2020, we were in the, let's say, deep down in the lockdown. While probably the strong news is that April 2021 is practically flat. It's parity compared to April 2019. We are catching up on a two-year basis with our baseline before COVID. Of course, monthly performance is not representative of the trend that we might achieve on a full year basis because components will be variable during the next quarter. With regard to May, we are mid-May, and we are halfway on Q2. May is not closed yet. I must admit that I'm happy about it, that we are registering a performance above our own expectations. We do expect to consolidate and improve further our progression. May is on a good track and has some similarities with April. We prefer to comment on the Q performance as soon as the result will be stabilized. April good, May is good. We have to understand the June performance because the advertising trend will be impacted by the European Football Cup. This will be broadcasted by Rai, so we are not the owner of the rights. I guess that by the end of May or beginning of June, we will be in a position to have a better outlook for Q2. Even if my expectation is that June could be anyways positive because even if we don't have sports rights, we are in a general economic situation that is improving day by day, week by week. With the vaccination, we do expect a sort of positive halo effect also on our revenue collection. With regard to question regarding chart number 12. How do we manage our cross-media offer? We do not create bundle, because for many reasons, bundle may be not 100% compliant with some guidelines from the authority. Also because, to some extent, media agencies are quite skeptical about bundles. Because when you offer a bundle, it's like a present. They do like to, let's say, unbundle to understand what's inside. Our approach is starting from the brief of the client to create a custom proposal with the best offer. We are looking forward for Auditel to release, by the end of this year or beginning of next year, total audience currency, because this will definitely help creating a combined offer. We are, of course, evaluating, because in that case, it makes a lot of sense, a combined offer, linear plus over-the-top offer for Champions League in next autumn. This will be an important test. Then, I'm not 100% sure to got your question on chart number eight. Could you- The question is, you're giving us the year-on-year split, but we have no idea of the size of the three lines. It could be 98% TVL, 1% TVC, 1% OLV. No. Okay. No, I see your point. As you can see from the footnote in the chart, we are giving a year-on-year indicator using three different metrics. Average minute rating for linear television, viewers of digital screens for online video, and internal data for our connected television. For the time being, they are not fully comparable, and that is why we are waiting for the official metrics that will allow us to put all these three screens on the same level, that is the total time spent. In that case, we can have a total sum. For the time being, we have to manage with these separate indicators. The linear television is the bulk of our audience baseline. Take account that given to the switch off plan that is ongoing and will be accelerated from September 2021 to June 2022, the connected TV component that is growing faster will be further accelerated by the switch off and the change in the television sets in Italy. We do expect that connected TV components will be higher and higher. Sorry, Matteo, may I add just a few things? Yes. It's clearly difficult. It's a new business for everyone, and it's very difficult to exactly modelize the future. I would like to add a few comments. First of all, the attention we are generating, in terms of hours, it's growing. That's crucial to evaluate how our contents are perceived and are consumed. Generally speaking, the group is producing every month, I would say, an amount of hour consumed that is growing. We have the problem of monetization this attention. What Matteo was saying is that today, the biggest problem is made by the currency, because linear TV currency is still clear, well-known. You can measure, compare, you can do whatever you want. You are moving to other currency, like online video consumption hours or connected TV consumption hours, where currency is not yet stable. In the sense that, as Matteo was saying, it's difficult to add, let's say, customers or user, customer, viewer with user, customer with user and viewer. That's where, frankly speaking, it's also difficult for us to give you a metric that combines all the consumption. The only thing that I would say that is very important for us is that attention is growing every month, and the people are consuming our content every month more than the month before, and that's crucial. Metrics currency will come, and it will be also the customer, so the advertising investor, to decide what kind of attention they would like to have, the linear, the digital, the one with data of the connected TV or the one without. As Matteo was saying, Publitalia '80 is available to give to the customer exactly what they want. Yeah. I had a comment on your remark, Marco. We appreciate it. Just to make it clear, we trade linear television on a cost per GRP basis with gross rating points as official metrics, while connected television and online video, we trade them on a CPM basis. They are two different models. As we commented two weeks ago, we created an internal metric, so that is revenue per each hour single screen. Let's say the interesting thing is that for connected television and online video, the market is now paying a premium because they are data-driven advertising, so you can have the value of profiling and individual data on a digital basis. This help, let's say, the trading path in the negotiation with clients. It's a positive perspective. Let's give room to other questions, if any. Yeah. Thank you. Another reminder, to ask a question, please press star and one on your telephone. Your next question comes from the line of Stefano Gamberini from Equita SIM. Good morning, everybody. six questions on my side. The first regarding the other revenues. Could you elaborate a little bit more about how you can catch up the 2020 level? First quarter was down EUR 25 million. If I'm not wrong, also the contract with Sky should probably reduce the contribution. I'm, in particular, interested to understand if you expect a huge contribution from Mediaset Infinity, now the launch of this new platform, and in particular, how you can explore your Champions TV rights during the second part of the year. The second question regarding May. You said that April should be in line with 2019 level. Is May also close to 2019 level, or at the end of the day is improving but is by far below 2019? The third, still regarding this approach of HbbTV online and connected TV audience. When you are in front of the media agency, your new proposal is so interesting for them that is an alternative option for investing advertising to the search and social players, which are growing a lot in the last years. We are still thinking of two separated things. On one side, you are still considered as linear TV. You are still not able to erode market share to big U.S. players. Many thanks. Stefano, I'll start from the question on other revenue. Clearly, you see a single line there, but in reality, in the line, there are many components. As you said, the main differences from 2001 and 2020 is going to be the lack of theatrical release, and that, frankly speaking, is something we are almost sure that we cannot recapture. As far as all the rest, on the other end, for instance, the Sky contract that, as you said, is due to expire by June, this doesn't mean that it cannot be renewed, in the sense that, clearly, we are planning that respect. There are things that we have not yet renewed that will clearly create a positive differences versus 2020. Another thing we have to remind is the fact that clearly on the market, there is today a sort of scarcity of content. For instance, platforms, not only in Italy, but platforms are clearly looking for contents, and so we have the possibility to sell them some library or some maybe Mediaset program. All this stuff are clearly the reason for which we are targeting a full year 2021 close to 2020. As far as the Champions League, the Champions League, as has been already said, will be sold included in Infinity, so at EUR 7.99. The present price of Infinity will allow users not only to watch movies and series, but also to watch the 104 matches of Champions League. The impact on the other revenue line, on the other hand, will not be great, only because the championship will start in September, and clearly the numbers of months on which we can rely on it is pretty limited. In any case, they are clearly contributing to that. The total bucket is confirmed to be in line with the 2020 number. The single line that is composing the other revenue line will move differently to reach the final target. Matteo, maybe you can answer to your question? Yes. Thank you, Stefano. [Foreign language]. With regard to May, we are, let's say, mid-May. As I said, we are positive. Things are getting better and better. I don't know, honestly, today, where we end with May. We are on a positive track. We are striving for the best possible results. Our consolidated results will, of course, depend on television, but also to give you some more color, also on radio. Radio is a medium that was affected during the first quarter for restrictions. Now that we are facing the openings, release of social life, radio will definitely benefit from this, and this will contribute to our overall trend with the consolidated results. I'm positive and optimistic, but honestly, I don't know where we'll end. I do think that by the beginning of June, we will be in a good position to comment on the whole Q2 progress. I repeat, May is doing better than our forecasted, let's say, recovery rate compared to 2020- 2019. With regard to connected television, it's a very good question. Spot on. What is the source of business? For the time being, the interesting thing that has a market, so working with media agencies. Let me say, is also working with a certain degree of cooperation with our broadcaster. We are setting the new standard. We are positioning connected television as an additional further opportunity, not replacing linear television, but adding incremental reach, incremental frequency, profiling, geolocation. A new set of additional benefits to the planning. This is to some extent also projecting a positive light also on the legacy business because media agencies are getting more and more attractive in combining television plus connected television. Our guess is that money inflow into connected television are coming mainly from the long tail of digital, because there's a lot of digital money that goes into not certified, not 100% viewable, not 100% brand safe website. Our guess is that we are absorbing that budget that is reallocated to a brand safe, 100% viewable, data-driven, innovative, connected TV proposition. Hope to have answered. I thank you. Yes, many thanks. Thank you. You're welcome. At star and one, if you wish to ask a question. Your next question comes from the line of Andrea Randone from Intermonte. Thank you, good morning to everybody. My first question is about EI Towers. The book value of your stake, if I'm right, was EUR 455. Can you update us on the book value after this deal? Is it correct to assume something about EUR 410? In general, about EI Towers, how do you see the future of your participation in this company? The second question is about the French dossier regarding M6. If you can provide an update also regarding a potential offer with the help of Mediaset España, if you can elaborate on the press rumors about this deal. Thank you. Let's start to say something about the EI Towers. Clearly, the accounting is pretty simple. We have said that we have cashed in EUR 134, and we had a positive impact of EUR 89 in the P&L. The difference is what the accounted invested capital of EI Towers will be used. That's the natural calculation you should do. As far as M6, as you can imagine, we are not going to say anything different from what we said last time. Clearly, we have to look at all the opportunities in Europe, because we are convinced about the benefit of a European consolidation. Everything we were trying to explain as far as new consumption, new metrics, new currency, as you can understand, have a different impact if you are just in one country or if you can move in more than one country or in the entire Europe. Everything we have commented in this call is something that can be enhanced and enlarged, if you want, if you can rely on more than two countries. We confirm that we are interested, that we are clearly looking at it because it's our professional duties. I would like also to remind you what I've said two weeks ago. Our impression is that the seller and the system is clearly preferring a French solution. As I said two weeks ago, we are participating because we believe it's coherent. If we follow RTL CEO and M6 CEO declaration, the decision has already been taken, and will not be Mediaset the selected party. That's clearly a pity for us, but if you are the seller, you can decide what you want. As far as the rest, I have nothing more to say. Thank you, Mr. Giordani. We currently have no further questions. Another reminder, to ask a question, please press star and one on your telephone. We now have a question from Fabio Pavan from Mediobanca. Yes. Hi, good morning. A very quick one on my side. I was looking to the audience evolution, and my question isWhen we look to the second half of the year, you are confident that increase audience for the radio and ongoing increase in contacts for digital screen may eventually offset the normalization for linear TV audience that may follow as a consequence of the easing in the restriction for COVID-19. Thank you. I thank you. Yes. My answer is yes. We are confident that the pattern for the media will be exactly as you described. Keep on going for growing for digital and connected television, as Marco stated before, recovering for radio. While with regard to television, we are on a solid baseline of linear total audience. Also, thanks, and I want to stress this fact, to the quality of our content. We are doing quite well with our own production, both entertainment and also scripted content. Now we have a very good line of fiction and TV series. We know that we have the same pipeline for autumn. We are confident about audience evolution. I thank you. Thank you very much. Okay. Unless there are no other further questions, I will thank you very much for taking the time for this conference. As always, the investor relations team is available for any question or information you would like to have. Thank you very much, everyone, and have a good afternoon. Bye-bye. That does conclude our conference for today. Thank you for participating. You may all disconnect.