UPDATE 2-RCS Mediagroup has Q1 net loss of 18.6 mln euros

(Adds comments from chairman on outlook, closing shares)

MILAN, May 12 (Reuters) - Italian publisher RCS Mediagroup (RCSM.MI: Quote, Profile, Research) posted a first-quarter net loss of 18.6 million euros due to higher amortisation and financial costs as well as a cut in the value of some investments, the company said on Monday. RCS, which publishes leading Italian daily Corriere della Sera, said in a statement it expected to report "fundamentally flat" full-year results, barring any worsening of the current situation.

"2008 appears as a year particularly full of unknown elements, especially for the media sector," RCS said.

The International Monetary Fund forecast the Italian economy to grow 0.3 percent this year and next.

After a good start to the year, RCS said advertising revenues had slowed due to general elections both in Italy and Spain, the timing of Easter and a deteriorating market situation.

"After the halt (recorded) in March, ad sales signal a slowdown also for April and May," it said.

Chairman Piergaetano Marchetti said he was confident of a positive second quarter because of cost cuts.

"Everything depends on how advertising goes, but we are taking opportunities to cut costs to handle things even if advertising doesn't pick up," he said on the sidelines of a conference.

RCS Mediagroup turned in a net profit of 16.9 million euros in the first quarter of 2007.