* RCS H1 swings to net loss of 65.1 million euros
* Mondadori H1 net profit 7 million euros, down 80 percent
* Mondadori sees restructuring in coming months
* RCS shares up 1.2 pct, Mondadori up 3.7 pct
(Recasts, adds Mondadori results, updates shares)
By Danilo Masoni
MILAN, July 29 Italian newspaper publisher RCS
MediaGroup and book and magazine publisher Arnoldo Mondadori
both reported sharply weaker first-half results on Wednesday as
advertising spending fell, and gave downbeat outlooks.
RCS (RCSM.MI), which publishes Italy's biggest selling
newspaper, Corriere della Sera, reported a first-half loss,
while Mondadori had an 80 percent drop in profits.
Both predicted a grim 2009. RCS forecast "significantly
negative" results this year due to continued uncertainty, while
Mondadori (MOED.MI) said it still viewed this year as "difficult
Non-professional publishers have been hit hard by the
downturn because of sharp declines in advertising as well as in
circulation of their products, as corporations slash spending
and consumers turn to the Internet for news.
RCS said its net loss in the first half was 65.1 million
euros ($92 million), better than the average forecast of a 71
million euro loss, according to a Reuters poll of three
analysts. Its revenues fell nearly 19 percent.
RCS's result was also weighed on by restructuring costs. In
May the heavily indebted company approved a 200 million euro
cost cutting plan, averting a capital increase.
Mondadori, which publishes women's magazine Grazia and news
weekly Panorama, posted a first-half net profit of 7.3 million
euros, also topping expectations for a profit of 1 million
euros, according to a Reuters poll of four analysts. Its
revenues fell 21.4 percent.
It gave no clear indication about much-awaited cost cuts but
said it expected a "strong" restructuring in the coming months.
The company is owned by the family of Prime Minister Silvio
RCS and Mondadori results compare with stronger results at
Wolters Kluwer (WLSNc.AS). The Dutch Publisher posted higher
revenue and profit earlier on Wednesday as demand for its
products remained intact. [ID:nLT434268]
Shares in RCS rose 1.2 percent at 0.9105 euros at 1512 GMT,
matching a 1.3 percent rise in the DJ Stoxx index of media
companies .SXMP. Mondadori was up 3.73 percent.
(Editing by Rupert Winchester)