UPDATE 1-Spain Prisa sees no short-term uptick in ad market

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MADRID, July 24 (Reuters) - Spanish media company Prisa (PRS.MC) said on Thursday it did not see any short-term recovery in the Spanish advertising market, brought low by a sharp economic slowdown.

"I don't see any improvement in the ad market in Spain after summer," Chief Executive Juan Luis Cebrian said in a conference call, although he added he did not expect it to worsen.

Prisa, publisher of Spain's biggest-selling newspaper El Pais, is targeting further cost cuts in the second half to help offset the impact of slower advertising and could cut jobs, Cebrian said.

The firm, whose other media interests include broadcaster Sogecable, estimates the Spanish advertising fell 4 to 5 percent in the first half of this year.

Turning to the company's widely expected sale of Sogecable's pay-TV arm, Digital+, to reduce a 5.1 billion euro ($8 billion) debt pile, Cebrian said 11 to 12 times earnings before interest, tax, depreciation and amortisation (EBITDA) would be a fair valuation for the division based on recent sector deals.

A Financial Times report earlier this month said British pay-TV company BSkyB (BSY.L) was considering a bid of more than 2.5 billion euros for the pay-TV unit.

Last week Prisa closed the refinancing of a 2 billion euro bridging loan for the buy-out of its Sogecable arm on the condition it raises a further 500 million euros through other instruments.

CEO Cebrian ruled out a rights issue as an option for raising the additional funds, but refused to be drawn on any further details surrounding the refinancing.

Prisa reported forecast-beating first-half results after market close on Wednesday as strong advertising revenues from free-to-air channel Cuatro as Spain's victorious Euro 2008 soccer campaign drew record audiences.

Prisa shares were 3.3 percent lower at 5.6 euros by 1148 GMT, outpacing a 1.5 percent drop in Spain's blue-chip index .IBEX. (Reporting by Tracy Rucinski; editing by Sue Thomas)