Germany’s ProSiebenSat.1 Media expecting ‘slight’ revenue growth in 2024
ProSiebenSat.1 Media is expecting to grow its revenue slightly in 2024 as its streaming strategy begins to pay off, according to group CEO Bert Habets.
It comes after ProSiebenSat.1 posted better-than-expected financial results for its fourth quarter last month, when it tentatively predicted a more positive year ahead after a dire 2023.
The German media giant posted revenue and earnings figures today in line with these expectations, with slight revenue growth to around €3.95bn (US$4.3bn) expected in 2024. The group still expects adjusted EBITDA to remain stable at around €575m, while it is set to increase its programming spend on local content by €80m to around €1.05bn in 2024 to drive growth.
Joyn, the company’s ad-supported streaming service, now has 6.3 million monthly video users, up from four million in mid-2023, and revenues increased by 37% in the fourth quarter of 2023.
ProSiebenSat.1 suffered in a weak economy in 2023 and the stagnant ad market weighed heavy on the group’s financials, while a reorganisation saw 400 job cuts.
However, the group said there had been “positive development in many parts of the portfolio,” with increased revenues in its digital and smart advertising business so far in 2024.
Bert Habets, group CEO at ProSiebenSat.1 Media, said: “Our strategy with Joyn at the centre is now starting to pay off. This is also underlined by the positive development, especially in the fourth quarter of 2023.
“Our goal is to further increase usage and user base of Joyn with double-digit growth rates per year. We are firmly convinced that a free offering, centred on one platform, is the key to success.
“We are increasingly focusing on local and live content to strengthen our TV channels and scale Joyn by investing significantly more in this area in 2024.
“Exclusive content is the driver that will enable us to further improve the monetisation of our reach – both in traditional TV and on our digital offerings. With our focus on entertainment, we also evaluate opportunities to crystallise value from our non-core assets, depending on the market environment.”
Martin Mildner, group chief financial officer at ProSiebenSat.1 Media, added: “After a successful year-end performance, we have made a good start to the new financial year. We have set an important course for growth again in 2023.
“Even though the macroeconomic environment remains challenging, we expect advertising revenues in the German-speaking region to develop positively in 2024. At the same time, we want to further strengthen ProSiebenSat.1’s profitability this year and invest €80m more in local content. To this end, we will consistently continue our cash and cost management. A solid financial basis is the prerequisite for our growth.”
