ProSiebenSat.1 revenues grow to $920m on ad market recovery and digital growth
Germany’s ProSiebenSat.1 has reported a good start to 2024, with group revenues increasing by 6% to €867m (US$920m) as the advertising market shows signs of recovery.
That revenue figure was an increase from the €816m recorded in the first quarter of 2023.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 35% to €72m, up from €53m the previous year.
Meanwhile, Prosieben says that adjusted net income has been boosted by €22m to €8m in 2023.
The group’s net financial debt also improved, with a recorded €1,553m compared to €1,682m at the same time last year.
Executives say that the figures showed profitable growth in several areas of the group’s portfolio and were in line with expectations.
The positive financial outlook is attributed to a recovery in TV advertising revenues, as well as digital growth driven by the group’s streamer Joyn.
The AVoD platform saw a 36% increase in monthly video users and a rise in revenues of 50% compared to the previous year’s first quarter.
Group CEO Bert Habets will hope that the financial results point the way to better times ahead after enduring a dire 2023.
Last year was a tough one for all German broadcasters. The consolidation of streaming service Joyn following ProSiebenSat.1’s full takeover of the service added to a weak economy generally.
The stagnant ad market of 2023 also weighed heavily on the group’s financials, with a reorganisation seeing 400 job cuts.
Last month, meanwhile, the group asked shareholders to vote against top investor MediaForEurope (MFE)’s plans to split the company.
Controlled by the family of the late former Italian Prime Minister Silvio Berlusconi, MFE holds an almost 30% stake in ProSieben.
MFE wants to spin off ProSieben’s e-commerce and dating assets from the company’s core TV operations. The move would help MFE launch a potential buy-out of ProSieben’s TV business.
Martin Mildner, group chief financial officer, ProSiebenSat.1 Media SE, said: “As expected, we have made a very good start to the year.
“This shows that the consistent implementation of our strategy is taking effect.
“We were able to close the first quarter of 2024 not only with revenue growth, but also with significant earnings growth due to consistent cost management.
“Over the course of the year, we will continue to intensively drive our strategy forward and consistently pursue our cash and cost management.”
