ProSiebenSat.1’s focus on streaming strategy pays off with revenue rise, results show
ProSiebenSat.1 Group’s prediction of a slight uptick in revenue in 2024 has proved correct as the German media giant’s streaming strategy helps it navigate a challenging market.
Bert Habets
The Unterföhring-based company saw revenue growth of 2% to €3.92bn (US$4.23m) in the last financial year, up on the €3.85bn the year before.
ProSiebenSat.1 Group CEO Bert Habets said a year ago he was expecting the media giant’s revenue to grow slightly in 2024 as its streaming strategy begins to pay off.
The company said this morning its revenue performance was “in line with the forecast for the year and reflects the challenging macroeconomic situation.”
ProSiebenSat.1 suffered from a weak economy in 2023 and the stagnant ad market weighed heavily on the group’s financials, while a reorganisation saw 400 job cuts.
While TV advertising revenues continued to fall, the group said its digital entertainment strategy is working, with streaming platform Joyn helping to grow revenues due to a 44% rise in monthly video users and a 36% rise in viewing time.
The group invested “more strongly” in programming for Joyn last year, which also had an impact on profitability, the company added.
Further revenue growth is expected for 2025, to around €4bn, the company said, with advertising revenues in the DACH region (Germany, Austria and Switzerland) expected to increase by 2% for the full year.
As a result of its strategic focus on its entertainment business, the group is looking at off-loading “non-strategic investments,” including online beauty retailer Flaconi and price comparison website Verivox, with both involved in “ongoing sales processes.”
Habets said: “Our focus on the entertainment business and the consistent implementation of our strategy is paying off. This is demonstrated by the strong growth of Joyn and the improved performance of our linear channels at the end of the year.
“We are also investing heavily in programming and new technologies in order to strengthen our competitiveness in the long term. Our goal is clear: we want to establish Joyn as the leading advertising-financed streaming platform in the German-speaking region and continue to significantly increase Joyn’s marketable reach with clear double-digit growth rates per year. With our chosen course, we will successfully expand our position in the entertainment market.”
Martin Mildner, chief financial officer at ProSiebenSat.1 Media SE, said: “We have achieved our financial targets despite difficult economic conditions. This is not least the result of our consistent cost management.
“At the same time, we are making important progress in implementing our entertainment strategy and are pleased with the growth in large parts of the commerce and ventures segment. We will continue to work consistently on our cost base in order to achieve our financial targets. After all, a solid financial basis is the prerequisite for growth and profitability.”
