ProSiebenSat.1 makes 3rd cut in revenue expectations

German commercial broadcaster ProSiebenSat.1 has issued another warning about revenue expectations for this year. The news comes just three weeks after the second warning of the year, when advertising guidance was trimmed.

This latest – and unscheduled – statement talks of a weaker September and that previous guidance for its Q3 ad sales were now unlikely to be met.

Exane/BNP-Paribas, in a note to investors, suggests that the overall German TV ad-market will grow, at best, by 1 per cent this year.

ProSiebenSat.1 itself has started a review of its Group segment structure and “certain other portfolio measures”. This, says the bank’s report, includes (1) a potential combination of the Broadcasting German-speaking and Digital Entertainment segments into one combined entertainment segment, with “meaningful [but unquantified] cost synergies in the medium term”. (2) potential co-investments from third parties in its content & digital commerce businesses, (3) potential mergers for these assets with third parties. (4) “the possibility of potential future public listings”, presumably again for the digital and/or content production assets.

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