ProSieben hit by TV ad growth doubts
August 5, 2011
German commercial broadcaster ProSieben flagged moderate growth in its core TV advertising market this year, unsettling investors and overshadowing a 7 per cent rise in quarterly profit.
ProSieben said second-quarter recurring earnings before interest, tax, depreciation and amortisation (EBITDA) rose to €238.7 million on sales growth of 6.5 per cent to €692.2 million. The figures are adjusted for the sale of ProSieben’s Dutch and Belgian assets, which it sold for €1.23 billion to pay down debt, the company said.
As with other broadcasters, ProSieben is keen to expand its offers amid fragmenting audiences and tap into the Internet TV market, betting that online advertising will compensate slumping ad revenues and fragmenting audiences.