ProSiebenSat.1 sees Q2 revenue growth
August 7, 2019
ProSiebenSat.1 Group increased its revenues by 4 per cent to €947 million (previous year: €912m). The organic revenue increase also came in at 4 per cent. This was driven by growth in the Content Production & Global Sales and Commerce segments, which more than compensated for the weaker development in the Entertainment segment: Content Production & Global Sales and Commerce increased their revenues by 28 per cent and 18 per cent respectively in the second quarter (organic growth of 21 per cent and 7 per cent respectively), the Entertainment business was 4 per cent below the previous year’s quarter (organic decline of 1 per cent).
Total advertising revenues in the Entertainment segment declined by 2 per cent compared to the previous year with the digital and smart advertising business growing strongly by 26 per cent while TV core advertising revenues were down by 3 per cent.
The Group’s adjusted EBITDA came in as expected and declined by 18 per cent to €213 million (previous year: €259m) in the second quarter. As previously announced, this decline reflects the investments recognised as expenses into the future of the Entertainment business as well as lower advertising revenues. The Group has decided to strengthen its investments in the areas of content, digital platforms and advertising technologies. Adjusted net income decreased by 38 per cent to €85 million (previous year: €136m) in the second quarter as planned.
Max Conze, CEO of ProSiebenSat.1 Media SE, commented: “We are making good progress in the transformation of ProSiebenSat.1 and are delivering what we have announced: Despite a continued difficult advertising market environment, our organic and reported revenues grew +4 per cent in the second quarter. Organic growth at Red Arrow Studios of 21 per cent (28 per cent reported) and NuCom Group of 7 per cent (18 per cent reported) as well as growth of 26 per cent in our digital and smart advertising business is fueling the diversification of the Group further.”
“We continue to focus single-mindedly on the execution of our strategy and are reaching important milestones. Our platform Joyn has been launched successfully in June with over 3.8 million monthly users across all devices: four times its predecessor 7TV. At the same time, our investments in local content are starting to pay off. Our show ‘The Masked Singer’ has just cast a spell over the whole of Germany. The finale with 38.1 per cent was the best ProSieben prime time market share since 2010. In the second quarter, our audience shares were the best in four years, and our digital view time is continuing to post double-digit growth. We thereby managed to more than compensate for the decline in linear reach in the second quarter. These investments are now reflected in adjusted EBITDA – a planned and conscious decision to invest in the future of ProSiebenSat.1. We are convinced this will pay off and we are on the right track focusing on local and digital,” he concluded,