German broadcaster ProSiebenSat.1 Media posted third-quarter consolidated revenue of 921 million euros ($955.7 million), down 13 percent. Profit also fell to 118 million euros from 162 million euros in the same three months of the previous year and adjusted net income amounted to 43 million euros.
In a “very challenging market environment”, the Unterföhring-based company recorded “almost stable” nine-month group sales of EUR 2.93 billion and “effective cash flow management”, reducing net financial debt by EUR 372 billion. fell to 1.74 billion euros. Results also include a €312 million non-cash impairment of NuCom Group and organic group revenue fell by 9%.
The news comes shortly after ProSiebenSat.1 reorganized its international production and distribution companies under the new Seven.One Studios branch. This was followed by the sale of Red Arrow Studios’ US production assets to Peter Chernin’s The North Road Company and the acquisition of Warner Bros Discovery’s stake in streamer Joyn, placing it “at the heart of the group’s digital entertainment presence”.
ProSiebenSat.1’s entertainment segment fell by 15 percent to EUR 621 million. The American arm of Red Arrow and film distributor Gravitas Ventures, which were sold in November 2021, contributed €54 million and €9 million respectively to sales of €728 million in the previous year.
In the German-speaking region, the impact of the advertising slump fell by 10% to €430 million. Still, rumors surfaced this month that the company was interested in taking over Sky’s German TV division.
ProSiebenSat.1 forecasts annual revenue of approximately EUR 4.15 billion and EBITDA of approximately EUR 650 million.
However, it said that “persistently high inflation and growing consumer reluctance” in Germany, Austria and Switzerland had “significantly impacted” booked revenue, particularly the advertising market, hence NuCom’s write-down. It also noted that group sales peaked in the third quarter of last year as the world recovered from the worst of the pandemic.
“The market environment has become increasingly difficult over the course of the year due to inflation, the energy price crisis and consumer control,” says Ralf Peter Gierig, member of the Executive Board and Group CFO of ProSiebenSat.1 Media. “Especially in these times, we consistently continue our transformation. We are investing in the digital future of our Group. As an early cycle company, we are excellently positioned to benefit directly from an economic recovery, particularly in the advertising market.
This is exactly why the complete takeover of the streaming platform Joyn was the right move. It plays a central role in our digital entertainment strategy. Our goal is to develop Joyn into the largest freely accessible streaming platform for premium video content in German-speaking countries, to further expand our digital ecosystem and thereby create additional monetization opportunities. We are convinced that this strategy takes us in the right direction.”
Silvio Berlusconi’s Italian broadcaster MediaForEurope remains ProSiebenSat.1 Media’s largest shareholder.
Author: Jesse Whittock
Source: Deadline
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