ProSiebenSat.1 hopes for final spurt: revenue target capped
The television group ProSiebenSat.1 wants to at least achieve its profit target for the current year with a final spurt. The management is hoping for a "slightly improved revenue and earnings performance" in the traditionally most important fourth quarter, as the MDax company announced on Tuesday in Unterföhring near Munich. The management team headed by Group CEO Bert Habets wants to compensate for the continued decline in TV advertising revenue with growth in the Entertainment segment.
However, the Management Board warned of the ongoing consumer slump and the lack of recovery in the markets, which is why revenue in 2023 is likely to be lower than expected. Revenue for the current year is now expected to be "slightly below" 3.95 billion euros. Previously, the Group had forecast between 3.95 and 4.25 billion euros. In addition, earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for non-recurring effects should only reach the lower half of EUR 550 to 650 million. ProSiebenSat.1 will benefit from cost savings and major job cuts.
In the third quarter, revenues declined by around 2.5 percent to EUR 888 million. Of this, EUR 110 million remained as adjusted operating earnings (EBITDA) - slightly more than in the same period last year. While the Group's revenue developed roughly as expected, industry experts had hoped for more in terms of profit.
Despite the challenging market conditions, ProSiebenSat.1 plans to increase its engagement with digital platforms, aiming to boost its streaming services' reach and quarterly figures. The media company's strategy includes leveraging the power of the Internet to reach wider audiences and diversify its revenue sources beyond traditional television advertising.
The management's new approach to media consumption trends has led ProSiebenSat.1 to invest heavily in digital content production for its streaming services, aiming to attract more viewers and compete in the ever-growing digital market, including via Television.
Source: www.dpa.com
