German Giant ProSiebenSat.1 sees Q1 profits rise to $77.7M

ProSiebenSat.1 Media has kicked the financial year off in a positive way after posting first quarter earnings up 35%.

The Unterföhring-based TV and streaming giant made Q1 earnings before interest, tax, depreciation and amortization of €72M ($77.7M), a significant boost on the start of the company’s wretched 2023. The company said this was in spite of higher program expenses.

Revenues grew 6% to €867M, with advertising revenues continuing to recover. As such, revenues in the German-speaking region of Europe grew 5%.

The news comes two weeks after ProSiebenSat.1’s existing board persuaded shareholders to narrowly shoot down a series of proposals by leading investors MediaForEurope and PPF to split the business up and change its capital structure.

ProSieben, which operates channels such as Sat.1 in Germany, has been reorganizing around its streaming service Joyn and again saw strong numbers on that front. The German-language streamer set a monthly video users record for the second time in a row (6.5 million) and saw AVoD revenues grow 50% year-on-year. It is set to launch in Switzerland in June.

External revenues at the pivotal Entertainment division increased 5% €554M. Organic growth was up a similar level. Ratings for the German TV stations improved 0.2% among 20-59s.

ProSieben is planning to spend most of 2024 reducing debt and managing cash flow follow last year, when it was forced to make redundancies and restructure the business amid a tough economic climate and devastated TV ad market. Sales of its Verivox and Flaconi operations will go towards that goal and “strengthen the competitiveness of the remaining Entertainment segment,” the company claimed.

A previous plan to restructure the entire Entertainment business so that networks would have sat below Joyn were rejected as the AGM last month, and MFE and PPF were able to install more of their selections on the supervisory board, so the company’s future isn’t yet completely clear. Deadline