ProSiebenSat.1 Media Posts Mixed Q3 Results But Streaming Grows
ProSiebenSat.1 in Germany posted mixed third-quarter revenues and adjusted earnings that were almost identical to the 2023 numbers. Streaming once again was a highpoint for a major network group.
The adjusted net income grew 32.6%, from EUR23M to EUR31M for the quarter, but adjusted cash flow fell 36%, from EUR61M to EUR25M. The adjusted net income increased 32.6%, from EUR23M in the first quarter to EUR31M in the second. However, adjusted cash flow decreased 36% (from EUR61M to EUR25M) for this period.
Full-year revenues in the nine months up to September reached EUR2.66B. This is a marginal increase over the EUR2.57B of last year. Adjust earnings have also decreased from EUR888M down to EUR882M. ProSieben stated that the figures reflect “the close relationship between consumer restraint, and cautious investments in television advertising in the third-quarter of 2024”, and a significant drop in its Dating & Video sector.
ProSieben management stated that the German economy, private consumption and broadcasting of the Summer Olympics and European Football Championships over the summer all stunted growth. In this context, it is notable that TV ad revenue was lower than the previous year.
ProSieben’s Digital & Smart vertical, which houses streamer Joyn, has seen its AVOD revenues grow 28% over the year. ProSieben’s Digital & Smart Vertical, which includes streamer Joyn has seen AVOD revenue grow by 28% in the past year.
Overall, revenues from Digital & Smart advertising offerings in Europe’s German-speaking region increased by 7% over the nine-month period. Total advertising revenues remained stable. The total advertising revenue in Europe’s German speaking region increased by 7% over the past nine months.
The Entertainment segment posted external revenues of EUR1.74B, up 2% for the first nine month period. Advertising dipped, causing a 3% drop in revenues for this quarter. The total came to EUR579M.
ProSieben stated that the figures confirm the Unterfohring, Germany-based company’s strategic focus on Joyn streaming as an ad funded model and the expansion our digital entertainment portfolio.
Martin Mildner is the Group CFO at ProSiebenSat.1 Media. He said, “Private consumption has not grown as well as we had hoped for the start of the year.” “We closed the first nine-month period in line with expectations for 2024.
“Despite the challenging economic environment, our progress is good in implementing strategy and ensuring consistent cost management. We are also pleased with the rate of growth in Digital & Smart Advertising revenues as well as in the Commerce & Ventures Segment. These figures contrast with those for the German economy as a whole.”
ProSieben has also confirmed that it is in the process of selling its ecommerce businesses Flaconi & Verivox. MediaForEurope’s campaign to split the company narrowly prevented it from happening earlier this year. Its future is still uncertain.
