German TV Business Hurts ProSiebenSat.1 Performance

MUNICH, August 7: Although
revenues were up 45 percent to 801.9 million euros at ProSiebenSat.1 Media, a
weakened German free-TV ad market has impacted the company’s second-quarter net
results, with profit down 32 percent to 59.5 million euros.

At the free-TV business in
German-speaking Europe, revenues were down 8.8 percent to 452.3 million euros.
The company’s free-TV business outside of German markets, however, gained 2.8
percent to 214.7 million euros. The diversification segment delivered a
3.1-percent revenue increase to 134.9 million euros.

Announcing the period’s
results, Guillaume de Posch, the outgoing CEO of ProSiebenSat.1 Media, said:
“The first half of the year was not an easy time for the ProSiebenSat.1 Group.
The reasons are clear: part of the market did not accept the German ad sales
model. With the model as revised in May, we are confident we will begin to
regain market share in the second half. Strategically, we are on track
following last year’s takeover of the SBS Broadcasting Group. We are
systematically investing in our core business of free TV across Europe, and
developing and purchasing attractive content. We have not only diversified our
revenue sources geographically, we are also using all electronic distribution
channels. Here our portfolio is constantly expanding. Building up a fully
digital technological platform is a further important step in making ProSiebenSat.1
Europe’s leading TV group.”

Looking ahead, de Posch
noted that the company is aiming to cut costs by 70 million euros this year.
“We expect to realize our efficiency targets in the second half and generate
significant savings without jeopardizing our long-term growth objectives.”

—By Mansha Daswani