German Ad Downturn Hurts ProSiebenSat.1 Results

MUNICH, November 7: A poor
performance at ProSiebenSat.1 Media's German free-TV operations resulted in the
company posting a 3-percent fall in third-quarter revenues to 646.5 million
euros.

ProSiebenSat.1 recorded a 10.7 million euros loss in the
period—considerably smaller than the 77.9 million euros loss a year ago,
when the company was hit with a 120 million euros antitrust fine.

Guillaume de Posch, the CEO of
ProSiebenSat.1 Media, stated: "In the German market we have so far been
unable to capitalize our viewer ratings success in the ad market. That is now
our top priority. Additionally, we have to adapt to an adverse market
environment. In the third-quarter revenues in international free TV showed a
solid growth. Although single markets with high growth rates still exist, on
the basis of current market data, we expect an overall weakening for the fourth
quarter. We will be reviewing the profitability and efficiency of all processes
in our company, and concentrate on the 'must haves' which
are essential to our company in these very challenging market conditions."

Free-TV revenues in Germany fell 10 percent to 354.4 million
euros, while those outside of Germany gained 11 percent to 176.2 million euros.
The countries with the fastest growth were Denmark, Romania, Hungary and
Norway. Diversification revenues fell to 131.8 million euros, largely from
lower intake at 9Live in Germany.

In the wake of these results, the company said it would adjust its
2009 budget with additional cost-cutting measures. "Like many other
players, we too must gear up for the winter," de Posch said. "Only
rigorous cost management will safeguard the ProSiebenSat.1 Group's future. Such
steps will pay off as soon as the economy picks up."

—By Mansha Daswani