ProSiebenSat.1 Profit Hit By One-Time Charge

MUNICH, March 4: ProSiebenSat.1
Group’s consolidated net profits for 2007 fell to 89.4 million euros from the
year-ago period’s 240.7 million euros, despite an increase in revenues, as a
result of expenses related to the SBS Broadcasting merger, and a 120-million
euros fine from the Federal Cartel Office.

Revenues, however, were up
29 percent to 2.7 billion euros, driven by the addition of the SBS stations, as
well as gains in ProSiebenSat.1’s international business and growth in the
German-speaking region.

“2007 was a very
successful year for ProSiebenSat.1, not just economically but also
strategically,” said Guillaume de Posch, the company’s CEO. “We significantly
improved our revenues and earnings. The SBS acquisition internationalized the
group and clearly reduced our dependency on single markets. In the current year
we will continue to improve our competitive position in free TV by focusing on
content and launching new channels. We will further expand our revenue sources
by rolling out our online services across our footprint.”

The company’s free-TV
stations generated 2.3 billion euros in revenues, up from 1.9 billion euros in
2006. And the contribution to revenues from the Diversification
segment—which includes radio, print and premium pay-TV activities since
the SBS acquisition—grew to 398.8 million euros. The diversified
activities accounted for 14.8 percent of revenues, up from 11.4 percent a year
ago. German-speaking Europe is the group’s largest revenue-generating region,
at 80 percent, followed by Northern Europe at 9 percent and the Netherlands and
Belgium at 8 percent.

—By Mansha Daswani