Revenues, Profits Dip at ProSiebenSat.1

MUNICH: ProSiebenSat.1 Media’s revenues in the second quarter dropped 9 percent to 694 million euros, while net profit after minority interests fell 23.5 percent to 45.5 million euros.

"Our current results show that our measures were a timely, appropriate response to a difficult economic environment," said Thomas Ebeling, CEO, referencing the company’s reorganization and cost-cutting program. "Our earnings are now benefitting from these step. Combining our stations at the Munich site has turned out to be a farsighted decision for more reasons than just efficiency. Moreover, the combination of TV stations and the integration of TV and online sales activities were an important step from the strategic viewpoint. Because our employees can work more closely together, we can respond better to our advertisers’ needs. And the joint development of programming ideas will increase our creative output and sharpen our stations’ profiles.”

In the quarter, the German free-TV segment contributed revenues of 424.6 million euros, a 6-percent reduction as a result of the weakened ad market. Free TV outside of German-speaking Europe contributed revenues of 338.9 million euros, a 13.9-percent reduction. Overall free-TV revenues were down 8.6 percent to 609.6 million euros, due to lower ad revenues and exchange rate movements. Diversification revenues were down from 134.9 million euros to 84.4 million euros, partly as a result of the sale of CMore.

In the period, the company reduced operating costs by 17.6 percent to 495.8 million euros. This reduction includes a fall in programming investments; adjusting for CMore, program spend fell to 261.9 million euros.

Looking ahead, Ebeling said: "The environment will remain very difficult in the second half, while the fourth quarter of 2009 is particularly important to our performance for the year. As the recession in Europe persists, forecasts remain difficult, We will continue to take all necessary steps to safeguard the ProSiebenSat.1 Group’s profitability. We will also continue to invest appropriately in programming so as to strengthen our competitive position in the audience market. Additionally, we intend to keep capitalizing on our stations’ performance at appropriate prices."