Net Profit Up 50.3 Percent at ProSiebenSat.1

MUNICH: Off to a strong start for the first quarter of the fiscal year, ProSiebenSat.1 posted revenue gains of 6.5 percent to 634.8 million euros ($822.7 million), with group recurring EBITDA up 8.9 percent year-on-year to 141.6 million euros ($183.5 million).

Net profit for the period grew 50.3 percent to 50.8 million euros ($65.8 million). The group saw solid growth in the German TV business, as ad revenues increased but revenues from the sale of programming assets declined. Overall, revenues in the broadcasting German-speaking segment increased 1.8 percent to 417.9 million euros ($541.9 million). Recurring EBITDA rose 11 percent to 108.6 million euros ($140.8 million).

In the broadcasting international segment, revenues were up 6.3 percent to 135.4 million euros ($175.5 million) year on year. The growth was driven by the Northern European station portfolio, in particular, stations in Norway. Recurring EBITDA declined by 16.7 percent to 16.9 million euros ($21.9 million).

The the digital & adjacent segment, revenue increased by 31 percent to 70.5 million euros ($91.4 million), led by the online unit. Online games and the maxdome VOD portal also contributed to the revenue growth. EBITDA was up 70.9 percent to 17.6 million euros ($22.8 million).

The content & global sales segment also posted revenue growth, up 175 percent to 11 million euros ($14.2 million). Its Red Arrow Entertainment Group subsidiary expanded its portfolio in recent months through several acquisitions. The cost from this expansion resulting in recurring EBITDA at a loss of 1.5 million euros ($1.9 million).

Thomas Ebeling, the CEO of ProSiebenSat.1 Media, said: "Our growth strategy gave a positive impetus to the new year. Today, we have already realized over 30% of the additional revenue potential we are targeting until 2015. All our segments made a contribution. This is a very good result. The Digital & Adjacent segment, in particular, is developing more and more strongly to drive our growth. We have thus made great progress in our objective of becoming a digital entertainment powerhouse."

Axel Salzmann, the CFO, added: "We continued our profitable growth in the first quarter and are confirming our 2012 targets. In the first three months, the Company not only increased revenues and recurring EBITDA. Due to lower financial liabilities we reduced our interest expenses at the same time, thus generating a considerably better net result. The ProSiebenSat.1 Group has high profitability combined with a solid financial and operating basis."