ProSiebenSat.1 Results Lifted by Digital Growth

November 8, 2012 World Screen Top Stories
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MUNICH: ProSiebenSat.1 more than doubled its underlying net income in the third quarter, to 65.1 million euros ($83 million), with its performance bolstered by the 50-percent rise in digital revenues, to 85.9 million euros ($109.5 million).

The group reported total revenues of 636.9 million euros, a gain of 7.1 percent. Recurring EBITDA increased by 2.3 percent to 167.3 million.

In its German broadcasting segment, ProSiebenSat.1 Group suffered a tough comparison with the prior-year quarter. It was impacted by the Olympic Games, which aired exclusively on the public stations. The company announced that it will launch two additional free-TV stations, SAT.1 Gold and ProSieben MAXX, in the coming year.

The international broadcasting segment grew by 8.8 percent, with revenue supported by the Northern European stations. Norway and Denmark posted nice gains in their ad revenues. In the last six years, the group has launched eight stations in Norway, Sweden, Finland and Denmark. Higher distribution revenues, notably in Denmark and Sweden, contributed to the revenue growth for this unit.

Digital saw tremendous growth for the group. External revenues were up by 49.7 percent, due in part to contributions from the sale of online video advertising, the VOD portal maxdome, the music unit and the ventures & commerce business.

The content production and global sales unit was effected by start-up costs for newly acquired production companies, leading to a dip in recurring EBITDA. External revenues in this segment were higher than the previous year.

Thomas Ebeling, the CEO of the ProSiebenSat.1 Group, said: "In the last few years, we have consistently invested in new growth markets. This is paying off today. With a revenue increase of nearly 50 percent, our Digital & Adjacent activities were the strongest growth driver in the third quarter of 2012 as well. We are developing ProSiebenSat.1 from a traditional TV provider to a digital entertainment powerhouse—and are thus setting the course for a long-term, successful development of the Group."