Digital advertising and gains at Red Arrow Studios and NuCom Group contributed to a 4-percent bump in second-quarter revenues at ProSiebenSat.1 Media to €947 million ($1.1 billion).
“We are making good progress in the transformation of ProSiebenSat.1 and are delivering what we have announced: despite a continued difficult advertising market environment, our organic and reported revenues grew 4 percent in the second quarter,” said CEO Max Conze. “We continue to focus single-mindedly on the execution of our strategy and are reaching important milestones. Our platform Joyn has been launched successfully in June with over 3.8 million monthly users across all devices: four times its predecessor 7TV. At the same time, our investments in local content are starting to pay off. Our show The Masked Singer has just cast a spell over the whole of Germany. The finale with 38.1 percent was the best ProSieben prime-time market share since 2010. In the second quarter, our audience shares were the best in four years, and our digital view time is continuing to post double-digit growth. We thereby managed to more than compensate for the decline in linear reach in the second quarter. These investments are now reflected in adjusted EBITDA—a planned and conscious decision to invest in the future of ProSiebenSat.1. We are convinced this will pay off and we are on the right track focusing on local and digital.”
Red Arrow Studios, ProSiebenSat.1’s content production and global sales segment, recorded a 28-percent boost in revenues, driven by the production operations in Germany, the U.S. and the U.K. and Studio71’s business in Germany and the U.S.
The commerce segment, NuCom Group, saw revenues increase by 18 percent.
The entertainment segment, meanwhile, was down by 4 percent as total ad revenues fell by 2 percent. Digital and smart advertising revenues rose by 26 percent while TV ad revenues fell by 3 percent.
Adjusted net income decreased by 38 percent to €85 million ($95.4 million).