ProSiebenSat.1 of Germany reported mixed results for the third quarter, with revenues and adjusted earnings nearly matching those of 2023, showcasing streaming as a strong performer for the commercial network.

The company recorded revenues of €882 million, a slight decline of 0.6% year-over-year, while adjusted EBITDA fell 5.6% to €104 million from €110 million. However, adjusted net income surged by 32.6%, increasing from €23 million to €31 million for the quarter, though adjusted cash flow decreased by 36%, from €61 million to €25 million.

For the nine months ending September, total revenues reached €2.66 billion, a modest increase from €2.57 billion last year. Adjusted earnings closely mirrored last year’s figures, slightly declining from €888 million to €882 million. ProSieben attributed these results to “the close correlation between consumer restraint and cautious investments in TV advertising in the third quarter of 2024,” along with a notable drop in its Dating & Video segment.

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ProSieben’s management noted that the German economy, along with private consumption, and the broadcasting of the European Football Championships and Summer Olympics, hindered further growth. TV advertising revenues also fell compared to the previous year in this context.

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Similar to other networks like Warner Bros Discovery, ITV, and Paramount Global, ProSieben experienced a lackluster financial quarter, but positive developments in streaming helped mitigate the impact. The Digital & Smart division, which includes the streaming service Joyn, saw its AVOD revenues rise by 28% year-on-year.

Monthly video users increased by 53% to 6.8 million, and total viewing time rose to 27.9 billion minutes, marking a 34% year-on-year growth. Overall, advertising revenues from Digital & Smart offerings in the German-speaking regions of Europe grew by 7% over the nine-month period, keeping total advertising revenues stable.

As a result, the Entertainment segment reported external revenues of €1.74 billion for the first nine months, up 2%. However, revenues for this quarter declined by 3%, totaling €579 million due to a decrease in advertising.

ProSieben emphasized that these figures reinforce the company’s “strategic focus on Joyn as an ad-funded streaming model and the expansion of our digital entertainment portfolio.”

“Private consumption, which is crucial for our TV advertising business, has not developed as positively as we anticipated at the beginning of the year,” stated Martin Mildner, Group CFO of ProSiebenSat.1 Media. “Nonetheless, we finished the first nine months in line with our expectations for 2024.”

“Despite the challenging economic environment, we are making steady progress in executing our strategy and maintaining consistent cost management. Additionally, we are particularly pleased with the growth rates in both Digital & Smart advertising revenues and in the Commerce & Ventures segment, which contrast with the overall economic developments in Germany.”

ProSieben also announced that it is advancing discussions to sell its e-retail businesses, Flaconi and Verivox. Earlier this year, the company narrowly avoided a breakup following a campaign by its lead shareholder, MediaForEurope, leaving its future uncertain.

Person: Martin Mildner
Company Names: ProSiebenSat.1, RTL, AMC Networks, Netflix, Warner Bros Discovery, ITV, Paramount Global, Joyn, MediaForEurope, Flaconi, Verivox
Titles: European Football Championships, Summer Olympics

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