Germany’s ProSiebenSat.1 posted mixed third quarter revenues and adjusted earnings almost identical to 2023’s numbers, as streaming once again proved a high point for a major commercial network group.
Revenues came in at €882M, down 0.6% year-on-year, while adjusted EBITDA was €104M, down 5.6% from €110M. Adjusted net income grew 32.6% from €23M to €31M for the quarter, though adjusted cash flow fell 36% from €61M to €25M.
Full year revenues for the nine months to September were €2.66B, up marginally on the €2.57B from last year, and adjust earnings are almost identical, down from €888M to €882M. ProSieben said the numbers reflect “the close correlation between consumer restraint and the cautious investments in TV advertising in the third quarter of 2024” and a significant decline in its Dating & Video segment.
The German economy and private consumption, plus the European Football Championships and the Summer Olympics broadcasting over the summer stunted further growth, ProSieben’s management noted. Notably, TV ad revenues were below the previous year against that backdrop.
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However, as with the likes of Warner Bros Discovery, ITV and Paramount Global, an unremarkable financial quarter by traditional measures has been at least partially offset by positive noises from streaming. ProSieben’s Digital & Smart vertical, which houses streamer Joyn, has seen its AVOD revenues grow 28% over the year,
The number of monthly video users increased by 53% to 6.8 million, while total viewing time increased to 27.9 billion minutes — 34% year-on- year growth. Overall, revenues from Digital & Smart advertising offerings in Europe’s German-speaking region increased by 7% in the nine-month period, meaning total advertising revenues remained stable.
This led to the Entertainment segment to post external revenues up 2% at €1.74B for the first nine months of the year. This quarter revenues were down 3%, however, as advertising dipped. It came in at €579M.
ProSieben said the figures confirmed the Unterföhring-based company’s “strategic focus on Joyn as an ad-funded streaming model and the expansion of our digital entertainment portfolio.”
“Private consumption, which is decisive for our TV advertising business, has not developed as positively as we expected at the beginning of the year,” said Martin Mildner, Group CFO of ProSiebenSat.1 Media. “Nevertheless, we closed the first nine months in line with our expectations for 2024.
“Despite the difficult economic environment, we are making good progress in implementing our strategy and practicing consistent cost management. Furthermore, we are particularly pleased with the growth rates in both Digital & Smart advertising revenues and in the Commerce & Ventures segment. They contrast with the figures for the overall economic development in Germany.”
ProSieben also revealed it is progressing with talks to sell its e-retailer businesses Flaconi and Verivox. The company earlier this year narrowly avoided being split up after a campaign by lead shareholder MediaForEurope, and its future remains in flux.
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