The television company ProSiebenSat.1 slipped deeper into the red last year. The loss amounts to 134 million euros, after a loss of 49 million in the previous year, as the company announced on Thursday in Unterföhring near Munich. Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) fell by 15 percent to 578 million euros.
The bottom line loss was due to high negative special effects – including the fact that the value of the existing program assets was significantly reduced in the fourth quarter. In addition, a provision was created for contracts to acquire future programs from Hollywood studios. The board still wants to pay out a dividend of 5 cents per share to the shareholders.
The uncertainty among consumers and the associated reluctance of the advertising industry particularly characterized the first half of 2023, explained ProSiebenSat.1. Sales increased in the final quarter. However, for the year as a whole, group sales fell by 7 percent to 3.85 billion euros.
Declining TV advertising revenues
In addition to declining TV advertising revenues, the sale of the US production business of Red Arrow Studios and the decline in sales of the Parship Group’s dating platforms also contributed to this. Sales in the digital advertising business, which also includes the streaming platform Joyn, and the business of the comparison platform Verivox and the online perfumery Flaconi have grown.
The strategy presented a year ago with Joyn at the center is now paying off. This shows the positive development, especially in the fourth quarter, said CEO Bert Habets. With 6.3 million monthly users in the final quarter, Joyn set a record. The aim is to increase usage with double-digit growth rates per year. ProSiebenSat.1 relies on a free offer and more local and live content, at the expense of films and series from Hollywood.
For the current year, he expects slight sales growth and adjusted Ebitda at the same level as last year.