ProSiebenSat.1 sees lift in earnings in Q4 with improved outlook

Source: ProSiebenSat.1

Germany’s ProSiebenSat.1 says it recorded higher than expected increase in earnings in the fourth quarter of 2023.

Unveiling preliminary results, ProSiebenSat.1 Group increased its adjusted EBITDA by 11% compared to the previous year quarter to around €335 million, exceeding its previous earnings expectations for this quarter.

The broadcaster previously said it expected slight growth in adjusted EBITDA in the fourth quarter of 2023 compared to the previous year quarter. The higher-than-expected increase came out of an improved overall business performance as well as various smaller and non-recurring earnings effects that arose during preparation of the consolidated financial statements.

For the full year, ProSiebenSat.1 Group generated adjusted EBITDA of around €578 million, down from €678 million in 2022.

Group revenues amounted to €3.85 billion, down from €4.16 billion.

Some €1.28 billion of the revenue total was attributable to the fourth quarter, up from €1.27 billion for the prior year.

ProSiebenSat.1 said its net financial debt decreased to around €1.546 billion in the fourth quarter from €1.775 billion at the end of September.

Updating its outlook for 2024, the group said it continues to assume adjusted EBITDA at the previous year’s level, but now anticipates an increased adjusted EBITDA of around €575 million with a variance of plus/minus €50 million.

The new total takes into account the group’s previously announced increase in local programming investments but is based on the unchanged assumption of a slight increase in consolidated revenues.

Martin Mildner, group CFO said: “We ended 2023 on a good note. In the crucial fourth quarter, our advertising revenues in the DACH region were slightly above the previous year’s level and we were able to improve our performance in many parts of the Commerce & Ventures portfolio. At the same time, our cost measures are taking effect, which strengthens our profitability. This gives us confidence for 2024, even if the economic environment remains challenging.”