A strong performance from digital activities including subscription video-on-demand service Maxdome, along with a good production and programme sales performance, helped contribute to a solid quarter for German commercial broadcaster ProSiebenSat.1.
Overall digital revenues rose by 23% to €183.5 million (US$201 million), compared to €149.2 million a year earlier. Recurring EBITDA went up by 21.8% to €37.5 million despite higher costs as a result of growth.
In the content production and sales division, revenues increased by 77.2% to €54.4 million in the second quarter and recurring EBITDA rose to €4 million from €1.3 million in the previous year. On a half-year basis, revenues grew by 76.5% to €100 million and EBITDA also increased significantly to €4.7 million from a €1.2 million loss.
Revenue growth in this unit was mostly organic in the second quarter, with the production business in the US making the largest contribution to revenues. In addition, the consolidation of US production outfit Half Yard Productions in March 2014 within the Red Arrow Entertainment also contributed to the increase in revenues in the first half of this year.
In the second quarter, ProSiebenSat.1 continued to increase its audience shares in Germany, Austria and Switzerland. In Germany, the group achieved the highest figure in ten years at 29.8%. At the same time, the group increased its TV advertising revenues in all German-speaking markets.
Income from the distribution of free TV channels in HD quality again rose considerably in the second quarter of 2015. The number of ProSiebenSat.1 HD users increased by 19% to 5.7 million. ProSiebenSat.1 expects this figure to rise to over nine million by 2018.
Overall, ProSiebenSat.1 turned in revenues of €772.5 million for the second quarter, up 11.8%, while EBITDA grew by 8.4% to €237.6 million.
“In the second quarter of 2015, all segments grew profitably and we are pushing full steam ahead with our growth strategy. Our most important goal remains making ProSiebenSat.1 more competitive and tapping into new growth markets via digitalisation and internationalisation.
“Free TV is the driving force of our digital business and offers us the opportunity to market products to an audience of millions at little financial cost. We are thus continuously increasing the value of our Company and creating new growth areas that benefit our shareholders in the long term,” said CEO Thomas Ebeling.