ProSieben posts 6% revenue rise & 35% rise in earnings in preliminary Q1 update

The Masked Singer Germany

ProSiebenSat.1 has posted a 6% rise in revenues and a 35% rise in earnings in its preliminary Q1 update, marking a potential turning of the tide for the embattled German broadcaster.

The Bert Habets-led firm said adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) rose from €53m ($56m) in Q1 2023 to €72m this year.

Bert Habets (Source: ProSieben Sat.1)

Revenues for the quarter rose 6% to €867m, up from 2023’s €816m, with confirmed figures due 14 May.

The German operator, which has been hit by a declining advertising market over the past two years, said its target to hit full-year revenues of €3.95bn (+/- €150m €150m) remained in place, as does its adjusted EBITDA target of €575m (+/- €50m).

ProSiebenSat.1 described Q1 as a “very good start to the year and said an improving advertising market had fuelled the recovery.

The group has been overhauling its operations over the past 12 months to focus on digital, with streamer Joyn also reporting ad revenue growth including AVOD revenues that rose 50% compared with Q1 2023. Monthly users also rose 36%.

ProSieben’s ‘slight growth’ prediction

Earlier this year, ProSiebenSat.1 CEO Bert Habets predicted “slight growth” in revenues over the next 12 months as it pursues its shift to focus on streaming following a torrid two years.

The German media giant signalled improvements in February, following a reorganisation that saw the company cut a swathe of jobs amid a “realignment” to a digital-first business.

It has also put local shows, rather than foreign imports, at the centre of its programming strategy but has increased its content budget for 2024, up to €1.03bn in 2024 from €950m in 2023.

Martin Mildner, group CFO of ProSiebenSat.1, said the preliminary Q1 numbers today showed “that the consistent implementation of our strategy is taking effect.”

He added: “The advertising market recovered slightly at the beginning of the year and we increased both our TV and our digital & smart advertising revenues in the German-speaking region, also benefiting from an earlier Easter compared to the previous year.”