ProSiebenSat.1 ‘on right track’ as record Joyn performance drives Q1 results

The Masked Singer (Germany)

ProSiebenSat.1 has seen AVOD revenues at streamer Joyn surge by 50% and group revenues rise 6% during Q1, as the German operator said it was benefiting from an improving advertising market.

The company’s CFO Martin Mildner said the results showed it was “on the right track” following a digital overhaul and a refocusing on local content.

Group revenues were up 6% to €867m, with growth across both the entertainment sector and its commerce and ventures arm.

Bert Habets (Source: ProSieben Sat.1)

Adjusted EBITDA, meanwhile, soared by 35% to €72m, with the broadcaster reaping the benefits of efficiency measures put in place last year.

The broadcaster also saw growth of 5% in advertising revenues in the German-speaking region, with the results following its narrow AGM victory over shareholder MediaForEurope (MFE), when shareholders rejected the latter’s call for a splitting up of the company.

Digital platform Joyn – key to the company’s strategy – set a record for the second time in a row with 6.5 million monthly video users.

While Joyn’s AVOD revenues increased by 50%, digital and smart advertising revenues in the German-speaking region also grew by 9% overall.

ProSiebenSat.1 now aims to launch Joyn in Switzerland in June, completing its presence in German-speaking Europe. Overall, entertainment revenues stood at €554m for the quarter.

Focus on local content

ProSiebenSat.1 said its focus on local content was paying off, with the market share of the German ProSiebenSat.1 TV stations increasing by 0.2 percentage points to 20.1% in prime time among 20- to 59-year-olds.

The commerce and ventures segment – part of ProSiebenSat.1’s activities that MFE wants to see spun off – grew its external revenues by 20% to €206m, with the Flaconi beauty and lifestyle business and the Verivox consumer advice service leading the growth.

On the downside, the Bert Habets-led group’s dating and video segment saw revenue fall by 9% to €107m.

On the strength of the quarter, the broadcaster confirmed its full-year guidance, with the aim of upping revenues to about €3.95bn and adjusted EBITDA of €575m – the latter below the 2023 figure of €578m. The group expects this year’s performance to be muted somewhat by its lack of coverage of the Paris Olympics and the Euros.

“Our strong start to the year shows that we are on the right track. In 2023, we have set a new course both operationally and strategically. In the first quarter, we are now seeing the first clear effects of our efficiency measures,” said Mildner, group CFO.

“At the same time, the advertising business, which is particularly important for us, is continuing to recover. Even though the market and economic environment remains challenging, we are looking to 2024 with confidence. We are therefore confirming our full-year outlook.

“We will continue to focus clearly on the strategically relevant business areas related to our Entertainment portfolio and continue our consistent management of costs and cash flows.”