ProSiebenSat.1 Seeks Final Push for Profit Target: Not Quite There Yet
In a bid to hit its yearly profit target, ProSiebenSat.1 is aiming for a strong final quarter. The group's CEO, Bert Habets, is counting on a "slightly improved revenue and earnings performance" during this crucial period, as per the announcement made in Unterföhring nearby Munich on Tuesday.
The aim is to offset the persistent drop in TV advertising revenue with growth in the Entertainment segment. Despite their optimism, the Management Board has sounded a note of caution, warning about the ongoing consumer downturn and the lack of market recovery. As a result, the expected revenue for 2023 is anticipated to be lower than projected. The revised revenue forecast now stands at "slightly below" €3.95 billion, down from the earlier estimate between €3.95 and €4.25 billion. Additionally, EBITDA adjusted for non-recurring effects is expected to reach only the lower half of €550 to €650 million.
ProSiebenSat.1's third-quarter revenue saw a dip of roughly 2.5%, ending up at €888 million. Despite this, €110 million was recorded as adjusted operating earnings (EBITDA), marginally higher than the same period last year. While the revenue trajectory was largely expected, industry experts had hoped for better profitability.
Looking ahead, ProSiebenSat.1 is set to ramp up its engagement with digital platforms in a bid to boost its streaming services' reach and quarterly figures. The media company is determined to leverage the power of the internet to reach out to a wider audience and diversify its revenue sources beyond traditional television advertising.
This new digital-first approach has led ProSiebenSat.1 to invest heavily in digital content production for its streaming services. The aim is to attract more viewers and maintain a competitive edge in the rapidly expanding digital market, including traditional television.
While the precise financial targets for 2022 are not explicitly provided, ProSiebenSat.1 has been proactive in its digital transformation. This has included moving its content supply chain into the cloud using Amazon Web Services (AWS) as its cloud partner. The goal is to accelerate product development, integrate AI, and enhance the user experience through customized recommendations and additional FAST channels.
The media company has also formed strategic partnerships, such as collaborating with RTL Deutschland and smartclip to create an adtech stack for Europe. This initiative aims to provide a European alternative to international tech providers, leveraging the strengths of local markets. ProSiebenSat.1 has also dedicated a local team of industry experts to serve the unique needs of clients in the French market, streamlining client interactions and supporting strategic growth.
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Enrichment Data:
- Digital Transformation:
- Cloud Migration: ProSiebenSat.1 is migrating its entire content supply chain to the cloud using Amazon Web Services as its preferred provider. This move aims to accelerate product development, integrate AI, and enhance the user experience through personalized recommendations and additional FAST channels.
- Strategic Partnerships:
- Adtech Made in Europe: ProSiebenSat.1 is teaming up with RTL Deutschland and smartclip to establish a comprehensive adtech stack for Europe. The objective is to provide a genuine European alternative to international tech providers, leveraging the unique strengths of local markets.
- Local Expertise:
- French Market Focus: ProSiebenSat.1 has established a local team of industry experts to cater to the unique needs of clients in the French market. This approach is designed to facilitate smoother client interactions and foster strategic growth in this specific market.
