Streamer Joyn’s revenue gains provided a partial buffer against the sustained downturn in linear TV advertising within ProSiebenSat.1, the media giant operating in the German-speaking region.
Quarterly figures released on Tuesday indicated a relative stability in group revenues, witnessing a 3% decline in the third quarter of 2023 to €888 million ($950 million), in contrast to the €911 million ($974 million) recorded during the same quarter the previous year. This represents a marginal improvement from the second quarter of 2023 when the group’s revenues decreased from €1.04 billion ($1.14 billion) in 2022 to €868 million ($950 million) this year. Over the initial nine months of 2023, group revenues totaled €2.5 billion, reflecting a decrease of €323 million or 11%.
The group reported a fractional increase in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to €110 million in the third quarter of 2023, compared to the previous year’s €108 million. This modest growth, attributed to targeted cost-control initiatives, was primarily driven by profitable expansion in the digital platform and commerce sector. The decline in the lucrative advertising business, coupled with adverse effects from the full consolidation of Joyn, significantly impacted earnings, according to the group.
Adjusted net income saw a decrease to €23 million in the third quarter, down from the previous year’s €39 million, as the rise in adjusted EBITDA was counterbalanced by increased interest and tax expenses.
The entertainment segment’s external revenues amounted to €598 million in Q3 2023, a 4% dip from the prior year’s €621 million. While advertising revenues in the German-speaking region continued to decline, the drop of 5% was notably less than the first half of the year. However, digital and smart advertising revenues in the region grew by 16%, partially mitigating the decline in TV advertising revenues. Joyn, in particular, exhibited substantial growth, recording a 58% increase in AVOD advertising revenues.
The commerce and ventures segment brought positive news, with external revenues rising by 14% to €182 million in the third quarter of 2023, up from €160 million the previous year. Conversely, the dating and video segment experienced a 17% decline in external revenues, dropping from €129 million to €108 million.
ProSiebenSat.1 Group maintains a conservative outlook, given the gradual pace of recovery, setting a target range for group revenues at €4.10 billion with a variance of plus/minus €150 million. The previous year’s figure, adjusted for currency and portfolio effects, stood at €4.02 billion.
Bert Habets, group CEO of ProSiebenSat.1 Media SE, emphasized the strategic realignment of the group amid market challenges, highlighting a stronger focus on expanding digital business areas and the successful implementation of a cost efficiency program.
Martin Mildner, group CFO of ProSiebenSat.1 Media SE, acknowledged the challenging market environment in the first half of the year but noted efforts to maintain almost stable revenues in the third quarter. With a clear focus on strategically vital business areas, the group aims for a slight increase in revenues and earnings in the crucial fourth quarter.
