ProSiebenSat.1Group, which owns one of Germany’s leading broadcasters and one of its top streaming platforms, has had an encouraging start to 2024 after a rough 2023 financial year that saw revenues dip by 7%.
Financial results for the first quarter of 2024, reported on Tuesday, reveal that group revenues increased by 6% to €867 million ($935 million) in the first quarter of 2024 and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew by 35% to €72 million ($77.6 million) despite higher programming expenses. The group said that in addition to revenue growth, the positive numbers are due to the cost program implemented in the previous year.
The group recorded growth of 5% in advertising revenues in the German-speaking region in the first quarter of 2024. Its digital platform and commerce companies Verivox and Flaconi continued to “grow dynamically,” the group said.
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Streamer Joyn displayed stellar numbers with 6.5 million monthly video users (up 42% compared to the previous year’s quarter) and a viewing time of 9.2 billion minutes (up 21% compared to the previous year’s quarter). Joyn’s AVOD revenues increased by 50%, while digital and smart advertising revenues in the German-speaking region grew by 9% overall. While revealing the annual results for 2023, ProSiebenSat.1 had pledged to ramp up investment in local shows. The group points to this as the reason for Joyn’s first quarter success. With the upcoming launch of Joyn in Switzerland in June, the streamer will be available throughout the German- speaking region of Europe.
On the back of these numbers, the group is aiming to grow its 2024 revenues to €3.95 billion in 2024 with a variance of plus or minus €150 million (previous year: €3.85 billion). It expects an adjusted EBITDA of €575 million (previous year: €578 million) with a variance of plus or minus €50 million.
Martin Mildner, group CFO of ProSiebenSat.1 Media SE, said: “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. 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.”
