ProSiebenSat.1 Posts $3.1 Billion in Revenue During First Nine Months2 min read
German TV powerhouse ProSiebenSat.1 generated a revenue of €3 billion ($3.1 billion) during the first nine months of 2022. Despite a challenging market environment which has been impacted by the inflation and the war in Russia, the company’s revenue dropped by only 4% on the previous year.
During the nine-month period, group’s earning dropped to €118 million and adjusted net income fell to €43 million from €162 million and €58 million, respectively, in 2021. ProSiebenSat.1 was nevertheless able to reduce its financial debt by €372 million to €1,739 million.
The third quarter of 2022 has been particularly challenging for ProSiebenSat.1 Group which saw its revenue drop by 13%. The company recently sold the U.S. production business of Red Arrow Studios on July 1 but the sale was not taken into account in the third quarter’s revenue of €920 million — down 9% on the previous year.
ProSiebenSat.1 Group said the company’s revenues were “significantly influenced by the macroeconomic environment,” including the “persistently high inflation and increasing consumer restraint,” in the region of Germany, Austria and Switzerland. The group said these factors have “particularly affected the advertising market.”
Last year’s third quarter results had reached a record high because the advertising market had bounced back from the effects of the pandemic, pointed out the German TV group. Today’s landscape is more challenging.
“The market environment has become increasingly difficult over the course of the year due to inflation, the energy price crisis and consumer restraint,” said Ralf Peter Gierig, member of the executive board and group CFO of ProSiebenSat.1 Media SE.
“It is especially in these times that we are systematically pursuing our transformation. We are investing in the digital future of our Group. As an early-cyclical company, we are thus very well positioned to benefit directly from an economic recovery, especially in the advertising market,” Gierig continued.
ProSiebenSat.1 has just acquired the streaming platform Joyn and transferred it to the entertainment segment as a wholly owned subsidiary.
The executive said the full takeover of Joyn was “the right step” because it “plays a central role in (its) digital Entertainment strategy.”
Gierig said the group will aim to develop Joyn into the “largest freely accessible streaming platform” for premium video content in the German-speaking region.
Looking ahead, ProSiebenSat.1 anticipates further signs of a weakened macroeconomic environment and forecasts a 17% drop in advertising revenues in the German-speaking region of Germany, Austria and Switzerland during the fourth quarter and 7% down for the full year.
In other recent developments, ProSiebenSat.1 also unveiled a newly established banner called Seven.One Studios which will bring together eight production companies in Germany, the U.K., Denmark and Israel, along with its global distribution arm Red Arrow Studios International.