ProSiebenSat.1 generates revenues of almost EUR 3 billion in the first nine months of 2022 despite market slowdown

15/11/2022

ProSiebenSat.1 generates revenues of almost EUR 3 billion in the first nine months of 2022 despite market slowdown

Group confirms preliminary quarterly figures published on October 27, 2022: In an increasingly difficult economic environment, organic1 Group revenues decreased by 9% to EUR 920 million in Q3 2022; in the first nine months, organic1 Group revenues were almost stable at the previous year's level at EUR 2,929 million.

Earnings also reflect macroeconomic impact: In Q3 2022, the Group generated adjusted EBITDA of EUR 118 million (previous year: EUR 162 million) and adjusted net income of EUR 43 million (previous year: EUR 58 million); in the nine-month period, adjusted EBITDA declined to EUR 407 million (previous year: EUR 470 million), while adjusted net income at EUR 153 million was only 3% below the previous year (EUR 158 million).

Impairment in the Commerce & Ventures segment: One-time, non-cash impairment of assets of EUR 312 million, in particular of goodwill, of NuCom Group in Q3; this has no impact on dividend-relevant adjusted net income.

Effective cash flow management: Net financial debt at EUR 1,739 million, a significant EUR 372 million below the previous year; leverage ratio clearly within the target range at 2.2x at the end of Q3.

Important strategic progress made: After full takeover as of October 31, 2022, the streaming platform Joyn moves to center stage in Group's digital entertainment presence.

Full-year outlook as communicated on October 27, 2022: ProSiebenSat.1 expects Group revenues of around EUR 4.15 billion and adjusted EBITDA of around EUR 650 million for the full-year.

Unterf hring, November 15, 2022. In the third quarter of 2022, ProSiebenSat.1 Group generated Group revenues of EUR 921 million (previous year: EUR 1,055 million) in a very challenging market environment. This is a decline of 13%. Organically1, i.e., adjusted for currency effects and excluding the revenue contributions of portfolio companies recently disposed, such as the US production business of Red Arrow Studios as of July 1, 2022, Group revenues amounted to EUR 920 million, down 9% or EUR 86 million on the previous year's figure (previous year: EUR 1,007 million). The total deconsolidation effects amounted to EUR 78 million in the third quarter. In addition, revenues were significantly influenced by the macroeconomic environment in the region of Germany, Austria and Switzerland, which is characterized by persistently high inflation and increasing consumer restraint. This particularly affected the advertising market. The deterioration of the overall economic environment in the German-speaking region also had an impact on the companies of NuCom Group, which are reported in the Commerce & Ventures segment, with end customers thus using their offerings to a lower extent in the third quarter. The strong comparative quarter of the previous year also played a role: Group revenues were at a record high in the third quarter of 2021, when the advertising market in particular rapidly and dynamically recovered from the effects of the COVID-19 pandemic.

From January to September 2022, ProSiebenSat.1 recorded Group revenues of EUR 2,930 million (previous year: EUR 3,041 million) and thus a decline of 4%. Organically1, the revenue decline amounted to 2% - and therefore remained almost stable in a market environment that became increasingly difficult over the course of the year. With this, the Group confirms the preliminary quarterly figures that ProSiebenSat.1 already published on October 27, 2022.

As of October 31, 2022, ProSiebenSat.1 also fully acquired the streaming platform Joyn and transferred it to the Entertainment segment as a wholly owned subsidiary. The Group is now expanding Joyn into the first port of call in its digital ecosystem. ProSiebenSat.1 is also placing a stronger focus on interaction with and between users - for example with the social entertainment app JoynMe, which is based on ParshipMeet Group's vPaaS technology.

Ralf Peter Gierig, Member of the Executive Board and Group CFO of ProSiebenSat.1 Media SE: The market environment has become increasingly difficult over the course of the year due to inflation, the energy price crisis and consumer restraint. 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. That is precisely why the full takeover of the streaming platform Joyn was the right step. It plays a central role in our digital Entertainment strategy. Our aim is to develop Joyn into the largest freely accessible streaming platform for premium video content in the German-speaking region, to further expand our digital ecosystem and thus to create additional monetization opportunities. We are convinced that this strategy is taking us in the right direction.

Operating performance

In the third quarter of 2022, external revenues in the Entertainment segment declined by 15% to EUR 621 million (previous year: EUR 728 million). Organically1, segment revenues declined by 9%. In view of its focus on synergies, the Group disposed the US production business of Red Arrow Studios as of July 1, 2022, and already sold the film distributor Gravitas Ventures in November 2021. In the previous year, these companies had still contributed segment revenues of EUR 54 million and EUR 9 million, respectively. In addition to these deconsolidation effects, segment revenues were influenced by lower advertising revenues due to the difficult macroeconomic environment. Additionally, the advertising market also had benefited from considerable catch-up effects from the COVID-19 pandemic in the third quarter of the previous year. In the thi

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ProSiebenSat.1 generates revenues of almost EUR 3 billion in the first nine months of 2022 despite market slowdown

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