Capital Markets Day 2016: ProSiebenSat.1 Again Increases Growth Targets for 2018
Growth targets 2018
- Group revenue target for 2018 raised by EUR 300 million to EUR 4.5 billion
- Group increases recurring EBITDA target by EUR 50 million to EUR 1.15 billion
- Increased targets reflect growth contributions from acquisitions
- More than 50 % of revenues outside traditional TV advertising business by 2018
- Total digital business with revenues of more than EUR 1.7 billion by 2018
- Dividend policy and financial leverage target range confirmed
Financial year 2016
- FY 2016: ProSiebenSat.1 increases revenue growth forecast for 2016 from at least 10 % to at least 15 %
- TV advertising market growth in 2016 expected to be slightly above 2 %
- Q3 2016: Significant increase in revenues (around 15 %) and recurring EBITDA (more than 10 %)
- Q4 2016: Group expects further earnings and revenue growth
Munich, October 13, 2016. ProSiebenSat.1 Group is pursuing its successful strategy and is again increasing its financial targets for 2018. The revenue growth target compared to 2012 has been raised by EUR 300 million from EUR 1.85 billion to EUR 2.15 billion. At the end of 2018, Group revenues are set to reach EUR 4.5 billion (previously: EUR 4.2 billion), of which over 50 % will be realised outside traditional TV advertising business. ProSiebenSat.1 Group is increasing its recurring EBITDA growth target compared to 2012 by EUR 50 million to EUR 400 million. Thus, the Company is aiming to achieve recurring EBITDA of EUR 1.15 billion in 2018. In the digital business, acquisitions including etraveli, Verivox, Parship Elite Group and CDS will make a contribution to further growth. The Content Production & Global Sales segment is also developing dynamically. At the same time, the Broadcasting German-speaking TV segment continues to grow solidly.
Thomas Ebeling, CEO of ProSiebenSat.1 Media SE: “We have a strong basis for further growth and a clear strategy. We are consistently pushing the intelligent combination of our high-reach TV stations with the digital offerings. Our new investments are developing very well, therefore we are once again raising our growth targets for 2018. Our customers – viewers, users and advertising customers – are clearly the focus of everything we do. We offer them first-class entertainment and strong e-commerce services on all our platforms. With online transactions and internet-based TV use, we will acquire data which will benefit both target groups. For our advertising customers, we are developing innovative 360-degree concepts that are tailored even more precisely to their consumers. Thus, advertising will be even more relevant for viewers and users alike. ProSiebenSat.1 is the first media group to consistently implement the combination of TV, content, e-commerce, digital entertainment and production.”
Broadcasting German-speaking segment
In the Broadcasting German-speaking segment, ProSiebenSat.1 will increase its external revenues according to plan by EUR 375 million to EUR 2.301 billion compared to 2012. ProSiebenSat.1 continues to target a segment recurring EBITDA margin of more than 30 %. It anticipates stable growth rates of on average 2 % to 3 % for the German net TV advertising market in the coming years.
Group implements announced segment change in digital business
For the digital business as a whole, the revenue target for 2018 has been raised by EUR 200 million from EUR 1.535 billion to EUR 1.735 billion. As announced, ProSiebenSat.1 will separate its former Digital & Adjacent segment into two segments from Q3 2016 onwards – Digital Entertainment and Digital Ventures & Commerce. On today’s Capital Markets Day, ProSiebenSat.1 is already presenting its growth targets for the two new segments.
Digital Entertainment segment
The new Digital Entertainment segment includes the online video business with the PayVoD portal maxdome, the multi-channel network Studio71, as well as AdVoD, ad tech, data and Adjacent. The Group plans to continue its dynamic growth with its digital entertainment activities in the future. Revenues are targeted to increase by EUR 336 million from EUR 227 million in 2012 to EUR 563 million in 2018. At the same time, the recurring EBITDA margin in the Digital Entertainment segment is planned to improve to between 10 % and 15 % in 2018.
Digital Ventures & Commerce segment
The Digital Ventures & Commerce segment includes among others successful e-commerce verticals in travel (weg.de, etraveli), online price comparison (Verivox) and online dating (Parship Elite Group). Starting from revenues of EUR 108 million in 2012, ProSiebenSat.1 anticipates a rise in revenues by EUR 1.064 billion to EUR 1.172 billion by 2018 in the Digital Ventures & Commerce segment. The recurring EBITDA margin is expected to be between 20 % and 25 % in 2018
Content Production & Global Sales segment
In the Content Production & Global Sales segment, ProSiebenSat.1 is raising its medium-term revenue growth target by EUR 100 million to EUR 375 million. External revenues are thus expected to be EUR 470 million in 2018. In 2012, ProSiebenSat.1 Group achieved revenues of EUR 95 million in this segment. The recurring EBITDA margin is planned to be at least 10 %.
Acquisitions drive profitable growth
The successful M&A strategy, which relies on synergies between TV and digital assets, has strengthened the Group’s profit growth sustainably. E-commerce investments made in the past five years have increased their revenue level by around 80 % on average since their integration into the Group. At the same time, the earnings contribution of these acquisitions to the Group’s recurring EBITDA went up by around 120 %. This means that in particular recent acquisitions, such as the online air travel agency etraveli, the comparison site Verivox, or the online dating platforms Parship and ElitePartner, offer a strong basis for future organic growth.
Significant rise in revenues and recurring EBITDA in Q3 2016
ProSiebenSat.1 Group developed successfully again in Q3 2016: On the basis of preliminary figures, the Group achieved further growth in revenues and recurring EBITDA compared to the same quarter of the previous year. Group revenues rose by around 15 % (Q3 2015: EUR 747 million). Recurring EBITDA (Q3 2015: EUR 178 million) increased by more than 10 %. ProSiebenSat.1 Group will publish the full quarterly report on Q3 2016 on November 3, 2016.
ProSiebenSat.1 increases revenue forecast for 2016
On the basis of the dynamic revenue growth in the first nine months 2016 and considering the contributions of the most recent acquisitions, the Group is now anticipating stronger revenue growth and increasing its forecast for the year as a whole. Until now, ProSiebenSat.1 anticipated a rise in Group revenues of at least 10 %. ProSiebenSat.1 now aims to achieve revenue growth of at least 15 % for the year as a whole. At the same time, the Group now anticipates growth of slightly more than 2 % for the German net TV advertising market (previously 2 % to 3 %) in 2016. The growth of ProSiebenSat.1’s net TV advertising revenues is expected to be slightly lower than market growth in 2016. This adjustment has no negative effect on the positive revenue and earnings outlook for the full-year 2016. ProSiebenSat.1 is set to continue its revenue and earnings growth also in Q4 2016.
Group confirms dividend policy and target leverage ratio
ProSiebenSat.1 also aims to continuously improve its operating profit and underlying net income in the future. The Group will use the resulting free cash flow to let its shareholders participate appropriately in the Company’s success and for strategic growth investments. As such the Group is pursuing its shareholder-oriented dividend policy and plans to continue distributing 80 % to 90 % of underlying net income to its shareholders. ProSiebenSat.1 is also retaining its financial leverage target range of 1.5 to 2.5 times based on the ratio of net financial debt to LTM recurring EBITDA.
Dr. Gunnar Wiedenfels, CFO of ProSiebenSat.1 Media SE: “With its successful strategy, ProSiebenSat.1 is excellently positioned for the future. We have a solid balance sheet structure and attractive growth prospects. Based on our profitable development, we will further increase our earnings in the years to come and allow our shareholders to participate in the Company’s success with growing dividend payments.”
From approximately 11:00 a.m., you can follow all presentations from Capital Markets Day 2016 live and download the presentation material from the “Investor Relations” section of our website www.ProSiebenSat1.com.
Segment rec. EBITDA margins calculated as entity rec. EBITDA/external revenues.