ProSiebenSat.1 Achieves New Revenue and Earnings Record in 2014
Munich, February 26, 2015. 2014 was another
record year for ProSiebenSat.1. The Group grew profitably in all
segments and increased its revenues by 10.4 % to
EUR 2.876 billion (previous year:
EUR 2.605 billion). Recurring EBITDA increased by
7.2 % to EUR 847.3 million (previous year:
EUR 790.3 million). Underlying net income also developed
dynamically and rose by 10.3 % to EUR 418.9 million
(previous year: EUR 379.7 million). At the same time,
ProSiebenSat.1 already generated 33.6 % of its revenues
outside the TV advertising business (previous year: 28.6 %)
and successfully implemented its growth strategy: The Group
achieved its 2015 revenue targets already one year ahead of
plan.
Thomas Ebeling, CEO of the ProSiebenSat.1
Group: "2014 was a very successful year for
ProSiebenSat.1. Once again, we set a new revenue and earnings
record and achieved our 2015 targets early. The new stations and
the HD distribution business are driving our growth in the TV
segment. Our digital business continues to develop dynamically. In
2015, we will further expand and internationalize our Digital
Entertainment and Digital Commerce business."
Broadcasting German-speaking: Leadership in the TV
advertising market expanded, distribution revenues increased
dynamically
In the Broadcasting German-speaking segment, external revenues rose
by 3.2 % to EUR 2.063 billion (previous year:
EUR 1.998 billion). The positive development resulted
from higher TV advertising revenues and dynamically growing
distribution revenues. Recurring EBITDA increased by 3.6 % to
EUR 702.8 million (previous year:
EUR 678.6 million) despite investments in new programs
and stations.
The ProSiebenSat.1 Group continued to improve its audience
ratings in a competitive environment: The Group increased its
combined market share considerably to 28.7 % (previous year:
28.1 %) despite the Winter Olympics and the soccer World Cup.
The growth in the audience market was especially driven by the
young stations sixx, SAT.1 Gold and ProSieben MAXX. ProSiebenSat.1
extended its leading position also in the German TV advertising
market: The gross market share increased to 44.0 % (previous
year: 43.6 %). Furthermore, significant growth impetus came
from the new customer business: In total, the station family gained
over 100 new customers in 2014, that had never before booked TV
advertising.
Also in the distribution business, the Group continued its
growth course. Revenues from the distribution of the free TV
stations in HD quality again developed very positively. The number
of ProSiebenSat.1 HD users increased by 25 % to
5.3 million. ProSiebenSat.1 expects this figure to rise to up
to nine million by 2018. At the same time, the Group is
strengthening its video-on-demand distribution: ProSiebenSat.1
today announced a new cooperation with Unitymedia KabelBW regarding
maxdome. maxdome becomes an integral part of the new TV and 3Play
rates (TV, Internet, telephony services). Thus, Unitymedia KabelBW
customers will be able to subscribe to maxdome directly (see own
press release).
Digital & Adjacent: Double digit revenue and
earnings growth
In the Digital & Adjacent segment, ProSiebenSat.1 again posted
significant growth in the 2014 financial year: External revenues
rose by 26.3 % to EUR 610.7 million (previous year:
EUR 483.7 million). At the same time, recurring EBITDA
rose considerably despite additional investments with a 22.7 %
increase to EUR 129.3 million (previous year:
EUR 105.4 million). The segment's revenue performance was
nearly equally driven by organic and inorganic growth.
The digital commerce business again delivered the largest
contribution to revenues. This was among others due to the
first-time consolidation of the tourism company COMVEL GmbH with
the travel sites weg.de and ferien.de. At present, the
ProSiebenSat.1 Group's ventures portfolio contains 59 investments
and partnerships. In 2015, the Group will expand this business both
with media-for-equity and media-for-revenue-share investments and
with traditional acquisitions. In addition, the Group will push the
internationalization of the ventures portfolio. In 2014, the Group
began building up a portfolio of international minority
participations, including Jawbone (USA), Talenthouse (USA), Deezer
(France) and Dynamic Yield (Israel).
In the Digital Entertainment business, the Company also
developed dynamically: The video-on-demand portal maxdome and the
online advertising business made a large organic contribution to
revenues. The Group improved its position as leading online video
marketing company in Germany to 48.6 % (previous year:
47.5 %). Over the course of the year, ProSiebenSat.1 increased
the number of online video views to 4.2 billion (previous
year: 1.8 billion), which was mainly attributable to the
strong growth in user numbers at Studio71, the ProSiebenSat.1
Group's multi-channel network. Studio71 was founded in September
2013 and is already one of Europe's leading multi-channel
networks.
Content Production & Global Sales: Red Arrow
increases revenues and earnings considerably
In the Content Production & Global Sales segment, external
revenues increased by 63.4 % to EUR 202.2 million
(previous year: EUR 123.8 million). Recurring EBITDA rose
by EUR 8.5 million to EUR 19.1 million
(previous year: EUR 10.6 million).
Thereby, Red Arrow benefited from the organic growth of its
subsidiaries in the USA and Great Britain. The Group generated more
than 70 % of revenues in English-speaking markets in 2014
(USA: 55 %, GB: 18 %). In addition, the consolidation of
the US production firm Half Yard Productions since March 2014 also
had a positive revenue impact. The most important programs in 2014
were also US formats: Red Arrow produced the ten-episode crime
series "Bosch" for Amazon. Furthermore, the Group achieved well
above-average market shares with its show "Married at First Sight"
on the US channel FYI.
ProSiebenSat.1 invests in the sustainable growth of all
segments
The Group is investing in sustainable growth in all segments and
strengthening its market position with strategic acquisitions. The
objective is to diversify revenue models and expand into rapidly
growing markets. In the Digital & Adjacent segment, costs
increased primarily due to growth; in the core business of TV,
higher costs in connection with the expansion of the station
portfolio had an impact. In 2014, total costs therefore rose by
12.6 % to EUR 2.209 billion (previous year:
EUR 1.962 billion). Operating costs adjusted for
depreciation, amortization and non-recurring expenses amounted to
EUR 2.047 billion. This corresponds to a rise of
11.5 % or EUR 211.1 million compared to the previous
year.
Financial result improved, leverage factor in target
range
The financial result improved in the 2014 financial year and
amounted to minus EUR 134.4 million (previous year:
EUR -142.0 million). ProSiebenSat.1 placed its financing
on a broader basis by issuing notes and securing a new syndicated
facilities agreement in April 2014, thus extending and diversifying
its maturity profile. As a result, net interest expenses fell by
EUR 33.5 million to EUR 101.5 million in the
2014 financial year. The leverage factor, i.e. the ratio of net
financial debt to recurring EBITDA of the last twelve months (LTM
recurring EBITDA), amounted to 1.8 as of December 31, 2014, and
thus remained at the lower end of the defined target range of 1.5
to 2.5 times (December 31, 2013: 1.8).
ProSiebenSat.1 to propose an attractive dividend to
shareholders
The Group strives to give its shareholders an appropriate share in
the Company's success. The Executive Board will therefore propose a
dividend of EUR 1.60 (previous year: EUR 1.47) per common
share for 2014 to the Supervisory Board. This equates to a payout
ratio of 81.6 % - in relation to underlying net income from
continuing operations - and is therefore in line with the
ProSiebenSat.1 dividend policy.
Outlook 2015: Further revenue and earnings growth
planned
The ProSiebenSat.1 Group had a successful start into the first
quarter of 2015 in all segments and continues to benefit from a
positive economic environment. At the same time, the Group aims to
continue the dynamic development in the growth areas. Against this
backdrop, the ProSiebenSat.1 Group plans to increase revenues by
mid- to high-single-digit percentage. Recurring EBITDA and
underlying net income are similarly expected to exceed the previous
year's level again.
The ProSiebenSat.1 Group achieved its 2015 growth targets early:
Originally, an increase in revenues of EUR 800 million
compared to the 2010 financial year was planned at the year-end
2015. The Group already achieved this target at the end of 2014.
The Company is also ahead of plan in implementing its growth
targets for 2018. By the end of 2018, the Group wants to increase
its revenues by EUR 1 billion compared to 2012. At the
end of 2014, ProSiebenSat.1 had already achieved 52 % of this
target, whilst a degree of one third had been planned until this
date.
Contact:
Julian Geist
Corporate Spokesman
ProSiebenSat.1 Media AG
Medienallee 7
D-85774 Unterföhring
Phone +49 [89] 95 07-1151
Fax +49 [89] 95 07-91151
E-mail: Julian.Geist@ProSiebenSat1.com
Stefanie Prinz
Corporate Communications
ProSiebenSat.1 Media AG
Medienallee 7
D-85774 Unterföhring
Phone +49 [89] 95 07-1199
Fax +49 [89] 95 07-91199
E-mail: Stefanie.Prinz@ProSiebenSat1.com