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Date:
05/12/2022
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ProSiebenSat.1 confirms full-year outlook for 2022

Results in the first quarter of 2022 in line with the Group’s expectations: Synergistic business model demonstrates resilience despite Russia-Ukraine war, ongoing pandemic, and strains on consumer sentiment. Group revenues grow by 2% (organically1: +3%) to EUR 954 million; the significant growth in advertising revenues is the main driver. As already announced at our Annual Press Conference on March 3, 2022, the Group's adjusted EBITDA decreases by 14% to EUR 123 million mainly due to the planned bringing-forward of programming expenses in the Entertainment segment.  Adjusted net income increases by a good 14% to EUR 42 million; adjusted operating free cash flow grows significantly by 77% to EUR 145 million. Net financial debt improves to EUR 1,740 million; leverage ratio of 2.1x is well within the target range. Uncertainties due to the war have a partial impact on the Group's sector environments, although this does currently not affect the outlook for the Group's business development based on the current war and sanctions situation. Against this background and in light of the solid and as expected start to the year, the Group is confirming its full-year outlook.

Unterföhring, May 12, 2022. Despite the challenging economic environment caused by the Russia-Ukraine war and the ongoing pandemic, ProSiebenSat.1 Group closed the first quarter of 2022 in line with its expectations: The Group increased its revenues by 2% year-on-year to EUR 954 million (previous year: EUR 938 million). This development was driven by the significant growth in the Group’s advertising revenues. Organically1, i.e. adjusted for currency effects and excluding revenue contributions of portfolio companies sold in 2021 such as Gravitas Ventures, Amorelie and moebel.de, ProSiebenSat.1 revenues rose by even 3%. Rainer Beaujean, Group CEO of ProSiebenSat.1 Media SE: „Our good start to the year once again proves that we are on the right track with our strategy. With our clear positioning and focus on reach, monetization, and value creation, we were able to continue our growth in the first quarter despite the overall economic uncertainties. On this fundament, and based on the current war and sanctions situation as well as its current economic impact, we remain confident to achieve our full-year targets – and confirm our outlook for 2022. In April, our Entertainment advertising revenues in the German-speaking region were slightly above the previous year’s level, or by around 7% in the first four months of the year. At the same time, current developments show how important it is to use reach responsibly. We do this with our programming, not only by entertaining, but also by informing – both always with a clear attitude.“ Operating performance  In the first quarter of 2022, external revenues in the Entertainment segment increased significantly by EUR 53 million or 9% to EUR 663 million (previous year: EUR 610 million). Organically1, growth also was at 9%. The clear increase in advertising revenues drove this development: At the beginning of the year, these developed dynamically, whereas March was characterized by a decline in advertising bookings. This was the result of postponements into the second quarter of 2022 due to the around two weeks later Easter date in April compared to the previous year, as well as uncertainties following the Russia-Ukraine war. Despite these influencing factors, advertising revenues in the first quarter of 2022 grew by EUR 43 million or 10% compared to the previous year’s quarter. Revenues in the content business also posted a double-digit growth of EUR 13 million or 13%.  Revenues in the Dating & Video segment grew by an average of 11% per year on a pro forma basis compared to the first quarter of 2019, i.e., the comparative period before the outbreak of the pandemic. As expected, external revenues in the first quarter of 2022 decreased by EUR 9 million to EUR 132 million (previous year: EUR 141 million). Here, the first quarter of 2021 was characterized by record revenues: In the course of the largest economic stimulus package in the history of the US, government economic aid stimulated private consumption in the first quarter of 2021. This also had a very positive impact on the use and monetization of our video offerings in the US region. Moreover, especially live video formats had gained additional relevance during the pandemic and the associated restrictions on social contacts. Furthermore, as soon as the market environment brightens again, we plan to proceed with the IPO of ParshipMeet Group, which we are continuing to prepare.  External revenues of the Commerce & Ventures segment amounted to EUR 160 million in the first quarter of 2022, a EUR 28 million decline year-on-year (previous year: EUR 187 million). This is also due to the disposal and deconsolidation of the portfolio companies Amorelie and moebel.de at the end of 2021, which still contributed EUR 15 million to the segment’s revenues in the previous year period. Organically1, revenues were as expected EUR 13 million below the previous year, and reflect – as communicated at the Annual Press Conference on March 3, 2022 – among other things the impact of high energy prices on the business of our comparison portal Verivox. However, the car rental comparison portal Billiger-Mietwagen (SilverTours) and the experience and leisure business of Jochen Schweizer mydays reported significant growth rates even though the COVID-19 restrictions were still in place in the first quarter. In addition, the investment vehicle SevenGrowth and the media-for-equity and media-for-revenue businesses of SevenVentures noticeably increased their revenues in the first quarter of 2022. The Group‘s adjusted EBITDA declined, as already announced and expected, in the first quarter of 2022 and was EUR 19 million below the previous year at EUR 123 million (previous year: EUR 143 million). This reflects in particular the planned bringing-forward of programming costs in view of the World Soccer Championship at the end of the year and the corresponding increase of EUR 16 million compared to the previous-year period. For the full-year, Entertainment programming costs are expected to be at the level of the previous year (previous year: EUR 1,054 million), whereby these can be managed depending on the development of the advertising market in the amount of around EUR 50 million. In addition, the deconsolidation of Gravitas Ventures had an impact on the development of adjusted EBITDA in the first quarter of 2022. The film distribution company contributed earnings of EUR 6 million in the comparative period.  Adjusted net income developed positively and increased by 14% to EUR 42 million in the first quarter of 2022 (previous year: EUR 37 million). This underlines the improved conversion rate of adjusted EBITDA to adjusted net income as a result of an improved financial result as well as lower taxes and minority interests. The Group’s adjusted operating free cash flow improved significantly by 77% to EUR 145 million in the first quarter of 2022 (previous year: EUR 82 million). This development was mainly influenced by lower investments in US licensed programming and a postponement of investments. The Group’s net financial debt amounted to EUR 1,740 million as of March 31, 2022 (December 31, 2021: EUR 1,852 million; March 31, 2021: EUR 1,999 million). The figure thus improved by a further EUR 258 million compared to the end of the previous year’s quarter or by EUR 111 million compared to the end of 2021, reflecting the Group’s effective cash flow management and thus the consistent debt reduction. As a consequence, the leverage ratio (ratio of net financial debt to Group’s LTM adjusted EBITDA) decreased to 2.1x at the end of the first quarter of 2022 (December 31, 2021: 2.2x; March 31, 2021: 2.9x) and is therefore clearly within the target range of 1.5x to 2.5x.  Ralf Peter Gierig, Group CFO of ProSiebenSat.1 Group: “Our focus on profitability and effective cash flow management is again paying off this quarter. We have again reduced our net financial debt as well as lowered our leverage ratio.” Outlook ProSiebenSat.1 Group closed the first quarter of 2022 in line with its expectations and is also well positioned for the future due to its very synergistic business model: Accordingly, the Group is confirming its full-year outlook published on March 3, 2022 despite the Russia-Ukraine war, ongoing pandemic, and burdens on the consumer climate. This outlook did not take into account possible negative effects of the Russia-Ukraine war and other negative effects due to the COVID-19 pandemic that were not yet foreseeable at the time of publication of the full-year outlook.  Uncertainties caused by the war are impacting the Group's sector environments but, as far as can be foreseen at present, are not affecting the outlook for the Group's business development. The outlook confirmation for the full-year 2022 is based on the war situation existing until the publication of this quarterly statement on May 12, 2022, as well as the related sanctions and the currently foreseeable economic effects for our Group. A possible tightening of sanctions or even an expansion of the war beyond Ukraine are not reflected here. Further developments are currently difficult to assess, and forecasts are therefore subject to uncertainty. In confirming its full-year targets, the Group continues to aim – without portfolio changes – for revenues of around EUR 4.6 billion with a variance of plus/minus EUR 100 million (previous-year figure adjusted for currency and portfolio effects: EUR 4.413 billion2) and adjusted EBITDA of around EUR 840 million with a variance of plus/minus EUR 25 million (previous-year figure adjusted for currency and portfolio effects: EUR 825 million3) in 2022 – still mainly supported by the Entertainment segment and thus depending on the development of the advertising market. On this basis and without further portfolio changes, the Group continues to expect adjusted net income for the full-year to be at or slightly above the previous year’s level of EUR 362 million. Reaching a midpoint of the adjusted EBITDA target range, ProSiebenSat.1 continues to assume that the adjusted operating free cash flow – for reasons of comparability adjusted for the change of investments in relation to the construction of the new campus at the premises in Unterföhring – should develop at or slightly above the previous year’s figure of EUR 599 million.  In addition, the Group continues to expect an improvement in the P7S1 ROCE (return on capital employed), which is expected to be slightly higher than the previous year’s level of 14.1%. At the same time, ProSiebenSat.1 Group is still forecasting a leverage ratio (ratio of net financial debt to the Group’s LTM adjusted EBITDA) at or slightly below the previous year’s level of 2.2x. (1) Organic = adjusted for portfolio and currency effects. (2) Based on revenues in financial year 2021 translated at the exchange rates used for planning purposes in financial year 2022 less in particular revenues of the companies deconsolidated in 2021, Sonoma Internet GmbH (Amorelie), moebel.de Einrichten & Wohnen AG and Gravitas Ventures LLC, at in total EUR 101 million. (3) Based on adjusted EBITDA in financial year 2021 translated at the exchange rates used for planning purposes in financial year 2022 less in particular the adjusted EBITDA of the companies deconsolidated in 2021, Sonoma Internet GmbH (Amorelie), moebel.de Einrichten & Wohnen AG and Gravitas Ventures LLC, at in total EUR 17 million. Further key figures are available on our Group website www.ProSiebenSat1.com/en/. There you will also find the Quarterly Statement for the first quarter of 2022 as of May 12, 2022, 7:30 a.m.

Contacts
Group Communications
Stefanie Rupp-Menedetter
Spokeswoman / Executive Vice President Group Communications
+49 89 9507-2598
Stefanie.Rupp@ProSiebenSat1.com
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