ProSiebenSat.1 continues its profitable growth in the third quarter of 2011
[Note: Unless stated otherwise, all information and figures
relate to the continuing operations of the ProSiebenSat.1 Group. In
accordance with IFRS 5, the companies disposed of in Belgium and
the Netherlands are reported separately as "discontinued
operations" until their deconsolidation in June and July
respectively. The income statement for the previous year has been
restated accordingly.]
Munich, November 3, 2011. The ProSiebenSat.1
Group continues its profitable growth in the third quarter of 2011.
Revenues increased by 8.9% to EUR 594.5 million. Recurring EBITDA
was up 19.5% at EUR 163.6 million year-on-year. Including the gain
on the disposal of the Group's activities in the Netherlands,
consolidated net profit after taxes and non-controlling interests
increased by EUR 307.8 million to EUR 340.3 million.
"All set for another record year"
Thomas Ebeling, CEO of ProSiebenSat.1 Media AG: "We are on the home
stretch for another record year. In the third quarter, we again
made significant progress towards our aim of becoming a powerhouse
for TV and digital entertainment, generating revenues growth across
all segments. Our positive business development can be attributed
to our strong positioning in our core television business. In
future, our growth initiatives will focus to an even greater extent
on the attractive opportunities offered by the digital world and
activities outside Germany. I am confident that this will allow us
to continue our profitable growth."
Further revenues growth across all
segments
In the third quarter of 2011, the ProSiebenSat.1 Group recorded
revenues growth of 6.6% to EUR 413.9 million (previous year: EUR
388.2 million) in the German-speaking TV segment - its largest
revenues segment, which covers Germany, Austria and Switzerland.
The Group increased its revenues from TV advertising in all three
markets. In addition to higher revenues from classical TV
advertising, the international expansion of Red Arrow was another
growth impulse. The company, which bundles the production and
development of programming formats and their global distribution
under one roof, has marketed an increasing volume of
English-language content over recent months. In early September,
for example, the US station ABC ordered six episodes of the TV show
"You Deserve It". Recurring EBITDA in the Free TV German-speaking
segment increased by 27.1% to EUR 132.2 million in the third
quarter (previous year: EUR 104.0 million).
Revenues growth in the International
Free TV segment was driven by the Scandinavian stations. At EUR
102.3 million, segment revenues were up significantly compared to
the previous year figure (+14.9% or EUR 13.3 million), with Norway
and Denmark making a particularly significant contribution through
higher TV advertising revenues. Distribution revenues also
increased. However, revenues in the Eastern European TV markets
were down compared to the previous year due to the recessionary
economic environment. In light of this development, recurring
EBITDA declined by 13.4% to EUR 15.5 million (previous year: EUR
17.9 million).
The Diversification segment recorded revenues growth of 13.8% to
EUR 78.3 million in the third quarter of 2011 (previous year: EUR
68.8 million). This was in part attributable to the dynamic
development of the Ventures business and the
"media-for-revenue-share" and "media-for-equity" business models.
Here six additional deals were concluded in the third quarter. The
ProSiebenSat.1 Group launched this innovative marketing model -
exchanging advertising time for a share of revenues or equity - in
2010 and now has a portfolio of 24 companies. The successful
expansion in the areas of video advertising and online games also
contributed to the segment's revenues growth. With the acquisition
of burda:ic and the majority interest in Covus Games - transactions
that were completed in July and May respectively - the
ProSiebenSat.1 Group has significantly extended its market position
in the online games area. Revenues growth was also driven by radio
networks in Northern Europe. Recurring EBITDA in the
Diversification segment increased by 13.9% to EUR 15.6 million in
the third quarter (previous year: EUR 13.7 million).
Revenues development based on the four-pillar
strategy
The further growth of the ProSiebenSat.1 Group is based on a
four-pillar strategy aimed at diversifying the Group's activities
even more systematically in the future and becoming less dependent
on advertising‑financed TV business. The company has identified
additional revenues potential of more than EUR 750 million by 2015
in total compared to 2010 and intends to generate almost half of
its revenues outside the traditional German TV advertising market
by this date.
At the beginning of the financial year 2012, the company will
gear its segment reporting more strongly to the four pillars of its
growth strategy - "Broadcasting German-speaking", "Broadcasting
International" and the two pillars "Digital & Adjacent" and
"Content Production & Global Sales".
On the basis of this future structure, the segment revenues
development in the third quarter of 2011 were as follows: The
pillar "Broadcasting German-speaking" grows against the previous
year by 5.0% to EUR 404.4 million (previous year: EUR 385.1
million). This segment contains the advertising-financed TV
stations in Germany, Austria and Switzerland, but no longer
includes Red Arrow. Revenues in the "Broadcasting International"
segment, which will also include radio in the future, increased by
13.5% year-on-year to EUR 123.1 million (previous year: EUR 108.5
million). The growth of the Diversification segment amounts to
27.7%, revenues are at EUR 66.9 million (previous year: EUR 52.4
million). This segment bundles the "Digital & Adjacent" pillar
with a revenues contribution of EUR 57.4 million (previous year:
EUR 49.3 million) and the "Content Production & Global Sales"
pillar with external revenues of EUR 9.5 million (previous year:
EUR 3.1 million).
For detailed information on revenues development based on the
four strategic pillars, please refer to the presentation as part of today's conference
call.
Audience shares consequently increased due to new
stations
The ProSiebenSat.1 Group increased its audience share in almost all
markets compared to the same period of the previous year. The
company has launched new TV stations in the past months and thus
could gain market shares in the individual regions. In Germany,
SAT.1, ProSieben, kabel eins and sixx achieved a combined market
share of 29.4% in the third quarter, a gain of 0.5% compared to the
previous year quarter. The four stations even broke the 30% barrier
in September jointly. In the same month, the new station sixx
achieved a daily market share of more than 1% for the first
time.
Looking at the Group's international operations, the
Scandinavian stations enjoyed particularly high growth rates. In
Norway, TVNorge, FEM, MAX and The Voice achieved a market share of
17.0% in the third quarter, 2.2% more than in the same period of
the previous year. This strong growth is primarily due to the
successful development of MAX, which has steadily increased its
ratings since its launch in November 2010 and is now the
second-largest Norwegian station aimed at a male target group, with
a market share of 2.9%. In Finland, strong performance of TV5 and
the second granted 24-hour broadcasting license in the second
quarter led to a significant rise in market share. In the
third quarter, TV5 and The Voice achieved a combined audience share
of 6.2%, up 2.5% percentage points year-on-year.
ProSiebenSat.1 invests in growth areas
The ProSiebenSat.1 Group continued to invest consequently in new
growth areas in the third quarter, such as the further expansion of
its program production activities, video-on-demand, online games
and recently launched stations. As expected, this resulted in
increased costs; however, costs in ProSiebenSat.1's traditional TV
business remained stable. All in all, the Company recorded
operating costs (recurring costs) of EUR 432.7 million in the third
quarter of 2011, up 5.0% or EUR 20.6 million compared to the
previous year.
Significant growth of recurring EBITDA and consolidated
net profit
On the basis of its dynamic business development, the
ProSiebenSat.1 Group increased its recurring EBITDA by a further
19.5% to EUR 163.6 million in the third quarter of 2011 (previous
year: EUR 136.9 million). At 27.5%, the operating margin serves to
underline the ProSiebenSat.1 Group's profitability (previous year:
25.1%).
Consolidated net profit after taxes and non-controlling
interests also rose sharply. Including the gain on the disposal of
the companies in the Netherlands, consolidated net profit increased
by EUR 307.8 million and all in all amounts to EUR 340.3 million.
The ProSiebenSat.1 Group generated a net profit from continuing
operations of EUR 13.4 million (previous year: EUR 20.8 million).
This figure was impacted by non-recurring expenses in connection
with maturity extensions and the repayment of the term loans ahead
of schedule in the third quarter of 2011, which are reported in the
other financial result.
ProSiebenSat.1 with significantly improved capital
structure
In August 2011, the ProSiebenSat.1 Group prepaid a significant
portion of its term loans (EUR 1.2 billion) and for the most part
extended its maturities to 2016. The repayment resulted in a
considerable reduction of its net financial debt, which was reduced
by 36.8% compared to September 30, 2010 to EUR 2.075 billion.
Leverage also declined from 3.8x as of September 30, 2010 to 2.5x
at the reporting date, putting it within the defined target range.
The aim is to keep the ratio of net financial debt and recurring
EBITDA on a rolling twelve-month basis between 1.5x and 2.5x.
The improved earnings situation and the term loan repayment have
sustainably strengthened the Group's equity base. Compared to
September 30, 2010, the equity increased significantly by 60.6% to
EUR 1.269 billion (previous year: EUR 790.4 million). As a result,
the corresponding equity ratio was 26.5% after 12.5% as of
September 30, 2010.
Positive results for the first nine
months
The ProSiebenSat.1 Group also recorded revenues and earnings growth
in the first nine months of 2011. Consolidated revenues increased
by 6.2% year-on-year to EUR 1.883 billion (previous year: EUR 1.772
billion), while recurring EBITDA also rose significantly by 11.1%
to EUR 532.3 million (previous year: EUR 479.0 million). This
revenues and earnings growth was driven by all segments.
In the first nine months, consolidated net profit after taxes
and non-controlling interests increased by EUR 376.3 million
year-on-year to EUR 507.6 million. This figure includes the gain on
the disposal of the Group's TV and print activities in the
Netherlands and the disposal gain of the Belgian TV companies.
Recurring EBITDA set to hit record level
In light of its positive business performance over the past months
and the good start in the important fourth quarter, the
ProSiebenSat.1 Group is confirming its existing forecast for the
full year 2011. The company expects to report consolidated revenues
growth in the mid-single-digit percentage range for 2011 as a
whole, with all segments contributing to this development. On this
basis, the ProSiebenSat.1 Group expects to outperform last year's
record level of recurring EBITDA also this year. Recurring EBITDA
from continuing operations amounted to EUR 791.5 million in the
previous financial year.
CEO Thomas Ebeling: "The ProSiebenSat.1 Group is extremely well
positioned both operationally and financially. Our TV business is
in great shape and the growth potential of related areas is highly
attractive. All of this presents superb conditions for our
continued business success."
Contact:
Julian Geist
Group Spokesperson
ProSiebenSat.1 Media AG
Medienallee 7
D-85774 Unterföhring
Tel. +49 [89] 95 07-11 51
Fax +49 [89] 95 07-911 51
E-Mail:
Julian.Geist@ProSiebenSat1.com
Press Release online:
www.ProSiebenSat1.com