DISCLOSURE OF AN INSIDE INFORMATION PURSUANT TO ARTICLE 17 MAR OF THE REGULATION (EU) NO. 596/2014: ProSiebenSat.1 updates full-year outlook 2022 due to development of the macroeconomic environment / Non-cash impairment of assets within the cash-generating unit of NuCom Group
Unterföhring, October 27, 2022. The macroeconomic environment in the region of Germany, Austria and Switzerland has been characterized as a result of the Russia/Ukraine war by persistently high inflation and increasing consumer restraint. Currently, the fourth quarter of 2022 therefore shows signs of a more pronounced weakened macroeconomic environment than initially reflected in the latest full-year outlook of ProSiebenSat.1 Group. Traditionally, the fourth quarter is the most important quarter of the year for ProSiebenSat.1 in terms of full-year revenues and contribution to earnings (Q4 2021: adjusted EBITDA of EUR 370 million). Against this backdrop, ProSiebenSat.1 is updating its financial targets for the financial year 2022. The Group now expects revenues of around EUR 4.15 billion and adjusted EBITDA around EUR 650 million for the full-year. For the Group's adjusted EBITDA, these expectations include negative consolidation effects from the full acquisition of the streaming platform Joyn as well as positive effects from cost measures. At the same time, ProSiebenSat.1 assumes the Group’s high-margin advertising revenues in the region of Germany, Austria and Switzerland to be presumably down around EUR 130 million or around 17% year-on-year in the fourth quarter (previous year: EUR 776 million) and around EUR 160 million or around 7% down year-on-year for the full-year (previous year: EUR 2,233 million). This affects the Entertainment and Commerce & Ventures segments. Adjusted net income, adjusted operating free cash flow, P7S1 ROCE and leverage ratio1 will thus be below the most recently communicated targets, following the update of adjusted EBITDA expectations. The now predicted persistently high inflation, the energy price crisis and the resulting reluctance to consume are also impacting the growth prospects of ProSiebenSat.1 Group’s Commerce & Ventures segment, as a large proportion of these businesses are directly dependent on macroeconomic developments due to their focus on end consumers. Against this backdrop ProSiebenSat.1 takes into account a one-time, non-cash impairment of assets, in particular of goodwill, of the cash-generating unit NuCom Group, reported in the Commerce & Ventures segment, in the amount of around EUR 300 million in the third quarter of 2022. This impairment has no impact on the Group's adjusted net income, which is the key indicator for the Group's dividend policy.
(1) Definition of key figures in Annual Report 2021 from p. 120.