ProSiebenSat.1 Reports Another Record Year in 2016 and Increases Revenues to Around EUR 3.8 billion
- Revenues increase by 17 % to EUR 3,799 million
- Recurring EBITDA rises by 10 % to EUR 1,018 million
- Underlying net income grows by 10 % to EUR 513 million
- Executive Board proposes dividend increase to EUR 1.90 per share
- Outlook for 2017: Revenue growth by at least a high-single-digit percentage; further earnings increase
Munich, February 23, 2017. ProSiebenSat.1 Group has closed 2016 with new record figures for revenues and earnings, achieving its financial targets: The Group increased its revenues considerably by 17 % to EUR 3,799 million (previous year: EUR 3,261 million). At the same time, recurring EBITDA rose by 10 % to EUR 1,018 million (previous year: EUR 926 million). Underlying net income also exceeded the previous year’s figure by 10 % and reached EUR 513 million (previous year: EUR 466 million). In 2016, the Digital Ventures & Commerce segment made the largest growth contribution. That is also why the Group already generates 47 % of consolidated revenues outside of the TV advertising business (previous year: 39 %); this share is to rise to over 50 % by 2018. At the same time, ProSiebenSat.1’s TV advertising revenues are rising.
Thomas Ebeling, CEO of ProSiebenSat.1 Media SE: “ProSiebenSat.1 achieved record figures for revenues and earnings in 2016. This new record-breaking year is a strong proof of the sustainability of our growth. ProSiebenSat.1 is the first media group to systematically combine television, in-house produced content, digital entertainment and commerce, and to use the resulting synergies. To this end, we will continue integrating our portfolio and using all sales and distribution channels from TV and digital to mobile. Against the backdrop of the successful financial year, we recommend that the Supervisory Board proposes a dividend of EUR 1.90 for 2016 to the Annual General Meeting and thus to again let our shareholders participate in our growth. We want to remain a reliable partner for our investors in the future and continue ProSiebenSat.1’s success.”
Broadcasting German-speaking Segment Grows Solidly
In financial year 2016, external revenues in the Broadcasting German-speaking segment increased by 3 % to EUR 2,210 million (previous year: EUR 2,152 million). Increased TV advertising revenues and the growing distribution business contributed to the positive revenue performance. In parallel, recurring EBITDA moved up by 3 % to EUR 760 million (previous year: EUR 734 million).
Digital Entertainment Segment is Developing Dynamically in the Core Area of Online Video
The Digital Entertainment segment increased its external revenues dynamically by 19 % to EUR 442 million (previous year: EUR 371 million). This reflects the high organic growth in the strategically important video business. In contrast, revenues in the Adjacent business decreased. Furthermore, the deconsolidation of the Online Games business at the end of the second quarter of 2016 reduced the revenue dynamics. At EUR 37 million, recurring EBITDA in the Digital Entertainment segment was on a par with the previous year in 2016 due to growth-related higher costs (previous year: EUR 37 million).
Digital Ventures & Commerce Segment is Key Growth Driver
In financial year 2016, external revenues in the Digital Ventures & Commerce segment increased considerably to EUR 768 million (previous year: EUR 465 million). This is a plus of 65 %. Acquisitions complemented the commerce portfolio, with the online air travel portal etraveli and the price comparison site Verivox making the largest growth contributions in 2016. Recurring EBITDA rose by 33 % to EUR 180 million (previous year: EUR 136 million).
Content Production & Global Sales Segment Continues to Grow Strongly in the USA
In the Content Production & Global Sales segment, external revenues rose by 38 % to EUR 362 million (previous year: EUR 262 million). At the same time, recurring EBITDA grew by 87 % to EUR 47 million (previous year: EUR 25 million). The increase in revenues was based on both acquisitions and organic growth, to which the successful US production business made a particularly high contribution.
ProSiebenSat.1 Confirms Financing and Dividend Policy
Net financial debt amounted to EUR 1,913 million (previous year: EUR 1,940 million) at the end of the year, so the leverage ratio of 1.9 was within the target range (previous year: 2.1). In November 2016, the Group increased its equity by EUR 515 million (gross) by issuing new shares, giving itself greater financial scope for acquisitions. The Group focuses in particular on companies that complement the portfolio synergistically and considerably benefit from TV advertising. ProSiebenSat.1 also pursues an active portfolio management. In January 2017, the Group already took with TF1 Group (France) and Mediaset (Italy) two partners for the multi-channel network Studio71 on board at a valuation of approximately EUR 400 million. ProSiebenSat.1 is currently examining various strategic options for the commerce vertical Online Travel.
ProSiebenSat.1 Group pursues a sustainable financial policy with a target range of 1.5 to 2.5 for the leverage factor. ProSiebenSat.1 will continue to abide by this in the future. At the same time, the Group is continuing its earnings-oriented dividend policy. The aim is to pay 80 % to 90 % of underlying net income as a dividend. The Executive Board therefore recommends that the Supervisory Board proposes an increase in the dividend to EUR 1.90 per common share for 2016 (previous year: EUR 1.80) to the Annual General Meeting. This equates to a payout ratio of 84.7 % (previous year: 82.5 %). This results in an attractive dividend yield of 5.2 % compared to the closing price of the ProSiebenSat.1 share at the end of 2016.
Positive Outlook for Financial Year 2017
ProSiebenSat.1 Group, supported by a German domestic economy that continues to be positive, has made a good start to the first quarter of 2017. The Group is confident of continuing to grow substantially in 2017.
Acquisitions have accelerated the revenue dynamic over the past year and will further strengthen the growth. For the whole year, ProSiebenSat.1 is targeting an increase in consolidated revenues by at least a high-single-digit percentage. Against this backdrop, the Company also expects new records with its earnings figures: Adjusted EBITDA (recurring EBITDA) and adjusted net income (underlying net income) are set to exceed the previous year’s level again in 2017 (see explanatory notes on reporting principles).
This puts ProSiebenSat.1 Group on track to achieve its mid-term financial targets for 2018, which the Group raised once again in October 2016. ProSiebenSat.1 is aiming for consolidated revenues of EUR 4.5 billion in 2018, of which EUR 1.7 billion shall come from the digital business. Adjusted EBITDA is expected to amount to EUR 1.15 billion in 2018.
Explanatory Notes on Reporting Principles
With recurring EBITDA and underlying net income, ProSiebenSat.1 Group also uses non-IFRS figures. From the beginning of financial year 2017, ProSiebenSat.1 will publish a full income statement adjusted for certain influencing factors (non-IFRS income statement). In this context, recurring EBITDA and underlying net income will be renamed and referred to as adjusted EBITDA and adjusted net income. This will result in differences in value only in the case of adjusted net income, which can be higher. These changes also take into account the development of reporting practices for non-IFRS figures and more stringent regulatory transparency requirements in this area.