German broadcaster ProSiebenSat.1 has reported a strong increase in revenues in Q4 2016 compared to the year prior, due in part to the expansion of its digital ventures sector.
In its full year financial results presentation, ProSiebenSat.1 announced revenue for Q4 2016 came to EUR 1.254 billion, a 15 percent increase on Q4 2015. EBITDA was also up by 10 percent year-on-year, hitting EUR 392 million in Q4 2016.
ProSieben’s largest business unit, Broadcasting German-speaking, reported growth of 3 percent for Q4 on a year-on-year basis, with Q4 2016 revenue at EUR 704 million. ProSiebenSat.1 pointed to a pick-up in TV ad revenue after a soft start in October, as well as continued strong distribution revenue growth.
The digital ventures and commerce division performed exceptionally well on a year-on-year comparison. In Q4 2016, the business brought in EUR 286 million in external revenues, representing a 66 percent rise on the same period in 2015. Within digital ventures, the lifestyle commerce section was the largest contributor, bringing in EUR 92 million, more than doubling Q4 2015. Online travel also performed well, with a 56 percent increase year-on-year up to EUR 83 million.
The content production and global sales business also experienced growth over the year. In Q4 2016, this division brought in EUR 122 million in external revenues, a 38 percent increase on Q4 2015. In its statement, ProSiebenSat.1 said this growth was largely organic revenue growth driven by the US and German markets.
By comparison, the digital entertainment section flagged. Revenues for the latest quarter came to EUR 138 million, a 3 percent decrease on Q4 2015. Within this division, the VoD advertising rose by 17 percent in the period to EUR 98 million, while the PayVoD business grew by 14 percent to EUR 21 million. However, the Adjacent business fell by 33 percent to EUR 19 million, with the Games section was deconsolidated from the company.
For 2017, ProSiebenSat.1 predicted at least single-digit growth in the group revenue. It forecast the German TV ad market would grow by 2-3 percent, while digital entertainment and digital ventures would both experience double-digit growth.
