ProSiebenSat.1 confirms FY outlook, launches new three-pillar structure

Wednesday 6 December 2017 | 15:33 CET | News

Germany’s ProSiebenSat.1 has announced it is launching a new three-pillar organizational setup beginning in January 2018 and confirmed its outlook for the 2017 financial year. At a capital markets day, the group said it expects revenues will increase in the mid-single digit percentage range, while adjusted EBITDA and adjusted net income will "slightly exceed" the levels of 2016. ProSiebenSat.1 also confirmed it will maintain its dividend policy with a payout ratio of 80-90 percent of underlying net income.

The group also announced it is converting its 2018 financial targets into medium-term target ranges for revenue growth and margins. ProSiebenSat.1 said it now expects revenue growth of over EUR 1 billion by 2022 compared to 2017, with future bolt-on acquisitions expected to further increase revenue growth. Operating earnings are set to increase while profitability is anticipated to be in the mid-20 percent range based on adjusted EBITDA forecasts.

As part of its diversification strategy to ensure further growth in the digital era, the group’s activities going forward will be organized into the three business areas Entertainment, Content Production & Global Sales and Commerce. ProSieben said that with this new setup, its increased synergies between linear TV and digital entertainment and other investments in AdTech and Data should create net savings of over EUR 50 million in its Entertainment segment by 2019/2020.

By combining activities like TV Broadcasting, Distribution, AdTech and Digital Platforms in its Entertainment business, the group will offer viewers its content across all its media platforms. Under Content Production & Global Sales, ProSiebenSat.1 will merge the Red Arrow Entertainment Group with the multi-channel network Studio71 to create Red Arrow Studios and integrate digital video into its traditional production and international distribution business to better produce content on all platforms. The group said it is also looking into cooperations and co-investments from partners in Red Arrow Studios to accelerate growth. 

ProSiebenSat.1’s Commerce business will operate as NCG - Nucom Group going forward with subsidiaries grouped into the categories Home Services & Mobility, Leisure & Relationships, Health & Beauty and Style. The company is currently exploring talks with potential partners for a minority investment into NCG to expand its portfolio and boost growth. These talks are expected to conclude in the second quarter of 2018.

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