ProSiebenSat.1 Boosts Quarterly Profits on Strong German TV Ad Market
German media group ProSiebenSat.1 fought off competition in the form of the World Cup to emerge stronger in the second quarter, posting revenue and profit increases across all its major divisions.
Overall, ProSiebenSat.1 reported a 4.8 percent increase in core earnings in the second quarter to $293 million (€219 million), a result that was largely within expectations. Overall revenue was up 10.6 percent in the quarter to $926 million (€ 691.1 million).
Rising TV ad income in Germany-speaking Europe lifted operating profit in ProSieben's core television business to $252 million (€188.4 million) on revenues of $684 million (€511.2 million). While ProSieben once had ambitions to become a pan-European network group, it has consolidated its broadcasting business in the German-speaking market, selling off operations in eastern Europe earlier this year.
While the World Cup, which was carried on ProSieben's public broadcasting competitors in Germany, hit viewership and advertising figures in June, that was more than offset in the second quarter by the late arrival of Easter, which helped boost numbers in April, the company said.
The Bavarian-based media group also saw strong growth in its digital operations, which include VOD platform Maxdome, online gaming and digital commerce. Revenues in the segment shot up 32.6 percent to $200 million (€149.2 million) while operating profits hit $41.2 million (€30.8 million) for the quarter. Revenues from its digital division now account for 21.6 percent of ProSiebenSat.1's overall turnover.
The group's production and sales division, Red Arrow Entertainment, boosted revenues by 20.6 percent to $41 million (€30.7 million) and booked a slim $1.7 million (€1.3 million) in operating profits for the quarter.
Revenue growth was driven by the consolidation of Say Yes to the Dress producer Half Yard Productions, in which Red Arrow acquired a majority stake in March. New productions from Red Arrow subsidiaries include NBC's Odyssey, which is being executive produced by Red Arrow's Fabrik Entertainment, and A&E reality series Married at First Sight, from Kinetic Content.