Significant Dip in Profits for ProSiebenSat.1 by Nearly 40%
Financial Turbulence for ProSiebenSat.1: Weak Q1 Profits and Shareholder Power Struggle
TV conglomerate ProSiebenSat.1 faced a harsh reality in Q1 2025, with operating profits taking a significant hit due to a sluggish TV advertising business. The company found itself in the red, reporting adjusted EBITDA of €44 million, a staggering 39% drop compared to the same period last year[6]. Expert predictions had anticipated a decline in profits, but the magnitude seemed unanticipated[1].
The revenue slide wasn't as steep, dipping by a mere 1% to €855 million. The company announced these figures on Thursday in Unterföhring. The company, however, remains optimistic about its financial future, sticking to its outlook for the current year[1].
ProSiebenSat.1's projected revenue for the year is forecasted to be between €3.7 billion and €4 billion, a decrease from the previous year's €3.92 billion. The adjusted EBITDA is expected to be between €470 and €570 million – a figure that was still €557 million in 2024. Adjusted net income is anticipated to be €215 million, a slight dip from the previous year's €229 million[1].
The company is banking on a recovery in advertising revenues in the second half of the year, with Entertainment advertising revenues in the German-speaking region expected to grow by around 2% overall[6]. The group also exhibited signs of resilience in its Commerce & Ventures segment, which displayed an 11% revenue increase[6]. The company is aggressively pushing its streaming platform Joyn to become the leading free digital entertainment platform in the German-speaking region[1].
The Italians and the Czechs: A Shareholder Power Struggle
The Q1 financial report wasn't the only hot topic at ProSiebenSat.1. A power struggle is brewing between major shareholders from Italy and the Czech Republic. Shareholders with the intent to sell can now choose between two offers[2]. The Czech-based PPF group has extended a higher offer than the one recently presented by the Berlusconi-controlled MediaForEurope (MFE) based in Milan[2].
The MFE made a takeover bid, aiming to acquire more than 30% of the shares, while the Czechs have a different goal. They aspire to increase their stake from the current 15% to just below the 30% threshold, but they don't intend to make a takeover bid[2]. The offers come at a time when ProSiebenSat.1 is planning to cut jobs, with around 400 jobs expected to go[2].
PPF hasn't hidden its agenda, describing its offer as an "attractive alternative" in a statement[2]. PPF is offering €7 per share. The Italians, on the other hand, are offering €4.48 per share, plus a 0.4% stake in MFE for each share sold, aiming to reach the legal minimum price of €5.74 per share sold[2]. The deadline for accepting the Milan offer is June 6[1].
As of the end of 2024, more than 50% of ProSiebenSat.1's shares were in free float. MFE was already close to the 30% threshold at that time[1]. ProSiebenSieben's share closed at €7.115 at the Xetra trading close on Wednesday, leaving the company worth around €1.7 billion on the stock exchange[1]. The annual general meeting in Unterföhring near Munich on May 28 is eagerly awaited[2]. The board has not yet commented on the MFE offer, but has welcomed the PPF offer[2].
[1] - ProSiebenSat.1 Media[2] - BDA[3] - Financial Times - Revenue, Growth, Joyn, and Verivox insights[4] - Bloomberg - Q1 earnings, adjusted EBITDA, net loss insights[5] - Reuters - Q1 2021 performance insights[6] - Reuters - Q1 2025 performance insights excluding currency effects and portfolio changes
Finance and business challenges persist for ProSiebenSat.1, with the TV conglomerate facing a significant drop in operating profits in the finance industry due to a sluggish TV advertising business, as well as a shareholder power struggle. The Italians and the Czechs are currently engaged in negotiations, with both parties vying to increase their shares in the company, potentially impacting future business decisions.
