ProSiebenSat.1 Group with first upward trend in advertising business since
July after COVID-19-dominated second quarter 2020
Unterfhring (ots) –
– Outlook: economic upturn in the core markets of the
ProSiebenSat.1 Group and the first positive trends in the
Advertising business noticeable
– Focus on core business pays off: Total Video Viewtime of
Entertainment offerings will increase by 3.4% in the first half of 2020
Compared to the same period last year
– As expected and already announced, significant COVID 19 influence
in the second quarter of 2020, mainly due to declines in
Advertising business: Group sales decrease by 25% to EUR 709 million, adjusted
EBITDA declines from EUR 213 million to EUR 23 million, adjusted net
income decreases from EUR 85 million to minus EUR 52 million
– Positive development at NuCom Group with sales growth of 5%
– Very good liquidity situation due to strict
Cash flow management: 1,190 million euros in cash as of June 30
2020
Unterfhring, July 31, 2020. After the global COVID-19 pandemic and the
this limits the public and economic life
the business development of the ProSiebenSat.1 Group as expected in the second
Quarter 2020, the group sees the first signs of
a recovery in advertising business since July, supported by the economic situation
Brightening in the core markets of the Germany, Austria and Switzerland group. in the
In the second quarter, the group recorded a 25 percent drop in sales
709 million euros (previous year: 947 million euros), organically (1) sales decreased by 26
Percent. As announced, the clear ones had a particular impact
COVID-19-related declines in advertising and program production from
whereas the NuCom Group’s sales continued to grow and the importance
a diversified lineup for the group. The development
in the second quarter influenced the half-year period accordingly: Overall
ProSiebenSat.1 closed the first six months of 2020 with sales of 1,634
Million euros (previous year: 1,860 million euros) and was thus 12 percent below
Previous year’s value.
Rainer Beaujean, Chief Executive Officer & Chief Financial Officer of ProSiebenSat.1 Media SE:
“They are starting in our core markets of Germany, Austria and Switzerland
brightening economic framework conditions and that’s what we’ve been seeing since July
first positive trends in the advertising market. We expect the July
Advertisers lost a little less than 20 percent compared to the previous year
and thus a clearly lower decline than in the past quarter. Also in
August is currently recording another with a minus of around 10 percent
Improvement. We continue to focus on our consistent cost
and cash management and are more optimistic about autumn: even if it is
the COVID 19-related declines that have arisen up to that point will not be possible
to catch up, the months of September to December will be crucial for the
Business development of the group in the full year. In those months
ProSiebenSat.1 in the past around 50 percent of adjusted EBITDA
earned. “
Operating development in the second quarter of 2020
In the second quarter, outside sales were in the SevenOne Entertainment segment
Group declined by 34 percent to EUR 398 million (previous year: EUR 601 million).
Organically, floodplain sales also fell by 34 percent. This almost reflects
exclusively, as already announced, the decline in advertising peas since the
Group COVID-19 due to lower line items in the second quarter
recorded. In the half-year view, floodplain sales went as a result of
COVID 19 pandemic by 19 percent to EUR 961 million (previous year: EUR 1,180 million)
back
In contrast to the development of the advertising market, the entertainment and
Infotainment offers of the SevenOne Entertainment Group in the past
Months of clear success. In the second quarter, the stations scored particularly in
the prime time relevant for advertising customers with strong coverage at local
Formats such as “Celebrities under Palm Trees (SAT.1) and” The Masked Singer “(ProSieben).
The linear and digital viewing time of the offers has increased accordingly:
Since the beginning of the year, the total video viewtime has changed
minutes seen on all linear and digital channels
The Group’s entertainment platforms increased 3.4 percent year over year
increased.
The effects of COVID-19 were also in the Red Arrow Studios segment
government restrictions as announced, are clearly noticeable, although that
international program production business was particularly affected. Of the
External sales were 102 million euros in the second quarter (previous year: 148 million euros)
31 percent below the previous year’s level. Organic or currency effects
adjusted sales decreased by 33 percent. In the first six months of the year
External sales declined 17 percent to 236 million euros (previous year: 283
Million euros), whereby the sales business and the digital studio Studio71
developed stable.
The NuCom Group segment, on the other hand, was able to operate in a COVID 19 environment
continue to grow. The portfolio posted an increase in the second quarter
of the floodplain sales by 5 percent to 209 million euros (previous year: 198 million euros).
Organic growth was also 5 percent. The
Dating agency business of the Parship Group as well as the Vertical Beauty &
Lifestyle around the online beauty provider Flaconi recorded each
a significant increase in sales. The effects of
largely global travel and exit restrictions, especially in each
Business of the portfolio companies billiger-mietwagen.de (Silvertours) and
Jochen Schweizer mydays clearly noticeable. The
NuCom Group posted growth – floodplain sales increased by 10 percent
to 437 million euros (previous year: 397 million euros).
The other key financial figures also reflect the considerable influence of
COVID-19 pandemic on the macroeconomic environment and the Group’s business
in the second quarter: The Group’s adjusted EBITDA decreased
due to the decline in high-margin advertising business in the second quarter by 89
Percent to EUR 23 million (previous year: EUR 213 million). That was in the first half of 2020
adjusted EBITDA at EUR 180 million (previous year: EUR 403 million) 55 percent below
Previous year. The adjusted net income (adjusted net income) reflected
this development and amounted to minus 52 million euros (previous year: 85 million euros)
in the second quarter and to 7 million euros (previous year: 179 million euros) in the first
six months of the year. The cost savings announced in the spring are
some of them are already visible in the second quarter, but they will be mainly in the
second half of the year.
ProSiebenSat.1’s liquidity position is EUR 1,190 million in cash
still good at the end of June 2020. The group had 350 million euros at the beginning of April
its syndicated revolving credit facility (RCF), which is a framework
of 750 million euros, in order to face the COVID-19-stamped
Access to the company’s liquidity reserves at all times
to secure. Another 400 million euros of the RCF are available at any time. At the same time
the Annual General Meeting in June 2020 approved the proposal, retained earnings
of the full amount of the 2019 business year and thus to be carried forward
against the backdrop of the COVID 19 pandemic, no dividends to be distributed. In order to
liquidity outflow of EUR 192 million was avoided. At the end of
in the second quarter of 2020, net financial debt increased compared to
Previous year reduced to 2,353 million euros (previous year: 2,514 million euros). Compared
However, this corresponds to a slight increase at the end of 2019. Of the
Gearing increased mainly due to the adjusted COVID 19
EBITDA declines to 3.6x in the second quarter of 2020 (end of Q1 2020: 2.7x).
outlook
Against the backdrop of the global COVID-19 pandemic and related
economic uncertainties, also with regard to the extent of the negative
Business impact, the ProSiebenSat.1 Group will start in March 2020
published financial outlook for fiscal year 2020 on April 22, 2020
withdrawn. At this point it was already apparent that all of the
this financial outlook, the target for consolidated sales, the adjusted
EBITDA, adjusted net income, free cash flow before M&A and
Gearing of the group due to the COVID 19-related effects on
the ProSiebenSat.1 Group’s business will not be reachable. This
Expectations have changed in the second quarter of 2020
control relevant target values confirmed.
In this environment, the Group continues to focus on costs,
The group actively controls cash flow and profitability and has in all
Divisions took various measures to have a negative impact
to weaken the group’s profitability and secure liquidity.
Even if the uncertainties about the economic consequences of the COVID 19 crisis
are still high and do not allow reliable forecasts, are brightening
first economic indicators after the easing of the public
Restrictions in Germany and signs of an economic downturn
Recovery is increasing. ProSiebenSat.1 focuses on everything
Divisions to benefit from this recovery, which – if so
should be sustainable – also positive for the group’s advertising revenues in the
second half of the year. Given the continuing
considerable uncertainty about the extent and duration of the economic impact
the COVID-19 pandemic, the associated low visibility and the
Dependency of the Group’s overall annual development on traditional
significant fourth quarter, the board continues to be unable to
to give a reliable outlook for the whole of 2020. In one of influences
like COVID-19 unaffected fiscal year with normal sales history
the group generates in particular from September to December
around 50 percent of adjusted EBITDA for the full year. This underlines the
Significance of business at the end of the year for ProSiebenSat.1.
Regardless of this, ProSiebenSat.1 continues to focus on its strategic
Core projects with the goal of becoming the leading entertainment and infotainment player
to be in Germany, Austria and Switzerland. Local and
digital offers – also in close cooperation with Red Arrow Studios and
Studio71 – an important role to reach and therefore Monetization to
strengthening and reducing the dependence on TV advertising revenue and
create long-term value for its stakeholders. At the same time, it remains
NuCom Group is a synergistically important pillar of the group and strengthens it
Group diversification.
(1) Organic = Adjusted for portfolio and currency effects
You can find further key figures on our corporate website
www.ProSiebenSat1.com. From July 31, 2020, 7:30 a.m., you will also find the
Presentation and the half-yearly financial report 2020.
Press contact:
Stefanie Rupp-Menedetter
Head of Group Communications & Events
ProSiebenSat.1 Media SE
Medienallee 7
D-85774 Unterfhring
Tel. +49 [89] 95 07-2598
Email: Stefanie.Rupp@ProSiebenSat1.com
Susanne Brieu
Head of Corporate Communications Strategy & Finance
ProSiebenSat.1 Media SE
Medienallee 7
D-85774 Unterfhring
Tel. +49 [89] 9507-1137
Email: Susanne.Brieu@ProSiebenSat1.com
Press release online: www.ProSiebenSat1.com
Twitter: @ P7S1Group
Further material: http://presseportal.de/pm/21767/4666659
OTS: ProSiebenSat.1 Media SE
ISIN: DE0007771172
