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ProSieben second-quarter revenues ahead 4% as growth areas offset TV ad slide

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ProSieben second-quarter revenues ahead 4% as growth areas offset TV ad slide
FILE PHOTO: The logo of Germany's biggest commercial broadcaster ProSiebenSat.1 Media AG is pictured at their headquarters in Unterfoehring, near Munich February 26, 2014. REUTERS/Michaela Rehle   -   Copyright  Michaela Rehle(Reuters)
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FRANKFURT (Reuters) – German broadcaster ProSiebenSat 1 Media <PSMGn.DE> reported a 4% rise in second-quarter revenue as growth at its content and e-commerce divisions offset a slide in advertising at its core TV franchise.

ProSieben said adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 18%, as expected, as it invested in new productions to freshen its slate of local programming.

“These investments are now reflected in adjusted EBITDA – a planned and conscious decision to invest in the future of ProSiebenSat.1,” CEO Max Conze said in a statement.

“We are convinced this will pay off and we are on the right track focusing on local and digital.”

The Munich-based company confirmed its guidance for the full year, with an EBITDA margin goal of 22-25% and a mid-single-digit percentage increase in revenues.

Conze, hired a year ago after a series of earnings misses, has sought to recast ProSieben as a digital media and commerce player capable of withstanding the viewing revolution wrought by streaming services like Netflix <NFLX.O>.

In June, ProSieben launched its own streaming venture with Discovery Inc <DISCA.O>, called Joyn, which has attracted 3.8 million active users across all devices and counts 2.4 million installed apps.

TV ad revenues declined by 3% in the second quarter, even as ProSieben reported its best audience share in four years thanks to hit shows including “The Masked Singer”.

That was more than offset by a 28% gain in revenues at production unit Red Arrow Studios, an increase of 18% percent at e-commerce division Nucom, and a 26% rise in digital and smart advertising, ProSieben said.

(Reporting by Douglas Busvine; Editing by Michelle Martin)

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