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)