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Investing.com -- ProSiebenSat.1 Media reported a 7% decline in second-quarter revenue to €840 million, falling short of analyst expectations of around €852 million, as the company faced challenges in its entertainment segment.
The German media group’s adjusted EBITDA dropped 40% year-over-year to €55 million, 13% below consensus estimates of €64 million, primarily due to weaker revenue performance. Adjusted net profit decreased by €11 million compared to the previous year, reaching €14 million.
The company’s entertainment segment, which includes its core television business, saw revenues fall 7% to €570 million, below the €589 million analysts had projected. Television advertising revenues in Germany, Austria, and Switzerland declined 9% in the quarter, which the company attributed to a weak macroeconomic environment.
Despite the overall downturn, ProSiebenSat.1’s digital and smart advertising revenues in the DACH region grew 2%, driven by its streaming platform Joyn, which increased its advertising-based video-on-demand revenues by 62% year-over-year in the second quarter.
The commerce and ventures division maintained stable revenues at €199 million despite some business disposals, exceeding analyst expectations of €180 million. The segment’s underlying growth reached 23%, primarily fueled by strong performance from online beauty retailer Flaconi.
The dating and video segment experienced a significant 27% revenue decline to €71 million, falling well short of the €85 million consensus forecast. Dating revenues specifically dropped 20% compared to the same period last year.
ProSiebenSat.1’s net financial debt remained relatively unchanged from December 2024 at €1,541 million, representing a leverage ratio of 3.1 times.
The company maintained its full-year revenue guidance of approximately €3.85 billion with a margin of plus or minus €150 million. However, management now expects adjusted EBITDA to come in below the mid-point of its previously stated guidance range of €520 million plus or minus €50 million.
ProSiebenSat.1 noted that its adjusted net income for the year will benefit from deferred tax income in the mid-to-high double-digit euro range.
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