ProSiebenSat.1 posted lower first-half revenue as Germany‘s weak television advertising market and competition from broadcasters carrying the World Cup weighed on its entertainment business.
The German commercial broadcaster, which is controlled by the Berlusconi family’s MediaForEurope (MFE) group, reported first-half revenue of €1.54 billion ($1.77 billion) on Thursday, down 9 per cent from a year earlier. On an organic basis, excluding portfolio changes and currency effects, revenue declined 2 per cent. Second-quarter revenue fell 8.5 per cent to €768 million ($881 million).
The company said advertising revenue continued to be affected by a slowdown in the German TV market, the ongoing shift of ad spending to digital platforms and competition from broadcasters airing major sporting events, particularly the World Cup. Entertainment revenue fell 6 per cent in the first half to €952 million ($1.09 billion), with linear TV advertising down 9 per cent.
Digital advertising remained a bright spot. Digital & Smart advertising revenue rose 6 per cent, driven by ProSieben’s streaming service Joyn, content distribution on third-party platforms and the group’s audio business. Advertising-supported streaming revenue at Joyn increased 8 per cent in the first half, while subscription revenue climbed 20 per cent.
