ProSiebenSat.1 Group today announced its first results following the consolidation of the SBS Broadcasting Group, acquired in July 2007 and subsequently included in the company’s accounts.
Revenues were up €237.1 million, or 55 %, to €668.4 million in the third quarter 2007. Most of the increase came from the consolidation of SBS Broadcasting.
Earnings were affected by a one-time charge of €120 million stemming from a fine imposed by the Federal Cartel Office. This charge provides the background for the €125.4 million decline in pre-tax profit to € -103.7 million. EBITDA decreased by €58.3 to €0.4 million. The Group’s recurring EBITDA (before one-time charges) grew 110 percent, to reach €124.8 million.
“Positioning the ProSiebenSat.1 Group internationally by acquiring the SBS Broadcasting Group was the right strategic decision. The dynamics of other European markets more than made up for the subdued German market in the third quarter,” said ProSiebenSat.1 AG CEO Guillaume de Posch in a prepared statement.
As part of the first-time consolidation of SBS, the ProSiebenSat.1 Group has also reordered its group segments. Since July 2007, the pan-European media group reports in the two business units Free TV and Diversification which are divided into three segments: Free TV in the German-speaking region, Free TV International, and Diversification.
The two segments of the Free TV business unit contributed a total of €535.6 million to Group revenues in the third quarter (Q3 2006: €377.9 million). The Diversification unit’s revenues came to €132.8 million, equivalent to a 19.9 percent share of Group revenues. The contribution for the third quarter of 2006 was 12.4%, or €53.4 million. The German-speaking region is the Group’s largest revenue-generating region, at 65.8%, followed by Northern Europe, at 16.6%, and the Netherlands/Belgium, with 12.9%.
The Diversification unit, business models that had formerly focused on single countries will be extended into new markets. Over the next few months, for example, the MyVideo online platform may be launched in several SBS countries. The SevenGames.com international gaming platform will be launched as early as December.