German media giant ProSiebenSat.1 Group has managed to swim against the current of a challenging economic environment, posting revenue growth of 2% to €3.91 billion ($4.23 billion) for the 2024 financial year.
The results fell within the media conglomerate’s communicated target ranges, though adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) dipped 4% to $602 million compared to the previous year.
The company’s digital entertainment strategy appears to be bearing fruit, with its streaming platform Joyn emerging as a standout performer. While traditional TV advertising revenues declined, the platform achieved a 36% increase in AVoD (advertising video on demand) revenues, with monthly video users surging 44% to 7.1 million and viewing time climbing to 40.2 billion minutes — a 36% year-over-year increase.
“Our focus on the entertainment business and the consistent implementation of our strategy are paying off,” said Bert Habets, CEO of ProSiebenSat.1 Media SE. “This is demonstrated by the strong growth of Joyn and the improved performance of our linear channels at the end of the year.”
The Commerce & Ventures segment was another bright spot, exceeding $1.08 billion in revenues for the first time — a 19% increase over the previous year. The segment’s adjusted EBITDA almost doubled to €$114.6 million. This growth was largely driven by the Beauty and Lifestyle business with Flaconi, which continued its significant expansion despite ongoing consumer restraint. Verivox also maintained revenue growth in a stable market environment.
However, the Dating & Video segment struggled, with external revenues falling 13% to $405.3 million. The segment also suffered a substantial non-cash impairment of goodwill totaling $417.1 million.
Looking ahead to 2025, ProSiebenSat.1 expects a slight revenue growth to around $4.32 billion, with a variance of plus/minus $162.1 million. The company anticipates Entertainment advertising revenues in the German-speaking region to grow by around 2% for the full year, though traditional TV advertising revenues are projected to see a slight decline, particularly in the first half of 2025.
Despite plans to further increase programming expenses in the “mid double-digit million euro range,” the Group expects adjusted EBITDA of $594.4 million for 2025, with a variance of plus/minus $54 million — essentially holding steady compared to 2024 levels.
The executive board and supervisory board will propose a dividend of $0.054 per share to the upcoming annual general meeting, maintaining the same level as the previous year. This represents a total payment of approximately $11.9 million and a payout ratio of 5%.
In line with its strategic focus on the Entertainment business, the company continues to review the disposal of non-strategic investments, particularly flaconi and Verivox, with ongoing sales processes underway.
