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ProSiebenSat.1 Media SE Adjusts 2018 Revenue Outlook; Confirms Mid-term Targets

ProSiebenSat.1 Media SE (PBSFF.PK) announced the Group now expects a revenue decrease in the low-single-digit percentage range to around 4 billion euros in 2018. Adjusted for consolidation and currency effects, Group revenues are expected to grow in a low-single-digit percentage range. Previously, ProSiebenSat.1 had targeted an unadjusted revenue increase of the Group in a low- to mid-single-digit percentage range and an adjusted revenue increase in a mid-single-digit percentage range. The 2018 financial targets for the adjusted EBITDA margin and the conversion rate of adjusted net income remain unchanged.

The Group is currently reviewing its existing US studio contracts. The company does not exclude a one-time negative earnings impact of up to 400 million euros in 2018 by already capitalized and by contracted, but not yet capitalized, license volumes.

While the Group anticipates a revenue increase in the mid-single-digit percentage range also in 2019, earnings performance will be affected in particular by planned investments recognized as expense in the Entertainment segment. In order to set up a modern and future-ready Entertainment business, ProSiebenSat.1 will invest additionally in local content, the expansion of digital platforms and an improved monetization of reach from 2019 onwards. The total Group's adjusted EBITDA will be negatively impacted in 2019 by about 50 million euros.

ProSiebenSat.1 also adjusted its dividend pay-out policy. The Group intends to pay out 50% of adjusted net income as a dividend (previously 80 to 90%) for the first time in the financial year 2018 (to be paid in 2019).

ProSiebenSat.1 plans a share buyback program of up to 250 million euros with a term of 12 to 24 months. A first tranche with a volume of up to 50 million euros will be repurchased in the short term, beginning with November 9, 2018.

ProSiebenSat.1 continues to aim for an average annual revenue increase (CAGR) in the mid-single-digit percentage range for the next around five years. The Group still anticipates profitability at Group level in the mid 20 percentage range in terms of adjusted EBITDA.

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