ProSiebenSat.1 has to accept decline in profits
The German TV group ProSiebenSat.1 saw its profits decline last year. This was due to an antitrust fine and the costs associated with the acquisition of the SBS network.
The German TV group ProSiebenSat.1 suffered a fall in profits last year. A cartel fine and the costs for the takeover of the SBS station chain are to blame. Profits amounted to EUR 89.4 million, which is less than half of last year's figures. Operating earnings before interest, taxes, depreciation and amortization (EBITDA) nevertheless increased by 8 percent to 521.3 million euros. Without the fine, it would have been 36 percent higher than in 2006.
In the opinion of the Federal Cartel Office, ProSiebenSat.1, like its competitor RTL, had unfairly favored major customers in the marketing of television advertising time. The Group therefore paid a fine of EUR 120 million and changed the way it sold advertising time. The investigations were then discontinued (see
). Last year, ProSiebenSat.1's revenues rose by 29 percent to EUR 2.7 billion as a result of the takeover of the SBS station chain. For 2008, the media group expects a further increase in revenues thanks to SBS.
In the opinion of the Federal Cartel Office, ProSiebenSat.1, like its competitor RTL, had unfairly favored major customers in the marketing of television advertising time. The Group therefore paid a fine of EUR 120 million and changed the way it sold advertising time. The investigations were then discontinued (see
). Last year, ProSiebenSat.1's revenues rose by 29 percent to EUR 2.7 billion as a result of the takeover of the SBS station chain. For 2008, the media group expects a further increase in revenues thanks to SBS.
