Pro Sieben Sat.1: Only small shareholders benefit from profit
The Pro Sieben Sat.1 television group returned to profitability in 2009. However, only minority shareholders are benefiting from this. The company is not paying any dividends to its owners, the controversial private equity firms KKR and Permira.
According to SDA, the television group announced on Thursday that there will be no profit sharing for the ordinary shares, which are largely held by the two financial investors. This is the second year in a row that the investment companies have come away empty-handed. KKR and Permira had previously come in for harsh criticism when they approved distributions of 270 million euros for the 2007 financial year at the expense of Pro Sieben Sat.1 - three times the profit at the time. The finance companies have also saddled the Group with a mountain of debt of 3.3 billion euros. Interest of around 230 million euros was due on this alone in 2009.
From the 2009 annual profit of EUR 144.5 million, on the other hand, the small shareholders, who participate in the company via preference shares, are to receive the minimum distribution of EUR 0.02 per share prescribed in the articles of association, as in the previous year - a total of EUR 2.1 million. In 2008, Pro Sieben Sat.1 posted a loss of EUR 129 million.
Costs reduced by 220 million euros
According to Group CEO Thomas Ebeling, the past year went better for the broadcasting group than initially expected. "Thanks to sustainable cost management and the good performance in the fourth quarter, we brought the company back into the profit zone in 2009," said the manager, who took over a year ago. Pro Sieben Sat.1 reduced its costs by EUR 220 million, among other things through more reruns. This is more than twice as much as initially planned. In addition, the TV advertising market did not collapse as much as feared, with a minus of ten percent. Turnover fell by six percent to 2.8 billion euros in 2009.
However, the former pharmaceuticals manager did not provide an outlook for 2010. Although the general economic conditions have improved, Ebeling said that the company does not yet have a clear outlook. In any case, savings will continue to be made.
From the 2009 annual profit of EUR 144.5 million, on the other hand, the small shareholders, who participate in the company via preference shares, are to receive the minimum distribution of EUR 0.02 per share prescribed in the articles of association, as in the previous year - a total of EUR 2.1 million. In 2008, Pro Sieben Sat.1 posted a loss of EUR 129 million.
Costs reduced by 220 million euros
According to Group CEO Thomas Ebeling, the past year went better for the broadcasting group than initially expected. "Thanks to sustainable cost management and the good performance in the fourth quarter, we brought the company back into the profit zone in 2009," said the manager, who took over a year ago. Pro Sieben Sat.1 reduced its costs by EUR 220 million, among other things through more reruns. This is more than twice as much as initially planned. In addition, the TV advertising market did not collapse as much as feared, with a minus of ten percent. Turnover fell by six percent to 2.8 billion euros in 2009.
However, the former pharmaceuticals manager did not provide an outlook for 2010. Although the general economic conditions have improved, Ebeling said that the company does not yet have a clear outlook. In any case, savings will continue to be made.

