ProSiebenSat.1 with record earnings and good advertising market prospects

The decision not to sell ProSiebenSat.1 has paid off for the owners: The ProSiebenSat.1 station chain has increased its revenues by 8.4 percent to EUR 1.990 billion. After this leap in profits, ProSiebenSat.1 is also expecting to make a profit in 2006. As Group CEO Guillaume de Posch told the press in Munich on Tuesday, he expects the ProSiebenSat.1 Group's earnings to improve further in fiscal 2006. The Group has succeeded in further strengthening its core television business in a stagnating market, he said. Sat.1, Kabel eins and N24 have significantly increased their profitability. However, ProSieben again achieved the highest profit margin. The new activities in the Diversification division and the acquisition of the quiz station 9Live also contributed to the Group's growth. As a result of good forecasts for the German TV advertising market, which assume growth of 1.3 to 3.1 percent, ProSiebenSat.1 also expects the German TV advertising market to grow by a net 2 percent. Despite the Winter Olympics and the Soccer World Cup, whose TV rights are held by ARD and ZDF, the Group aims to outperform the TV advertising market. Despite the major sporting events, the aim is to achieve a viewer market share of around 30% (previous year: 30.3%) in the 14 to 49-year-old target group, which is relevant for the advertising industry. To achieve this, more is to be invested in the program.
However, the company did not initially disclose how high the expenditure would be. As reported by the industry magazine Werben und Verkaufen, the Group also announced its intention to further reduce its dependence on advertising revenue. Around twelve percent of total revenue is not to come from advertising in 2006, rising to 15 percent by 2007. In addition to the new pay-TV offer, this diversification division also includes the distribution of programs via DSL.