Over $13 mil in ads canceled after U.S. terrorist attacks
BERLIN — Hit hard by the advertising slump, which was compounded by the financial impact of terrorist attacks in the U.S., German network ProSiebenSat.1 Media saw its profits fall by 47% in the first nine months of the year.
Operating profits were down to 34.6 million euros ($31 million) from $58 million last year while revenues sank 4.5% to $1.2 billion.
Company is predicting a 30% drop in its full-year profits and a sales reduction of 4%.
ProSiebenSat.1, which is listed on the MDax stock exchange for midsize companies, saw its share price fall 7% to $5.45 early Wednesday, still above the record low it set earlier this month of $3.48. Company has seen its share price drop by some 80% since year’s beginning.
ProSiebenSat.1 is set to merge with parent company Kirch Media by the middle of next year, becoming one of Europe’s biggest publicly listed media congloms.
Analysts said the company will have an uphill battle to meet full-year forecasts, even with a positive last quarter.
Sales were hit hard by the terrorist attacks in America, resulting in a loss of some $48.6 million. Revenues from July to September saw a 9% drop to $348.6 million.
In the first week after the attacks, more than $13 million worth of ads were canceled from the banking, insurance, tourism and airline sectors. Ad rev makes up 97% of the company’s overall revenues.
Of the company’s four webs, Sat.1 performed the worst, with nine-month losses of $60.5 million compared with $21 million last year.