Olympics, World Cup spurs ad market growth
With record earnings in 2005, Haim Saban’s German broadcast group ProSiebenSat 1 is concentrating on growth following Axel Springer’s failed takeover bid.CEO Guillaume de Posch expects an even greater profit and revenue increase in 2006 due to ad market growth, spurred by the Winter Olympics and World Cup soccer in June. Company expects the German TV advertising market to grow about 2%, adding that it wants to “slightly outperform” the market. Last year, ProSiebenSat 1 generated 91% of its revenue from TV advertising. This year, about 12% of total revs will be generated by non-TV ad revenue. Company is planning to increase that share to 15% by 2007. The group is launching two pay TV channels this year and will begin distributing programming via DSL for home computer users. ProSiebenSat 1 strengthened its core TV business last year. Performance and profitability were up at channels Sat 1, Kabel 1 and N24. ProSieben, which airs hit U.S. shows “Desperate Housewives,” “The OC” and “ER,” achieved the highest profit margin of the four. ProSiebenSat 1 last year saw net profit climb 65% to E220.9 million ($263 million) on revenue of $2.37 billion, up 8.4% from 2004. The broadcaster’s overall market share in its key 14-49 demo is unchanged at 30%.