LONDON — German entertainment giant ProSiebenSat.1 Group reported a 22% rise in revenues to Euros 802 million ($930 million) in the first quarter, and a 12% increase in recurring EBITDA to Euros 170 million ($197 million).
Some 43% of the revenues was generated outside the TV advertising business, which is an increase of 10 percentage points compared to the previous year. The share is expected to grow to around 50% by 2018.
Thomas Ebeling, CEO of ProSiebenSat.1 Media, said: “We increased revenues and recurring EBITDA by double digits in the first quarter. Thanks to considerably higher TV advertising revenues and the dynamically growing digital business, we are successfully pursuing our growth trajectory. We are networking our high reach TV stations with our digital activities which enables us to explore new markets successfully. We are also making good progress in achieving our mid-term targets. By 2018, we want to increase revenues to Euros4.2 billion, which is a plus of Euros1.85 billion compared to 2012. We already realized almost 60% of this target.”
In the German-speaking broadcasting segment, ProSiebenSat.1 Group increased its external revenues by 5% to Euros 493 million. Recurring EBITDA grew by 4% to Euros 131 million. The revenue uptick was primarily driven by higher TV advertising revenues. The group continued to benefit from a positive economic and industry environment, and dynamic business over Easter. ProSiebenSat.1 Group is the German market leader in both the audience and the TV advertising markets. At the same time, the group continued to increase its distribution revenues dynamically in the first quarter: The number of HD subscribers rose to 6.5 million. By 2018, ProSiebenSat.1 expects an increase to over 9 million HD subscribers for its station portfolio.
The digital and adjacent segment saw external revenues increase by 75% to Euros 242 million. Recurring EBITDA rose by 29% to Euros 35 million. The strongest revenue driver was the ventures and commerce business, which the group further expanded last year, especially with the acquisitions of e-commerce portals etraveli and Verivox. In the digital entertainment business, among others, revenues of Maxdome developed dynamically.
New U.S. acquisitions contributed to growth substantially in the content production and global sales segment. External revenues increased by 38% to Euros 63 million. At Euros 5 million, recurring EBITDA was considerably higher than the previous year, when it was Euros 1 million.
The rise was the result of organic growth and revenue contributions from new investments Karga Seven Pictures, bought in November, and Dorsey Pictures, acquired in January. In April, Red Arrow invested in the Canadian production firm Mad Rabbit via a joint venture, which will produce English-language fiction programs for the international market. Mad Rabbit is led by Kari Skogland, who has directed episodes of series such as “House of Cards” and “The Walking Dead.” Red Arrow is now represented in seven countries with 16 companies.