BERLIN — Boosted by hugely popular local content, rising international revenue and a major boost in its fast-growing diversification segment, German television group ProSiebenSat.1 nearly doubled its net profit and posted an 8.7% increase in full-year revenue in 2010.
The pan-European broadcaster is also expanding across the pond with a new U.S. sales outfit aimed at exporting more content to North America.
ProSiebenSat.1 saw its bottom line rise by Euros166.1 million ($230.2 million) to $433.4 million on revenue of $4.15 billion.
“Our success results not only from the economic tailwind, but is also due to the efficiency of our processes and the right strategic decisions,” said ProSiebenSat.1 chief exec Thomas Ebeling.
Part of that strategy is international expansion, including the establishment of the new Los Angeles-based unit SevenOne International Inc., headed by Caroline Kusser.
The recent expansion of production operations has proved successful for the group and ProSiebenSat.1 is eager to export more content to the U.S.
Earlier this year SevenOne International sold Dick de Rijk’s TV show “You Deserve It” to ABC and the hit Sat.1 series “Danni Lowinski” to CBS Television Studios.
In January, ProSiebenSat.1 also launched Red Arrow Ent. in the U.K. to make strategic investments in high-growth Blighty production companies and develop and package major scripted properties of its own for the international market.
While ProSiebenSat.1 benefited strongly from the continued recovery of the economy, which boosted the TV ad market, particularly in Germany, the company has also seen growing success from its diversification segment.
The division saw a revenue increase of 4.4% to $517.2 million, generated by online advertising and new initiatives such as its “media for revenue share” initiative, which gives air time for spots to companies that have not traditionally advertised on TV before in exchange for a share in the company’s revenue. ProSiebenSat.1 has also opened up new revenue streams in artist and event management after establishing the Talent Management Agency last year.
In Germany, ProSiebenSat.1’s channels achieved a combined market share of 28.5% in its key 14-49 demo, down slightly from the previous year’s 28.8% share.
Nevertheless, the group’s flagship webs, ProSieben and Sat.1, have maintained their positions well with hit formats and series like “Minute to Win It,” “Danni Lowinski,” “The Pillars of the Earth,” “Galileo” and “Abenteuer Leben — taeglich Wissen.”
The channels’ upcoming season will see new episodes of proven ratings successes such as “Lowinski,” “The Last Cop” (Der letzte Bulle), “Minute to Win It” and “Germany’s Next Top Model.”
Looking forward, ProSiebenSat.1 expects business to develop positively this year, including a further increase in revenue and profit from all of the conglom’s segments.
In related news, Thilo Proff, ProSieben’s managing director, is ankling the channel and will be replaced by Juergen Hoerner, until now managing director of the group’s Kabel Eins channel. Hoerner will continue to head the ProSiebenSat.1 TV Deutschland domestic division, comprised of the German free-TV webs Sat.1, ProSieben, Kabel Eins, Sixx and Neun Live.
Karl Koenig, until now ProSieben’s deputy managing director, replaces Hoerner at Kabel Eins.
Proff, who has been at ProSiebenSat.1 since 1998, plans to launch a creative platform for young TV producers.