German media giant ProSiebenSat.1 Group has reported a 4% drop in revenues to €1.8 billion ($2.1 billion) and adjusted net income at €230 million ($267 million) over the first half of 2018.
EBITDA stood at €459 million ($532 million) in the first half of 2018, on par with last year, while the adjusted EBITDA margin went up by 25.6%,, reflecting cost-management measures taken in the entertainment division as well as higher revenues from distribution activity.
ProSiebenSat.1’s ratings were also on par with last year, with a 26.9% market share, in spite of the Winter Olympics and the FIFA World Cup.
Jan Kemper, CFO of ProSiebenSat.1, said he anticipates “the second half of the year to be stronger, as it has been the case in previous years.”
In the production and global sales segment, ProSiebenSat.1’s Red Arrow Studios signed key production deals for the coming months. These include the first New York Times documentary series for the U.S. broadcaster FX and the streaming platform Hulu, which will be produced by Red Arrow Studios subsidiary Left Right, and the fifth season of crime series “Bosch” (pictured), which Amazon Prime Video has already commissioned.
ProSiebenSat.1 said its global sales business has also benefited from Red Arrow Studios’ acquisition of a majority stake in U.S. distribution company Gravitas Ventures in November 2017.
CEO Max Conze said the company would be making some changes to adapt to the rapidly changing environment. “We will place an even stronger focus on building an entertainment business offering linear and digital content end-to-end….And we will be viewer- and consumer-centric in everything we do,” Conze said.
He said the company was currently working on a strategic update and would unveil the results at this year’s Capital Markets Day in November.
ProSiebenSat.1 announced in June its plan to join forces with Discovery to build a leading streaming platform for Germany that will deliver local, European, and U.S. content. Set for launch during the first half of 2019, the initiative was approved by German and Austrian antitrust authorities at the end of July.