ProSieben ad revenues hold firm

05 March 2009

UNTERFOEHRING: ProSiebenSat.1, the European TV and radio giant, recorded a net loss of €129.1 million ($162m; £115m) last year, largely as a result of a €181m writedown in the value of its Swedish unit SBS Broadcasting, but its ad revenues largely held firm.

The slowdown in the German TV advertising market in recent months has led to predictions that "era of constantly rising" revenues has come to an end.

ProSieben's total TV ad revenues actually rose by 1.4% to €797.3 million, but within this, it noted a "significantly reduced" willingness among advertisers to invest in the second half of the year.

However, the company's total revenues fell by 5.7% to €3.1bn for the whole of last year, including a slump of 11.4%, to €876.8m, in the fourth quarter.

It also reported that there were "problems with acceptance levels after the launch of a new sales model for the German TV advertising market,” which hit total TV ad revenues.

The company's "diversified segment", which includes its online and radio arms, saw revenues fall 2% to €521.2m, largely due to a decline in revenues at its pay-TV business C More, which it sold late last year.

ProSieben estimates that TV enjoyed a 40.8% share of the German ad market last year, compared with 43% for print, and just 6.6% for online.

Data sourced from Wall Street Journal; additional content by WARC staff