Broadcasting behemoth ProSiebenSat.1 Media issued a profits warning Wednesday, alerting investors to a likely 25% fall in its 2002 fiscal which it attributes to the current slowdown in advertising. German TV adspend is forecast to decline this year by 8.2%, according to a study commissioned by the group.
The latest data overturns ProSieben’s earlier prediction of a 5% fall in ad revenues. It now foresees 2002 EBITDA (earnings before interest, tax depreciation and amortization) at between €140 million ($138.30m; £88.10m) and €160m – down from last year’s €225m.
Says ceo Urs Rohner: “Although we have increased our share of the total TV advertising market to 45.9%, due to the continued advertising crisis we are looking at an overall disappointing revenue development in the third quarter. Contrary to previous expectations, we must now assume that the fourth quarter won't bring a turnaround.”
Data sourced from: The Wall Street Journal Online; additional content by WARC staff