German broadcasting group ProSieben Sat 1 Media yesterday reduced its full-year forecasts in the wake of tumbling ad revenue.
ProSieben – part of media titan Kirch Gruppe and Germany’s biggest broadcaster – warned that sales for 2001 will fall below those for 2000, following a forecast decline in the TV ad market of 2%–3%. Pre-tax profit is now expected to stay flat at E205 million.
Over the first half, sales dropped 3% year-on-year to E1.028 billion, with pre-tax profit falling from E111m to E89m. However, first-half net profit jumped 11% to E52m due to the government’s tax reforms, which ProSieben chief financial officer Lothar Lanz expects will have similarly beneficial effects on full-year profits.
In particular difficulty is the group’s Sat 1 channel, which made a loss in the first six months of the year. It is rumoured to have recently lost a major advertiser worth E100m.
News source: Handelsblatt (Germany)