Television group ProSiebenSat.1 Media on Friday warned that full-year earnings and sales would come in below previous forecasts, underlining the continued global effects on the media industry of the terrorist attacks on the US.
ProSieben explained that an already weak ad market had been depressed further by the tragedy. “Major US corporations and banks, airlines, tourism and insurance groups in particular have cancelled or sharply reduced their bookings since the attacks,” revealed chief executive Urs Rohner.
The group revised its forecasts for German TV adspend in 2001 to a decline of 5%–6%, wider than previous projections of 2%–3%. Compared with its 2000 results, it now expects a 4% fall in its full-year sales, a 10% drop in net income and a 20% decline in EBITDA (earnings before interest, taxes, depreciation and amortization). The news sent its stock tumbling by over 18%.
ProSieben commented that the profit warning would have no impact on the plans to merge with its unlisted parent Kirch Media, unveiled earlier this month [WAMN: 06-Sep-01]. However, many analysts believe Kirch may benefit from a change in ProSieben’s market valuation.
News source: Handelsblatt (Germany)