German television broadcaster ProSiebenSat.1 Media has embarked upon a cost-cutting drive following the decline in the advertising market.

Speaking to shareholders yesterday, chief executive Urs Rohner announced that the firm is freezing new recruitment and trimming growth in expenditure on new programming from 6% to 4% over the course of the year.

“We have been taken aback by the downturn in the advertising climate,” commented Rohner, warning that first-half financial results would be down year-on-year.

However, he added that the last two months had shown signs of improvement, indicating that the market has reached its nadir and is starting to pick up. “I am convinced that the advertising market will start to grow again in the second half of the year,” Rohner continued, forecasting a double-digit rise in ProSiebenSat.1’s earnings and revenue growth at a higher rate than the rest of the market.

News source: Handelsblatt (Germany)