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ProSiebenSat.1 confirms full-year outlook for 2022

12/05/2022

ProSiebenSat.1 confirms full-year outlook for 2022

Results in the first quarter of 2022 in line with the Group's expectations: Synergistic business model demonstrates resilience despite Russia-Ukraine war, ongoing pandemic, and strains on consumer sentiment.

Group revenues grow by 2% (organically1: +3%) to EUR 954 million; the significant growth in advertising revenues is the main driver.

As already announced at our Annual Press Conference on March 3, 2022, the Groups adjusted EBITDA decreases by 14% to EUR 123 million mainly due to the planned bringing-forward of programming expenses in the Entertainment segment.

Adjusted net income increases by a good 14% to EUR 42 million; adjusted operating free cash flow grows significantly by 77% to EUR 145 million.

Net financial debt improves to EUR 1,740 million; leverage ratio of 2.1x is well within the target range.

Uncertainties due to the war have a partial impact on the Groups sector environments, although this does currently not affect the outlook for the Groups business development based on the current war and sanctions situation.

Against this background and in light of the solid and as expected start to the year, the Group is confirming its full-year outlook.

Unterf hring, May 12, 2022. Despite the challenging economic environment caused by the Russia-Ukraine war and the ongoing pandemic, ProSiebenSat.1 Group closed the first quarter of 2022 in line with its expectations: The Group increased its revenues by 2% year-on-year to EUR 954 million (previous year: EUR 938 million). This development was driven by the significant growth in the Group's advertising revenues. Organically1, i.e. adjusted for currency effects and excluding revenue contributions of portfolio companies sold in 2021 such as Gravitas Ventures, Amorelie and moebel.de, ProSiebenSat.1 revenues rose by even 3%.

Rainer Beaujean, Group CEO of ProSiebenSat.1 Media SE: Our good start to the year once again proves that we are on the right track with our strategy. With our clear positioning and focus on reach, monetization, and value creation, we were able to continue our growth in the first quarter despite the overall economic uncertainties. On this fundament, and based on the current war and sanctions situation as well as its current economic impact, we remain confident to achieve our full-year targets - and confirm our outlook for 2022. In April, our Entertainment advertising revenues in the German-speaking region were slightly above the previous year's level, or by around 7% in the first four months of the year. At the same time, current developments show how important it is to use reach responsibly. We do this with our programming, not only by entertaining, but also by informing - both always with a clear attitude.

Operating performance

In the first quarter of 2022, external revenues in the Entertainment segment increased significantly by EUR 53 million or 9% to EUR 663 million (previous year: EUR 610 million). Organically1, growth also was at 9%. The clear increase in advertising revenues drove this development: At the beginning of the year, these developed dynamically, whereas March was characterized by a decline in advertising bookings. This was the result of postponements into the second quarter of 2022 due to the around two weeks later Easter date in April compared to the previous year, as well as uncertainties following the Russia-Ukraine war. Despite these influencing factors, advertising revenues in the first quarter of 2022 grew by EUR 43 million or 10% compared to the previous year's quarter. Revenues in the content business also posted a double-digit growth of EUR 13 million or 13%.

Revenues in the Dating & Video segment grew by an average of 11% per year on a pro forma basis compared to the first quarter of 2019, i.e., the comparative period before the outbreak of the pandemic. As expected, external revenues in the first quarter of 2022 decreased by EUR 9 million to EUR 132 million (previous year: EUR 141 million). Here, the first quarter of 2021 was characterized by record revenues: In the course of the largest economic stimulus package in the history of the US, government economic aid stimulated private consumption in the first quarter of 2021. This also had a very positive impact on the use and monetization of our video offerings in the US region. Moreover, especially live video formats had gained additional relevance during the pandemic and the associated restrictions on social contacts. Furthermore, as soon as the market environment brightens again, we plan to proceed with the IPO of ParshipMeet Group, which we are continuing to prepare.

External revenues of the Commerce & Ventures segment amounted to EUR 160 million in the first quarter of 2022, a EUR 28 million decline year-on-year (previous year: EUR 187 million). This is also due to the disposal and deconsolidation of the portfolio companies Amorelie and moebel.de at the end of 2021, which still contributed EUR 15 million to the segment's revenues in the previous year period. Organically1, revenues were as expected EUR 13 million below the previous year, and reflect - as communicated at the Annual Press Conference on March 3, 2022 - among other things the impact of high energy prices on the business of our comparison portal Verivox. However, the car rental comparison portal Billiger-Mietwagen (SilverTours) and the experience and leisure business of Jochen Schweizer mydays reported significant growth rates even though the COVID-19 restrictions were still in place in the first quarter. In addition, the investment vehicle SevenGrowth and the media-for-equity and media-for-revenue businesses of SevenVentures noticeably increased their revenues in the first quarter of 2022.

The Group s adjusted EBITDA declined, as already announced and expected, in the first quarter of 2022
LINK: https://en.prosiebensat1.com/en/press/prosiebensat-1-confirms-full-yea...
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