ProSiebenSat.1 posts another record year in 2017

ProSiebenSat.1 posts another record year in 2017

Revenues increase by 7% to EUR 4,078 million

Adjusted EBITDA rises by 3% to EUR 1,050 million

Adjusted net income grows by 3% to EUR 550 million

Group generates 51% of revenues outside TV advertising business

Executive Board proposes dividend of EUR 1.93 per share

Outlook for 2018: Group anticipates further increase in revenues and a profitability in the mid 20 percent range based on the adjusted EBITDA

General Atlantic acquires minority stake in commerce business

Munich, February 22, 2018. ProSiebenSat.1 Group increased its revenues and earnings again in 2017, thus achieving another record year. In the full year, the Group generated 51% of revenues outside of the TV advertising business (previous year: 47%) and thus successfully continued its strategic diversification. In the past year, revenues rose by 7% to EUR 4,078 million (previous year: EUR 3,799 million). At the same time, adjusted EBITDA increased by 3% to EUR 1,050 million (previous year: EUR 1,018 million). Adjusted net income also exceeded the previous year's figure by 3% and reached EUR 550 million (previous year: EUR 536 million).

Thomas Ebeling, CEO of ProSiebenSat.1 Media SE, says: We had a strong final spurt in 2017. This enabled us to achieve further profitable growth over the year as a whole and exceed the revenue mark of EUR 4 billion for the first time. Compared to 2009, this represents an increase of almost 50%. In the same period, we tripled our net profit and nearly halved our net financial debt. Such a performance is unique in a highly dynamic environment like the media industry and I am proud to have gone this way together with this fantastic team.

Segment results in 2017

In the Broadcasting German-speaking segment, external revenues increased slightly by 1% to EUR 2,239 million in 2017. After a demanding second and third quarter of 2017 in the TV advertising business, the Group's TV advertising revenues in Germany, Austria, and Switzerland developed considerably positively again in the fourth quarter with a mid-single digit percentage increase in this period compared to the previous year. Over the year as a whole, the TV advertising business was at the same level as the previous year. Distribution revenues and the acquisition of ATV also contributed to the slight growth in segment revenues.

In the Digital Entertainment segment, especially Studio71 and the AdTech portfolio developed positively and contributed to the increase in revenues, which rose by 5% to EUR 463 million for the full year. This was partially offset by the continued structural challenges in the music and event business (Adjacent). ProSiebenSat.1 recently further expanded its involvement in the AdTech business and strengthened the portfolio with investments in the technology company AdClear, influencer marketing platform Buzzbird, social-advertising provider esome, and e-commerce marketer Kairion.

The main growth driver for ProSiebenSat.1 Group in 2017 was once again the Digital Ventures & Commerce segment. Here, ProSiebenSat.1 increased its external revenues by 30% to EUR 996 million, with the online platforms Verivox, Amorelie, and Flaconi making particularly strong contributions to organic growth. Major successes in this segment in the past year included the sale of the online travel agency Etraveli and the acquisition of the majority interest in Jochen Schweizer GmbH, a leading provider of experience gifts.

In the Content Production & Global Sales segment, external revenues decreased slightly by 3% to EUR 352 million in 2017. The segment performance was particularly affected by currency effects and shifts of some productions in the US market to the next year. Red Arrow Studios recently acquired a majority share in the global film distributor Gravitas Ventures, thereby significantly expanding the Group's distribution network, its program catalog, and its co-production and co-financing possibilities.

Three-pillar strategy

Since the beginning of the year, ProSiebenSat.1 has structured the Group in the three pillars of Entertainment , Content Production & Global Sales , and Commerce . In this way, the Group is reacting to the dynamic environment and improving its positioning for further profitable growth.

Conrad Albert, Deputy CEO and General Counsel of ProSiebenSat.1 Media SE, says: 2018 will be a year of realignment at ProSiebenSat.1. The media industry is constantly changing. It is therefore essential for us to readjust our organization and cost structures accordingly in order to invest as much as possible in the future of our entertainment business and remain the number one for our viewers and advertising customers in the German-speaking region.

As part of the continuous diversification and transformation of the Group, ProSiebenSat.1 sold a minority interest of 25.1% in the commerce business NCG - NuCom Group to General Atlantic. Together with the international financial investor, the Group intends to further accelerate the profitable growth of the commerce business and selectively invest in further markets to develop European market leaders. In the context of this transaction, the NuCom Group has already acquired remaining minority interests in Verivox, Parship Elite Group, and SilverTours GmbH (billiger-mietwagen.de) (see separate press release).

With General Atlantic, we have found the perfect partner for our commerce business and kicked off the expansion of our portfolio and the further acceleration of growth in this area. As I come to the end of my time at ProSiebenSat.1, this transaction is an important milestone for me. I wish the management team and all employees all the best for the future and am now leaving an excellently positioned company, says Thomas Ebeling.

Dividend proposal and financial outlook

ProSiebenSat.1 Group is reaffirming its ge

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