ProSiebenSat.1 increases revenues by 4% in Q3 2019Revenues increase by 4% to EUR 926 million in Q3, 56% of revenues are non-TV core advertising business that grows by 13% while TV core advertising revenues decline by -6%
Growths drivers are 21% at Red Arrow Studios, 13% at NuCom Group and 37% in digital and smart advertising business
Streaming platform Joyn remains on growth course with nearly 5 million monthly total active users and 4.9 million app installs
Group continues transformation with reorganization of Holding and Entertainment structure
ProSiebenSat.1 further invests in the future of the Entertainment business and in the growth of NuCom Group, as expected this is reflected in the development of adjusted EBITDA
Group maintains financial targets for the full-year 2019, that are however dependent on the development of the macroeconomic environment and the TV advertising business in Q4
Munich, November 7, 2019. Max Conze, CEO of ProSiebenSat.1 Media SE: We continue to make good progress and consistently drive ProSiebenSat.1's transformation. Despite the increasingly difficult macroeconomic environment and a therefore weaker TV advertising market, our revenues increased by 4% in the third quarter. 56% of our revenues are now generated from non-TV core advertising business - and growing by 13% in the third quarter. This was driven by growth of 37% in the digital and smart advertising business and continuing double-digit growth rates at Red Arrow Studios and NuCom Group. We demonstrated once again that our decision to invest in a digital and diversified future was the right one: Our streaming platform Joyn is continuously gaining new users, and the premium version will be launching this winter. At NuCom Group, the online-beauty provider Flaconi boasts very dynamic growth of 59% in the third quarter, while our focus on local content is becoming increasingly effective. In the first nine months of the year, we are clearly ahead of the audience shares of the previous year, and a strong portfolio of fiction and entertainment formats, such as Schattenmoor', Dancing on Ice', and Queen of Drags' is coming up in the next months. In a weakening and less predictable environment, it is all the more important to continue investing in the future of the company.
Development of the Group
ProSiebenSat.1 Group concluded the third quarter largely within its expectations: Despite the clearly weaker than originally anticipated development in the TV advertising business, the Group increased its revenues by 4% to EUR 926 million in this period (previous year: EUR 892 million); the organic(1) increase was 3%. While especially the TV core advertising business affected the development in the Entertainment segment and led to a decline of -4% (organic decline: -3%) in revenues, this was more than offset by the revenue growth in all other business areas. Thus, the Content Production & Global Sales (Red Arrow Studios) and Commerce (NuCom Group) segments both increased their revenues by double-digit growth rates of 21% and 13% respectively (organic growth: 15% and 10% respectively). Also the digital and smart advertising business grew again by a strong 37%. The Group's adjusted EBITDA was in line with expectations, too, and decreased by -25% to EUR 131 million in the third quarter (previous year: EUR 175 million): Besides lower TV core advertising revenues, this reflects the Group's decision to continue investing as announced in the future of the Entertainment business and in an accelerated growth of NuCom Group. Against this backdrop, adjusted net income decreased by -39% to EUR 46 million (previous year: EUR 75 million) as expected.
In the first nine months of 2019, ProSiebenSat.1 Group's revenues grew by 4% to EUR 2,786 million (previous year: EUR 2,685 million) despite the clearly weaker TV advertising market environment. The organic growth was 3%. As communicated at the beginning of the year, ProSiebenSat.1 consistently invests in the future of the Group. As expected, adjusted EBITDA accordingly fell by -16% to EUR 534 million (previous year: EUR 634 million; net income: -12% to EUR 248 million).
Segment performance
In the Entertainment segment, the Group further accelerated the dynamic development of its digital and smart advertising business which revenues grew by a considerable 37%. This was driven partly by the launch of the digital, advertising-financed streaming platform Joyn and the addressable TV business with the market launch of the Addressable TV spot product. This business area therefore compensated for some of the decline in TV core advertising revenues, which were down -6% year-on-year in the third quarter, reflecting the weakening macroeconomic environment and the corresponding development in the TV advertising market. Furthermore, the deconsolidation of the video-on-demand portal maxdome and the online fitness provider 7NXT also had an impact. Overall, external revenues in the Entertainment segment declined by -4% in the third quarter of 2019. Organically, external revenues decreased by -3%. In the TV audience market, ProSiebenSat.1 Group's channels were clearly ahead of the previous year with an audience share of 28.3% (14- to 49-year-olds) in the last nine months (previous year: 27.5%). This positive trend continued in October with a TV audience share of 28.8%. Digital view time likewise grew in the third quarter, increasing by 21.8%. In particular, the shows The Voice of Germany , Late Night Berlin and Das gro e Backen ( Bake Off ) are popular with viewers on all platforms. Total video viewtime, i.e. the total number of minutes viewed on all of the Group's linear channels and digital entertainment platforms, came to 253 billion minutes in the third quarter (previous year: 260 billion minutes), with the growth in d
