ProSiebenSat.1 closes financial year 2022 in line with expectations and assumes slight organic revenue growth in 2023

ProSiebenSat.1 closes financial year 2022 in line with expectations and assumes slight organic revenue growth in 2023

Financial results 2022

2022 impacted by macroeconomic downturn in the German-speaking region: As an early-cycle company, ProSiebenSat.1 was directly affected by consumer restraint and the resulting negative development of the advertising market - particularly in the important fourth quarter.

Revenue and earnings figures as most recently expected: ProSiebenSat.1 generated revenues of EUR 4,163 million in 2022 (previous year: EUR 4,495 million). At the same time, adjusted EBITDA decreased to EUR 678 million (previous year: EUR 841 million), adjusted net income declined to EUR 301 million (previous year: EUR 365 million).

Focus on cash flow management effective: Net financial debt was a significant EUR 238 million below the previous year at EUR 1,613 million; the leverage ratio remained within the target range with 2.4x despite decline in earnings.

Jochen Schweizer mydays: Product offering was adjusted in March, which now needs no authorization by the German Federal Financial Supervisory Authority.

Dividend proposal: Executive Board and Supervisory Board propose to the Annual General Meeting on June 30, 2023, to pay out a significantly reduced dividend of EUR 0.05 per share to the holders entitled to dividends for fiscal year 2022.

Outlook 2023

Full-year outlook: ProSiebenSat.1 expects slight organic1 revenue growth to around EUR 4.10 billion with a variance of plus/minus EUR 150 million (previous-year figure adjusted for currency and portfolio effects: EUR 4.02 billion2) as well as adjusted EBITDA of around EUR 600 million with a variance of plus/minus EUR 50 million (previous-year figure adjusted for currency and portfolio effects: EUR 623 million3).

Persistent economic challenges in the first half of the year: Financial outlook reflects negative effects in the first two quarters, particularly in the high-margin advertising business, as well as the expectation that the economic recovery in the German-speaking region will only begin in the second half of the year.

Adjustment of dividend policy: Group adjusts pay-out ratio to 25 - 50% of adjusted net income in the future and, besides the general economic environment, takes from now on an appropriate level of financial leverage as well as requirements for investments into particular focus.

Unterf hring, April 27, 2023. ProSiebenSat.1 Group closed financial year 2022 in line with its outlook most recently updated in October 2022 and generated Group revenues of EUR 4,163 million in a severely weakened market environment. This is a decline of 7% (previous year: EUR 4,495 million). Organically1, i.e., adjusted for currency effects and portfolio changes, Group revenues were down 5% year-on-year. The portfolio effects totaled EUR 218 million. In addition, as expected and announced at the end of October 2022, revenues were additionally directly impacted by the macroeconomic environment in particular. In 2022, it was characterized by high inflation and consumer restraint as a result of the Russia/Ukraine war and the associated energy price crisis. The negative development of consumer sentiment, particularly in our core market of the German-speaking region, impacted large parts of our portfolio. The advertising market in particular reacted very clearly and reflected fears of a potential recession in Germany. As a consequence, advertising revenues in the German-speaking region decreased by 6% for the full-year compared to the previous year. The fourth quarter was down 12% year-on-year. Furthermore, the increasing deterioration of the overall economic environment in the German-speaking region over the course of the year also had a negative impact on the companies in the Commerce & Ventures segment.

At the end of February 2023, ProSiebenSat.1 had informed about open questions at the portfolio company Jochen Schweizer mydays regarding possible regulatory requirements. Specifically, the topic was the extent to which parts the business activities of the two subsidiaries Jochen Schweizer and mydays fall under the German Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz - ZAG). Jochen Schweizer and mydays subsequently adjusted their product offering in March to address these regulatory concerns. In April, the German Federal Financial Supervisory Authority ( BaFin ) informed that Jochen Schweizer and mydays do not need BaFin authorization to continue operating the adjusted product offering. Currently, Jochen Schweizer and mydays are coordinating the modalities with BaFin in order to settle the voucher products that were issued prior to the offer adjustment and required BaFin authorization under the ZAG. At the same time, an independent internal investigation by an external law firm is currently ongoing at ProSiebenSat.1 with the aim of clarifying any misconduct, particularly with regard to obligations of the companies concerned under the ZAG. In addition, the Munich Public Prosecutors Office I has initiated a monitoring process; ProSiebenSat.1 and its affected subsidiaries are fully cooperating with the relevant authorities. The potential financial charges for the Group in connection with the official investigations cannot be estimated at present but could be significant.

Bert Habets, Group CEO of ProSiebenSat.1 Media SE: Over the past weeks, we dealt with the regulatory issues relating to Jochen Schweizer mydays in a timely manner, but above all with due care, and adjusted the product offering of the two companies. Jochen Schweizer and mydays now do not need authorization from BaFin for this product offering. We are working intensively to consistently implement our strategy for ProSiebenSat.1, and in particular to advance our entertainment business around the streaming platform Joyn, with full force. We are invest

LINK:	https://en.prosiebensat1.com/en/press/prosiebensat-1-closes-financial-...
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