ProSiebenSat.1 Capital Markets Day: "Strong performance and great growth potential in an attractive industry"
Unterföhring (ots)
- ProSiebenSat.1 launches two new free TV channels in Germany in
2013
- Digital & Adjacent segment major growth driver
- ProSiebenSat.1 Games expands to Turkey: Distribution partnership
with Dogan Media Group
- Outlook for 2012 financial year confirmedMunich, October 10, 2012. The ProSiebenSat.1 Group is successfully putting its growth strategy into practice. By the end of 2015, the Group intends to increase its revenues from continuing operations by at least EUR 750 million compared to 2010. By the end of the second quarter of 2012 the ProSiebenSat.1 Group had already realized over a third of this potential. The Digital & Adjacent segment is developing noticeably more dynamically than expected and will continue to make a significant contribution to growth in the years to come, as was announced today at the company's Capital Markets Day in Munich.
Thomas Ebeling, CEO of the ProSiebenSat.1 Group, commented: "We have completed the first stage on the way to our growth target for 2015 quicker than planned. We have a good growth strategy and we are consistently working on implementing it. Television is the heart of our company. At the same time, we are moving forward with the diversification of our Group by investing in new growth areas such as online games and the ventures business. We are using the advertising power and access to millions of people that our TV channels provide to expand products from related business areas into large and successful brands. ProSiebenSat.1 is displaying strong operational performance and has a great deal of growth potential in a highly attractive industry."
1. Broadcasting German-speaking: New TV channels and market initiatives produce growth In the Broadcasting German-speaking segment, the ProSiebenSat.1 Group is aiming for additional revenues of at least EUR 250 million by the end of 2015 compared to the year 2010. By the end of the first half of 2012, the company had achieved 22 per cent of this goal, or EUR 56 million, thereby achieving the growth progress planned for the German-speaking region. ProSiebenSat.1 expects to generate the majority of the remaining revenues from 2013 onwards.
- SAT.1 Gold and ProSieben MAXX launch in 2013
Aiding the pursuit of this goal will be two new free TV channels, which the Group is launching in the coming year. SAT.1 Gold will go on air on January 17, 2013. The channel is aimed at slightly older, high-income, predominantly female viewers - a target group gaining increasing relevance for advertising customers. ProSieben MAXX (working title) will be the Group's second new free TV channel to be launched in 2013. This channel will also focus on high-income viewers, but will be positioned to appeal to a predominantely male audience.
The ProSiebenSat.1 Group is expecting additional growth from increasing distribution revenues primarily driven by rising HD distribution. The Group anticipates revenues of over EUR 50 million in Germany by the end of 2015 compared to 2010. There are also opportunities for growth arising from the liberalization of the regulatory environment. The ban on sponsorship for public broadcasters takes effect from 2013 onwards. By a conservative estimate, the ProSiebenSat.1 Group evaluates the growth potential for the commercial TV advertising market as a total of approximately EUR 25 million by 2015. The legalization of advertising for betting and lotteries is likely to result in additional revenues of around EUR 80 million in the German commercial TV advertising market by 2015. The Group sees further potential for growth in the exploitation of new business models such as local advertising.
2. Broadcasting International: Strong position in audience and advertising market, as well as new TV channels, stimulates growth The international TV and radio division of the ProSiebenSat.1 Group is expected to generate additional revenues of at least EUR 150 million by 2015 compared to the year 2010. By the end of the second quarter of 2012, the Group had already achieved 53 per cent (EUR 80 million) of the planned additional revenues. Over the past six years ProSiebenSat.1 has successfully launched eight new TV channels in its Nordic markets. The company's growth has also benefited from the strong economic and advertising market environment in Northern Europe.
3. Digital & Adjacent: Digital services and venture activities are the major drivers of revenues The Digital & Adjacent segment is demonstrating a particularly dynamic performance with its four strategic divisions - Online Video, Online Games, Ventures & Commerce and Music. By the end of 2015, the company aims to generate further revenues of at least EUR 250 million in the Digital & Adjacent segment compared to the year 2010. The Group had already achieved 38 per cent (EUR 95 million) of this amount by the end of the first half of 2012.
- ProSiebenSat.1 taps Turkish online games market
ProSiebenSat.1 is directing significant focus towards the online games market, which is the world's fastest-growing form of entertainment. ProSiebenSat.1 will be expanding its online games business further internationally through a distribution partnership with the largest media group in Turkey, the Doğan Media Group. With roughly 22 million active players, Turkey strategically is one of the most important gaming markets. In August 2012, ProSiebenSat.1 signed a marketing cooperation agreement with French TV broadcaster TF1. Further distribution partnerships within Europe will follow soon. . ProSiebenSat.1 Group is Germany's largest media investor The Ventures & Commerce unit is also posting strong growth rates. The ProSiebenSat.1 Group operates its ventures business on the basis of an innovative business model, according to which the Group provides advertising time on its high-reach TV channels to selected start-up companies in return for a share in revenues and/or the company in question. This makes the ProSiebenSat.1 Group Germany's largest media investor. Since 2010, the company has established a ventures portfolio of more than 40 partners or investments.
By 2015, the ProSiebenSat.1 Group will have reached, at minimum, the level of its planned revenues target of EUR 435 million with its digital and venture activities. However, the company anticipates that growth will accelerate more strongly than originally expected, for reasons including expansion of the MyVideo Internet platform to an online TV channel, internationalization of the games business and the strong ventures portfolio. This gives rise to growth potential in the "Digital & Adjacent" segment for the ProSiebenSat.1 Group beyond the revenues target of EUR 435 million by 2015.
4. Content Production & Global Sales: Red Arrow established as international production company The Content Production & Global Sales segment is also growing more quickly than planned. By 2015, the fourth pillar should contribute at least EUR 100 million additional revenues compared to the year 2010. ProSiebenSat.1 had already achieved 40% (EUR 40 million) of this amount by the end of the first half of 2012.
Within a very short time, the Red Arrow Entertainment Group has developed from a start-up company to a production and sales enterprise with international recognition, with 18 companies in nine countries. Two and a half years after its establishment, Red Arrow is already eighth in the rankings of the world's leading independent production companies. The company works in the key markets of the USA and the UK to produce TV formats for major television broadcasters such as NBC (Off Their Rockers), ABC (The Taste), the BBC (Restless) and ITV1 (My Man Can).
ProSiebenSat.1 confirms outlook for 2012 financial year The ProSiebenSat.1 Group is confirming its targets for the 2012 financial year. The TV company aims for an increase in Group revenues in the mid single-digit percentage range. In terms of recurring EBITDA, the objective is to surpass the previous year's figure of EUR 850 million. We expect a further increase in underlying net income, primarily supported by lower interest and lower financing expenses. Note: From 11 am, you can follow all Capital Markets Day 2012 presentations live and download presentation material on our website www.ProSiebenSat1.com.
Pressekontakt:
Contact:
Julian Geist
Corporate Spokesman
ProSiebenSat.1 Media AG
Medienallee 7
85774 Unterföhring
Germany
Tel. +49 89 9507 1151
Fax +49 89 9507 91151
Email:
Julian.Geist@ProSiebenSat1.com
Stefanie Prinz
Corporate Communications
ProSiebenSat.1 Media AG
Medienallee 7
85774 Unterföhring
Germany
Tel. +49 [89] 9507 1199
Fax +49 [89] 9507 1199
Email:
Stefanie.Prinz@ProSiebenSat1.com
Press release online:
www.ProSiebenSat1.com
Original content of: ProSiebenSat.1 Media SE, transmitted by news aktuell