ProSiebenSat.1 share: surprising profit

Last Updated: 14. Februar 2024By

The ProSiebenSat.1 share has made a jump upwards in morning trading today, up more than 9 percent after the preliminary business figures for 2023. Since last week, the SDAX-listed paper has even gained more than 18 percent (as of February 14, 2024, around 10:30 am).

The company presented strong quarterly figures for the last 3 months of 2023, surprising investors. For the current year 2024, ProSiebenSat.1 has provided a more specific outlook, but the final business figures are not expected until early March. In the medium and long term, the challenges for the media group remain significant.

ProSiebenSat.1 with profit jump in Q4 In the final quarter, the television company (including Pro7, Sat.1 and Kabel 1) achieved a higher profit than expected. Adjusted EBITDA was around 335 million euros, about 11 percent higher than the previous year’s quarter. This not only exceeded the expectations of analysts, but also its own.

On the one hand, this is due to a solid business development in Q4, and on the other hand, one-off effects that the company did not specifically name. In the press release, it was stated that the higher EBITDA was partly due to „various smaller and non-recurring effects“.

ProSiebenSat.1 specifies the forecast for 2024 In the full year 2023, ProSiebenSat.1 Media achieved sales of 3.85 billion euros according to preliminary figures, meeting expectations. In the previous year, it was 4.16 billion euros. Adjusted EBITDA was around 578 million euros, down from 678 million euros in 2022.

With the adjusted EBITDA for the past year 2023 above expectations, ProSiebenSat.1 is now also specifying the forecast. The result for 2024 should – still – remain at the level of the previous year, but is now seen in a range between 525 and 625 million euros.

ProSiebenSat.1 share: cost-cutting program helps – is it enough in the long term? ProSiebenSat.1 Media has received tailwind from its solid annual results. The cost-cutting program and the new focus (including more emphasis on German/European content) are also expected to help the company. The ProSiebenSat.1 share has lost significantly in the last 2 years, theoretically there is room for growth.

However, investors should also consider that the company is still under pressure from traditional TV channels. The streaming competition currently seems to be overpowering and linear television is losing market share every year. The ProSiebenSat.1 share can be an exciting investment, but especially in the long term, the risks should not be underestimated. As long as television does not reinvent itself, the future prospects are not rosy – and as is well known, the future is traded on the stock market.