Prosiebensat.1 Media (PSM) Q2 2024 earnings summary

Executive summary

• Group revenues increased by 5% year-over-year in Q2 2024 to EUR 907 million, with growth in both Entertainment and Commerce & Ventures segments.

• Adjusted EBITDA rose 14% to EUR 91 million in Q2 2024, reflecting efficiency gains and cost reductions despite higher programming costs.

• Adjusted net income improved to EUR 25 million in Q2 2024, up from EUR 4 million in Q2 2023.

• The company confirmed its full-year 2024 financial targets, citing strong performance in Joyn and ongoing cost discipline.

• Leverage ratio reduced to 2.6x, within the target range, due to EBITDA growth.

Financial highlights

• Q2 2024 group revenues: EUR 907 million (+5% YoY); H1 2024: EUR 1,774 million (+5% YoY).

• Adjusted EBITDA: EUR 91 million in Q2 2024 (+14% YoY); EUR 163 million in H1 2024 (+23% YoY).

• Adjusted net income: EUR 25 million in Q2 2024 (Q2 2023: EUR 4 million); EUR 33 million in H1 2024 (H1 2023: EUR -11 million).

• Adjusted operating free cash flow: EUR 65 million in Q2 2024 (Q2 2023: EUR -33 million).

• Net financial debt at end-Q2: EUR 1,595 million, improved by EUR 187 million YoY; financial leverage ratio: 2.6x.

Outlook and guidance

• Full-year 2024 revenue target: ~EUR 3.95 billion (±EUR 150 million); adjusted EBITDA: ~EUR 575 million (±EUR 50 million); adjusted net income: ~EUR 225 million.

• Programming expenses to increase by EUR 80 million for the full year, especially in Q4.

• Expecting slight DACH advertising revenue growth, with a dip in July/August and recovery from September.

• Ongoing growth anticipated in Commerce & Ventures; less negative trend in Dating & Video.

• Leverage ratio expected between 2.5x and 3.0x at year-end 2024.