Prosiebensat.1 Media (PSM) Q2 2025 earnings summary

Executive summary

• Group revenues declined by 4% year-over-year to EUR 1.695 billion in H1 2025 and by 7% to EUR 840 million in Q2, mainly due to weak TV advertising, macroeconomic headwinds, and the sale of Verivox.

• Adjusted EBITDA dropped 40% year-over-year to EUR 99 million in H1 and EUR 55 million in Q2, reflecting lower high-margin ad revenues and portfolio changes.

• Joyn platform achieved record growth, with monthly users up 31% and watch time up 29% year-over-year in Q2; AVOD revenues grew 62%.

• Flaconi delivered 33% revenue growth in Q2, expanding into new European markets and improving profitability.

• Management confirmed full-year 2025 financial targets, with EBITDA expected below the midpoint due to TV ad trends, and highlighted major restructuring and portfolio actions.

Financial highlights

• Group revenues: EUR 1.695 billion in H1 2025 (-4% year-over-year); Q2 revenues: EUR 840 million (-7% year-over-year).

• Adjusted EBITDA: EUR 99 million in H1 2025 (-40% year-over-year); Q2: EUR 55 million (-40% year-over-year).

• Adjusted net income: EUR 0 million in H1; EUR 14 million in Q2, supported by positive tax income.

• Adjusted operating free cash flow: EUR -50 million in H1; EUR -6 million in Q2, impacted by higher programming investments.

• Net financial debt: EUR 1.541 billion at Q2 end, down EUR 54 million year-over-year; leverage ratio 3.1x.

Outlook and guidance

• Full-year 2025 group revenue target: around EUR 3.85 billion (± EUR 150 million), reflecting Verivox sale.

• Adjusted EBITDA guidance specified to below the midpoint of EUR 520 million (± EUR 50 million) due to TV ad weakness.

• Entertainment advertising revenues in DACH expected to decline slightly year-over-year.

• Leverage ratio targeted at 2.5x–3.0x by year-end, with a medium-term goal of 1.5x–2.5x.

• Deferred tax income from the Joyn merger to positively impact adjusted net income in H2.