Prosiebensat.1 Media (PSM) Q3 2024 earnings summary

Executive summary

• Group revenues for the first nine months of 2024 increased by 3% to €2,656m, driven by strong Commerce & Ventures growth, while Q3 revenues declined 1% to €882m amid TV ad and Dating/Video segment declines.

• Adjusted EBITDA rose 10% to €267m for the nine months, but Q3 saw a 6% decline to €104m due to weaker TV ad and Dating/Video performance.

• Adjusted net income for the nine months reached €63m, with Q3 at €31m; net income for nine months improved to €25m from -€71m.

• Leverage ratio improved to 2.7x as of September 30, 2024, with net financial debt at €1,609m.

Financial highlights

• Q3 group revenues were €882m (down 1% YoY); nine-month revenues up 3% to €2,656m.

• Adjusted EBITDA in Q3 was €104m (-6% YoY); nine-month adjusted EBITDA reached €267m (+10% YoY).

• Adjusted net income in Q3 was €31m (+33% YoY); nine-month adjusted net income was €63m (>+100% YoY).

• Adjusted operating free cash flow for nine months was €129m, up from €4m in the prior year.

• Net financial debt reduced to €1,609m as of 09/30/2024, with financial leverage improving to 2.7x.

Outlook and guidance

• Full-year 2024 revenue target remains at ~€3.95bn (±€150m), with adjusted EBITDA target of €575m (±€50m), but actual EBITDA is expected below target due to weak TV ad market.

• Entertainment Advertising DACH TV revenues forecast to decline mid-single digit percent YoY; Digital & Smart revenues expected to grow mid- to high-single digit percent.

• Adjusted net income expected around prior year’s €225m; adjusted operating free cash flow to be around €260m.

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