Prosiebensat.1 Media (PSM) Q4 2024 earnings summary

Executive summary

• Group revenue grew 2% year-over-year to EUR 3.918 billion in 2024, despite a weak TV advertising market, especially in Q4.

• Joyn AVOD revenues in the DACH region rose 36%, helping offset declines in Entertainment segment revenues.

• Commerce & Ventures segment exceeded EUR 1 billion in revenues for the first time, with Adjusted EBITDA nearly doubling year-over-year.

• Adjusted EBITDA for the group was EUR 557 million, down 4% year-over-year but within target range.

• A non-cash goodwill impairment of EUR 386 million was recognized in the Dating & Video segment in Q4, adjusted out of net income.

Financial highlights

• Group revenues increased by 2% year-over-year to EUR 3.918 billion; Q4 revenues declined 2%.

• Adjusted EBITDA fell 4% to EUR 557 million; Q4 Adjusted EBITDA down 13%.

• Adjusted net income at EUR 229 million, with a EUR 386 million goodwill impairment in Dating & Video segment.

• Adjusted operating free cash flow was EUR 285 million, up 10% year-over-year.

• Proposed dividend of EUR 0.05 per share, payout ratio of 5%.

Outlook and guidance

• 2025 revenue targeted at EUR 4 billion (±EUR 150 million), Adjusted EBITDA at EUR 550 million (±EUR 50 million).

• Entertainment Advertising DACH revenues expected to rise 2% at mid-point, with TV slightly declining and Digital & Smart growing.

• Continued focus on cost efficiency, aiming for mid double-digit million euro savings in FY 2025.

• Joyn expected to double key KPIs in 2025 and sustain growth through 2027.

• Adjusted operating free cash flow and Adjusted Net Income expected to be at or near prior year levels.