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OTS: ProSiebenSat.1 Media SE / ProSiebenSat.1 Group with first upward trend … | message

5


ProSiebenSat.1 Group with first upward trend in advertising business since

July after COVID-19-dominated second quarter 2020

Unterfhring (ots) –

– Outlook: economic upturn in the core markets of the

ProSiebenSat.1 Group and the first positive trends in the

Advertising business noticeable

– Focus on core business pays off: Total Video Viewtime of

Entertainment offerings will increase by 3.4% in the first half of 2020

Compared to the same period last year

– As expected and already announced, significant COVID 19 influence

in the second quarter of 2020, mainly due to declines in

Advertising business: Group sales decrease by 25% to EUR 709 million, adjusted

EBITDA declines from EUR 213 million to EUR 23 million, adjusted net

income decreases from EUR 85 million to minus EUR 52 million

– Positive development at NuCom Group with sales growth of 5%

– Very good liquidity situation due to strict

Cash flow management: 1,190 million euros in cash as of June 30

2020

Unterfhring, July 31, 2020. After the global COVID-19 pandemic and the

this limits the public and economic life

the business development of the ProSiebenSat.1 Group as expected in the second

Quarter 2020, the group sees the first signs of

a recovery in advertising business since July, supported by the economic situation

Brightening in the core markets of the Germany, Austria and Switzerland group. in the

In the second quarter, the group recorded a 25 percent drop in sales

709 million euros (previous year: 947 million euros), organically (1) sales decreased by 26

Percent. As announced, the clear ones had a particular impact

COVID-19-related declines in advertising and program production from

whereas the NuCom Group’s sales continued to grow and the importance

a diversified lineup for the group. The development

in the second quarter influenced the half-year period accordingly: Overall

ProSiebenSat.1 closed the first six months of 2020 with sales of 1,634

Million euros (previous year: 1,860 million euros) and was thus 12 percent below

Previous year’s value.

Rainer Beaujean, Chief Executive Officer & Chief Financial Officer of ProSiebenSat.1 Media SE:

“They are starting in our core markets of Germany, Austria and Switzerland

brightening economic framework conditions and that’s what we’ve been seeing since July

first positive trends in the advertising market. We expect the July

Advertisers lost a little less than 20 percent compared to the previous year

and thus a clearly lower decline than in the past quarter. Also in

August is currently recording another with a minus of around 10 percent

Improvement. We continue to focus on our consistent cost

and cash management and are more optimistic about autumn: even if it is

the COVID 19-related declines that have arisen up to that point will not be possible

to catch up, the months of September to December will be crucial for the

Business development of the group in the full year. In those months

ProSiebenSat.1 in the past around 50 percent of adjusted EBITDA

earned. “

Operating development in the second quarter of 2020

In the second quarter, outside sales were in the SevenOne Entertainment segment

Group declined by 34 percent to EUR 398 million (previous year: EUR 601 million).

Organically, floodplain sales also fell by 34 percent. This almost reflects

exclusively, as already announced, the decline in advertising peas since the

Group COVID-19 due to lower line items in the second quarter

recorded. In the half-year view, floodplain sales went as a result of

COVID 19 pandemic by 19 percent to EUR 961 million (previous year: EUR 1,180 million)

back

In contrast to the development of the advertising market, the entertainment and

Infotainment offers of the SevenOne Entertainment Group in the past

Months of clear success. In the second quarter, the stations scored particularly in

the prime time relevant for advertising customers with strong coverage at local

Formats such as “Celebrities under Palm Trees (SAT.1) and” The Masked Singer “(ProSieben).

The linear and digital viewing time of the offers has increased accordingly:

Since the beginning of the year, the total video viewtime has changed

minutes seen on all linear and digital channels

The Group’s entertainment platforms increased 3.4 percent year over year

increased.

The effects of COVID-19 were also in the Red Arrow Studios segment

government restrictions as announced, are clearly noticeable, although that

international program production business was particularly affected. Of the

External sales were 102 million euros in the second quarter (previous year: 148 million euros)

31 percent below the previous year’s level. Organic or currency effects

adjusted sales decreased by 33 percent. In the first six months of the year

External sales declined 17 percent to 236 million euros (previous year: 283

Million euros), whereby the sales business and the digital studio Studio71

developed stable.

The NuCom Group segment, on the other hand, was able to operate in a COVID 19 environment

continue to grow. The portfolio posted an increase in the second quarter

of the floodplain sales by 5 percent to 209 million euros (previous year: 198 million euros).

Organic growth was also 5 percent. The

Dating agency business of the Parship Group as well as the Vertical Beauty &

Lifestyle around the online beauty provider Flaconi recorded each

a significant increase in sales. The effects of

largely global travel and exit restrictions, especially in each

Business of the portfolio companies billiger-mietwagen.de (Silvertours) and

Jochen Schweizer mydays clearly noticeable. The

NuCom Group posted growth – floodplain sales increased by 10 percent

to 437 million euros (previous year: 397 million euros).

The other key financial figures also reflect the considerable influence of

COVID-19 pandemic on the macroeconomic environment and the Group’s business

in the second quarter: The Group’s adjusted EBITDA decreased

due to the decline in high-margin advertising business in the second quarter by 89

Percent to EUR 23 million (previous year: EUR 213 million). That was in the first half of 2020

adjusted EBITDA at EUR 180 million (previous year: EUR 403 million) 55 percent below

Previous year. The adjusted net income (adjusted net income) reflected

this development and amounted to minus 52 million euros (previous year: 85 million euros)

in the second quarter and to 7 million euros (previous year: 179 million euros) in the first

six months of the year. The cost savings announced in the spring are

some of them are already visible in the second quarter, but they will be mainly in the

second half of the year.

ProSiebenSat.1’s liquidity position is EUR 1,190 million in cash

still good at the end of June 2020. The group had 350 million euros at the beginning of April

its syndicated revolving credit facility (RCF), which is a framework

of 750 million euros, in order to face the COVID-19-stamped

Access to the company’s liquidity reserves at all times

to secure. Another 400 million euros of the RCF are available at any time. At the same time

the Annual General Meeting in June 2020 approved the proposal, retained earnings

of the full amount of the 2019 business year and thus to be carried forward

against the backdrop of the COVID 19 pandemic, no dividends to be distributed. In order to

liquidity outflow of EUR 192 million was avoided. At the end of

in the second quarter of 2020, net financial debt increased compared to

Previous year reduced to 2,353 million euros (previous year: 2,514 million euros). Compared

However, this corresponds to a slight increase at the end of 2019. Of the

Gearing increased mainly due to the adjusted COVID 19

EBITDA declines to 3.6x in the second quarter of 2020 (end of Q1 2020: 2.7x).

outlook

Against the backdrop of the global COVID-19 pandemic and related

economic uncertainties, also with regard to the extent of the negative

Business impact, the ProSiebenSat.1 Group will start in March 2020

published financial outlook for fiscal year 2020 on April 22, 2020

withdrawn. At this point it was already apparent that all of the

this financial outlook, the target for consolidated sales, the adjusted

EBITDA, adjusted net income, free cash flow before M&A and

Gearing of the group due to the COVID 19-related effects on

the ProSiebenSat.1 Group’s business will not be reachable. This

Expectations have changed in the second quarter of 2020

control relevant target values ​​confirmed.

In this environment, the Group continues to focus on costs,

The group actively controls cash flow and profitability and has in all

Divisions took various measures to have a negative impact

to weaken the group’s profitability and secure liquidity.

Even if the uncertainties about the economic consequences of the COVID 19 crisis

are still high and do not allow reliable forecasts, are brightening

first economic indicators after the easing of the public

Restrictions in Germany and signs of an economic downturn

Recovery is increasing. ProSiebenSat.1 focuses on everything

Divisions to benefit from this recovery, which – if so

should be sustainable – also positive for the group’s advertising revenues in the

second half of the year. Given the continuing

considerable uncertainty about the extent and duration of the economic impact

the COVID-19 pandemic, the associated low visibility and the

Dependency of the Group’s overall annual development on traditional

significant fourth quarter, the board continues to be unable to

to give a reliable outlook for the whole of 2020. In one of influences

like COVID-19 unaffected fiscal year with normal sales history

the group generates in particular from September to December

around 50 percent of adjusted EBITDA for the full year. This underlines the

Significance of business at the end of the year for ProSiebenSat.1.

Regardless of this, ProSiebenSat.1 continues to focus on its strategic

Core projects with the goal of becoming the leading entertainment and infotainment player

to be in Germany, Austria and Switzerland. Local and

digital offers – also in close cooperation with Red Arrow Studios and

Studio71 – an important role to reach and therefore Monetization to

strengthening and reducing the dependence on TV advertising revenue and

create long-term value for its stakeholders. At the same time, it remains

NuCom Group is a synergistically important pillar of the group and strengthens it

Group diversification.

(1) Organic = Adjusted for portfolio and currency effects

You can find further key figures on our corporate website

www.ProSiebenSat1.com. From July 31, 2020, 7:30 a.m., you will also find the

Presentation and the half-yearly financial report 2020.

Press contact:

Stefanie Rupp-Menedetter

Head of Group Communications & Events

ProSiebenSat.1 Media SE

Medienallee 7

D-85774 Unterfhring

Tel. +49 [89] 95 07-2598

Email: Stefanie.Rupp@ProSiebenSat1.com

Susanne Brieu

Head of Corporate Communications Strategy & Finance

ProSiebenSat.1 Media SE

Medienallee 7

D-85774 Unterfhring

Tel. +49 [89] 9507-1137

Email: Susanne.Brieu@ProSiebenSat1.com

Press release online: www.ProSiebenSat1.com

Twitter: @ P7S1Group

Further material: http://presseportal.de/pm/21767/4666659

OTS: ProSiebenSat.1 Media SE

ISIN: DE0007771172



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