ProSiebenSat.1 Media AG (PSM), Germany’s biggest private broadcaster, said it is confident about reaching its 2015 targets after investments in online games and video-on- demand services boosted sales and earnings last year.
Recurring earnings from continuing operations before interest, taxes, depreciation and amortization rose 1.7 percent to 317.7 million euros ($423 million) in the fourth quarter, the Unterfoehring-based company said today in an e-mailed statement. Seven analysts surveyed by Bloomberg had estimated an average Ebitda of 310.4 million euros.
ProSieben is expanding its video-on-demand and digital businesses to reduce its dependence on advertising. It has struck deals with makers of online games such as Sony Online Entertainment and is also ramping up production and sale of shows such as the culinary game show “Mama’s Big Cook-Off” and hidden camera show “Benidorm Bastards” to other broadcasters. The company wants to add 750 million euros in additional revenue over five years ending 2015.
“We have already achieved approximately 25 percent of the 750 million euros aimed for, and are therefore confident that we will realize our entire growth potential by 2015,” Chief Executive Officer Thomas Ebeling said in the statement. “We will push forward the integration of TV with our online, paid- content and mobile services.”
Recurring revenue, excluding the broadcasting and print- media operations in Belgium and the Netherlands that were sold to a group led by Finland’s Sanoma Oyj (SAA1V) last spring, were up 5.4 percent to 873.7 million euros. Eight analysts had estimated sales of 852.5 million euros.
The shares have gained 38 percent this year, valuing the broadcaster at 4.3 billion euros. The stock climbed 2.3 percent to 19.51 euros in Frankfurt trading yesterday.
To contact the reporter on this story: Ragnhild Kjetland in Frankfurt at email@example.com