ProSiebenSat.1 Earnings to Increase as TV Ad Market ImprovesCornelius Rahn
ProSiebenSat.1 Media AG, the German broadcaster that’s expanding into content production and video games, forecast revenue and profit will rise this year as the TV advertising market improves.
Sales will increase by a “mid-to-high single-digit percentage” from 2.61 billion euros ($3.6 billion) in 2013, the Munich-based company said in an e-mailed statement today. Analysts on average expect sales of 2.78 billion euros, equivalent to a 6.5 percent increase, according to data compiled by Bloomberg. Recurring earnings before interest, taxes, depreciation and amortization as well as net income adjusted for some items will also rise, the company said.
ProSiebenSat.1 also announced acquisitions in content production and video gaming as the company seeks to diversify and generate 1 billion euros of additional sales between 2012 and 2018. The company’s former private-equity controlling shareholders KKR & Co. and Permira Advisers LLP sold their holdings over the the past 12 months, a period in which the company’s market value rose 36 percent to 7.3 billion euros.
The company is in an “excellent position to continue the growth story,” Chief Executive Officer Thomas Ebeling said in the statement.
Fourth-quarter revenue rose 6.5 percent to 841 million euros, compared with analysts’ estimate of 839 million euros.
ProSiebenSat.1 agreed to acquire games publisher Aeria Games Europe, while its Red Arrow Entertainment unit said it would buy a majority stake in the U.S. production firm Half Yard. It didn’t say how much it’s paying.