ProSiebenSat.1 seeking ‘total reach’ with new digital strategy

German commercial broadcaster ProSiebenSat.1 is focusing on achieving “a total reach with one video currency” spanning linear and digital platforms, with its extension of the 7TV joint venture with Discovery a “critical pillar” of this, according to CEO Max Conze.

The extension of the partnership to include SVOD service Maxdome and Eurosport Player will start to be commercialised in the first half of next year.

Conze said that ProSiebenSat.1 is “working intensely” on a strategy update that will be presented at the company’s Capital Markets day in November.

ProSiebenSat.1 saw its revenues slide by 4% in the first half of €1.794 billion on a reported basis. Revenues were flat on an adjusted basis that accounted for currency movements and the impact of consolidation.

Adjusted EBITDA for the first half was flat at €459 million, hit by a decline of 4% to €259 million in the second quarter. The broadcaster said that this drop was due to a deviation on programming costs that would continue in the third quarter but would be offset over the full year.

TV advertising revenues were broadly flat year-on-year, with the company recording what it described as a temporary slowdown at its SevenVentures unit and in digital advertising. The company’s distribution business performed more strongly, and audience ratings held up despite ProSiebenSat.1’s lack of carriage of the Winter Olympics and football World Cup.

Production revenues slid in the first half thanks to currency effects and a challenging US market, while global sales was boosted by the consolidation of US film distributor Gravitas Ventures last year.

ProSiebenSat.1’s online e-commerce activities grew, with its NuCom unit seeing revenues increase by 10%.

ProSiebenSat.1 confirmed its financial outlook for the full 2018 year, but noted that its revenue growth target includes full-year contributions from companies that will be deconsolidated in the third quarter. It said that it would provide an update on the impact of this once the transactions have been closed.

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