Berenberg reflects on mixed quarter for ProSiebenSat.1

Analysts at Berenberg have reiterated a hold rating, with a reduced price target, for ProSiebenSat.1 after concluding that the German broadcaster’s advertising business performed better than expected but that its high-growth e-commerce activities performed less well in the final quarter of last year.

According to Berenberg, “while the entertainment business appears to have had a better Q4, the commerce unit was less positive”.

Berenberg raised its forecast for Q4 German-speaking area advertising revenue from 1% to 2%, but noted that COVID-19-related restrictions had likely hit the recovery of travel and experience retailer Jochen Schweizer, while price comparison site Verivox had been hit by the energy crisis and reduced contract switching associated with the lower availability of new energy deals.

On the upside, Berenberg noted that the sale of stakes in American film distribution business Gravitas and e-commerce sites Amorelie, Möbel and AboutYou for a total of over €100 million would help the company reduce its debt leverage.

The analysts said that the planned flotation of dating service ParshipMeet could be impacted by market volatility and other factors, leading to a possible delay.

On balance, said Berenberg, the changes meant a small reduction in its share price target for the German group to €16.50, with a continued Hold rating.

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