MFE’s Berlusconi calls for change at ProSiebenSat.1

Source: ProSiebenSat.1

MediaForEurope (MFE) CEO Pier Silvio Berlusconi has warned that Germany’s ProSiebenSat.1 must change direction if it is to grow and should return to its core business.

MFE, the broadcasting group that includes Mediaset Italy and Spain and holds a close to 30% stake in Germany’s ProSiebenSat.1, says its advertising revenues forecasts in Italy and Spain for the first quarter of 2024 are positive, showing 5% growth compared to the same period in 2023.

MFE is set to close 2023 with expected profit in excess of the €217 million recorded in the previous year, before the accounting effect of the consolidation of ProsiebenSat1.

In an interview with newspaper Corriere della Sera, Berlusconi said that ProSiebenSat.1’s contribution to MFE would be nugatory, compared to the €40 million it contributed in 2022, given the scale of the broadcaster’s losses.

He said that “it is now important for ProSieben to change course and return to investing in television”.

Berlusconi said that ProSiebenSat.1 had to recognize that it had, in the shape of MFE, an almost 30% shareholder that not have an ambition “to conquer for the sake of conquering” but did want to help the German company grow.

He called on the group to separate its dating and ecommerce activities with a split on the model of Vivendi’s plans, to give a better valuation to these assets.

He indicated that MFE did not have any ambition to take over ProSiebenSat.1, but that MFE wanted to create a cross-border media combination that still enabled local players to deliver content suited to the local audience.

He said a combination would deliver synergies and present an opportunity to grow revenue, as well as developing a common technology platform for content distribution and advertising

Berlusconi also called for European regulators to take a tougher line on taxing international tech companies like Google and Amazon to create a level playing field.

Berlusconi said that his group was hiring new staff against the trend seen elsewhere in media.

Referring to the group’s Q1 financial performance, Berlusconi said that while it was “too early to tell” and caution was required, “the market appears to be buoyant”.

ProSiebenSat.1 board changes

ProSiebenSat.1 has meanwhile appointed Markus Breitenecker (55), currently CEO of ProSiebenSat.1 PULS4, to the Group Executive Board as of April 1, 2024.

Together with CEO Bert Habets, Breitenecker will take over the management of the strategically important Entertainment segment as Chief Operating Officer. His focus will be on the areas of streaming and digital platforms. He will also be responsible for country activities in Switzerland and Austria.