Comparison of Actual and Expected Business Performance

  • ProSiebenSat.1 makes a new record year and has achieved and in some cases even exceeded all of its financial targets announced for 2015.
  • At the same time, the combined market share among viewers aged between 14 and 49 rose to a ten-year high.
  • The Group is growing considerably in all segments and has therefore significantly increased its medium-term targets.

Expected Growth in 2015. ProSiebenSat.1 Group publishes its targets in the Annual Report and adjusts them during the year if necessary. Most recently, the Group raised its revenue forecast in October 2015 — from growth by a high single-digit percentage to growth by at least a low double-digit percentage:

In 2015, consolidated revenues increased by 13.4 % to EUR 3.261 billion. As expected, all segments contributed to the profitable revenue growth; over the year as a whole, revenues performed particularly dynamically in the segments Digital & Adjacent (+38.6 % vs. 2014) and Content Production & Global Sales (+29.7 % vs. 2014). The Group’s growth was mostly organic here, but it strengthened its position with acquisitions, too, which substantially sustain the profitable growth. Revenue growth in the Broadcasting German-speaking segment also met expectations at 4.3 %.

Against this backdrop, the operating earnings figures EBITDA, recurring EBITDA and underlying net income increased considerably and reached new record heights. The following table shows a multi-year overview:

Multi-year comparison of revenue and earnings performance

 

 

 

 

 

 

 

 

 

 

 

EUR m

 

2015

 

2014

 

2013

 

2012

 

2011

Revenues

 

3,260.7

 

2,875.6

 

2,605.3

 

2,356.2

 

2,199.2

EBITDA

 

881.1

 

818.4

 

757.8

 

680.4

 

652.5

Recurring EBITDA

 

925.5

 

847.3

 

790.3

 

744.8

 

725.5

Underlying net income

 

467.5

 

418.9

 

379.7

 

355.5

 

272.4

The financial position developed as planned in 2015: As of the end of the year, the leverage ratio was 2.1 times. Despite increased M&A measures it thus was within the target range. The Group therefore achieved or slightly exceeded all financial targets announced for 2014.

The most important non-financial parameter of management control is the audience share in the core market of Germany. In 2015, the German station family increased its combined market share to 29.5 % (previous year: 28.7 %); this is the highest figure in ten years. ProSiebenSat.1’s target was to at least maintain or to slightly extend its market lead in a fiercely competitive environment. This target was exceeded significantly.

Comparison of the actual and forecast business performance for the Group1

 

 

 

 

 

 

 

 

 

EUR m

 

Actual figures 2014

 

Actual figures 2015

 

Change

 

Forecast 20152

Revenues

 

2,875.6

 

3,260.7

 

+13.4 %

 

Significant increase 1

EBITDA

 

818.4

 

881.1

 

+7.7 %

 

Mid single-digit increase

Recurring EBITDA

 

847.3

 

925.5

 

+9.2 %

 

Mid single-digit increase

Underlying net income

 

418.9

 

467.5

 

+11.6 %

 

High single-digit increase

Leverage

 

1.8

 

2.1

 

–/–

 

1.5 – 2.5

German audience market Market leadership

 

28.7

 

29.5

 

+0.8 % pts

 

leading position or extend slightly

Comparison of the actual and forecast business performance for the segments1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External Revenues

 

Recurring EBITDA

 

EBITDA

in percent

 

Forecast2

 

Change
2015 vs. 2014

 

Forecast

 

Change
2015 vs. 2014

 

Forecast

 

Change
2015 vs. 2014

1

The figures relate to continuing operations. In the annual report 2014, ProSiebenSat.1 Group published its company outlook for 2015 from page 161 onwards; the Company specified and increased its revenue forecast for the Group in October 2015. Previously, ProSiebenSat.1 had expected revenue growth of a high single-digit percentage for the Group.

2

Refers to percentage growth rates.

3

For the Group and the Digital & Adjacent segment EBITDA is an important parameter of management control.

Broadcasting German-speaking

 

Slight increase

 

+4.3 %

 

Slight increase

 

+4.5 %

 

–/–

 

–/–

Digital & Adjacent

 

Significant increase

 

+38.6 %

 

Significant increase

 

+31.6 %

 

Significant increase

 

+20.7 %3

Content Production & Global Sales

 

Significant increase

 

+29.7 %

 

Mid to high single-digit increase

 

+30.8 %

 

–/–

 

–/–

Expected Growth in 2018. ProSiebenSat.1 pursues a dual growth strategy and has formulated clear targets for all segments. The Company is targeting a balanced revenue ratio by 2018, when around 50 % of consolidated revenues shall be generated with business models not primarily based on traditional TV advertising. These include revenues from the production and distribution of program content and from e-commerce portals. The Company also generates revenues from pay TV and video-on-demand (VoD) models. The Company advanced the expansion of some of these growth areas faster than expected in 2015, partly as a result of acquisitions. ProSiebenSat.1 achieved record revenues in the Digital & Adjacent segment. At the same time, the Group performed very positively in its core business of advertising-financed free TV and expects a favorable industry environment for TV advertising here in the medium term.

External revenues of Digital & Adjacent segment

External revenues of Digital & Adjacent segment (bar chart)External revenues of Digital & Adjacent segment (bar chart)

External revenues of Content Production & Global Sales segment

External revenues of Content Production & Global Sales segment (bar chart)External revenues of Content Production & Global Sales segment (bar chart)

Against this backdrop, the Company has raised its medium-term financial targets for 2018: ProSiebenSat.1 Group is now aiming for revenue growth of EUR 1.85 billion compared to financial year 2012. This is EUR 850 million more than originally expected. Consolidated revenues are thus expected to amount to EUR 4.2 billion in 2018. Recurring EBITDA is expected to rise by EUR 350 million to almost EUR 1.1 billion in the same period. ProSiebenSat.1 had previously aimed for an increase of between EUR 200 million and EUR 250 million compared to the base year 2012. ProSiebenSat.1 informed the capital market of the new medium-term forecast in October 2015. Further information is included in the Company Outlook. As of the end of the year, the Group had achieved 48.9 % of its medium-term revenue target and 51.7 % of its expected recurring EBITDA growth. We are therefore on target.