Business Development of the Segments

Group revenue share by segment

Segment Broadcasting German-speaking

In financial year 2015, external revenues in the Broadcasting German-speaking segment increased to EUR 2.152 billion. This equates to an increase of 4.3 % or EUR 89.3 million compared to the previous year. ProSiebenSat.1 Group invests consistently in its highly profitable advertising-financed TV business and strengthened its second revenue model in the form of HD program distribution.

The Group increased its revenues from the sale of TV advertising time in all markets in 2015, including Austria and the German-speaking part of Switzerland alongside the core market of Germany. In the female target group especially, ProSiebenSat.1 Group continued to expand its audience shares and adequately capitalized its leading position in the German market. The distribution revenues from free TV programs in high definition (HD) and the distribution of own pay TV channels increased at the same time.

The revenue momentum combined with efficient cost management resulted in an increase in EBITDA of 4.2 % or EUR 29.1 million to EUR 715.9 million. Recurring EBITDA adjusted for non-recurring items increased at a similar level and amounted to EUR 734.3 million (+4.5 % or EUR 31.5 million year-on-year). Against this backdrop, the recurring EBITDA margin increased slightly to 33.0 % (previous year: 32.9 %).

Segment Digital & Adjacent

The external revenues in the Digital & Adjacent segment continued to increase from a high level in financial year 2015, reaching EUR 846.4 million. This equates to an increase of 38.6 % or EUR 235.7 million compared to 2014. The profitable revenue growth was strengthened by acquisitions; here the full consolidations of Verivox and Collective Digital Studio made the greatest contributions to growth. In addition, the Group established a new commerce vertical called “Beauty & Accessories” and, in connection with this, acquired control in Sonoma Internet GmbH (Amorelie) and Flaconi GmbH in 2015. At the same time, the segment grew organically in a double-digit percentage range, with the video-on-demand (VoD) portal maxdome developing particularly dynamically alongside the Ventures business. The Travel Vertical and the advertising-financed online network also contributed to the revenue growth.

Costs rose as a result of the expanded business volume. In addition, cost development was influenced by non-recurring expenses. Against this backdrop, EBITDA increased by 20.7 % or EUR 25.6 million to EUR 149.2 million. Recurring EBITDA adjusted for non-recurring items improved by 31.6 % to EUR 170.2 million (previous year: EUR 129.3 million). The recurring EBITDA margin was 19.9 % (previous year: 21.0 %).

Segment Content Production & Global Sales

In the Content Production & Global Sales segment, external revenues increased by 29.7 % to EUR 262.2 million (previous year: EUR 202.2 million). Revenue growth was largely organic in financial year 2015, with the production business in the US making the greatest contribution to revenues. In addition to the organic growth, the first-time consolidations of the US production firms Half Yard Productions and Karga Seven Pictures also had a positive impact. In recent years, ProSiebenSat.1 Group has expanded its production network internationally and established itself in the US in particular. The Company also achieved significant sales successes worldwide. Against this backdrop, changes in the dollar exchange rate against the euro also had a positive impact on revenue development.

The revenue growth also influenced earnings performance: Despite a growth-related increase in costs, EBITDA rose to EUR 21.4 million (previous year: EUR 16.0 million). Recurring EBITDA also grew by a considerable 30.8 % or EUR 5.9 million to EUR 25.0 million. As in the previous year, the corresponding recurring EBITDA margin was 7.8 %.