Industry

German media group ProSiebenSat.1 Media SE reported a strong improvement in profitability in the first quarter of 2026, with EBITDA rising by EUR 50 million to EUR 44 million, despite a decline in group revenues in a challenging macroeconomic environment. Group revenues amounted to EUR 775 million, down 9% year-on-year, or 3% on an organic basis. The company attributed the decline mainly to weaker TV advertising markets in Germany, partially offset by growth in Digital & Smart advertising and strong performance from flaconi.

Full-year guidance for 2026 remains unchanged. ProSiebenSat.1 Media SE continues to expect slight organic revenue growth and a significant increase in EBITDA, with leverage targeted between 3.0x and 3.5x at year-end.
CEO Marco Giordani said: “We are satisfied with our performance in the first quarter, as our strategy is delivering results in a challenging market and economic environment. Overall, revenues in the relevant businesses remained close to last year’s level, with flaconi once again making a very positive contribution to organic revenue development. In addition, all relevant profitability metrics improved, while programming expenses remained almost stable compared to advertising revenues. We are driving the shift toward more agile structures and further cost efficiency, and we are consistently pursuing our portfolio strategy with a clear focus on value creation. Since the beginning of the year, we have divested companies that are not part of our strategic focus. These measures are taking effect and will further strengthen our profitability.”

The Entertainment segment recorded revenues of EUR 453 million, down 8%, reflecting continued pressure in TV advertising, partially offset by a 10% increase in Digital & Smart advertising. Streaming platform Joyn continued to expand, with AVoD revenues up 14% and SVoD revenues up 19%. The Commerce & Dating segment generated EUR 323 million, down 11%, mainly due to portfolio changes, including the disposal of Verivox, and weaker consumer demand. On an adjusted basis, however, revenues grew 6%, driven by continued momentum at flaconi.
Net financial debt stood at EUR 1,463 million as of March 31, 2026, up from EUR 1,343 million at year-end 2025, impacted by restructuring-related payments and seasonal effects.

Looking ahead, the group reiterated its focus on cost discipline, portfolio optimization and core entertainment assets. CFO Bob Rajan said: “Our measures are increasingly paying off. At the same time, we are currently seeing a positive trend in the advertising business with April performing better than the first quarter, even though the market environment remains challenging. This supports our view that Entertainment revenues should improve again in the second half of the year. Advertising is a cyclical business and closely linked to macroeconomic conditions. However, our response to this is as clear as it is consistent: a focused strategy, disciplined cash management, and targeted investments in our core Entertainment business.”