ProSiebenSat.1 is pursuing the sale of some of its non-TV assets, months after voting against the move under a proposal brought by its main shareholder, MediaForEurope (MFE).
The announcement came as part of ProSieben’s nine-month results, which saw Group revenues increase by 3 percent year-on-year, despite a weaker third quarter where revenues declined by 1 percent YoY. The German broadcaster pointed to “cautious investments in TV advertising”, but reaffirmed its focus on its AVOD service Joyn, where revenues increased 28 percent YoY during the nine-month period.
As part of this strategy, the group will look to divest ancillary assets from its portfolio, particularly the pefrume retailer Flaconi and price-comparison website Verivox. “As a result of the strategic focus on the Entertainment business, the Group is reviewing the disposal of non-strategic investments, including in particular Flaconi and Verivox,” said the broadcaster. “ProSiebenSat.1 is progressing in the discussions with interested parties in this regard and will update the market as soon as possible.”
However, Flaconi was also singled out as the “most important revenue driver” for ProSieben’s Commerce & Ventures business, which grew 19 percent YoY in the first nine months of 2024. And Verivox is also continuing to grow, according to the company, citing a stable market environment.
But the Berlusconi-owned media group MFE continues to press for ProSieben to divest its non-TV assets, suggesting it will only mount a takeover bid for the German company once those conditions have been met. MFE already owns almost 30 percent of ProSieben, and has reportedly claimed that a takeover would add around €200 million per year to its operating profit.
ProSieben has so far resisted MFE’s advances, and voted against its proposal to split off some of the group’s more peripheral businesses, claiming the move would solely benefit MFE. But the German company said it “continues to pursue active portfolio management with the aim of realising synergies within the Group”, potentially opening the door to a takeover by MFE.
Joyning forces
While ProSieben expects “the revenue momentum in the Commerce & Ventures segment to continue” for the remainder of the year, its dating business remains a drag on the group’s performance, with revenues in the Dating & Video segment down 13 percent YoY. “This development is due to the challenging and highly competitive market environment,” said the company.
ProSieben expects group revenues to increase slightly for the full year, despite forecasting a drop in entertainment ad revenues in the German-speaking region. The tough ad market in Germany could therefore be swaying the broadcaster to join forces with its pan-European investor.
“Private consumption, which is decisive for our TV advertising business, has not developed as positively as we expected at the beginning of the year,” said ProSieben CFG Martin Mildner. “Nevertheless, we closed the first nine months in line with our expectations for 2024. Despite the difficult economic environment, we are making good progress in implementing our strategy and practicing consistent cost management. Furthermore, we are particularly pleased with the growth rates in both Digital & Smart advertising revenues and in the Commerce & Ventures segment. They contrast with the figures for the overall economic development in Germany.”
