ProSiebenSat.1 Media AG is Germany’s largest and most successful television corporation. The ProSiebenSat.1 Group, with its four stations – Sat.1, ProSieben, kabel eins and N24 – is the Number 1 in the TV advertising market. The ProSiebenSat.1 Group is Germany’s only genuine family of television stations. Four interrelated stations with clearly distinguished positioning and programming: a concept unlike anything else in the industry, anywhere in the world. 

Munich, November 29, 2007. The ProSiebenSat.1 Group’s revenues were up EUR 237.1 million, or 55 percent, to EUR 668.4 million in the third quarter 2007. Most of the increase came from the consolidation of the SBS Broadcasting Group, acquired by ProSiebenSat.1 in July 2007 and included in the accounts since then. Earnings were affected by a one-time charge of EUR 120 million stemming from a fine required by the Federal Cartel Office. This charge provides the background for the EUR 125.4 million decline in pre-tax profit to EUR -103.7 million. EBITDA decreased by EUR 58.3 to EUR 0.4 million. The Group’s recurring EBITDA (before one-time charges) grew 110 percent, to reach EUR 124.8 million.

“Positioning the ProSiebenSat.1 Group internationally by acquiring the SBS Broadcasting Group was the right strategic decision. The dynamics of other European markets more than made up for the subdued German market in the third quarter,” said ProSiebenSat.1 AG CEO Guillaume de Posch. “As a pan-European television group, ProSiebenSat.1 stands on a broader base, and is better protected against downturns. The vigor of the other European markets will continue to drive our growth in the fourth quarter.”

As part of the first-time consolidation of SBS, the ProSiebenSat.1 Group has also amended its segments. Since July 2007, the pan-European media group reports in the two business units Free TV and Diversification which are divided into three segments: Free TV in the German-speaking region, Free TV International, and Diversification. The two segments of the Free TV business unit contributed a total of EUR 535.6 million to Group revenues in the third quarter (Q3 2006: EUR 377.9 million). The Diversification unit’s revenues came to EUR 132.8 million, equivalent to a 19.9 percent share of Group revenues. The contribution for the third quarter of 2006 was 12.4 percent, or EUR 53.4 million. The German-speaking region is the Group’s largest revenue-generating region, at 65.8 percent, followed by Northern Europe, at 16.6 percent, and the Netherlands/Belgium, with 12.9 percent. Before the consolidation of SBS, the ProSiebenSat.1 Group generated its revenues entirely in Germany, Austria and Switzerland.
Financing of SBS transaction affects net financial debt

At September 30, 2007, the Group had net financial debt of EUR 3.541 billion, compared to EUR 311.6 million a year earlier. The primary reason for the increase was the Group’s substantially higher financial liabilities resulting from the financing arrangements associated with the SBS acquisition.
Segment Free TV German-speaking region: One-off charge affects profit performance

During the third quarter of 2007, there were gathering signs that consumer spending in Germany would not pick up as expected. The revenue performance of the Group’s family of stations Sat.1, ProSieben, kabel eins and N24 felt the impact. Revenues in the segment for advertising-financed TV in the German-speaking region came to EUR 378.3 million, and were thus slightly higher than the prior-year’s equivalent (Q3 2006: EUR 377.9 million).

The segment’s earnings situation was affected by the one-time expenses resulting from the fine of EUR 120 million. Consequently, EBITDA decreased EUR 111.5 million, to EUR -63.3 million. Recurring EBITDA grew by EUR 10.7 million, to EUR 59.7 million, particularly thanks to lower marketing expenses.
New Free TV International segment develops very positively

The new Free TV International segment enjoyed significant revenue and earnings growth in the third quarter. Revenues gained 10.6 percent, to reach EUR 157.3 million. Revenues were up substantially at the advertising-financed stations in every region, with Norway (+18.4%), the Netherlands (+13.4%) and the Eastern European stations (+13.0%) in the lead. The dynamic revenue performance also improved the operating results further. EBITDA was up 19.5 percent, to EUR 34.3 million (Q3 2006: EUR 28.7 million).