Yahoo Finance

• Group Revenue: Increased by 5% to EUR907 million in Q2 2024.

• Entertainment Segment Revenue: Up by 3% to EUR612 million in Q2 2024.

• Commerce & Ventures Segment Revenue: Grew by 17% in Q2 2024.

• Adjusted EBITDA: Increased by 14% to EUR91 million in Q2 2024.

• Adjusted Net Income: Improved by EUR21 million in Q2 2024.

• Adjusted Operating Free Cash Flow: Reached EUR65 million in Q2 2024.

• Advertising Revenue in DACH Region: Increased by 1% in Q2 2024.

• Digital and Smart Advertising Revenue: Expanded by 12% in Q2 2024.

• Net Financial Debt: EUR1.595 billion at the end of Q2 2024.

• Financial Leverage Ratio: Improved to 2.6x at the end of Q2 2024.

• Joyn Monthly Video Users: Increased by 56% to 7.05 million users.

• Joyn Video View Time: Grew by 38% to 9.8 billion minutes.

• Warning! GuruFocus has detected 4 Warning Signs with PBSFY.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ProSiebenSat 1 Media SE (PBSFY) reported a 5% increase in group revenues for both the second quarter and the first half of 2024, reaching EUR907 million and EUR1.774 billion, respectively.

• The commerce & ventures segment showed strong performance with a 17% revenue growth in Q2, and a 19% increase for the first half of the year.

• Adjusted EBITDA increased by 14% to EUR91 million in Q2, supported by higher revenues and cost reductions.

• The digital and smart advertising revenues in the DACH region grew by 12%, driven by the success of the Joyn platform.

• The company confirmed its financial targets for the full year 2024, aiming for group revenues of around EUR3.95 billion and an adjusted EBITDA of around EUR575 million.

Negative Points

• The advertising revenues in the DACH region only grew by 1% in Q2, impacted by the European Soccer Championship and an earlier Easter date.

• The dating & video segment experienced a 9% decline in revenues for both Q2 and H1, with the dating revenues dropping by 13% due to increased competition, especially in the US.

• TV advertising revenues declined by 1% in Q2, reflecting challenges in the traditional advertising market.

• The company anticipates a potential decline in adjusted EBITDA in the second half of the year due to increased programming costs and less pronounced savings.

• The Munich public prosecutor has initiated a formal investigation into Jochen Schweizer mydays, leading to a provision in the low single-digit million euro range for impending charges.

Q & A Highlights

Q: Could we assume that July and August are in line with June, and do you have any early visibility on September? Also, what level of free cash flow do you expect to generate this year? A: We see a slight decline in advertising revenues in July and August, with a recovery expected in September. Visibility is limited, but we are confident of a further recovery. Regarding free cash flow, the first half was impacted by restructuring costs, but these are one-time effects. We expect improved free cash flow in the second half.