Germany’s ProSiebenSat.1 Group Beats COVID-19 to Post Profits
German broadcaster ProSiebenSat.1 Group overcame a coronavirus-marred spring quarter to record a 13% boost in profits in the third quarter of 2020.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) of €149 million ($175 million) was 13% more than the comparative period last year, according to results declared by the group on Thursday. Group revenues of €921 million ($1.08 billion) are at the same levels as last year.
Assuming that there are no further restrictions in Germany beyond the partial lockdown introduced at the end of October, the group is targeting revenues of approximately €3.85 billion ($4.52 billion) for the full year, with an EBITDA of €650 million ($763 million).
However, the group said the effects of the COVID-19-related restrictions “continue to have an impact on the Red Arrow Studios segment, albeit significantly weaker than in the previous quarter. Particularly in the U.S., the program production business was still affected through most of the third quarter. In contrast, business already improved slightly in Germany and the U.K.”
Red Arrow is a production subsidiary of ProSiebenSat.1 that produces the popular Netflix dating show “Love is Blind.” The company was on the block last year before the German media giant made an about-face on its plans to sell during the coronavirus crisis.
Rainer Beaujean, chairman of the executive board and chief financial officer of ProSiebenSat.1 Media, said: “We are very satisfied with our development in the third quarter. As an early-cyclical company, we were now able to benefit from the economic recovery in the summer, following the difficult first half of the year, and have seen an upward trend in the advertising market. At the same time, our strict cost management is taking effect, with our adjusted EBITDA growing again compared to the previous year for the first time since the first quarter of 2018.”