Advertising market falters, causing ProSiebenSat.1 to revise its 2025 forecast downward
ProSiebenSat.1 Adjusts 2025 Outlook Amidst Weak Advertising Market
German media company ProSiebenSat.1 has revised its full-year outlook for 2025, citing a weak advertising market and sluggish economic conditions in Germany, Austria, and Switzerland.
The ongoing weakness in the advertising market has affected ProSiebenSat.1's profitability. In the first quarter of 2025, the company's group revenues fell slightly by 1% year-on-year to €855 million. Adjusted EBITDA dropped by 39% to €44 million in the same period, primarily due to reasons not specified in the text.
Despite these challenges, ProSiebenSat.1 emphasizes a focus on 'profitability, cost and cash discipline, and the consistent implementation of strategic priorities.' The company now expects full-year revenues to be around €3.65 to €3.80 billion, down from its previous forecast of roughly €3.85 billion.
The adjusted EBITDA is expected between €420 and €470 million, significantly lower than the earlier projection of €520 million. However, ProSiebenSat.1 now expects adjusted net income to exceed last year's €229 million, primarily due to tax effects.
In 2024, ProSiebenSat.1's adjusted EBITDA declined slightly to €557 million, compared to €537 million in the previous year (accounting for portfolio changes). The company's digital entertainment strategy, particularly through its streaming platform Joyn, showed strong performance in 2024.
ProSiebenSat.1 expects a recovery in advertising revenues in the second half of 2025, driven by improving economic conditions. The company predicts a mid-single-digit percentage decline in advertising revenues for the entertainment segment in the DACH region in the third quarter, and a slight decline in the fourth quarter.
Looking ahead to 2026, ProSiebenSat.1 expects advertising revenues to grow by around 3 to 6 percent. The company's net financial debt has decreased, but the group forecasts its leverage ratio will increase to 3.0-3.5 times EBITDA by year-end, up from 2.7 in 2024, as a result of reduced earnings.
Despite a 7% year-on-year revenue decline in the second quarter of 2025, ProSiebenSat.1 has confirmed its full-year financial targets. The media company, with its focus on cost discipline and strategic priorities, remains optimistic about its future prospects.
