Comparison of Actual and Expected Business Performance

  • ProSiebenSat.1 achieved its financial targets for 2016, setting a new record year.
  • Strategic acquisitions accelerated revenue growth, allowing the Group to increase its targets in October.
  • The Company remains the German audience market leader, with a Group market share of 28.0 %.

Expected growth in 2016. ProSiebenSat.1 Group publishes its targets for the new reporting period in its Annual Report and adjusts them during the year if necessary. We recently increased our revenue expectations in October 2016, from a rise in consolidated revenues by at least 10 % to growth of more than 15 %. Acquisitions in recent months have accelerated revenue growth. In addition, the Group anticipates an increase of just over 2 % for the year as a whole on the German net TV advertising market (previously 2 % to 3 %), with the Group’s TV revenues slightly underperforming the market.

Consolidated revenues increased to EUR 3,799 million in 2016. As a result of high revenue growth of 17 %, relevant operating earnings figures also posted record figures (Fig. 54). This means that we have achieved our most important profitability targets. The financial position also developed as planned. The leverage ratio was 1.9 and thus within the target range.

In the financial year 2016, all segments contributed to growth in revenues. Once again, the commerce business was the most significant revenue driver. At the same time, revenues in the Content Production & Global Sales segment recorded a significant growth rate. ProSiebenSat.1 is growing very solidly in the Broadcasting German-speaking segment. The Digital Entertainment segment also developed positively in line with expectations and grew dynamically in strategically important business areas.

Multi-year comparison of revenue and earnings performance (Fig. 53)

 

 

 

 

 

 

 

 

 

 

 

EUR m

 

2016

 

2015

 

2014

 

2013

 

2012

Revenues

 

3,799

 

3,261

 

2,876

 

2,605

 

2,356

EBITDA

 

982

 

881

 

818

 

758

 

680

Recurring EBITDA

 

1,018

 

926

 

847

 

790

 

745

Underlying net income

 

513

 

466

 

419

 

380

 

356

The audience share in the core market of Germany is the most important non-financial performance indicator for corporate management. ProSiebenSat.1’s aim is to maintain its market lead in a fiercely competitive environment. We achieved this goal with a market share of 28.0 % in 2016. At 29.5 %, the Group’s market share in the previous year marked a ten-year high.

Comparison of the actual and forecast business performance for the Group1 (Fig. 54)

 

 

 

 

 

 

 

 

 

EUR m

 

Actual figures 2015

 

Actual figures 2016

 

Change

 

Forecast 20162

Revenues

 

3,261

 

3,799

 

+17 %

 

Significant increase1

EBITDA

 

881

 

982

 

+12 %

 

Mid to high single-digit increase

Recurring EBITDA

 

926

 

1,018

 

+10 %

 

Mid to high single-digit increase

Underlying net income

 

466

 

513

 

+10 %

 

Mid to high single-digit increase

Leverage

 

2.1

 

1.9

 

–/–

 

1.5 – 2.5

German audience market Market leadership

 

29.5

 

28.0

 

–1.5 % pts

 

Consolidate leading market position at a high level

Comparison of the actual and forecast business performance for the segments1 (Fig. 55)

 

 

 

 

 

 

 

 

 

 

 

External Revenues

 

Recurring EBITDA

in percent

 

Forecast2

 

Change
2016 vs. 2015

 

Forecast2

 

Change
2016 vs. 2015

1

These figures relate to continuing operations. In the 2015 Annual Report, ProSiebenSat.1 Group published its Company Outlook for 2016. In addition, the Company specified and increased its revenue guidance for the Group in October 2016.

2

Relates to growth rates in percent.

3

In the course of the adjustment of the segment structure, the Group has for the first time published an annual forecast for the segments Digital Entertainment and Digital Ventures & Commerce in the third quarter of 2016. Previously they were included in the Digital & Adjacent segment. Forecast reporting for both segments in the digital sector, is expanded by EBITDA at the end of 2016. This is explained in the Company Outlook.

Broadcasting German-speaking

 

Slight increase

 

3 %

 

Slight increase

 

3 %

Digital Entertainment3

 

Significant increase

 

19 %

 

Significant increase

 

–1 %

Digital Ventures & Commerce3

 

Significant increase

 

65 %

 

Significant increase

 

33 %

Content Production & Global Sales

 

Significant increase

 

38 %

 

Significant increase

 

87 %

Expected growth in 2018. As announced in October, ProSiebenSat.1 aims to increase consolidated revenues in the medium term by EUR 2.15 billion compared to 2012. The target was previously EUR 1.85 billion. Revenues are thus expected to amount to EUR 4.5 billion at the end of 2018 (previously EUR 4.2 billion). The Group is generating a growing share of revenues outside the TV advertising business. This figure is expected to rise to more than 50 % by 2018 and the digital business as a whole is set to generate revenues of more than EUR 1.7 billion. In 2016, this figure amounted to 47 % (previous year: 39 %) or EUR 1.2 billion. We also increased our adjusted EBITDA growth target by EUR 50 million to EUR 400 million. As a result, we expect to achieve adjusted EBITDA of EUR 1.15 billion in 2018. At the end of the year, the Group achieved 67 % of its medium-term revenue target and 68 % of its anticipated adjusted EBITDA growth. Growth contributions from acquisitions are taken into account in these target increases.