Comparison of Actual and Expected Business Performance

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.

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.

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.