ProSiebenSat.1 Media (PSM) Q1 2025 earnings summary

Executive summary

• Group revenues were EUR 855 million in Q1 2025, nearly flat year-over-year despite macroeconomic and advertising market headwinds.

• Adjusted EBITDA declined 39% to EUR 44 million, mainly due to lower high-margin TV advertising revenues.

• Commerce & Ventures segment grew revenues by 11%, led by strong performance in Beauty & Lifestyle (flaconi).

• Joyn streaming platform achieved record performance, with monthly video users up 26% and AVOD revenues up 39%, offsetting TV ad revenue declines.

• Sale of Verivox completed, marking a strategic shift to focus on Entertainment and improve financial flexibility.

Financial highlights

• Q1 2025 revenues: EUR 855 million (Q1 2024: EUR 867 million); adjusted EBITDA: EUR 44 million (Q1 2024: EUR 72 million), down 39% year-over-year.

• Adjusted net income: minus EUR 14 million (Q1 2024: EUR 8 million); net income: minus EUR 72 million (Q1 2024: EUR 4 million).

• Adjusted operating free cash flow: minus EUR 44 million, impacted by lower EBITDA and higher programming investments.

• Net financial debt reduced to EUR 1,429 million (Dec 2024: EUR 1,512 million); leverage ratio at 2.7x.

• Group EBITDA: minus EUR 6 million (Q1 2024: EUR 65 million); EBIT: minus EUR 56 million (Q1 2024: EUR 18 million).

Outlook and guidance

• Full-year 2025 revenue guidance: EUR 3.85 billion (+/- EUR 150 million), reflecting Verivox deconsolidation.

• Adjusted EBITDA forecast: EUR 520 million (+/- EUR 50 million); adjusted net income expected at EUR 215 million.

• Entertainment advertising revenues in German-speaking region expected to grow ~2% for full year after H1 decline.

• Leverage ratio expected between 2.5x and 3.0x by year-end, with a medium-term target of 1.5x-2.5x.

• Cost reduction measures and digital transformation to positively impact EBITDA, with full-year effect in 2026.