Prosiebensat.1 Media (PSM) Q1 2026 earnings summary

Executive summary

• Group revenues for Q1 2026 were EUR 775 million, down 9% year-over-year, mainly due to declines in TV advertising, macroeconomic uncertainty, and portfolio changes.

• EBITDA increased by EUR 50 million to EUR 44 million, driven by cost management, lower amortization, and portfolio optimization.

• Net income improved to -EUR 41 million from -EUR 60 million year-over-year, narrowing the loss by 43%.

• The company realigned into two segments: Entertainment and Commerce & Dating, sharpening its focus on core business.

• Strategic divestitures and a focus on digital and smart advertising helped offset declines in traditional segments.

Financial highlights

• Organic revenue declined by 3% year-over-year, adjusted for portfolio and currency effects.

• EBIT improved to EUR 3 million from -EUR 56 million year-over-year.

• Net financial debt increased to EUR 1,463 million as of March 31, 2026, up from EUR 1,343 million at year-end 2025.

• Free cash flow before M&A was -EUR 168 million, impacted by seasonality and exceptional cash expenses for severance payments.

• EBITDA margin improved due to EUR 50 million in cost savings and stable programming expenses.

Outlook and guidance

• FY 2026 outlook confirmed: moderate decline in reported group revenues due to portfolio disposals, but slight organic growth and significant EBITDA increase expected.

• Net financial debt expected to remain stable by year-end 2026; leverage ratio targeted at 3.0x–3.5x.

• Entertainment revenues expected to be stable, with TV advertising improving in the second half of the year.

• Commerce & Dating segment expected to report slight organic growth, with overall revenues affected by deconsolidations.

• Financial leverage targeted between 3.0x and 3.5x.