News

ProSiebenSat.1 Media Faces Challenges with Content Strategy

1 Mins read

ProSiebenSat.1 Media, a German media company, has experienced a decline in its shares due to an earnings hit resulting from a change in its content strategy. The company is now focusing on investing in local programming and moving away from acquired U.S. content.

As of 1015 GMT, ProSiebenSat.1’s shares have dropped by 6%, trading at EUR5.77. This year alone, the company has suffered a total loss of 31%.

To adjust to its new content strategy, ProSiebenSat.1 expects to write-down its programming assets by up to EUR250 million ($274.5 million) and set aside a provision for burdensome contracts of up to EUR90 million in the fourth quarter.

In the year 2024, ProSiebenSat.1 plans to increase its content spending by approximately EUR80 million, reaching a total of around EUR1.05 billion, as it places a stronger emphasis on local content.

Consequently, the company predicts that its adjusted earnings before interest, taxes, depreciation, and amortization will remain stable next year compared to 2023. For 2023, ProSiebenSat.1 anticipates an adjusted EBITDA at the lower end of the range between EUR550 million and EUR650 million.

Visible Alpha surveyed analysts who estimated ProSiebenSat.1’s adjusted EBITDA for 2024 to be around EUR599 million.

Although ProSiebenSat.1’s content strategy shift could have significant strategic implications, potentially accelerating stable revenue growth in the future, market analysts from Citi, Thomas Singlehurst and Praveen Shetty, remain skeptical for now.

Related posts
News

Binance Founder CZ Clarifies BNB Trade Activity and Market Strategy

1 Mins read
On October 12, Binance’s founder Changpeng Zhao confirmed via X that BNB lacks market makers, highlighting its deflationary nature and community-driven development….
News

Aussies go viral for booing American national anthem at WWE Crown Jewel event in Perth

3 Mins read
7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking…
News

Bitcoin extends decline to $104,782 as Trump escalates US-China trade war | Today Headline

1 Mins read
(Reuters) -Bitcoin, the world’s largest cryptocurrency by market value, extended declines on Friday after U.S. President Donald Trump escalated his trade conflict…

Leave a Reply

Your email address will not be published. Required fields are marked *