Advertising market falters, causing ProSiebenSat.1 to revise their 2025 forecast downward
ProSiebenSat.1, a leading media company in Germany, Austria, and Switzerland, has revised its full-year outlook for 2025 due to continued weakness in the advertising market and a sluggish economic environment. The company now expects adjusted EBITDA to be between €420 and €470 million, significantly lower than the earlier projection of €520 million.
The focus for ProSiebenSat.1 remains on "profitability, cost and cash discipline, and the consistent implementation of strategic priorities," according to the company's statement. The lower earnings are attributed to cautious advertising spending in the TV segment, which led to a slight decline in adjusted EBITDA for 2024 to €557 million.
The economic recovery predicted by many research institutes for 2025 is now considered unlikely, further impacting ProSiebenSat.1's revenue projections. The company expects advertising revenues in its entertainment segment in the DACH region to decline by a mid-single-digit percentage in the third quarter and to fall slightly in the fourth quarter.
Despite the challenging circumstances, ProSiebenSat.1's digital entertainment strategy, particularly through its streaming platform Joyn, showed strong growth in 2024. The company reported a 2% increase in revenue for the year, reaching €3.92 billion. However, ProSiebenSat.1 now anticipates full-year revenues of around €3.65 to €3.80 billion, down from its previous forecast of roughly €3.85 billion.
In 2025, ProSiebenSat.1 was financially supported primarily by the Italian media group Media for Europe (MFE), led by Pier Silvio Berlusconi. MFE acquired 75.61% control of the company, enabling it to make all decisions unilaterally and support ProSiebenSat.1's development amid a weak advertising market and slow economic growth.
The ongoing weakness in the high-margin TV advertising business has affected ProSiebenSat.1's revenue in 2025. Group revenues in the first quarter of 2025 were €855 million, a decrease of 1% year-on-year. Adjusted EBITDA for the first quarter dropped by 39% to €44 million.
However, ProSiebenSat.1 expects a recovery in advertising revenues in the second half of 2025, driven by improving economic conditions. Despite the lower operating profit, the company expects adjusted net income to rise above last year's €229 million, mainly due to tax effects.
Despite the revenue decline in 2024, ProSiebenSat.1's revenue still reached €3.92 billion. The company's net financial debt has decreased, but the group forecasts its leverage ratio will increase to 3.0-3.5 times EBITDA by year-end, up from 2.7 in 2024, as a consequence of the reduced earnings.
In conclusion, ProSiebenSat.1 has faced challenges in 2025 due to the weak advertising market and sluggish economic growth in Germany, Austria, and Switzerland. However, the company remains focused on its strategic priorities and expects a recovery in the second half of the year.
Read also:
- Potential Consequences of Dismantling FEMA Vary Across States
- Railway line in Bavaria threatened by unstable slope - extensive construction site at risk
- Wind Farm Controversy on the Boundary of Laois and Kilkenny
- Puerto Rico's Climate Lawfare Campaign experiences another setback with the dismissal of its deals.
