Advertising downturn persists, causing ProSiebenSat.1 to revise its 2025 revenue projections downward.
ProSiebenSat.1 Braces for Challenging Advertisement Market in Q4
ProSiebenSat.1, recently acquired by Italian Media for Europe (MFE), is preparing for a challenging advertisement market in the critical fourth quarter. Anticipated economic conditions may significantly impact the company's financial performance.
The revised forecast for the third and fourth quarters, including a ±€50 million variance due to the Verivox sale, has weighed on ProSiebenSat.1's share price, causing it to drop by up to 3.9% in the afternoon. The share price has been under significant pressure since the acquisition.
The challenging economic conditions in Q4, as previously anticipated, may further impact ProSiebenSat.1's advertisement revenue. September's advertisement demand for the media company was below expectations for both TV and digital advertisement products. The decline in advertisement demand, observed in September and early October, could potentially continue in Q4.
The management of ProSiebenSat.1 expects that the economic conditions in the German-speaking DACH region will remain difficult in Q4 of 2025, due to continued significant uncertainty and the absence of the previously forecasted economic recovery. This is reflected in weak advertisement demand in both linear TV and digital advertisement products, leading to predicted declines in entertainment advertisement revenues for Q3 and a slight decline in Q4 2025. Early indications for October's advertisement demand are also falling short compared to expectations.
The decline in advertisement revenues in the third quarter is expected to continue into the fourth quarter, with a slight decline in entertainment advertisement revenues anticipated. A slight decline in entertainment advertisement revenues is expected in the fourth quarter, particularly in the German-speaking region.
Despite these challenges, ProSiebenSat.1's expected Adjusted net income for the year is projected to exceed last year's level of €229 million. The company's expected Adjusted EBITDA for the year is now €420-470 million, a decrease from the initial €520 million.
Despite the current challenges, ProSiebenSat.1's management is anticipating a challenging advertisement market in the fourth quarter. The media conglomerate will need to navigate these challenging conditions to ensure a successful year-end.
