ProSiebenSat.1: shares slump after advertising sales fall
(CercleFinance.com) - ProSiebenSat.
1 posted a 89% collapse in second-quarter profit due to depressed advertising sales at Germany's largest commercial broadcaster.
The Munich-based company said operating profit (adjusted EBITDA) fell to 23 million euros, down almost 90% from 213 million euros posted a year ago. Analysts had expected profit of about 11 million.
The group said it recorded a 25% decline in revenue to 709 million euros over the quarter, citing the "significant" impact that the Covid pandemic has had on its advertising and content production businesses.
ProSiebenSat said it is seeing the first signs of a recovery in advertising, but warned that the months from September to December will be "decisive".
In the past, the broadcaster has generated around 50% of its adjusted EBITDA in this period.
Investors seemed worried, however, with the shares down over 13% on the Frankfurt Stock Exchange.
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