EQS-Adhoc: ProSiebenSat.1 increases investments in local content and at the same time expects stable earnings next year – impairment on programming assets in 2023

Unterföhring, 19 December 2023. In order to further strengthen the market share in linear TV and the growth of the streaming platform Joyn, ProSiebenSat.1 Group will expand the exclusive local programming content on the streaming platform Joyn and on its linear TV stations, thereby increasing the associated programming investments. This was decided today by the Executive Board of ProSiebenSat.1 Media SE. As a result, ProSiebenSat.1 Group's programming expenses will increase by around EUR 80 million to around EUR 1.05 billion in the coming year. The decision consistently builds on the successes of the last few months, in which many of the local programs of the ProSiebenSat.1 Group on TV and especially on the streaming platform Joyn have achieved above-average coverage.

Accordingly, ProSiebenSat.1 Group will further reduce the share of US licensed content to the benefit of local formats. Against this backdrop, the Executive Board has decided today that an impairment of up to EUR 250 million on existing programming assets and a provision for onerous contracts for the acquisition of future programming assets of up to a further EUR 90 million in the fourth quarter of 2023 will be made. Both extraordinary effects have no impact on the adjusted key figures of the Group for financial year 2023, particularly the adjusted EBITDA. Further, they will not lead to cash outflows in the current financial year 2023; thus, also no changes to net financial debt will result therefrom. The future cash outflows for programming still to be completed, resulting primarily from the onerous contracts, will amount, in the upcoming financial years 2024 and 2025, taking into account offsetting tax effects, to a total of around EUR 50 million, whereby these will not have a negative impact on earnings.

For 2023, the Group continues to expect to achieve its financial targets specified on November 14, 2023: ProSiebenSat.1 thus expects adjusted EBITDA of the Group at the lower end of the range of EUR 600 million plus/minus EUR 50 million (2022: EUR 678 million) forecast at the beginning of the year. At the same time, Group revenues – as most recently announced – will be only slightly below the target range of EUR 4.10 billion plus/minus EUR 150 million (2022: EUR 4.16 billion). After the Group's financial development stabilized in the third quarter of 2023, ProSiebenSat.1 expects at Group level, in the important fourth quarter, modest growth of revenue (Q4 2022: EUR 1.27 billion) and of adjusted EBITDA (Q4 2022: EUR 303 million). Additionally, the Group expects that net financial debt will reduce in financial year 2023 (December 31, 2022: EUR 1.61 billion).

The additional investments in local programming resolved for 2024 will have a negative impact on adjusted EBITDA of the Group in the Entertainment segment in 2024 – despite offsetting savings effects from the efficiency measures implemented in 2023 – but will strengthen the segment's growth in the long-term and drive its digitalization. Due to an expected slight recovery in advertising revenues, overall continued revenue and earnings growth in the digital business areas and a clear focus on costs, ProSiebenSat.1 expects – despite the investments – Group revenues to increase in 2024 and adjusted EBITDA of the Group to remain stable compared to the current financial year 2023. ProSiebenSat.1 will publish the full financial outlook for the financial year 2024 as planned on March 7, 2024.

Note: The key figure "adjusted EBITDA" (EBITDA adjusted for non-recurring effects) is not a key figure in accordance with IFRS. Information on the definition of "adjusted EBITDA" can be found in the ProSiebenSat.1 Media SE Annual Report 2022 on p. 130 (available at https://www.prosiebensat1.com/uploads/2023/04/27/P7S1_GB%202022_EN.pdf).