Analysts see the higher than expected profits posted by pan-European broadcasting group, ProSievenSat 1, as a sign that Germany’s ad market is bouncing back.
The Munich-based company saw a significant hike in first-quarter net profit from E1.7 million (R17 million) in 2009 to $28.1 million (R280 million) this year while total revenue rose $41.6 million (R420 million), or 5%, to $873.4 million (R8,7 billion).
The improved performance resulted largely from greater TV ad revenues in Germany, the group’s core market.
Revenue at the German-speaking free TV division, which also includes Austria and Switzerland, gained a total of $37 million, or 7.2%, to reach $552 million. The group’s other European free TV assets, including channels in Scandinavia, Eastern Europe, Belgium and the Netherlands, where revenues rose by 4.5%, to $212.7 million.
ProSiebenSat.1 also managed to cut its debt by $107 million to $4.5 billion.