The German media giant ProSiebenSat.1 demonstrated resilience in the face of a persistently weak advertising market during the first quarter of 2025. While group revenue experienced a modest 1% year-on-year decrease to €855 million, the impact on profitability was more pronounced. Adjusted EBITDA fell by a significant 39% to €44 million, primarily attributed to the downturn in high-margin linear TV advertising. CFO Martin Mildner acknowledged “a challenging economic environment,” but expressed optimism about a rebound in advertising revenue during the latter half of the year.
Despite the overall economic headwinds, ProSiebenSat.1 maintained its full-year forecast, projecting group revenue around €3.85 billion and adjusted EBITDA of €520 million. This confidence is partly fueled by the exceptional performance of its streaming platform, Joyn. The ad-supported service achieved record-breaking marketable reach, attracting 8.3 million average monthly video users (a 26% increase) and generating 13.5 billion minutes of total viewing time (a 48% surge).
This growth translated into a remarkable 39% increase in Joyn's advertising-based video-on-demand (AVOD) revenue, with subscription revenue (SVOD) also climbing by 16%. This success underscores ProSiebenSat.1's strategic commitment to developing a free, advertising-funded streaming platform for the German-speaking market. Further strengthening Joyn's reach, the platform is now integrated into select Mercedes-Benz in-car entertainment systems, with plans for a wider rollout.
ProSiebenSat.1 anticipates a continued challenging advertising market in the first half of 2025, followed by a gradual recovery. To bolster its digital transformation and enhance profitability, the company has announced additional cost-cutting measures for the second quarter. These initiatives are projected to have a progressively positive impact on adjusted EBITDA throughout the year.