Earnings Release • Nov 11, 2010
Earnings Release
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January 1, 2010 to September 30, 2010
| EURm | Q3 2010 | Q3 2009 | Q3 2008 | Q3 2007 (7) | Q3 2006 |
|---|---|---|---|---|---|
| Revenue | 626.9 | 559.5 | 646.5 | 668.4 | 431.3 |
| Total costs | 518.4 | 534.1 | 595.2 | 730.3 | 385.1 |
| Recurring costs(1) | 475.0 | 469.3 | 547.3 | 548.2 | 374.5 |
| Consumption of programming assets | 243.0 | 238.4 | 247.3 | 271.4 | 204.8 |
| Recurring EBITDA(2) | 154.9 | 94.3 | 103.1 | 124.8 | 59.5 |
| Recurring EBITDA margin (in percent) | 24.7 | 16.9 | 15.9 | 18.7 | 13.8 |
| EBITDA | 144.1 | 62.3 | 92.5 | 0.4 | 58.7 |
| Non-recurring items(3) | -10.8 | -32.0 | -10.6 | -124.4 | -0.8 |
| EBIT | 111.4 | 29.8 | 58.6 | -57.2 | 48.9 |
| Financial result | -66.7 | -48.5 | -78.9 | -46.5 | -27.2 |
| Profit/loss before income taxes | 44.6 | -18.7 | -20.0 | -103.7 | 21.7 |
| Consolidated net profit (after non-controlling interests)(4) | 32.0 | -12.7 | -10.7 | -77.9 | 13.1 |
| Underlying net income(5) | 42.2 | -16.7 | 0.6 | 68.4 | 14.1 |
| Investments in programming assets | 308.9 | 301.4 | 388.9 | 328.0 | 234.7 |
| EURm | Q1-Q3 2010 | Q1-Q3 2009 | Q1-Q3 2008 | Q1-Q3 2007 (7) | Q1-Q3 2006 |
|---|---|---|---|---|---|
| Revenue | 2,045.9 | 1,880.4 | 2,177.4 | 1,721.2 | 1,447.4 |
| Total costs | 1,687.2 | 1,658.9 | 1,935.2 | 1,569.6 | 1,200.8 |
| Recurring costs(1) | 1,505.3 | 1,501.3 | 1,791.5 | 1,368.0 | 1,169.4 |
| Consumption of programming assets | 766.5 | 778.5 | 919.6 | 750.2 | 681.8 |
| Recurring EBITDA(2) | 547.3 | 389.3 | 395.3 | 366.0 | 286.2 |
| Recurring EBITDA margin (in percent) | 26.8 | 20.7 | 18.2 | 21.3 | 19.8 |
| EBITDA | 468.7 | 330.0 | 366.6 | 241.2 | 284.1 |
| Non-recurring items(3) | -78.6 | -59.3 | -28.6 | -124.8 | -2.1 |
| EBIT | 365.4 | 235.9 | 260.1 | 163.2 | 254.9 |
| Financial result | -179.0 | -177.2 | -201.6 | -55.9 | -46.6 |
| Profit before income taxes | 186.4 | 59.1 | 59.6 | 107.3 | 208.3 |
| Consolidated net profit (after non-controlling interests)(4) | 127.7 | 31.1 | 40.9 | 49.9 | 127.3 |
| Underlying net income(5) | 159.3 | 47.7 | 80.4 | 197.5 | 130.4 |
| Investments in programming assets | 953.9 | 959.4 | 1,067.7 | 809.8 | 693.9 |
| EURm | 09/30/2010 | 09/30/2009 | 09/30/2008 | 09/30/2007 (7) | 09/30/2006 |
|---|---|---|---|---|---|
| Programming assets | 1,682.5 | 1,534.6 | 1,360.7 | 1,319.0 | 1,054.4 |
| Equity | 762.6 | 438.9 | 844.0 | 1,074.0 | 1,132.0 |
| Equity ratio (in percent) | 12.1 | 7.3 | 13.8 | 18.2 | 57.7 |
| Cash and cash equivalents | 743.4 | 508.4 | 221.5 | 163.7 | 29.3 |
| Net financial debt | 3,283.8 | 3,534.4 | 3,816.7 | 3,541.5 | 311.6 |
| Employees(6) | 4,726 | 4,916 | 6,075 | 5,996 | 2,999 |
(1) Total costs excl. D&A and non-recurring expenses. (2) EBITDA before non-recurring (exceptional) items. (3) Non-recurring expenses netted against non-recurring income. (4) Consolidated net profit attributable to Shareholders of ProSiebenSat.1 Media AG. (5) Consolidated profit for the period, before the effects of purchase price allocations and noncash currency valuation effects. (6) Full-time equivalent positions as of reporting date. (7) Consolidation of SBS Broadcasting Group in July 2007.
> The third quarter at a glance. the ProSiebenSat.1 group exceeded its strong performance of the first two quarters by achieving further growth in revenues and earnings. Compared to the third quarter of last year, consolidated revenues increased by 12.0 percent, to eur 626.9 million, and recurring ebItDa increased by 64.3 percent, to eur 154.9 million. the positive trend of revenues and earnings continued across all segments. In particular, the group's most important segment, german-speaking free tV, again achieved considerable gains.
Outlook 27
STaTEmENTS
Due to an expansive monetary policy, government recovery measures and robust impetus for growth from asia, the global economy has recovered faster than experts had expected at the beginning of the year. Consequently, the International monetary fund again raised its forecast for global economic growth for 2010 from its summer forecast of 4.6 percent, which had itself been corrected substantially upwards, to 4.8 percent in early october.
economic outlook, page 27.
In many industrialized countries of the euro zone, economic growth was fueled by dynamic global trade and growing domestic consumption: germany in particular experienced extraordinarily brisk, export-driven economic growth. In the second quarter, the german economy even expanded at a rate of 2.2 percent over the preceding quarter. on the basis of the anticipated development of the world economy, however, germany is not expected to experience similarly strong economic growth in the rest of the year. for the third quarter of 2010, the handelsblatt-barclays Indicator and DIW predict at present a growth rate of 0.7 percent, respectively 0.8 percent, compared to the prior quarter.
Price-adjusted, interlinked, adjusted for seasonal and calendar effects. Source: destatis.
year: 42.2%).
there is a strong correlation between tV advertising markets and macroeconomic conditions. accordingly, the gross numbers for the german tV advertising market published by nielsen media research were quite positive. at eur 2.339 billion, tV advertising spendings in the third quarter of 2010 were 21.0 percent higher than the corresponding prioryear figure of eur 1.933 billion. for the first nine months of 2010, gross tV advertising spendings in germany amounted to eur 7.288 billion, a significant 16.9 percent increase over the prior-year figure (previous year: eur 6.235 billion).
In the third quarter of 2010, the ProSiebenSat.1 group again extended its leading competitive position in germany, its most important revenue market, by capturing a market share of 44.3 percent (previous year: 42.0%). the Company benefited from the dynamic market environment and was able to capitalize on its successful ratings. Sevenone media gmbh, the sales company of the ProSiebenSat.1 group for the german market, generated gross tV advertising revenues of eur 1.036 billion in the third quarter of 2010 (previous year: eur 812.7 million), representing an increase of 27.4 percent compared to the corresponding prior-year figure and outpacing the market growth rate. at eur 3.138 billion, the gross tV advertising revenues of the group for the first nine months of 2010 were 19.3 percent higher than the corresponding prior-year figure (previous year: eur 2.631 billion) and the gross share of the tV advertising market rose to 43.1 percent (previous
tV advertising revenues in germany are presented in the free tV german-speaking segment, page 19.
all nielsen data in this report - also the ones mentioned before – do not include n24. Source: nielsen media research. 1) n24 contributed 0.9 percentage points to the gross advertising market share of the ProSiebenSat.1 group in the first three quarters of 2009 and in the third quarter of 2009. n24 had an advertising market share of 1.0 percent in the third quarter and in the first nine months of 2010.
the ProSiebenSat.1 group also continued its growth course in the german online advertising market and extended its net reach from 25.4 million to 26.6 million unique users. thus, the company's ranking among sales companies, as measured by the online research institute agof, improved from the fourth place to the third place. the increased reach resulted from organic growth at wetter.com and sat1.de and from the addition of the website promiflash.de to the sales portfolio. In the growing market environment in the third quarter of 2010, the company increased its gross online advertising revenues by a total of 34.7 percent to eur 29.2 million (previous year: eur 21.7 million). the gross online advertising market itself expanded by 39.2 percent to eur 549.9 million (previous year: eur 394.9 million). In the first nine months of 2010, the gross online advertising revenues of the ProSiebenSat.1 group increased by 26.1 percent to eur 89.1 million (previous year: eur 70.7 million). gross online advertising spendings increased by 33.8 percent to eur 1.575 billion (previous year: eur 1.177 billion).
the improved economic conditions also had a positive effect on the booking behavior of advertisers in most of the international tV markets of the ProSiebenSat.1 group. especially in the Scandinavian countries, net tV advertising spendings increased substantially. In eastern europe and especially in hungary, on the other hand, tV advertising expenditures were behind the prior year, due to the continued recessive economic conditions in those countries.
| Q1-Q3 2010 Change from Q1-Q3 2009, in percent |
Q3 2010 Change from Q3 2009, in percent |
|
|---|---|---|
| germany | 16.9 | 21.0 |
| austria | 7.4 | 4.5 |
| Switzerland | 14.9 | 12.1 |
| netherlands | 8.6 | 7.6 |
| belgium | 4.8 | 1.4 |
| norway | 9.1 | 12.2 |
| Sweden | 17.5 | 20.5 |
| Denmark | 7.8 | 13.5 |
| finland | 8.3 | 14.6 |
| hungary | -2.6 | -2.0 |
| romania | -11.0 | -8.0 |
Development of the tV advertising market in the ProSiebenSat.1 group's important tV markets
It should be noted that some of the data presented above is based on gross figures and therefore provides only a limited idea of what the associated net figures will prove to be. Germany: gross, nielsen media research. austria: gross, media focus. Switzer- land: gross, media focus. Netherlands: net, SPot organisation. Belgium: net, CIm mDb, September 2010 based on expectations. Norway: net, Irm, Q3 2010 based on expectations. Sweden: net, Irm, September 2010 based on expectations. denmark: net, Drrb, September 2010 based on expectations. Finland: net, tnS media Intelligence. Hungary: net, own calculations. Romania: net, own calculations.
Development of revenues in the international tV business, page 19.
tV highlights in the third quarter, page 7 and 8.
In a competitive market environment that included other stations' coverage of the Winter olympics at the start of the year and the Soccer World Cup in June and July of 2010, the german tV stations of the ProSiebenSat.1 group sustained their position quite well. Sat.1, ProSieben and kabel eins achieved a combined audience share of 28.9 percent in the third quarter of 2010 (previous year: 29.1%). the combined market share for the first nine months of 2010 came to 28.5 percent, nearly on the prior-year level (previous year: 28.6%).
In the netherlands, the combined audience share of the group's tV stations Veronica, SbS6 and net 5 declined by 4.4 percentage points to 24.5 percent in the third quarter of 2010; for the first three quarters of 2010, their combined audience share declined by 3.1 percentage points to 24.5 percent. the main reason for the lower ratings of the Dutch family of tV stations were the Soccer World Cup and the successful new programs broadcast on competing stations. In hungary, the ProSiebenSat.1 group also lost audience share in the first nine months of the year (-1.1 percentage points). however, thanks to strong local productions and the successful development of the female channel fem3 that was launched in January 2010, the ProSiebenSat.1 group made up lost ground in the third quarter, increasing its audience share by 1.3 percentage points to 22.9 percent.
Despite the above-mentioned sports events, the ProSiebenSat.1 group managed to increase its audience shares in most of its markets. In particular, the Scandinavian tV stations of the ProSiebenSat.1 group performed very well in the third quarter of 2010. In Denmark, for example, the group's audience share increased by 1.8 percentage points to 17.0 percent in the third quarter of 2010; for the first nine months, the audience share in Denmark rose by 1.5 percentage points to 16.9 percent. this success can be attributed partly to successful tV formats, but also partly to the "multi-station strategy" practiced by the group. With new tV stations like 6'eren, launched in Denmark in January of 2009, the ProSiebenSat.1 group is reaching additional target groups, thereby increasing its reach both in the audience market and in the advertising market: 6'eren is aimed specifically at the male audience between 15 and 50 years of age, while Kanal 5's program addresses the entire family and Kanal 4 is primarily aimed at women.
| In percent | Q3 2010 | Q3 2009 | Q1-Q3 2010 | Q1-Q3 2009 |
|---|---|---|---|---|
| germany1) | 28.9 | 29.1 | 28.5 | 28.6 |
| austria | 20.2 | 17.4 | 19.0 | 17.2 |
| Switzerland2) | 18.7 | 16.1 | 17.3 | 16.3 |
| netherlands | 24.5 | 28.9 | 24.5 | 27.6 |
| belgium | 17.5 | 17.2 | 16.8 | 16.3 |
| norway | 14.8 | 14.4 | 14.0 | 12.9 |
| Sweden | 13.5 | 13.7 | 14.2 | 14.9 |
| Denmark | 17.0 | 15.2 | 16.9 | 15.4 |
| finland | 3.7 | 2.4 | 3.1 | 2.3 |
| hungary | 22.9 | 21.6 | 21.6 | 22.7 |
| romania | 6.7 | 6.5 | 7.3 | 7.4 |
the figures for germany, austria and Switzerland are based on 24 hours (mon-Sun). audience shares in the other countries are based on extended prime time (nl, ro, fI: 6 pm to midnight / be, Se, no, DK, hu: 5 pm to midnight). Germany: Sat.1, ProSieben, kabel eins; key demographic age 14-49. austria: Sat.1 Österreich, ProSieben austria, kabel eins austria, PulS 4; key demographic age 12-49. Switzerland: Sat.1 Schweiz, ProSieben Schweiz, kabel eins Schweiz; key demographic age 15-49. Netherlands: SbS6, net 5, Veronica; key demographic age 20-49. Belgium: Vt4, VIJftv; key demographic age 15-44. belgian figures refer to the region of flanders. Norway: tVnorge, fem, the Voice; key demographic age 12-44. Sweden: Kanal 5, Kanal 9; key demographic age 15-44. denmark: Kanal 4, Kanal 5, 6'eren, the Voice; key demographic age 15-50, based on 14 advertising-financed tV stations. Finland: the Voice / tV Viisi; key demographic age 15-44. Hungary: tV2, fem3 since January 2010; key demographic age 18-49. Romania: Prima tV, Kiss tV; key demographic age 15-44. romanian figures are based on the urban population.1) excluding n24. n24 achieved an audience share of 1.4 percent in the third quarter of 2009 and in the third quarter of 2010. n24 achieved an audience share of 1.3 percent in the first three quarters of both 2009 and 2010. 2) Switzerland: audience figures up to December 31, 2009 are based on the "substitution method" of audience measurement; all data since January 1, 2010 are based on the internationally used "daily weighting." because of additional revisions in the telecontrol Panel as of January 2010, audience figures for 2010 may not be compared with data from previous years, according to Publica Data ag.
SaT.1 goes for ran! Ran sports events contribute top ratings for Sat.1. on September 4, 22.6 percent of viewers tuned in to watch boxer felix Sturm successfully defending his World Champion title against giovanni lorenzo. and on September 15, 20.6 percent of the audience watched the ran uefa Champions league match fC bayern münchen vs. aS rom.
Successful TV formats made in Germany! german tV series "danni lowinski" and "Der letzte bulle" generated successful ratings of up to 16.8 and 15.9 percent, respectively, in the key demographic group; both series will start a new season in 2011. In 2010, "Danni lowinski" won the german television award for best tV Series and two german Comedy awards. already in its third year, Sat.1 telenovella "anna und die liebe" continued to attract a large audience, with ratings of up to 15.5 percent.
Blockbuster-Entertainment! ProSieben is continuing its successful tradition of Sunday blockbusters. "Resident Evil: Extinction" reached 24.7 percent of viewers, and "8 blickwinkel" and "fantastic movie" drew audience shares of 21.9 and 21.8 percent, respectively.
Record-breaking! kabel eins cannot be stopped! In august 2010, it broke through the 7 percent mark and ended the month with its highest-ever audience share of 7.1 percent. Certainly, this success can be partly attributed to the ratings hit, "Two and a Half men". older episodes of this u.S. sitcom generated ratings of up to 21.3 percent for kabel eins. but some of the credit also belongs to strong prime-time blockbusters and extremely well-running shows such as "abenteuer leben täglich Wissen."
Show-Time! on September 18, the mega-show "Schlag den raab" achieved a 31.0 percent audience share on ProSieben and a 17.7 percent audience share on ProSieben austria. Shows like "Elton vs. Simon" and "Switch reloaded" reached more than 18 percent of the key demographic group. and the new show "mein mann kann" on Sat.1 started successfully with an audience share of 14.3 percent.
Hit shows in access prime-time! airing on ProSieben in the early evening, u.S. series "the Simpsons" and knowledge show "Galileo", which has been running successfully for years, achieved substantial audience shares of up to 19.3 and 16.8 percent, respectively.
*all ratings refer to the key demographic group in every country. for more information on this subject, please refer to the section "Development of audience shares" on page 6.
Heroes of the kitchen! Cooking is increasingly popular, as evidenced by the success of the Danish cooking show "4-Stjerners middag" (Kanal 5), which achieved an audience share of 6.9 percent in the third quarter, and the Dutch cook casting show "masterChef" (net 5). Sunday evenings at 9:30 p.m., 14.8 percent of the key demographic group for net 5 tuned in to see how a jury composed of two star chefs and one restaurant critic searched for the best amateur cook.
Nordic by nature! the norwegian in-house production "71 degrees north" (tV norge) was in its twelfth season in 2010 – with outstanding success, reaching an audience share of up to 36.4 percent. and new shows like "hvem kann slå aamodt & Kjus" (tV norge), featuring former skiing stars Kjetil andre aamodt and lasse Kjus, and "Sinnasnekker'n" (tV norge) generated strong ratings of up to 29.3 and 23.5 percent, respectively.
Hungary is looking for the next megasztár! In august, hungarian casti ng show "megasztár" had the best broadcast debut ever, delivering huge ratings of up to 45.9 percent. and tV2's movie line-up, featuring hits like "taxi 4" with 49.0 percent audience share and "men in black 2" with 36.3 percent audience share was very successful as well.
Tried and true plus new! romanian tV station Prima tV convinced viewers in the third quarter with a mixture of successful new shows and tried-and-trusted formats. In its 15th season, local sitcom "Trasnitii" continued to inspire romanian viewers, with market shares of up to 13.8 percent. In the newly launched show "Imblanzirea Scorpiei", a relationship counselor solves couples' problems, both big and small, and mesmerized 7.9 percent of the key demographic group.
Pulse-raising programming! austrian tV station PulS 4 is counting on sports. With the uefa europa league (12.2%) and "austria's New Footballstar" (4.3%) the station generated the year's highest daily audience share.
local ratings earthquake! airing on Kanal 5, the highly popular Swedish reality shows "ullared" (up to 35.4%) and "Kungarna av Työsand" (up to 30.1%) fascinated the relevant key demographic group.
on June 16, 2010, the ProSiebenSat.1 media ag signed a share purchase agreement for the news channel n24 and the production company maz&more with a group of bidders led by n24 managing Director Dr. torsten rossmann and the former editor-in-chief of the news magazine "Der Spiegel," Stefan aust. Closing of the share purchase agreement took place on June 30, 2010. by spinning off its news production, the ProSiebenSat.1 group further optimized its cost structure. from 2011 onwards, the sale of the news channel n24 will lead to an improvement in the group's recurring ebItDa of at least eur 25 million per year. furthermore, the group entered into a contractual agreement to secure long-term access to high-quality news programming for its stations: n24 media gmbh will continue to produce all news programs for Sat.1, ProSieben and kabel eins until the end of 2016. also Sat.1 frühstücksfernsehen and Sat.1-magazin will be produced by the new company at least until mid-2014. the revenues, earnings and cash flow contributions of both companies are presented in the income statement and in the cash flow statement of the ProSiebenSat.1 group until the deconsolidation date of June 30, 2010. there was no significant impact on the comparability of the financial ratios caused by the deconsolidation of n24. additional information on this subject can be found in the notes to the financial statements on page 37.
aside from this sale, the scope of consolidation of the ProSiebenSat.1 group did not change significantly in the first three quarters of 2010. furthermore, there were no other events that would have been of material significance for the group's financial position and performance. a chronological overview of the first nine months of 2010 is presented on pages 30 and 31.
the general economic conditions basically had the following effects on the business performance of the ProSiebenSat.1 group in the first three quarters of 2010:
unlike foreign operations, the ProSiebenSat.1 group has hedged the currency risks arising from transactions by means of forward exchange deals, currency options and spot currency trades. transaction risks arise primarily in connection with the acquisition of programming assets, which are settled in u.S. dollars.
• the ProSiebenSat.1 group hedged approximately 79 percent of the variable interestrate financial liabilities resulting from the term loans by means of various interest rate swaps. the average fixed interest swap rate is 4.6 percent per year. the group's unsecured term loan amounts and the amounts drawn under the revolving credit facility bear interest at variable euribor rates, which declined in the first two quarters compared to the previous year. the more favorable level of interest rates compared to the prior year had an accordingly positive effect on the interest expenses of the ProSiebenSat.1 group, especially in the first half of 2010.
Financial key figures used in the external reporting of ProSiebenSat.1: recurring ebItDa and net financial debt are key financial indicators for the ProSiebenSat.1 group. In addition, analysts often refer to operating costs in their assessments. therefore, the development of these key financial indicators is described in the following presentation of the group's financial position and performance and in the outlook report.
additional information on financial risks can be found on pages 99-100 of the annual report 2009.
the principles and objectives of financial management are outlined on pages 71 and 72 of the ProSiebenSat.1 annual report 2009.
Financial reports: the ProSiebenSat.1 group publishes its financial reports under http://en.prosiebensat1.com/ investor_relations/finanzberichte/
ad hoc disclosures: the ProSieben-Sat.1 group publishes its ad hoc disclosures under http://en. prosiebensat1.com/pressezentrum/ prosiebensat1mediaag/
Segments and sales markets: the ProSiebenSat.1 group reports in three segments, all of which are closely linked strategically and economically. the group's four german stations (Sat.1, ProSieben, kabel eins and sixx) are consolidated in the free tV german-speaking segment. this segment also includes the sales company Sevenone media, ProSiebenSat.1 Produktion, the Sat.1 regional companies, the red arrow entertainment group, and the ProSiebenSat.1 group's subsidiaries in austria and Switzerland. the advertising-financed tV stations in the benelux countries (netherlands and belgium), northern europe (Denmark, finland, norway and Sweden) and the Cee region (hungary and romania) constitute the free tV International segment. Diversification activities (meaning all revenue models not directly dependent on the tV advertising market, such as online, basic pay tV, call tV, video on demand, music, licensing/ merchandising, radio and print) are combined in the Diversification segment.
our expectations regarding revenue and recurring ebItDa development published in our Quarterly report Q2 2010 or annual report 2009, respectively, were exceeded in the first nine months of 2010; the results of our cost management are sustainable. the advertising market environment has recovered more quickly in recent months than originally expected. Primarily, tV advertising revenues in the german core market have shown an upward trend since the fourth quarter of 2009. this trend gained momentum in the course of 2010.
the ProSiebenSat.1 group informed capital markets about the good performance in the third quarter by means of an advance ad hoc disclosure on november 3, 2010. already in the first two quarters of 2010, revenue and profit development had clearly exceeded market expectations.
| EuRm | Q3 2010 | Q3 2009 | Q1-Q3 2010 | Q1-Q3 2009 |
|---|---|---|---|---|
| Consolidated revenue | 626.9 | 559.5 | 2,045.9 | 1,880.4 |
| total costs | 518.4 | 534.1 | 1,687.2 | 1,658.9 |
| Cost of sales | 354.2 | 362.2 | 1,143.7 | 1,155.0 |
| Selling expenses | 92.1 | 87.1 | 278.4 | 279.7 |
| administrative expenses | 72.1 | 84.8 | 265.1 | 224.2 |
| recurring costs | 475.0 | 469.3 | 1,505.3 | 1,501.3 |
| Consumption of programming assets | 243.0 | 238.4 | 766.5 | 778.5 |
| recurring ebItDa (1) | 154.9 | 94.3 | 547.3 | 389.3 |
| non-recurring items (net) (2) | -10.8 | -32.0 | -78.6 | -59.3 |
| ebItDa | 144.1 | 62.3 | 468.7 | 330.0 |
| Consolidated net profit (after non-controlling interests) |
32.0 | -12.7 | 127.7 | 31.1 |
| underlying net income | 42.2 | -16.7 | 159.3 | 47.7 |
(1) recurring ebItDa: ebItDa before non-recurring items. (2) non-recurring expenses netted against non-recurring income.
Consolidated revenues. revenue growth accelerated in the third quarter of 2010: the consolidated revenues of the ProSiebenSat.1 group rose by 12.0 percent or eur 67.4 million to eur 626.9 million.
• Revenues by segment and region. the ProSiebenSat.1 group increased its revenues in nearly all its tV markets, especially due to strong gains in the selling of advertising time in the german core market. the group also generated higher revenues in the Diversification segment compared to the third quarter of 2009, in particular due to higher revenues from online advertising. all revenue models that are not directly dependent on the tV advertising market are included in the Diversification segment.
In the months from July to September 2010, the ProSiebenSat.1 group generated approximately 86.7 percent (previous year: 87.0%) of its total revenues in the core business of advertising-financed free tV. thus, the proportion of revenue sources (ratio of free tV german-speaking and free tV International to Diversification) was nearly unchanged.
furthermore, there was no significant change in the regional breakdown of revenues. the revenues generated from business activities in the german-speaking region, which includes austria and Switzerland, in addition to the group's most important revenue market of germany, accounted for 69.5 percent (previous year: 67.5%) of total revenues. the second-biggest region for revenues is represented by the Scandinavian markets of Denmark, norway, Sweden and finland, which accounted for 14.0 percent (previous year: 13.0%) of total revenues, followed by the netherlands and belgium, at 13.3 percent (previous year: 15.3%).
Other operating income. other operating income amounted to eur 2.8 million, compared to eur 4.4 million in the third quarter of 2009 (-36.4%).
Total costs. the group's total costs, comprising the cost of sales, selling expenses and administrative expenses, for the third quarter of the current year amounted to eur 518.4 million, representing a moderate decrease of 2.9 percent or eur 15.7 million from the corresponding figure for the third quarter of last year. this development resulted from the following opposing effects.
the group's administrative expenses of eur 72.1 million were less than the corresponding figure for the third quarter of last year by eur 12.7 million (-15.0%). Despite the higher revenues, the cost of sales of eur 354.2 million was less than the corresponding prioryear figure by eur 8.0 million (-2.2%). the main reason for this decrease was the lower level of personnel expenses resulting from the sale of the news channel n24 and the production company maz&more in June 2010. by contrast, the consumption of programming assets included in the cost of sales, which is usually the group's biggest cost item, rose to eur 243.0 million (previous year: eur 238.4 million). In line with the development of revenues, the selling expenses increased moderately, by eur 5.0 million (+5.7%), to eur 92.1 million.
adjusted for non-recurring expenses in the total amount of eur 10.6 million (previous year: eur 32.3 million) and depreciation and amortization in the amount of eur 32.8 million (previous year: eur 32.5 million), the group's total operating costs amounted to eur 475.0 million. thus, the ProSiebenSat.1 group kept is operating costs nearly on the same level as in the third quarter of last year eur 469.3 million (+1.2%). In the last few months, the group initiated extensive measures to reduce its operating costs and make its processes more efficient. especially in germany, the group's cost structure was permanently improved last year by the relocation of large parts of the berlin operations to munich. by selling the news channel n24 and the production company maz&more in June 2010, the ProSiebenSat.1 group took another important step towards improving its profitability.
(1) adjusted for non-recurring expenses and depreciation and amortization incl. impairment.
employees, page 21f.
Recurring EBITda. Increased revenues, coupled with effective cost control, led to a further earnings improvement in the third quarter of 2010. thus, the ProSiebenSat.1 group increased its recurring ebItDa by 64.3 percent to eur 154.9 million, thereby once again exceeding the high growth rate of the second quarter (+31.1% compared to the second quarter of last year). the eur 60.6 million increase in recurring ebItDa was accompanied by an increase in the recurring operating profit margin to 24.7 percent (previous year: 16.9%). at eur 144.1 million, the group's ebItDa (earnings before interest, taxes, depreciation and amortization, including non-recurring items) for the third quarter of 2010 was more than twice as high as the corresponding figure for the third quarter of last year (previous year: eur 62.3 million). the reconciliation of ebItDa after non-recurring items with ebItDa before non-recurring items is presented in the table below.
| reconciliation of recurring ebItDa | |||
|---|---|---|---|
| ------------------------------------ | -- | -- | -- |
| EuRm | Q3 2010 | Q3 2009 |
|---|---|---|
| Profit before income taxes | 44.6 | -18.7 |
| financial result | 66.7 | 48.5 |
| Operating profit | 111.3 | 29.8 |
| Depreciation and amortization (1) | 32.8 | 32.5 |
| (thereof: from purchase price allocations) | 13.3 | 13.1 |
| EBITDA | 144.1 | 62.3 |
| non-recurring items (net) (2) | 10.8 | 32.0 |
| Recurring EBITDA | 154.9 | 94.3 |
(1)amortization of intangible assets and depreciation of property, plant and equipment. (2)non-recurring expenses less nonrecurring income.
Financial result. the financial result, which is composed of the net interest result, the other financial result and the share of profit or loss from investments accounted at equity, for the third quarter of 2010 was minus eur 66.7 million, representing a 37.5 percent decrease from the third quarter of last year (minus eur 48.5 million). most of the decline from the prior-year figure resulted from exchange rate effects. as a result of those effects, the other financial result of minus eur 10.8 million was eur 18.9 million less than the prior-year figure. by contrast, the net interest result improved by 2.0 percent to minus eur 55.0 million (as compared to minus eur 56.1 million in the third quarter of 2009), due in particular to the positive effect of lower interest rates.
Consolidated profit attributable to shareholders of ProSiebenSat.1 media aG. In the third quarter of 2010, the group increased its profit before income taxes considerably. at eur 44.6 million, the profit before income taxes was higher than the corresponding figure for the third quarter of last year by eur 63.3 million. the income tax expenses for the third quarter of 2010 amounted to eur 11.5 million. by contrast, the ProSiebenSat.1 group recognized tax income of eur 7.5 million in the third quarter of last year, due to the negative pre-tax profit.
at eur 32.0 million, the profit after taxes and non-controlling interests for the third quarter of 2010 also exhibited a very positive development, increasing by eur 44.7 million from the corresponding figure for the third quarter of last year. Consequently, the basic earnings per preference share rose from minus eur 0.05 in the third quarter of last year to eur 0.15 in the third quarter of the current year, and the basic earnings per common share improved from minus eur 0.07 to eur 0.15. the underlying net income amounted to eur 42.2 million (previous year: minus eur 16.7 million). this substantial increase compared to the third quarter of last year resulted primarily from higher revenues.
| EuRm | Q3 2010 | Q3 2009 |
|---|---|---|
| Consolidated net profit after non-controlling interests | 32.0 | -12.7 |
| amortization of purchase price allocations (after taxes)(1) | 10.2 | 10.2 |
| non-cash foreign currency translation effects | - / - | -14.2 |
| Underlying net income | 42.2 | -16.7 |
(1) amortization of purchase price allocations before taxes: eur 13.3 million (previous year eur 13.1 million).
the ProSiebenSat.1 group generated consolidated revenues of eur 2.046 billion in the first three quarters of 2010, representing an increase of 8.8 percent or eur 165.5 million compared to the first nine months of 2009.
at eur 1.687 billion, the group's total costs were moderately higher than the corresponding figure for the first nine months of last year, by 1.7 percent or eur 28.3 million. this increase was caused by higher administrative expenses, which resulted, in turn, from the expenses associated with the sale of n24 and maz&more in June 2010. most of these expenses were non-recurring expenses for restructuring measures at the companies sold. another eur 13.6 million resulted from impairments of non-current assets and from other charges. In total, the transaction gave rise to exceptional expenses of eur 54.9 million. adjusted for non-recurring expenses in the total amount of eur 78.6 million (previous year: eur 63.9 million) and depreciation and amortization in the amount of eur 103.3 million (previous year: eur 93.7 million), the operating costs were at the same level as a year ago, amounting to eur 1.505 billion in the first nine months of 2010, as compared to eur 1.501 billion in the prior-year period (+0.3%).
at eur 547.3 million, the recurring ebItDa for the first nine months of 2010 was 40.6 percent higher than the last year's corresponding figure of eur 389.3 million. Consequently, the recurring ebItDa margin improved to 26.8 percent (previous year: 20.7%). the ebItDa rose by 42.0 percent to eur 468.7 million (previous year: eur 330.0 million). the consolidated profit after taxes and non-controlling interests amounted to eur 127.7 million (previous year: eur 31.1 million). Despite the non-recurring expenses associated with n24, the net income for the first nine months of the current year was almost four times as high as the corresponding prior-year figure. the strong profit growth resulted from higher revenues, coupled with constant recurring costs.
as of the reporting date, the financial debt of the ProSiebenSat.1 group comprised 63.5 percent non-current loans and borrowings (December 31, 2009: 63.2%, September 30, 2009: 63.9%) and 9.0 percent current loans and borrowings (December 31, 2009: 8.9%, September 30, 2009: 9.0%).
Secured syndicated facilities agreement. an essential part of the ProSiebenSat.1 group's funding comprises various secured term loans with maturities in July 2014 (term loan b) and July 2015 (term loan C). the ProSiebenSat.1 group entered into the secured syndicated facilities agreement for an original total of eur 4.200 billion (now eur 4.160 billion) in connection with the financing of the SbS acquisition in June 2007.
• In the fourth quarter of 2009, a portion of the term loan b was redenominated from Swedish kronas to euros, thus permanently reducing the total amount of term loan b from the original eur 1.800 billion to eur 1.771 billion. this amount was further reduced by a eur 5.4 million partial repayment in the first nine months of 2010 to eur 1.765 billion.
• term loan C was reduced by a eur 5.5 million partial repayment in the first nine months of 2010, to eur 1.795 billion.
additionally, the secured syndicated facilities agreement includes a revolving credit facility (rCf) with a facility amount of eur 600.0 million and a maturity in July 2014. the default of certain lenders due to the financial crisis reduced the available facility amount of the revolving credit facility to eur 594.7 million as of the fall of 2008.
Rating of the ProSiebenSat.1 Group: Credit ratings represent an independent assessment of a company's creditworthiness. however, the rating agencies do not take the ProSiebenSat.1 group's term loans into account in their credit ratings. Consequently, there are no official ratings at the present time.
about 79 percent of the variable-interest liabilities resulting from the term loans are hedged by a variety of interest-rate swaps. the amounts drawn under the rCf, are also at variable interest rates, and are not hedged by interest-rate swaps. Including the utilization of bank guarantees totaling eur 26.6 million, an amount of eur 523.8 million had been drawn down as of September 30, 2010. as of December 31, 2009, that figure had been eur 528.0 million (including bank guarantees of eur 30.8 million); as of September 30, 2009, that figure had been eur 534.8 million (including bank guarantees of eur 37.6 million).
the secured syndicated facilities agreement for term loans b and C and for the revolving credit facility requires the ProSiebenSat.1 group to comply with certain financial key ratios ("financial covenants"). further details can be found on page 74 of the 2009 annual report. the ProSiebenSat.1 group continued to comply with the terms of the agreement also in the third quarter and in the first nine months 2010.
non-compliance with the contractual financial ratios would give cause for early termination. however, the ProSiebenSat.1 group's facilities agreement also allows the group to prevent impending breaches of the key financial requirements, or to cure existing ones, by contributing equity or equity-like funds in the form of subordinated loans within certain periods. for the purposes of such an "equity cure" of the financial ratios, the majority shareholders (through an affiliated company) of ProSiebenSat.1 media ag committed on april 1, 2010, to make available a loan facility which is subordinated to the syndicated facilities agreement, should this be required for purposes of an "equity cure." In such a case, the ProSiebenSat.1 group would be able to draw on subordinated loans for up to eur 150 million until September 2011. the group will thus be able to respond flexibly to changes in business conditions. however, there is no contractual obligation to make use of the subordinated credit facility.
Net financial debt. at eur 3.284 billion, net financial debt (defined as total loans and borrowings minus cash and cash equivalents and current financial assets) was eur 250.6 million less than the corresponding figure as of September 30, 2009. the decrease in net financial debt reflects the group's earnings performance and positive liquidity situation. net financial debt also improved slightly compared to December 31, 2009 (eur 3.295 billion).
(1) In June 2007, the ProSiebenSat.1 group carried out the acquisition of SbS – the largest acquisition in its history. the transaction was financed entirely by a secured syndicated credit facility, which originally totaled eur 4.2 bn.
leverage. as of September 30, 2010, the group's leverage (ratio of net financial debt to recurring ebItDa for the last twelve months) was 3.8 times. as of September 30, 2009, this ratio was 5.3 times recurring ebItDa. the figure improved as a result of the lower amount of net financial debt and the high earnings growth compared to the prior-year period. as of December 31, 2009, the leverage ratio was 4.7 times.
Off-balance-sheet financing instruments: the ProSiebenSat.1 group had no significant off-balancesheet financing instruments during the reporting period. Information on the subject of leases appears on page 74 of the annual report 2009.
Cash and cash equivalents, page 16.
| EuRm | Q3 2010 | Q3 2009 | Q1-Q3 2010 | Q1-Q3 2009 |
|---|---|---|---|---|
| Profit for the period | 33.1 | -11.2 | 132.4 | 35.5 |
| Cash flow | 379.9 | 303.5 | 1,271.6 | 1,107.7 |
| Change in working capital | 19.3 | -3.7 | 5.0 | 57.7 |
| Dividends received | 0.1 | -0.1 | 2.6 | 2.7 |
| Income tax paid | -12.1 | -14.7 | -91.4 | -59.6 |
| Interest paid | -55.9 | -55.8 | -166.0 | -181.9 |
| Interest received | 0.9 | 0.9 | 1.9 | 4.1 |
| Cash flow from operating activities | 332.2 | 230.1 | 1,023.7 | 930.7 |
| Cash flow from investing activities | -322.7 | -319.4 | -998.9 | -1,009.1 |
| Free cash flow | 9.5 | -89.3 | 24.8 | -78.4 |
| Cash flow from financing activities | -2.6 | -3.3 | -26.0 | -48.9 |
| effect of foreign exchange rate changes on cash and cash equivalents |
-13.8 | 1.9 | 7.2 | 2.8 |
| Change in cash and cash equivalents | -6.9 | -90.7 | 6.0 | -124.5 |
| Cash and cash equivalents at beginning of reporting period | 750.3 | 599.1 | 737.4 | 632.9 |
| Cash and cash equivalents at end of reporting period | 743.4 | 508.4 | 743.4 | 508.4 |
Cash flow from operating activities. operating cash flow generated in the first nine months of 2010 amounted to eur 1.024 billion and was thus 10.0 percent or eur 93.0 million higher than the corresponding prior-year figure.
the increase compared to the prior-year period is characterized by opposing effects. the good business performance in nearly all markets resulted in a significantly improved consolidated net profit for the period compared to the prior year, which had a positive effect on the cash flow from operating activities. this higher profit for the period already comprised non-recurring expenses and impairments in the total amount of eur 54.9 million, which were related to the sale of n24 and will be recognized in cash flow in the upcoming months. the overall positive development was partially offset by changes in working capital; these changes amounted to eur 5.0 million as of September 30, 2010 (previous year: eur 57.7 million).
the positive effects of the significantly improved consolidated net profit also affected the cash flow from operating activities in the third quarter of 2010, which at eur 332.2 million was higher than the corresponding figure for the third quarter of 2009 by 44.4 percent or eur 102.1 million. aside from the improved net profit, higher non-interest-bearing liabilities, especially in connection with programming assets, also contributed to the increase in operating cash flow.
Cash flow from investing activities. Cash used in investing activities remained on the level of the prior-year period. In the first nine months of 2010, the cash outflow for investing activities amounted to eur 998.9 million (eur 10.2 million or 1.0 percent less than the prior-year period). of that amount, eur 322.7 million were attributable to the third quarter of 2010 (eur 3.3 million or 1.0 percent higher than the prior-year period).
the core area of the investing activities of ProSiebenSat.1 group involves the acquisition of programming assets through license purchases and the investment in comissioned and third-party productions. Cash outflows for programming acquisition in the third quarter of 2010 amounted to eur 308.9 million (previous year: eur 301.4 million). In the first three quarters of 2010, programming investments amounted to eur 953.9 million, remaining on the prior-year level of eur 959.4 million. the majority of programming investments, amounting to eur 716.1 million and 75.1 percent of the total, was attributable to germanspeaking area (previous year: 72.0%).
Cash fow from investing activities: Investments in license purchases, commissioned productions and outside productions are included in the cash flow for investing activities. by contrast, expenditures for in-house productions are mainly presented within the group's total costs.
Programming assets: Programming assets are mainly composed of movies, tV series and commissioned productions. movies and tV series are capitalized upon commencement of the contractual license period. Commissioned productions are presented as broadcastable programming assets upon being accepted. before being broadcast, sports events rights are presented within advance payments; after being broadcasted, they are reclassified as programming assets. When programs are broadcast, amounts are recognized as consumption of programming assets in the income statement.
Changes in the scope of consolidation, page 37.
term loans, page 13f.
Dividend payment, page 24.
In the current year, the group entered, inter alia, into a multi-year license agreement with Constantin film for its german-speaking tV stations. for its international tV stations, the group's activities included the purchase of the free tV rights for new productions of Warner brothers International (belgium: Vt4 and VIJftv) and of monarchy enterprises, a subsidiary of regency (netherlands: Veronica, net 5), for example. In addition, the Pro-SiebenSat.1 group secured the video-on-demand rights to numerous movies of twentieth Century fox, including the broadcast rights to avatar, the most successful movie of all times. the group also invested in the acquisition of sports rights. for example, the group secured the rights for the group's Danish stations to carry live coverage of matches from england's Premier league through 2013, and the rights to cover the Dutch Soccer Cup. for its german tV stations, the group purchased the rights to broadcast two world champion boxing matches each of the boxers felix Sturm and robert Stieglitz through 2011.
the group complements its purchases of licensing rights with investments in commissioned and third-party productions. In line with its strategy of establishing its own content unit, the ProSiebenSat.1 group bundled its programming production, development and sales activities under the roof of the newly formed red arrow entertainment group at the beginning of this year. red arrow has progressively expanded its portfolio in the last few months by acquiring equity investments in the production companies Kinetic Content (uSa) and Sultan Sushi (belgium). Sultan Sushi has also been represented through a subsidiary in the netherlands since June 2010.
as one of the most important indicators for the group's profitability and financial strength, free cash flow increased significantly compared to the prior-year period, rising by eur 103.2 million to eur 24.8 million in the first nine months of 2010. the free cash flow for the third quarter amounted to eur 9.5 million, which was eur 98.8 million higher than the corresponding prior-year period.
Cash flow from financing activities. In the third quarter of 2010, the cash flow from financing activities amounted to minus eur 2.6 million, as compared to minus eur 3.3 million in the third quarter of last year. the total cash outflow for financing activities in the first three quarters of the current year amounted to eur 26.0 million, as compared to eur 48.9 million in the prior-year period. the higher cash outflow in the prior-year period resulted in part from the repurchase of own shares in the amount of eur 15.4 million and in part from the comparatively higher volume of repayments of loans and borrowings in the first nine months of 2009, particularly the repayment of eur 19.2 million on a mortgage loan. especially the partial repayment of the existing term loan of eur 10.9 million led to a higher cash outflow of eur 11.4 million in the current reporting period. as in the previous year, the dividend payment in June 2010 led to a cash outflow of eur 2.1 million.
Cash and cash equivalents. the cash flows described above caused an increase of 0.8 percent or eur 6.0 million in the cash and cash equivalents compared to December 31, 2009, which amounted to eur 743.4 million as of September 30, 2010. In addition, positive currency exchange rate developments contributed to higher cash and cash equivalents compared to December 31, 2009.
the consolidated statement of financial position underwent no material structural changes compared to either December 31, 2009 or September 30, 2009. no major changes to assets and capital structure resulted from the sale of n24 and maz&more. at eur 6.319 billion, total assets were 2.3 percent or eur 144.7 million higher than the corresponding figure as of December 31, 2009 and 5.6 percent or eur 332.4 million higher than the corresponding figure as of September 30, 2009.
Current and non-current assets. total assets were slightly higher, due to the higher level of programming assets, among other factors. as of the reporting date, programming assets increased to eur 1.683 billion (December 31, 2009: eur 1.527 billion; September 30, 2009: eur 1.535 billion) and therefore represented 26.6 percent of total assets (December 31, 2009: 24.7%; September 30, 2009: 25.6%). at eur 743.4 million, cash and cash equivalents were likewise higher (December 31, 2009: eur 737.4 million; September 30, 2009: eur 508.4 million). another reason for the increase in total assets was the higher level of other receivables and assets, which at eur 147.7 million were eur 21.3 million higher than the corresponding figure as of December 31, 2009 and eur 7.3 million higher than the corresponding figure as of September 30, 2009. here the fair value changes of currency hedges had a positive impact.
Intangible assets, which represent the most important assets of the group, along with current and non-current programming assets, amounted to eur 3.037 billion, being on the level of the previous year (December 31, 2009: eur 3.015 billion; September 30, 2009: eur 3.035 billion). thus, intangible assets represented 48.1 percent of total assets, nearly unchanged from the previous year (December 31, 2009: 48.8%; September
Intangible assets: additional information on intangible assets can be found in the section entitled "non-financial performance indicators" on page 24.
30, 2009: 50.7%). this item includes the goodwill recognized in connection with the SbS acquisition and the intangible assets of SbS that were recognized or revaluated in connection with the purchase price allocation process, including license rights and brands, among other intangible assets.
Shareholders` Equity. at eur 762.6 million, equity was eur 181.8 million higher than the corresponding figure as of December 31, 2009, and also substantially higher than the corresponding figure at September 30, 2009 (+eur 323.7 million). Consequently, the equity ratio rose to 12.1 percent (December 31, 2009: 9.4%; September 30, 2009: 7.3%). the equity base was strengthened by the group's improved financial performance as well as by currency translation effects.
Current and non-current liabilities. Current and non-current loans and borrowings amounted to eur 4.027 billion (December 31, 2009: eur 4,032 billion; September 30, 2009: eur 4.043 billion). as of September 30, 2010, financial liabilities represented 87.9 percent of the balance sheet total (December 31, 2009: 90.6%; September 30, 2009: 92.7%). that amount includes non-current loans and borrowings in the amount of eur 3.530 billion, which were on the level of the prior year (December 31, 2009: eur 3.535 billion; September 30, 2009: eur 3.545 billion).
moreover, there were no significant changes, either quantitative or structural, in the nonfinancial liabilities and provisions. as of September 30, 2010, the largest single item among provisions was the item of other current provisions, in the amount of eur 82.5 million (December 31, 2009: eur 81.3 million; September 30, 2009: eur 72.9 million). this item is especially composed of provisions related to the sale of n24 (eur 29.7 million).
Revenues and earnings performance in the third quarter. Compared to the third quarter of last year, the free tV segment in germany, austria and Switzerland showed a substantial revenue growth, by 14.8 percent, to eur 387.1 million (previous year: eur 337.3 million). revenues from tV advertising were higher in all three markets. thus, the tV group was able to capitalize on its good audience ratings with advertising customers within a growing market environment.
the recurring ebItDa amounted to eur 104.0 million in the third quarter, twice as high as the corresponding prior-year figure of eur 51.8 million. at eur 97.7 million, the ebItDa was likewise significantly higher than the corresponding prior-year figure of eur 27.5 million.
Revenues and earnings performance in the first nine months. Compared to the corresponding period last year, external segment revenues in the months from January to September 2010 rose by 9.8 percent or eur 112.8 million to eur 1.264 billion. recurring ebItDa rose by 50.2 percent to eur 371.3 million (previous year: eur 247.2 million). Compared to the prior-year period, ebItDa increased by a comparable margin of 51.6 percent to reach eur 301.6 million (previous year: eur 198.9 million). organic growth and cost efficiency led to the strong growth in earnings.
| External segment revenues // EuRm | Recurring EBITda // EuRm | |||
|---|---|---|---|---|
| Q1-Q3 2010 | 1,263.5 | Q1-Q3 2010 | 371.3 | |
| Q1-Q3 2009 | 1,150.7 | Q1-Q3 2009 | 247.2 | |
| Q1-Q3 2008 | 1,213.6 | Q1-Q3 2008 | 215.2 |
as part of the first-time consolidation of SbS in June of 2007, the ProSiebenSat.1 group's segment reporting was revised to better address the group's expanded international business operations. the former free tV segment has been renamed the free tV german-speaking segment. hence, we provide no multi-year comparison taking account of the years before SbS was consolidated.
Revenues and earnings performance in the third quarter. the external revenues of the free tV International segment rose by 5.0 percent to eur 156.7 million in the third quarter of 2010 (previous year: eur 149.2 million).
Development of audience and advertising market shares, page 4-6. this revenue growth can be attributed to various factors: tV advertising revenues were higher in most markets. In the netherlands, however, the advertising revenues of the ProSiebenSat.1 group came in below last year´s period comparable as a result of lower audience shares. In hungary, the most important eastern european market for the Pro-SiebenSat.1 group, tV advertising revenues were also less than the corresponding prioryear figure, due to the recessive market environment in that region.
In addition to higher advertising revenues in most of its international tV markets, the group also increased its distribution revenues. In contrast to the core market of germany, in which the group's free tV stations are primarily financed by way of advertising revenues, tV markets like Denmark feature a hybrid revenue model, under which tV stations earn, in addition to advertising revenues, a considerable portion of their revenues in the form of distribution royalties. Currency effects, mainly in connection with the translation of Swedish krona into euros, had an additional positive impact.
Compared to the third quarter of 2009, the recurring ebItDa of this segment improved by eur 5.4 million to eur 32.4 million (+20.0%), while the ebItDa rose from eur 20.7 million to eur 31.6 million (+52.7%).
Revenues and earnings performance in the first nine months. also in the first nine months of 2010, higher revenues coupled with efficient cost management resulted in dynamic earnings growth. the external revenues of the free tV International segment rose by 7.0 percent or eur 34.2 million to eur 522.3 million, while the recurring ebItDa grew by 21.8 percent or eur 20.9 million to eur 116.7 million. the ebItDa also showed substantial double-digit growth, rising by 32.3 percent to eur 114.7 million (previous year: eur 86.7 million).
as part of the first-time consolidation of SbS in June of 2007, the ProSiebenSat.1 group's segment reporting was revised to better address the group's expanded international business operations. hence, we provide no multi-year comparison taking account of the years before SbS was consolidated. the acquisition of the SbS broadcasting group brought the group a number of free tV stations in northern and eastern europe and in the netherlands and belgium, which are combined as the free tV International segment.
Revenues and earnings performance in the third quarter. external revenues of the Diversification segment amounted to eur 83.1 million in the third quarter of 2010, representing an increase of 13.8 percent or eur 10.1 million over the third quarter of last year.
on the international level (radio and Print), the group's overall diversification revenues were up. In the german market, the ProSiebenSat.1 group achieved significant growth rates especially in online video advertising and in the traditional online business of banner advertising. aside from the online business, the sectors of commerce and music also
Capitalization of unused advertising volumes by means of the "media for revenue share" model: the german Interstate broadcasting agreement requires that ProSiebenSat.1 sells no more than twelve minutes of tV advertising per hour. at the present time, the tV group does not fully exploit this allowed volume. under the new model, unused advertising time can be sold another way: Companies that have not yet advertised on tV can receive broadcast time for their ad spots in exchange for granting a share of their revenues or a share in the company to ProSiebenSat.1 (media for equity).
contributed to the revenue growth. the ProSiebenSat.1 group uses its brand awareness, reach and tV station capacity to extend its value chain into related business areas. Such activities include sales of advertising time under the "media for revenue share" model, for example. furthermore, the ProSiebenSat.1 group has created new opportunities for expanding its revenue portfolio by venturing into the business of artist and live-event management. by contrast, the revenues of the quiz channel 9live, which is financed by way of charges on telephone calls, remained below the level of the prior year.
Compared to the third quarter of last year, the recurring ebItDa of this segment rose by 19.4 percent to eur 18.5 million (previous year: eur 15.5 million). at eur 14.8 million, the ebItDa was 5.0 percent higher than the prior-year figure (previous year: eur 14.1 million).
Revenues and earnings in the first nine months. In the first three quarters of 2010, the Diversification segment increased its external revenues by 7.7 percent or eur 18.5 million to eur 260.1 million. the recurring ebItDa rose by 28.8 percent to eur 59.5 million (previous year: eur 46.2 million). at eur 52.6 million, the ebItDa was likewise significantly higher (+16.1%) than the corresponding prior-year figure of eur 45.3 million. the revenue increase reflects the positive business performance of this segment.
Q3 2010 83.1 Q3 2010 18.5 15.5 19.3 (1) Q3 2009 Q3 2009 Q3 2008 Q3 2008 73.0 127.9 (1) External segment revenues // EuRm Recurring EBITda // EuRm
| External segment revenues // EuRm | Recurring EBITda // EuRm | ||||||
|---|---|---|---|---|---|---|---|
| Q1-Q3 2010 | 260.1 | Q1-Q3 2010 | 59.5 | ||||
| Q1-Q3 2009 | 241.6 | Q1-Q3 2009 | 46.2 | ||||
| Q1-Q3 2008 | 398.7 (1) | Q1-Q3 2008 | 55.9 (1) |
as part of the first-time consolidation of SbS in June of 2007, the ProSiebenSat.1 group's segment reporting was revised to better address the group's expanded international business operations. the diversification activities (especially radio and print) brought in with SbS are shown together with diversification operations that existed previously. the former transaction tV (call tV) and other Diversification (including online, basic pay tV, merchandising/licensing and music) segments were also incorporated into the new Diversification segment. We provide no multi-year comparison taking account of the years before SbS was consolidated. (1) Including the pay tV unit Cmore that was deconsolidated in november of 2008.
as of September 30 of the current year, the ProSiebenSat.1 group had a total of 4,726 (previous year: 4,916) employees throughout europe (full-time equivalents). of that number, 2,392 (previous year: 2,554) employees worked in germany, austria and Switzerland, corresponding to 50.6 percent (previous year: 52.0%) of the group's total employees. the average number of employees during the first three quarters of 2010 was 4,729 (previous year: 5,026) full-time equivalents. Compared to the first nine months of last year, personnel expenses were reduced by 3.6 percent or eur 10.4 million to eur 274.6 million.
the employee numbers for the first nine months of 2010 are mainly indicative of changes in the scope of consolidation compared to the prior-year period:
• Due to the sale of the news channel n24 and the production company maz&more, 299 full-time equivalent employees are no longer counted as employees of the ProSiebenSat.1 group, as of June 30, 2010.
• on the other hand, a total amount of 59 new full-time equivalent employees were added to the group as a result of the acquisition of a majority interest in the belgian production company Sultan Sushi CVba in march, the formation of a new Sultan Sushi subsidiary in the netherlands in June, and the acquisition of a majority interest in the u.S. production company Kinetic Content in September.
german-speaking 2,406 (2,589) Cee 852 (942) nordic 801 (844) b/nl 670 (651) Figures Q1-Q3 2009 in brackets
free tV german-speaking 2,157 (2,210) free tV International 1,715 (1,813) Figures Q1-Q3 2009 in brackets Diversification 857 (1.003)
In-house continuing training program expanded. In may 2010, the group expanded its continuing education program for employees with the introduction of the P7S1 academy, which offers a wide spectrum of seminars and information courses. under this program, experts from within the group regularly present new internal projects and strategic topics, and well-known guest speakers discuss trends in the media industry. employees also participate in media training courses, where they benefit from the experience of in-house experts who share their knowledge of media-specific topics such as online sales, television production and format development. In addition, the P7S1 academy offers traditional continuing education courses to convey specialized expertise in subjects like project management, leadership, foreign languages and It. Since may, more than 850 employees have participated in 64 training events.
ProSiebenSat.1 rewards its employees for outstanding performance. In addition to the performance-based compensation system that was already in place, the group introduced a Performance Development Program for its employees at the beginning of 2010. the goal of this program is to improve staff members' contributions to performance throughout the company, and to make those contributions more transparent. for that purpose, the measurement criteria applied for the purpose of existing bonus systems (achievement of personal goals and the company's business success) were expanded to include important aspects of successful leadership. under the new incentive system, employees may be eligible to receive a one-time payment of up to 200 percent of the individual target bonus. thus, the program combines performance appraisal with talent promotion. as a result, the group will have better ability to fill key positions in the future. this program, which was initiated with a pilot group of 185 executives at the beginning of this year, will be expanded in 2011.
The ProSiebenSat.1 share on the stock market. the upward trend of the ProSiebenSat.1 share, which is included in the german mDaX index, continued in the third quarter of 2010. the share closed the third quarter at eur 17.43, representing an increase of more than 110 percent compared to the closing price of eur 8.13 on the first trading day of 2010. the ProSiebenSat.1 share performed significantly better than comparable indexes: on September 30, the DaX closed 2.9 percent higher and the mDaX closed 14.2 percent higher than their respective levels at the beginning of the year. the relevant sector index for european media stocks, the euro Stoxx media index, lost 0.97 percent of its value in the first nine months of 2010.
for detailed information on the performance of the company's share, please visit http://en.prosiebensat1. com/.
the ProSiebenSat.1 group pre-released its Q2 results in an ad hoc disclosure dated July 26, 2010, because the company had exceeded market expectations. on that day, the company's share price rose by 12.35 percent to eur 13.96 (July 23: eur 12.43). In response to the company's good financials and positive outlook, stock analysts raised their share price targets until the end of the third quarter, on average to eur 17.50. the highest target price was at eur 21. this gave an additional impetus to the ProSiebenSat.1 share. the share reached its high for the year to date of eur 17.61 on September 29, 2010.
ProSiebenSat.1 euro Stoxx media mDaX DaX // basis: Xetra closing quotes. an index of 100 = January 2006. Source: reuters
| 2010 | 2009 | 2008 | 2007 | 2006 | ||
|---|---|---|---|---|---|---|
| Share capital at reporting date | units | 218,797,200 | 218,797,200 | 218,797,200 | 218,797,200 | 218,797,200 |
| number of preferred shares at reporting date (1) | units | 109,398,600 | 109,398,600 | 109,398,600 | 109,398,600 | 109,398,600 |
| number of common shares at reporting date (unlisted) | units | 109,398,600 | 109,398,600 | 109,398,600 | 109,398,600 | 109,398,600 |
| Dividend per preferred share | eur | - / - | 0.02 | 0.02 | 1.25 | 0.89 |
| total dividend | eurm | - / - | 2.1 | 2.1 | 269.9 | 192.5 |
(1) before deduction of 6,027,500 treasury shares.
annual General meeting for the financial year 2009. the annual general meeting of shareholders of ProSiebenSat.1 media ag for the financial year 2009 was held at the alte Kongresshalle in munich's bavariapark on June 29, 2010. Some 300 shareholders and guests attended the meeting.
all proposed resolutions presented were unanimously adopted. Inter alia, the annual general meeting granted formal approval of the activities of the members of the executive board and of the Supervisory board for the financial year 2009. furthermore the proposed resolution on the allocation of profit for the financial year 2009 was adopted and – as in the previous year – a dividend distribution of eur 0.02 per bearer share of preference shares was resolved upon. no dividend was paid on common shares. the total dividend distribution will thus come to approx. eur 2.1 million, matching last year's amount. the dividend was paid on June 30, 2010.
IR work awarded. In connection with the german Investor relations awards 2010, the Ir work of ProSiebenSat.1 group was ranked fifth among companies included in the mDaX. as part of this process, more than 800 financial market experts evaluated investor relations departments on the basis of criteria including specialized expertise, industry knowledge and speed of response. In this year's contest for the best annual report organized by manager magazin, ProSiebenSat.1 took seventh place among companies included in the mDaX. the criteria that the jury uses to evaluate these annual reports are content, design and language.
Various important assets are not recognized in the statement of financial position of the ProSiebenSat.1 group: for example, the value of certain tV station brands, the high reach and the quality of ProSiebenSat.1's programs, and organizational advantages that result from the complementary programming of the tV station family. employee potential is another important success factor that is not quantified financially.
for more information on non-financial performance indicators and their importance for the competitive strength of the ProSiebenSat.1 group, please see pages 88 to 92 of the annual report 2009. the examples cited below and studies conducted in the current year provide a current overview of the most important non-financial performance indicators of ProSiebenSat.1 group.
Strong brands. the values of the brands acquired in connection with the SbS acquisition in 2007 are recognized in the consolidated statement of financial position as intangible assets. however, the group's "own brands" Sat.1 and ProSieben are not recognized in the statement of financial position. they are among the most important non-financial performance indicators of the ProSiebenSat.1 group. for many years now, these two brands have stood for germany's most popular and successful tV stations. the popularity of the two stations is underscored by the recent study "relevant Set – tV Station Diversity and usage," which found that even in those households in germany that can receive more than 150 tV stations, 80 percent of daily tV usage is concentrated on only six stations. the so-called "relevant set" is mainly composed of the big tV station brands, including Sat.1, ProSieben and kabel eins.
High reach and attractive programs. With a reach of more than 78 million tV households, ProSiebenSat.1 is the second-biggest tV station group in europe. aside from business responsibilities, that status also entails a high level of social responsibility. the credibility of programming content is an important success factor for any company engaged
for more information on the annual shareholders' meeting and voting results, please visit http://en. prosiebensat1.com/investor_relations/ hauptversammlung/1/.
multi-station strategy, page 6.
employees, page 21-22.
Research and development: the ProSiebenSat.1 group conducts intensive market research in every area in which it does business and in every area in which it foresees growth potential. however, market research activities do not fit the definition of research and development according to IaS 38.8 and therefore this information is not disclosed in the management report.
in journalism and media. therefore, beside its commitment to the principles of journalistic and media policy guidelines, the ProSiebenSat.1 group strives to provide independent, well-researched information in its programs, in order to educate the public with professionally produced content. that principle applies not only to the news programs of the ProSiebenSat.1 group, but also to its knowledge magazines, entertainment formats and consumer advice programs. the quality and social relevance of our programming have been recognized by numerous awards:
aside from the social engagement evidenced by its programs, the ProSiebenSat.1 group also supports various social welfare campaigns and projects. Since the beginning of the initiative fIrSt StePS in 2000, for example, ProSiebenSat.1 tV Deutschland has helped young film makers get their start in the media industry. In august 2010, a jury selected the winners of the fIrSt StePS aWarD, recognizing the best final film projects of students at german-speaking film schools for the eleventh time.
REd NOSE daY ProSiebenSat.1 tV Deutschland, germany
First Steps award 2010 ProSiebenSat.1 tV Deutschland, germany
Stop indiferentei Prima tV, romania
Galileo-Special "Karawane der Hoffnung" ProSieben, germany
unser Star für Oslo ProSieben, germany
Barrier-free TV ProSiebenSat.1 tV Deutschland, germany
Daniel marks resigns from the executive board of ProSiebenSat.1 media ag, page 30.
from the end of the third quarter 2010 to november 9, 2010, the date when this report was released for publication and forwarded to the Supervisory board, no reportable events occurred that would have been of material significance for the financial performance and position of the ProSiebenSat.1 group or ProSiebenSat.1 media ag.
the risk reporting system in place regularly informs the executive board and Supervisory board of ProSiebenSat.1 media ag of potential risks that could have a significant effect on the business performance of the ProSiebenSat.1 group. the group engages in the systematic management of all relevant risks. the risk management process comprises the identification and assessment of risks and opportunities, as well as the use of control instruments and risk monitoring.
for a comprehensive presentation of risk categories and the risk management system practiced throughout the group, please refer to pages 94 to 102 of the annual report 2009. Potential opportunities are described on page 105 and following of the annual report 2009. ProSiebenSat.1 has not identified any further opportunities or risks beyond those described in the annual report 2009.
Overall assessment of the Group's risk situation – management's view. there has been no fundamental change in the risk situation compared to December 31, 2009. as of the date of the preparation of this management report, in the executive board's opinion the overall risk situation has remained limited and manageable. at that date, no risks were evident which, individually or in combination with other risks, would have a material adverse effect on the ProSiebenSat.1 group's financial performance and position. based on our planning knowledge, we also do not anticipate material changes that might pose a threat to the ability of the ProSiebenSat.1 group to continue as a going concern.
development of individual risks. the assessments of the risks described in the annual report 2009 are essentially unchanged. Important risk positions in the first nine months of 2010 are described in the following:
• External risks. based on our current assessment, potential risks related to the advertising market environment have diminished over the course of the current year.
especially in our principal revenue-generating market of germany, the economic recovery has become much more substantive in the last few months. although factors such as a slowing of the global economy and a strengthening of the euro could weigh on exports, the continued positive development of the job market and the prospect of collective wage increases will promote a positive environment for consumers in germany. most other european countries are currently experiencing either subdued growth or less dynamic growth than germany at the present time. the subsequent effects of the economic crisis are especially evident in greece, Spain and Ireland, as well as the countries of eastern
Risk management at ProSieben-Sat.1: the ProSiebenSat.1 group analyzes and manages its overall risk situation by means of a group-wide risk management system. the assessment of the overall risk situation is based on a detailed analysis of the most significant individual risks and an aggregate analysis of the group's principal risk groups (external risks, content, technology risks, sales, organizational and financial risks, compliance).
europe. In view of germany's economic strength and the mostly positive tendencies in the european countries in which we operate, however, we are optimistic regarding the future, for the most part. additional information on future business conditions can be found in the outlook on page 27.
• Compliance: the offices of ProSiebenSat.1 media ag were searched by the german federal Cartel office in may of 2010. the search was based on the allegation that ProSieben-Sat.1 media ag and the rtl group are colluding in setting up strategies, under which programs of the competing tV groups that could previously be received free of charge would be encrypted, bundled and only made accessible against payment of a fee in the future. at this stage, the outcome of the investigation, including any subsequent decision by the federal Cartel office as to whether it will launch further proceedings against the company, cannot be reliably predicted. as a consequence, no provision was recorded at the reporting date.
the pending investigation of individual persons by the munich Public Prosecutor's office, subsequent to the cartel proceedings concluded in 2007, was terminated in the fourth quarter of 2009 without the imposition of restrictions or fines against the affected persons or the company. the residual risk mentioned in that connection in the annual report 2009, that certain business expenses claimed in the past would be subsequently reclassified as nondeductible expenses for tax purposes, no longer exists.
the expectations for the business performance of the ProSiebenSat.1 group are based on the opportunities and risks that can be expected to arise from the respective market conditions and competitive situations in the further course of the year. the expectations for the group's financial position and performance and the goals for 2010 and beyond, which are described on page 108 and following of the annual report 2009, are still in effect. they have been taken into account as part of the budget planning process for 2010 to the greatest extent possible. the planning assumptions have also not changed significantly. following the recession of 2009, however, the basic economic conditions have improved more quickly than originally anticipated. the german tV advertising market in particular has gained significant momentum in the last few months, fueling the growth of the group's revenues and earnings.
In the first half of 2010, the global economy rebounded surprisingly quickly from the deep recession of the previous year. that recovery benefited not only the european economy in general, but also the advertising markets, which have revived appreciably over the last few months. for the full year 2010, the european Commission is predicting stable economic growth of 1.8 percent in europe, eu-27 (euro zone: 1.7%). however, the dynamic of economic growth varies widely among the member states.
Detailed information on identified opportunities and the group's business strategy can be found on pages 55 and 56 as well as on page 105 and following of the annual report. the statements made there remain in effect. for information on the latest developments in risk management, please refer to pages 26 and 27 of the present management report.
Comparison of actual business Performance with anticipated business Performance, page 10.
because tV advertising expenditures can be seen as "investments in the future by advertising companies," the development of advertising markets is always closely tied to the current economic conditions and the expectations for future economic conditions. Since the beginning of this year, the Ifo business Climate Index has exhibited a nearly unbroken upward trend, and the future expectations for germany have so far remained stable on a high level. against this background, the zenith agency group has significantly raised its 2010 forecast for the german tV advertising market and is now predicting net growth of 6.1 percent.
Internationally, the forecasts for the tV advertising markets in which the ProSiebenSat.1 group is active are also predominantly positive. the forecasts are summarized in the graphic below.
Development of tV advertising markets in ProSiebenSat.1 major tV markets, change 2010 compared to 2009 In percent Zenith
zenithoptimedia (10/2010). figures adjusted on net basis, nevertheless with methodological differences between countries and sources.
Just as the outlook for the future economic conditions is positive, the industry-specific growth prospects are likewise good. Industry trends support the status of tV as the leading medium. for example, the average viewing time in germany has risen further in the last few months, reaching a new record high of 233 minutes per day in the first nine months of 2010 in the audience aged 14 years and older. 45 percent of persons aged 14 to 49, the most important demographic for the german advertising industry, are convinced that television will continue to become more important or at least remain just as important in the future.
the advertising impact of tV as the traditional leading medium is likewise unabated. for example, it only takes a few tV contacts to increase the familiarity with and sympathy for new products advertised on tV. besides building images, tV also creates sales potential. moreover, tV and Internet do not cannibalize but rather complement each other. new media such as the Internet offer additional growth opportunities for tV, both with respect to usage duration and advertising impact.
Future development of revenues and earnings. according to nielsen media research, the group's ten leading tV advertising customers in germany increased their gross advertising investments on the tV station portfolio of the ProSiebenSat.1 group by 15.3 percent in the months from January to September 2010. In addition, the group has acquired numerous new customers, which also contributed to significant growth in its tV advertising revenues in the first three quarters of 2010. the ProSiebenSat.1 group generates about one third of its annual revenues in the traditionally strongest fourth quarter of the year, because both tV usage and consumers' willingness to spend in the Christmas season. the bookings of our german tV stations in the month of october were again higher than they were last year in october. against this background, we anticipate that the positive revenue trend of the free tV german-speaking segment will continue in the fourth quarter, although the growth rates in the fourth quarter of 2010 will probably not reach the level of the preceding quarters, due to prior-year comparison effects.
from today's perspective, the majority of indicators suggest that the generally stronger advertising demand that prevails at the present time will continue, also in most of our international tV markets. We currently assume that only in eastern europe continued difficult economic conditions will dampen the advertising customers' willingness to invest.
although the fourth quarter is not expected to reach the high revenue growth level of the preceding quarters due to the more challenging prior-year figures especially in the german core market, the ProSiebenSat.1 group anticipates that recurring ebItDa will rise significantly on a full year basis. In doing so we will continue to capitalize on the performance of the group's tV stations at appropriate prices and further diversify revenue sources. measures taken to achieve this goal include the sale of advertising time in exchange for a share of revenues, as well as the group's entry into the business of artist management, the expansion of online offerings and the refinancing of tV programming content via royalties.
Expected financial position and performance. We expect to further reduce the group's net financial debt of currently eur 3.284 billion by the end of 2010. the improved earnings performance can be expected to have a positive effect on the group's liquidity and therefore also on its future net financial debt.
| EuRm | 2009 | Target 2010 |
|---|---|---|
| Consolidated revenues | 2,760.8 | |
| recurring costs | 2,077.5 | |
| recurring ebItDa | 696.5 | |
| underlying net income | 184.8 | |
| net financial debt | 3,294.6 |
Volume of orders: In so-called "program screenings" in the late summer, the ProSiebenSat.1 group informs its customers about the direction of the group's tV programming in the coming year. advertising customers use this preview as an important basis for making decisions about their advertising investments. the price level is based on the factors of reach, broadcast time, demand and number of advertising spaces. as is customary in this business, however, the final budget volume is sometimes only confirmed on a short-term, month-by-month basis - only then the whole turnover gets transparent. furthermore, additional advertising budgets are granted on short notice towards the end of the year. for these reasons, ProSiebenSat.1 does not report on the volume of orders.
N24sold—long-termnewssupply agreementsigned. the ProSieben-Sat.1 group sold news channel n24 and production company maz&more to a bidder consortium headed by torsten rossmann and Stefan aust in June 2010. the sale of n24 will lead to substantial efficiency gains for the ProSiebenSat.1 group. the group is assured of long-term access to news programming.
Red arrow enters the u.S. market. as of September 2010, the red arrow entertainment group is represented for the first time in the united States, having acquired a majority interest of 51 percent in the u.S. production company Kinetic Content. thus, the company has now grown beyond the borders of europe and secured access to the world's biggest tV market. founded in January 2010, the munich-based red arrow entertainment group is consolidated within the free tV german-speaking segment. It bundles the group's content production, development and sales activities. the holding company had already expanded its portfolio in march, when it acquired a majority interest in the belgian production company Sultan Sushi. furthermore, red arrow has been represented in the netherlands, through its subsidiary Sultan Sushi, since June 2010.
officer of ProSiebenSat.1 media ag, left the company at the end of September, for personal reasons. he had been a member of the executive board since may 1, 2010, where he was responsible primarily for the further development and coordination of the digital strategy and for the operational management of the online, Pay-tV and VoD business. his executive board responsibilities will be assumed by Ceo thomas ebeling.
Executive Board personnel change in the diversification segment. Daniel marks, Chief new media
In-house continuing education program expanded. by means of the newly created P7S1 academy, the group employs a wide variety of methods, from seminars to guest presentations and workshops, to help employees develop their capabilities further.
ProSiebenSat.1 the most popular employer among high school students. ProSiebenSat.1 media ag was elected the most popular employer for the third time in a row. that was the result of "Schülerbarometer 2010," a survey conducted by the berlin-based trendence institute, in which approximately 16,000 students from different types of high schools participated.
ProSiebenSat.1 day care center "Telezwerge" expanded. the ProSiebenSat.1 group expanded its day-care center significantly in the last few months, increasing the number of children to 70 in September.
ProSiebenSat.1 launches Hd programs. as of January 31, 2010, tV stations Sat.1, ProSieben and kabel eins broadcast their programs in high Definition (hD+), in addition to standard resolution. SeS astras new hD+ service handles the broadcast transmissions. a total of 360,000 hD+ devices were sold through august. ProSiebenSat.1 is also active in 3D television: Since September 28, Dutch tV station net 5 has been broadcasting a majority of its programs in 3D, via the cable network operator ziggo.
Successful start of FEm3. at the beginning of 2010, fem3 was the first hungarian female channel to go on air. only nine months later, fem3 reaches more than one million hungarian tV households. by creating new stations, the ProSiebenSat.1 group can better exploit its programming resources, generate additional revenues and reach target audiences even more precisely. another new channel is launched in norway this year: maX, a tV channel tailored specifically to the male demographic in the ages of 15 to 49, goes on air on november 1.
New German female channel sixx. With the slogan "sixx: I want that too!" german female channel sixx went on air on may 7, 2010. the
channel can be received via satellite and digital cable and reaches 43 percent of german tV households. the tV station's marketing strategy is particularly directed to companies that have not yet advertised on tV.
Successful artist management with Starwatch Entertainment and tma. In march 2010, the ProSiebenSat.1 group bundled all its activities related to artist marketing within the talent management agency (tma). Wellknown comedian michael mittermeier is under contract, along with actors, musicians and presenters like Joachim Winterscheidt. and in July, Starwatch entertainment signed old master Joe Cocker. his album appeared on october 1, 2010 and went straight to no. 1 on the german longplay charts.
Veronica magazine as iPad app. through Sevenone media, the ProSiebenSat.1 group is the thirdbiggest german online marketer, investing in new media such as Web-tV, online games and mobile apps. for example, ProSiebenSat.1 has introduced 8 iPhone and 4 iPad apps this year in germany alone. the group is making use of new media in the print business as well: In late July, tV magazine "Veronica magazine" launched an iPad version, making it the first tV magazine for the iPad in the netherlands.
maxdome expands Video-ondemand offering. ProSiebenSat.1 acquired an extensive VoD rights package from CbS Studios International for maxdome. by working with one of the biggest tV groups in the united States, maxdome can further expand its repertory of tV series. With services like Video-on-Demand, for which viewers pay a usage fee for watching attractive programs, ProSiebenSat.1 generates additional revenues beyond the scope of classical tV advertising, which is one of the group's strategic goals.
TV station group launches HbbTV. ProSieben and Sat.1 are the first commercial tV stations in germany to start live operation of hbbtV (hybrid broadcast broadband television). hbbtV combines television with the Internet on the tV screen, offering viewers the chance to access additional information, pictures and videos related to a given program, with only one click on the remote control.
| EURm | Q3 2010 | Q3 2009 | Q1-Q3 2010 | Q1-Q3 2009 | |
|---|---|---|---|---|---|
| 1. | revenue | 626.9 | 559.5 | 2,045.9 | 1,880.4 |
| 2. | cost of sales | -354.2 | -362.2 | -1,143.7 | -1,155.0 |
| 3. | Gross profit | 272.7 | 197.3 | 902.2 | 725.4 |
| 4. | selling expenses | -92.1 | -87.1 | -278.4 | -279.7 |
| 5. | administrative expenses | -72.1 | -84.8 | -265.1 | -224.2 |
| 6. | other operating income | 2.8 | 4.4 | 6.7 | 14.8 |
| 7. | Operating profit | 111.3 | 29.8 | 365.4 | 236.3 |
| 8. | income from investments accounted for using the equity method | -0.9 | -0.5 | -3.7 | 0.5 |
| 9. | interest and similar income | 1.5 | 1.3 | 3.8 | 5.4 |
| 10. | interest and similar expenses | -56.5 | -57.4 | -167.4 | -179.5 |
| 11. | interest result | -55.0 | -56.1 | -163.6 | -174.1 |
| 12. | other financial result | -10.8 | 8.1 | -11.7 | -3.6 |
| 13. | Financial result | -66.7 | -48.5 | -179.0 | -177.2 |
| 14. | Profit/loss before income taxes | 44.6 | -18.7 | 186.4 | 59.1 |
| 15. | income taxes | -11.5 | 7.5 | -54.0 | -23.6 |
| 16. | Profit/loss for the period | 33.1 | -11.2 | 132.4 | 35.5 |
| attributable to | |||||
| shareholders of prosiebensat.1 media ag | 32.0 | -12.7 | 127.7 | 31.1 | |
| non-controlling interests | 1.1 | 1.5 | 4.7 | 4.4 | |
| EUR | |||||
| Basic earnings per share of common stock | 0.15 | -0.07 | 0.59 | 0.13 | |
| Basic earnings per share of preferred stock | 0.15 | -0.05 | 0.61 | 0.15 |
| Q3 2010 | Q3 2009 | Q1-Q3 2010 | Q1-Q3 2009 |
|---|---|---|---|
| 33.1 | -11.2 | 132.4 | 35.5 |
| 24.0 | 12.4 | 59.5 | 15.1 |
| -34.4 | -42.2 | -9.2 | -94.3 |
| 9.9 | 15.5 | 2.7 | 31.0 |
| -0.5 | -14.3 | 53.0 | -48.2 |
| 32.6 | -25.5 | 185.4 | -12.7 |
| 31.5 | -27.0 | 180.6 | -14.7 |
| 1.1 | 1.5 | 4.8 | 2.0 |
* includes non-controlling interests from change in foreign currency translation adjustment in Q1-Q3 2010 of 0.1 eurm (Q1-Q3 2009: -2.4 eurm) and in Q3 of 0.0 eurm (Q3 2009: 0.0 eurm)
| EURm | 09/30/2010 | 12/31/2009 | 09/30/2009 | |
|---|---|---|---|---|
| A. | Non-current assets | |||
| i. | intangible assets | 3,036.6 | 3,015.1 | 3,035.0 |
| ii. | property, plant and equipment | 227.4 | 256.6 | 258.0 |
| iii. | investments accounted for using the equity method | 1.4 | 2.1 | 3.7 |
| iV. | non-current financial assets | 62.3 | 61.0 | 60.4 |
| V. | programming assets | 1,442.3 | 1,276.4 | 1,209.4 |
| Vi. | trade receivables | 0.2 | 1.0 | 1.4 |
| Vii. | non-current tax assets | 2.2 | - / - | - / - |
| Viii. | other receivables and non-current assets | 5.8 | 5.0 | 6.8 |
| iX. | deferred tax assets | 100.2 | 90.1 | 113.2 |
| 4,878.4 | 4,707.3 | 4,687.9 | ||
| B. | Current assets | |||
| i. | programming assets | 240.2 | 250.1 | 325.2 |
| ii. | inventories | 2.1 | 2.3 | 5.8 |
| iii. | current financial assets | 0.2 | 0.1 | 0.2 |
| iV. | trade receivables | 273.9 | 310.9 | 255.5 |
| V. | current tax assets | 39.3 | 45.2 | 70.4 |
| Vi. | other receivables and current assets | 141.9 | 121.4 | 133.6 |
| Vii. | cash and cash equivalents | 743.4 | 737.4 | 508.4 |
| 1,441.0 | 1,467.4 | 1,299.1 | ||
| Total assets | 6,319.4 | 6,174.7 | 5,987.0 |
| EURm | 09/30/2010 | 12/31/2009 | 09/30/2009 | |
|---|---|---|---|---|
| A. | Equity | |||
| i. | subscribed capital | 218.8 | 218.8 | 218.8 |
| ii. | capital reserves | 553.7 | 552.5 | 549.5 |
| iii. | retained earnings | 203.2 | 75.5 | -25.3 |
| iV. | treasury shares | -30.5 | -30.5 | -30.5 |
| V. | accumulated other comprehensive income | -190.3 | -243.2 | -279.9 |
| total equity attributable to shareholders of prosiebensat.1 media ag | 754.9 | 573.1 | 432.6 | |
| Vi. | non-controlling interests | 7.7 | 7.7 | 6.3 |
| 762.6 | 580.8 | 438.9 | ||
| B. | Non-current liabilities | |||
| i. | non-current loans and borrowings | 3,529.6 | 3,534.9 | 3,545.1 |
| ii. | other non-current financial liabilities | 420.2 | 406.0 | 433.8 |
| iii. | trade payables | 38.1 | 49.2 | 35.8 |
| iV. | other non-current liabilities | 1.9 | 1.8 | 1.8 |
| V. | provisions for pensions | 8.4 | 8.0 | 7.3 |
| Vi. | other non-current provisions | 15.0 | 12.3 | 10.3 |
| Vii. | deferred tax liabilities | 173.3 | 167.1 | 195.9 |
| 4,186.5 | 4,179.3 | 4,230.0 | ||
| C. | Current liabilities | |||
| i. | current loans and borrowings | 497.8 | 497.2 | 497.9 |
| ii. | other current financial liabilities | 45.7 | 44.5 | 65.0 |
| iii. | trade payables | 439.3 | 432.1 | 402.3 |
| iV. | other current liabilities | 249.7 | 265.6 | 224.6 |
| V. | provisions for taxes | 55.3 | 93.9 | 55.4 |
| Vi. | other current provisions | 82.5 | 81.3 | 72.9 |
| 1,370.3 | 1,414.6 | 1,318.1 | ||
| Total equity and liabilities | 6,319.4 | 6,174.7 | 5,987.0 |
| EURm | Q3 2010 | Q3 2009 | Q1-Q3 2010 | Q1-Q3 2009 |
|---|---|---|---|---|
| Profit/loss for the period | 33.1 | -11.2 | 132.4 | 35.5 |
| income taxes | 11.5 | -7.5 | 54.0 | 23.6 |
| financial result | 66.7 | 48.5 | 179.0 | 177.2 |
| depreciation/amortization and impairment of intangible and tangible assets | 32.8 | 32.6 | 103.3 | 93.7 |
| consumption/reversal of impairment of programming assets | 244.5 | 234.3 | 763.4 | 772.1 |
| change in provisions for pensions and other provisions | -6.6 | 9.4 | 5.7 | 8.4 |
| gain/loss on the sale of assets | -1.3 | -1.2 | 40.0 | -5.2 |
| other noncash income/expenses | -0.8 | -1.4 | -6.2 | 2.4 |
| Cash flow | 379.9 | 303.5 | 1,271.6 | 1,107.7 |
| change in working capital | 19.3 | -3.7 | 5.0 | 57.7 |
| dividends received | 0.1 | -0.1 | 2.6 | 2.7 |
| income tax paid | -12.1 | -14.7 | -91.4 | -59.6 |
| interest paid | -55.9 | -55.8 | -166.0 | -181.9 |
| interest received | 0.9 | 0.9 | 1.9 | 4.1 |
| Cash flow from operating activities | 332.2 | 230.1 | 1,023.7 | 930.7 |
| proceeds from disposal of non-current assets | 0.3 | 1.5 | 0.9 | 3.4 |
| payments for the acquisition of intangible and tangible assets | -13.9 | -13.8 | -45.9 | -62.2 |
| payments for the acquisition of financial assets | -0.3 | -0.2 | -0.8 | -1.4 |
| proceeds from disposal of programming assets | 3.6 | 1.5 | 23.2 | 12.9 |
| payments for the acquisition of programming assets | -308.9 | -301.4 | -953.9 | -959.4 |
| payments for loans to associated companies | -1.0 | -1.9 | -2.9 | -2.2 |
| cash flows from obtaining control of subsidiaries or other business | -1.0 | -5.8 | -4.8 | -5.7 |
| cash flows from losing control of subsidiaries or other business | -1.5 | 0.7 | -14.7 | 5.5 |
| Cash flow from investing activities | -322.7 | -319.4 | -998.9 | -1,009.1 |
| Free Cash flow | 9.5 | -89.3 | 24.8 | -78.4 |
| dividends paid | - / - | - / - | -2.1 | -2.1 |
| repayment of interest-bearing liabilities | - / - | -0.1 | -11.4 | -19.3 |
| proceeds from issuance of interest-bearing liabilities | - / - | - / - | 0.6 | - / - |
| repayment of finance lease liabilities | -2.3 | -2.9 | -7.5 | -6.1 |
| repurchase of treasury shares | - / - | - / - | - / - | -15.4 |
| dividend payments to non-controlling interests | -0.3 | -0.3 | -5.6 | -6.0 |
| Cash flow from financing activities | -2.6 | -3.3 | -26.0 | -48.9 |
| effect of foreign exchange rate changes on cash and cash equivalents | -13.8 | 1.9 | 7.2 | 2.8 |
| Change in cash and cash equivalents | -6.9 | -90.7 | 6.0 | -124.5 |
| cash and cash equivalents at beginning of reporting period | 750.3 | 599.1 | 737.4 | 632.9 |
| Cash and cash equivalents at end of reporting period | 743.4 | 508.4 | 743.4 | 508.4 |
| EURm | Subscribed capital |
Capital reserves |
Retained earnings |
Treasury shares |
Accumulated other comprehensive income |
Total equity attributable to |
Non-con trolling |
Total equity | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Foreign currency translation adjustment |
Fair value changes of Cash Flow Hedges |
Deferred taxes |
shareholders of ProSiebenSat.1 Media AG |
interests | ||||||
| December 31, 2008 | 218.8 | 547.1 | -56.4 | -15.1 | -96.6 | -185.2 | 47.7 | 460.3 | 18.6 | 478.9 |
| profit for the period | - / - | - / - | 31.1 | - / - | - / - | - / - | - / - | 31.1 | 4.4 | 35.5 |
| other comprehensive income |
- / - | - / - | - / - | - / - | 17.5 | -94.3 | 31.0 | -45.8 | -2.4 | -48.2 |
| Total comprehensive income |
- / - | - / - | 31.1 | - / - | 17.5 | -94.3 | 31.0 | -14.7 | 2.0 | -12.7 |
| dividends paid | - / - | - / - | - / - | - / - | - / - | - / - | - / - | - / - | -6.0 | -6.0 |
| stock option plan | - / - | 0.9 | - / - | - / - | - / - | - / - | - / - | 0.9 | - / - | 0.9 |
| repurchase of treasury stock |
- / - | 1.5 | - / - | -15.4 | - / - | - / - | - / - | -13.9 | - / - | -13.9 |
| other changes | - / - | - / - | - / - | - / - | - / - | - / - | - / - | - / - | -8.3 | -8.3 |
| September 30, 2009 | 218.8 | 549.5 | -25.3 | -30.5 | -79.1 | -279.5 | 78.7 | 432.6 | 6.3 | 438.9 |
| EURm | Subscribed capital |
Capital reserves |
Retained earnings |
Treasury shares |
Accumulated other comprehensive income |
Total equity attributable to |
Non-con trolling |
Total equity | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Foreign currency translation adjusment |
Fair value changes of Cash Flow Hedges |
Deferred taxes |
shareholders of ProSiebenSat.1 Media AG |
interests | ||||||
| December 31, 2009 | 218.8 | 552.5 | 75.5 | -30.5 | -71.4 | -235.9 | 64.1 | 573.1 | 7.7 | 580.8 |
| profit for the period | - / - | - / - | 127.7 | - / - | - / - | - / - | - / - | 127.7 | 4.7 | 132.4 |
| other comprehensive income |
- / - | - / - | - / - | - / - | 59.4 | -9.2 | 2.7 | 52.9 | 0.1 | 53.0 |
| Total comprehensive income |
- / - | - / - | 127.7 | - / - | 59.4 | -9.2 | 2.7 | 180.6 | 4.8 | 185.4 |
| dividends paid | - / - | - / - | - / - | - / - | - / - | - / - | - / - | - / - | -5.6 | -5.6 |
| stock option plan | - / - | 1.2 | - / - | - / - | - / - | - / - | - / - | 1.2 | - / - | 1.2 |
| Other changes | - / - | - / - | - / - | - / - | - / - | - / - | - / - | - / - | 0.8 | 0.8 |
| September 30, 2010 | 218.8 | 553.7 | 203.2 | -30.5 | -12.0 | -245.1 | 66.8 | 754.9 | 7.7 | 762.6 |
prosiebensat.1 media ag, the ultimate parent company of the group, is registered under the name prosiebensat.1 media ag with the munich district court, germany (HrB 124 169). its registered head office is in unterföhring. its address is: prosiebensat.1 media ag, medienallee 7, 85774 unterföhring, germany.
the prosiebensat.1 group is one of europe's leading media companies. Beyond its core business television, the portfolio of the group includes numerous internet brands, equity interests in radio stations, print and new media companies, as well as activities in the music business, live events and artist management.
the interim consolidated financial statements of prosiebensat.1 media ag and its subsidiaries (the "company", "prosiebensat.1 group", "group") at september 30, 2010, were prepared in accordance with ias 34 "interim financial reporting".
the interim consolidated financial statements have been prepared in euros, in accordance with international financial reporting standards for interim financial reports, as adopted by the european union. unless specifically indicated otherwise, all amounts are in millions of euros (eur m). the income statement is presented using the cost of sales method.
the interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements under ifrs at december 31, 2009, and the associated explanatory notes, as published by prosiebensat.1 media ag on march 30, 2010.
management believes that the interim consolidated financial statements include all customary and current adjustments required to present a true and fair view of the company's performance during the reporting period. the results for the first nine months of financial year 2010 do not necessarily permit predictions as to future business performance.
in preparing the interim consolidated financial statements, it was necessary to make assumptions and estimates that affect the recognition of assets and liabilities, income and expenses. in some cases, the actual values may differ from these assumptions and estimates.
the accounting policies applied in the interim consolidated financial statements for the period ended september 30, 2010, are generally based on the same accounting policies as the consolidated financial statements for financial year 2009. for further information on the accounting policies applied, we refer to the consolidated annual report at december 31, 2009 (pages 121 – 127), which forms the basis for the present interim financial statements.
prosiebensat.1 group has applied the following new accounting standards or changes to existing accounting standards issued by the iasB that were required to be applied from financial year 2010 onwards:
the application of new or revised accounting standards, as well as changes resulting from the "annual improvement project", which are to be applied for the first time in financial year 2010, had no material impact on the interim financial statements of the prosiebensat.1 group.
in addition to the changes mentioned above, new or revised accounting standards have been issued by the iasB and ifric. these have not been applied in the interim financial statements at september 30, 2010, as they are either not yet mandatory or have not yet been adopted by the european commission:
the effect of these accounting standards, as well as changes resulting from the "annual improvement project", which have not yet been applied on the presentation of the financial position and performance of the prosiebensat.1 group is not expected to be significant overall.
the number of subsidiaries included in the consolidated financial statements on the basis of full consolidation changed as follows in the first three quarters of financial year 2010:
| Germany | other countries | total | |
|---|---|---|---|
| included at 12/31/2009 | 55 | 101 | 156 |
| additions | 3 | 5 | 8 |
| disposals | -3 | -1 | -4 |
| Included at 09/30/2010 | 55 | 105 | 160 |
prosiebensat.1 media ag directly or indirectly holds a majority of voting rights of these entities or can otherwise control them. in addition to the fully consolidated entities, 13 (at december 31, 2009: 15) associates and joint ventures were consolidated using the equity method. associates are companies over which prosiebensat.1 media ag has significant influence, but which are neither subsidiaries nor joint ventures. Joint ventures are companies that are jointly managed with other entities.
on march 4, 2010, the prosiebensat.1 group acquired 51 percent of the Belgian production company sultan sushi cVBa through red arrow entertainment group for a purchase price of eur 1.0 million. the acquisition of sultan sushi cVBa and the resulting purchase price allocation had no material effect on the financial position and performance of the prosiebensat.1 group.
on august 20, 2010 the prosiebensat.1 group acquired 51 percent of the us production company Kinetic content llc, santa monica l.a. through its subsidiaries red arrow entertainment group and the newly founded sevenone international inc. for a purchase price of usd 5.0 million. the purchase agreement includes a put option with the minority shareholder which is exercisable from 2014 to 2016. the fair value of the put option of usd 11.6 million was recognized as financial liability as prosiebensat.1 group has an unconditional obligation to meet the terms of the put option. Because of this "present ownership", non-controlling interests have not been recognized in the group's financial statements. as Kinetic content llc is a start-up company, the assets recognised in consolidation mainly represent goodwill. the acquisition of Kinetic content llc had no material effect on the financial position and performance of the prosiebensat.1 group.
By purchase agreement of June 16, 2010, prosiebensat.1 media ag sold its subsidiaries n24 gesellschaft für nachrichten und Zeitgeschehen mbH, Berlin and maZ & more tV-produktion gmbH, Berlin to the newly formed company n24 media gmbH, Berlin. in connection with the disposal process, non-recurring expenses and impairments of eur 54.9 million were incurred in the second quarter of financial year 2010, which are recognized in the line item of administrative expenses. of that amount, eur 41.3 million resulted from the assumption of costs for restructuring measures for the sold companies, and eur 13.6 million resulted from impairments of non-current assets and other charges. most of the liquidity effects of these non-recurring expenses will appear in the 12 months following the transaction.
the transaction was formally and legally finalized ("closing") on June 30, 2010. the sold companies have been deconsolidated because the group no longer has control over these companies. the purchase price amounted to the share capital of the sold company n24 gesellschaft für nachrichten und Zeitgeschehen mbH. as a result of the deconsolidation, cash and cash equivalents of the sold companies amounting to eur 12.0 million were removed from the consolidated statement of financial position.
the other assets and liabilities that were deconsolidated in connection with this disposal are immaterial from the group's perspective.
in addition, the group signed a supply contract with n24 gesellschaft für nachrichten und Zeitgeschehen mbH, Berlin for all news formats of the tV channels sat.1, prosieben and kabel eins. under this supply contract, the term of which runs to the end of 2016, the prosiebensat.1 group incurs financial commitments of up to around eur 25 million per year.
no other significant acquisitions or disposals occurred in the first three quarters of 2010.
in accordance with ifrs 8, operating segments must be defined on the basis of the company's internal management system. the organizational and reporting structure is based on management by business segments. on the basis of this reporting system, the executive Board as the chief operating decision maker evaluates the performance of the various segments and the allocation of resources.
the prosiebensat.1 group reports in three operating segments: free tV german-speaking, free tV international and diversification.
the free tV german-speaking segment mainly comprises the group's tV stations sat.1, prosieben, kabel eins, sixx and the at June 30, 2010, deconsolidated n24, as well as the sat.1 regional companies, the sales company sevenone media and the group's subsidiaries in austria and switzerland.
the free tV international segment comprises advertiserfunded tV stations in the Benelux countries (netherlands and Belgium), in northern europe (denmark, finland, norway and sweden) and in the central- and eastern european region (romania, Bulgaria and Hungary).
the diversification segment comprises activities in the areas of video-on-demand, call tV, multimedia and merchandising. these activities are presented together with international radio and print operations.
| eurm | Segment Free TV German-speaking |
Segment Free TV International |
Segment Diversification |
Subtotal Segments |
Eliminations | Group Q3 2010 |
|---|---|---|---|---|---|---|
| revenue | 403.1 | 157.1 | 84.1 | 644.3 | -17.4 | 626.9 |
| external revenue | 387.1 | 156.7 | 83.1 | 626.9 | - / - | 626.9 |
| internal revenue | 16.0 | 0.4 | 1.0 | 17.4 | -17.4 | - / - |
| recurring eBitda | 104.0 | 32.4 | 18.5 | 154.9 | 0.0 | 154.9 |
| eurm | Segment Free TV German-speaking |
Segment Free TV International |
Segment Diversification |
Subtotal Segments |
Eliminations | Group Q3 2009 |
|---|---|---|---|---|---|---|
| revenue | 347.1 | 150.0 | 75.8 | 572.9 | -13.4 | 559.5 |
| external revenue | 337.3 | 149.2 | 73.0 | 559.5 | - / - | 559.5 |
| internal revenue | 9.8 | 0.8 | 2.8 | 13.4 | -13.4 | - / - |
| recurring eBitda | 51.8 | 27.0 | 15.5 | 94.3 | 0.0 | 94.3 |
| eurm | Segment Free TV German-speaking |
Segment Free TV International |
Segment Diversification |
Subtotal Segments |
Eliminations | Group Q1-Q3 2010 |
|---|---|---|---|---|---|---|
| revenue | 1,312.3 | 524.1 | 262.9 | 2,099.3 | -53.4 | 2,045.9 |
| external revenue | 1,263.5 | 522.3 | 260.1 | 2,045.9 | - / - | 2,045.9 |
| internal revenue | 48.8 | 1.8 | 2.8 | 53.4 | -53.4 | - / - |
| recurring eBitda | 371.3 | 116.7 | 59.5 | 547.5 | -0.2 | 547.3 |
| eurm | Segment Free TV German-speaking |
Segment Free TV International |
Segment Diversification |
Subtotal Segments |
Eliminations | Group Q1-Q3 2009 |
|---|---|---|---|---|---|---|
| revenue | 1,187.0 | 489.9 | 250.8 | 1,927.7 | -47.3 | 1,880.4 |
| external revenue | 1,150.7 | 488.1 | 241.6 | 1,880.4 | - / - | 1,880.4 |
| internal revenue | 36.3 | 1.8 | 9.2 | 47.3 | -47.3 | - / - |
| recurring eBitda | 247.2 | 95.8 | 46.2 | 389.2 | 0.1 | 389.3 |
the reconciliation from the segment values to the values presented in the consolidated financial statements is shown below:
| eurm | Q3 2010 | Q3 2009 |
|---|---|---|
| Recurring EBITDA | ||
| recurring eBitda of reportable segments | 154.9 | 94.3 |
| eliminations | 0.0 | 0.0 |
| Group recurring EBITDA | 154.9 | 94.3 |
| non-recurring result | -10.8 | -32.0 |
| financial result | -66.7 | -48.5 |
| depreciation and amortization | -32.3 | -31.3 |
| impairment | -0.5 | -1.2 |
| Consolidated profit/loss before taxes | 44.6 | -18.7 |
| Recurring EBITDA recurring eBitda of reportable segments eliminations |
||
|---|---|---|
| 547.5 | 389.2 | |
| -0.2 | 0.1 | |
| Group recurring EBITDA | 547.3 | 389.3 |
| non-recurring result | -78.6 | -59.3 |
| financial result | -179.0 | -177.2 |
| depreciation and amortization | -97.7 | -92.5 |
| impairment | -5.6 | -1.2 |
| Consolidated profit/loss before taxes | 186.4 | 59.1 |
entity-wide disclosures for the prosiebensat.1 group are provided below. this information is broken down by different categories: the german-speaking region (germany, austria, switzerland), B/nl (Belgium and netherlands), nordic (denmark, finland, norway and sweden) and cee (Bulgaria, greece, romania and Hungary).
| geographical breakdown eurm |
German-speaking | B/NL | Nordic | CEE | Total Group | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |
| external revenue | 435.6 | 377.7 | 83.2 | 85.9 | 87.9 | 72.6 | 20.2 | 23.3 | 626.9 | 559.5 |
| geographical breakdown eurm |
German-speaking | B/NL | Nordic | CEE | Total Group | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |
| external revenue | 1,419.9 | 1,292.1 | 279.3 | 271.2 | 276.9 | 237.7 | 69.8 | 79.4 | 2,045.9 | 1,880.4 |
apart from the news supply agreement which started on July 1, 2010, no material changes occurred in the first nine months of financial year 2010 regarding the prosiebensat.1 group's contingent liabilities or other financial obligations compared to the presentation in the 2009 annual report.
the related party transactions described in the notes to the consolidated financial statements for financial year 2009 still apply without changes. in the normal course of business, all transactions with companies which were not fully consolidated were conducted on the basis of prevailing market terms and conditions, such as are also customary with third parties unrelated to the group.
at the end of the third quarter 2010, chief new media officer daniel marks left the management board. His tasks and responsibilities have been taken over by the chief executive officer thomas ebeling.
under the 2010 long term incentive plan (ltip 2010) 615,000 stock options (cycle 2010) were issued to selected executives of the prosiebensat.1 group. according to the resolution from the general annual meeting, no stock options were issued to the management board.
the annual shareholders' meeting of June 29, 2010 resolved to distribute a dividend of eur 0.02 per preferred share for the 2009 financial year. accordingly, a total dividend of eur 2.1 million was distributed on June 30, 2010.
from the end of the third quarter 2010 to november 9, 2010, the date when this report was released for publication and forwarded to the supervisory Board, no reportable events occurred that are of material significance for the financial position and performance of the prosiebensat.1 group.
november 9, 2010
| March 3, 2011 | Annual Press conference / IR conference on preliminary figures for 2010 |
|---|---|
| March 31, 2011 | 2010 Annual Report |
| May 5, 2011 | Quarterly Report for Q1 2011 |
| May 18, 2011 | Annual Shareholders' Meeting 2011 |
| August 4, 2011 | Half-year Report 2011 |
| November 3, 2011 | Quarterly Report for Q3 2011 |
Press ProSiebenSat.1 Media AG Corporate Communications Medienallee 7 85774 Unterföhring Phone +49 [89] 95 07 – 11 64 Fax +49 [89] 95 07 – 11 59 Investor relations ProSiebenSat.1 Media AG Investor Relations Medienallee 7 85774 Unterföhring Phone +49 [89] 95 07 – 15 02 Fax +49 [89] 95 07 – 15 21 E-Mail: [email protected]
ProSiebenSat.1 Media AG Medienallee 7 85774 Unterföhring Phone +49 [89] 95 07 – 10 Fax +49 [89] 95 07 – 11 21 www.ProSiebenSat1.com Registered with Munich Local Court, record HRB 124 169
content and design ProSiebenSat.1 Media AG Corporate Communications
the Prosiebensat.1 Group on the Internet
this and other publications are available on the Internet, along with information about the Prosiebensat.1 Group, at http://www.prosiebensat1.com/.
Forward-looking statements. This report contains forward-looking statements regarding ProSiebenSat.1 Media AG and the ProSiebenSat.1 Group. Such statements may be identified by the use of such terms as "expects," "intends," "plans," "assumes," "pursues the goal," and similar wording. Various factors, many of which are outside the control of ProSiebenSat.1 Media AG , could affect the Company's business activities, success, business strategy and results. Forward-looking statements are not historical facts, and therefore incorporate known and unknown risks, uncertainties and other important factors that might cause actual results to differ from expectations. These forward-looking statements are based on current plans, goals, estimates and projections, and can only take account of events that have taken place up to and including the date of preparation of this report. Given these risks, uncertainties and other important factors, ProSiebenSat.1 Media AG undertakes no obligation, and has no intent, to revise such forward-looking statements or update them to reflect future events and developments. Although every effort has been made to ensure that the provided information and facts are correct, and that the opinions and expectations reflected here are reasonable, ProSiebenSat.1 Media AG assumes no liability and offers no warranty as to the completeness, correctness, adequacy and/or accuracy of any information or opinions contained herein.
Medienallee 7 85774 Unterföhring www.ProSiebenSat1.com
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