ProSieben's core profit drops due to weak German ad market

By Emanuele Berro and Cian Muenster

March 26 (Reuters) - Media group ProSiebenSat.1 PSMGn.DE reported a 28% fall in its adjusted 2025 core profit on Thursday, as it continues to struggle with low advertising revenues and uncertainty in its home market of Germany.

The company, controlled by Italy's MFE MFEB.MI after a 2025 acquisition, said its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were 403 million euros ($466 million) last year, down from 557 million euros in 2024 and below its own guidance of 420-450 million euros.

ProSieben has struggled with a weak TV advertising environment for several quarters, as consumer restraint in a difficult macroeconomic environment was met with cautious spending by TV advertisers, which forced the company to cut its 2025 outlook twice.

Advertising revenue for the entertainment unit in the German, Austrian and Swiss markets fell 8% compared to the prior year.

For 2026, the broadcaster forecast slightly lower reported revenue compared with last year's 3.68 billion euros, as it expects any improvement in TV advertising to happen only in the second half of the year.

It said EBITDA would rise significantly, helped by continued cost reductions. It did not provide a guidance for the adjusted number that would exclude one-off effects that negatively affected 2025 earnings.

Following MFE's acquisition and the appointment of industry veteran Marco Giordani as ProSieben's CEO, the broadcaster has sharpened its focus on its core entertainment operations and moved to streamline its portfolio and reduce debt.

The German group said earlier on Thursday it had sold comparison portals billiger-mietwagen.de and CamperDays for undisclosed amounts. It has also offloaded marketing company esome, retail media specialist Kairion and weather forecast platform Wetter.com since Giordani took the helm.

($1 = 0.8651 euros)