ProSiebenSat.1 beats profit forecasts as cost cuts offset revenue decline

By Cian Muenster

Aug 6 - German media group ProSiebenSat.1 reported second-quarter core profit above expectations on Thursday as cost cuts offset a sharp decline in revenue, sending its shares 5% higher.

The company, controlled by Italy's MFE, reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of 80 million euros ($92.4 million), above a company-provided consensus forecast of 65 million euros.

Lower programming and personnel costs helped drive the improvement in profitability.

Revenue fell 8.5% to 768 million euros in the quarter, reflecting a weak television advertising market and the impact of portfolio disposals.

Chief Executive Marco Giordani said on a conference call that advertising trends improved in August after being heavily affected by the FIFA Club World Cup in June and July.

ProSiebenSat.1 does not benefit from audience gains associated with major football tournaments because the competition was broadcast by rival channels in Germany, drawing viewers and advertising spending away from the group.

The company confirmed its 2026 outlook, saying cost reductions and spending discipline should drive a significant increase in profitability.

($1 = 0.8660 euros)

(Reporting by Cian Muenster, editing by Izabela Niemiec and Matt Scuffham)