ProSiebenSat.1 Media (ETR:PSM) used its annual press conference to review full-year 2025 results, discuss a portfolio reshaping program and outline a strategy centered on becoming a “media powerhouse” focused on entertainment in the German-speaking DACH region. CEO Marco Giordani and CFO Bob Rajan, both of whom joined the company in late October 2025, said the group met the guidance it provided in January and is now emphasizing cash discipline, multi-platform distribution and a shift in monetization toward “total video reach.”
2025 results: guidance met amid advertising weakness
Rajan said group revenue in 2025 was down 6% versus 2024 on an absolute basis, and down 2% after adjusting for portfolio and currency effects. Advertising was a key headwind, with group advertising down 8% for the year and down 10% in the fourth quarter compared with the prior-year period.
Management described the business as roughly two-thirds entertainment revenue and one-third from non-entertainment activities, which it referred to as commerce and dating. Rajan said the company will report two segments in 2026: Entertainment, and Commerce & Dating.
Macro and advertising market backdrop
Rajan framed the near-term environment as challenging, citing pressure on GDP in Germany and across Europe, with economic reports pointing to flat conditions in the first half of 2026 and a potential slight uptick in the second half. He also pointed to geopolitical uncertainty, including the ongoing war in Ukraine and tensions in the Middle East, as factors influencing market volatility.
On advertising, he highlighted an indexed view of market trends since 2019, describing a negative trajectory over the past two to three years and pointing to an “18 percentage point delta” in 2025. He characterized investment appetite as challenging across the industry, while emphasizing that ProSiebenSat.1 is implementing tighter cost and cash discipline to preserve flexibility for selective investment.
Portfolio actions and use of proceeds
The company reviewed a series of transactions involving its non-entertainment assets. Rajan noted that several deals in 2025 occurred before he and Giordani joined, while more recent transactions included the closing of the vector.com transaction in February. He also said ProSiebenSat.1 signed deals for Kairion and Esome, expected to close in April 2026, and announced an agreement to divest Flaconi and CamperDays, also expected to close in April 2026.
Across the listed transactions, Rajan said the company generated approximately EUR 300 million in proceeds. He stressed that management is not divesting assets on a preset timetable, but instead seeks to optimize value and pursue M&A only when it believes value has been maximized.
Management said proceeds are intended to support two priorities:
- Deleveraging the balance sheet
- Reinvestment where it can enhance entertainment reach, including content-related opportunities
Giordani said the company is “leaving the concept of a diversified group” pursued previously and is focusing more on building an entertainment-led media business. He also described MFE as a “multiplier” for the strategy, pointing to benefits in areas such as technology infrastructure, data and analytics, OTT platform capabilities, and procurement—while keeping programming, creative development, cultural positioning, and German/DACH advertising relationships localized.
During Q&A, management addressed other portfolio holdings. Giordani said ParshipMeet Group was “not” something the company is in a position to sell “now,” though circumstances could change in the future. Rajan added that Aroundhome currently sits in the Commerce & Dating segment and Parship also sits in that segment, while Marktguru does not. Both emphasized that decisions are financially driven and evaluated continuously.
Balance sheet, refinancing, and dividend
Rajan said the company has reduced debt by EUR 902 million since 2019 and has paid EUR 326 million in dividends over the same period. He highlighted a refinancing completed in the third quarter of 2025, which included a five-year term loan maturing in 2030, an undrawn EUR 400 million revolving credit facility (also maturing in 2030), and a bridge facility with a 12-month term plus a 12-month extension option.
Rajan said the term loan includes regular amortizations every six months of EUR 70 million and that covenants apply to the refinancing package. In addition, he said the leverage covenant is based on adjusted EBITDA over net indebtedness.
For shareholder returns, Rajan said the company will propose a dividend of EUR 0.05 per share at the AGM at the end of May, matching the prior year’s level.
Strategy shift: total video reach and 2026 outlook
Giordani laid out five priorities: content, multi-platform distribution, monetization, technology and AI, and ongoing cash discipline. A central theme was a shift from prioritizing linear TV audience share toward a broader measurement of “total video reach” across platforms, including linear TV, the company’s owned streaming platform Joyn (AVOD and SVOD models), and third-party platforms such as YouTube and TikTok.
Giordani cited 2025 “total video reach” of 77% of the German population, equating to 61 million people. He argued that reach is a “unique and scarce resource” for advertisers and said the company aims to move from spot-based TV advertising toward monetization of total reach through its sales house, Seven.One Media. As an example of multi-platform brand development, he pointed to Galileo, noting it has more than 3.3 million YouTube subscribers.
On 2026 guidance, Giordani said the company is targeting slight top-line growth, while noting that visibility remains limited. He said management is now focusing on reported EBITDA (rather than adjusted EBITDA) and expects a “significant increase” versus last year, driven mainly by cost efficiency and operating model decisions. He also stated a target of more than EUR 130 million in operating cost savings during 2026 within the entertainment area.
For net debt, management said it expects a similar level to last year, with a leverage range of 3.0x to 3.5x in line with covenants. In response to a question on why debt is expected to remain stable rather than decline, Rajan cited “special projects” affecting cash flow, including a new campus, as well as remaining consulting spend and other exceptional items. He said that normalizing for such items, the company expects operational cash flow in the “high double-digit” range in 2026.
On early-year trading, Giordani said the company shared RTL’s view that the market had not been strong. He added that entertainment revenue in March declined less than in the first two months of the year, and that April was looking better—“close to last year numbers.” He also said first-quarter EBITDA is expected to increase due to cost savings, even if entertainment top-line trends remain weak.
About ProSiebenSat.1 Media (ETR:PSM)
ProSiebenSat.1 Media SE operates as a media company in Germany, Austria, Switzerland, the United States, and internationally. It operates through three segments: Entertainment, Dating & Video, and Commerce & Ventures. The Entertainment segment operates free TV stations and digital platforms, such as SAT.1, ProSieben, Kabel Eins, sixx, SAT.1 Gold, ProSieben MAXX, and Kabel Eins Doku, as well as PULS4, PULS24, ATV I, ATV II, and PLUS 8. This segment is involved in operating commercial websites; production and distribution programming portfolio, including entertainment, reality, and factual formats, as well as TV series, TV films, and digital content; and operates Studio71 which creates and sells digital offerings for influencers.
