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ProSiebenSat 1 Media : .1 continues profitable growth in Q1 2014

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Munich, May 8, 2014. The ProSiebenSat.1 Group made a positive start to 2014. The Group continued its profitable growth in the first quarter of 2014 and increased total revenues by 3.3 % to EUR 581.1 million. Again, all segments contributed to this. Consolidated recurring EBITDA developed dynamically, climbing 9.5 % on the same period of the previous year to EUR 140.1 million (previous year: EUR 128.0 million). Underlying net income also increased considerably, by 9.4 % to EUR 55.7 million (previous year: EUR 50.9 million).

Thomas Ebeling, CEO of ProSiebenSat.1 Media AG: “We had a good start to the year: All segments continued to grow in Q1 2014. In our core TV business, we not only further increased advertising revenues, but were also able to significantly improve distribution income. In the Digital business, our core areas continued to develop dynamically. In total, we are benefiting across all business segments from the continuing positive macro-economic climate. That makes us optimistic for full year.”

Broadcasting German-speaking: result considerably improved

In the first quarter, external revenues in the Broadcasting German-speaking segment increased by 1.8 % or EUR 8.1 million to EUR 449.2 million (previous year: EUR 441.1 million). Contributing factors were the positive trend in the audience and advertising market combined with the ongoing dynamic growth of distribution revenues. Against this backdrop, recurring EBITDA increased by 7.9 % or EUR 8.8 million to EUR 119.8 million.

ProSiebenSat.1 considerably expands leadership in audience market -distribution revenues continue to increase strongly

Despite the Winter Olympics, the combined market share of the German ProSiebenSat.1 stations grew significantly: SAT.1, ProSieben, kabel eins, sixx, SAT.1 Gold and ProSieben MAXX expanded their combined market share by 1.8 percentage points to 28.4 % (previous year: 26.6 %, viewers aged 14-49).

In the relevant target group of viewers aged 14 to 39, ProSieben closed the first quarter at 15.3 % (previous year: 15.0 %; Q1 2014, 14-49 year olds: 11.0 %). SAT.1 increased its market share by 0.3 percentage points to 9.6 % (previous year: 9.3 %, 14-59 year olds; Q1 2014, 14-49 year olds: 9.1 %). kabel eins increased its market share to 5.6 % in the relevant target group of viewers aged 14 to 49 (previous year: 5.5 %). Especially the young ProSiebenSat.1 stations again grew significantly. The women’s channel sixx increased its market share by 0.9 percentage points to 2.6 % (previous year: 1.7 %, women aged 14 to 39; Q1 2014, 14-49 year olds: 1.4 %). SAT.1 Gold improved by 0.5 percentage points to 0.8 % (previous year: 0.3 %, women aged 40 to 64; Q1 2014, 14-49 year olds: 0.5 %). Six months after its launch, the men’s channel ProSieben MAXX already achieved a market share of 0.8 % (men aged 30 to 59; Q1 2014, 14-49 year olds: 0.8 %).

Also on the German TV advertising market, the ProSiebenSat.1 Group was again the market leader with a gross market share of 44.4 % (previous year: 44.4 % gross). As advertising budgets were shifted into April due to the late Easter date, the ProSiebenSat.1 Group anticipates a considerably stronger second quarter of 2014 in TV advertising revenues. ProSiebenSat.1 also benefits from a sound industry environment: Between January and March 2014, television further consolidated its strong position as an advertising medium in comparison to the previous year. With an increase of 6.5 %, TV again posted the largest growth rates on a gross basis. At the same time, its share in the gross media mix rose by 1.5 percentage points to 45.3 %. Online media gained 0.1 percentage points to 11.3 % gross, while print media declined by 1.3 percentage points to 31.7 % gross.

In addition to its free TV stations, the ProSiebenSat.1 Group has also bundled its distribution activities in the Broadcasting German-speaking segment, thereby strengthening its independence from the traditional TV advertising business. In the first quarter of 2014, distribution revenues continued to develop very positively, increasing by 29.6 % to EUR 19.7 million (previous year: EUR 15.2 million). In particular, the number of HD free TV subscribers rose considerably, increasing by 1.3 million or 41 % to 4.6 million. At the same time, the ProSiebenSat.1 Group significantly strengthened mobile distribution of its services by means of new cooperations in the first quarter and established new partnerships with Deutsche Telekom, Magine and Zattoo. In addition, the Group also announced the launch of a comprehensive app today: 7TV will offer all ProSiebenSat.1 TV stations as a live stream and numerous TV shows on demand. The Group has therefore entered into a distribution partnership with an important mobile provider. 7TV will launch in June 2014.

Digital & Adjacent segment improves result by nearly 20 %

External revenues of the Digital & Adjacent segment rose by 9.6 % to EUR 105.9 million in the first quarter of 2014 (previous year: EUR 96.7 million). Growth was primarily driven by the positive development in the core areas of Digital Entertainment and Travel. Even though revenue momentum was temporarily somewhat lower in the first quarter of 2014 due to the deferral of revenues to subsequent quarters in combination with an unusually strong comparative quarter in the Adjacent and Digital Commerce units, the results of the segment remained strong. Recurring EBITDA increased by 19.4 % to EUR 23.8 million (previous year: EUR 20.0 million). From the second quarter of 2014, revenue growth in the Digital & Adjacent segment is expected to accelerate considerably again. For the year as a whole, the Group thus continues to anticipate revenues to increase by a double-digit percentage.

Digital Entertainment: The Digital Entertainment offers of the ProSiebenSat.1 Group developed in a particularly strong way in the first quarter of 2014. With a market share as per Nielsen Media Research of 47.3 % (up 0.8 percentage points) and 810 million video views, the Group was again Germany’s leading seller of video content in the Internet.

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