ProSiebenSat.1 Earnings Jump as Cost Cuts Offset 11% Revenue Drop

ProSiebenSat.1 grew its nine-month EBITDA more than fivefold to €198 million ($219 million), even as revenue at the German broadcaster fell 11% to €2.24 billion ($2.48 billion) under the weight of a weakening TV advertising market.

The group, controlled by the Berlusconi family's MFE-MediaForEurope and led by Group CEO Marco Giordani, turned EBIT positive at €73 million ($81 million) — a €180 million improvement on the same period last year. Nearly all of that gain came from the Entertainment segment, where nine-month EBITDA rose to €174 million from €46 million.

The arithmetic is straightforward. Costs fell faster than sales.

Where the money went

Programming costs dropped €126 million to €588 million ($651 million), mainly due to a change in amortization policy announced in the first half of the year. The company also cited savings from last year's restructuring program and efforts to wring more value from marquee sports content, including the FIFA World Cup and the Winter Olympics, across platforms.

The revenue picture darkened as the year progressed. When ProSiebenSat.1 reported second-quarter results on Aug. 6, organic group revenue was down 2% and Entertainment segment revenue had slipped 4%. Three months later, those declines had widened to 4% and 10% respectively. In August the company was still forecasting slight organic revenue growth for the year. On Oct. 29 it cut that forecast to a slight decline, blaming an economy and consumer spending that fell short of what economic institutes had predicted. All other targets held.

The third quarter alone tells the sharper story: revenue fell 15% to €701 million ($776 million), or 4% organically, while quarterly EBITDA edged up to €75 million from €68 million.

What is still working

Not every line item fell. The ad-supported streaming platform Joyn bucked the trend, with ad revenue up 9% — an acceleration from 8% growth at the half-year mark — and subscription revenue jumping 20%. In April, the Joyn+ tier added instant restart, offline downloads on mobile and more exclusive content. Podcast revenue grew by double digits, and distribution revenue, which does not depend on TV advertising, rose 4%.

The Commerce & Dating segment told a split story. External revenue fell 16% to €849 million ($940 million), reflecting €201 million in portfolio effects that included the second-quarter sale of Studio71 US. Strip those out and organic revenue grew 6%, powered by continued double-digit growth at flaconi, the group's Beauty & Lifestyle business. The Dating & Video business struggled with cautious consumers and fierce competition, with Video Social Dating revenue well below last year. Third-quarter segment revenue fell 22% to €257 million ($285 million), though organic growth of 8% improved on the second quarter's 3%.

What does this change for the broadcaster?

Not much yet, on the top line. Net financial debt stood at €1.54 billion ($1.71 billion) on Sept. 30, up from €1.34 billion at the end of 2025, which the company attributed to seasonal cash flow patterns and severance payments from first-half reorganizations. Its leverage ratio was 3.4x.

The group still forecasts a substantial EBITDA increase on 2025's €241 million ($267 million), a moderate fall in group revenue from €3.68 billion ($4.07 billion), stable net financial debt and a leverage ratio of 3.0x to 3.5x at year-end.

MFE, which runs Mediaset's TV operations in Italy and Spain, took a 75.61% stake in ProSiebenSat.1 last year through a takeover offer valuing the German group at about €1.8 billion ($2 billion). With TV advertising rising and falling with household spending, the company's bet for now rests on tight costs and careful cash management to absorb a softer revenue picture — a strategy that has delivered earnings, but not yet growth.