ProSiebenSat.1 Media (ETR:PSM) reported lower revenue but sharply improved profitability in the second quarter and first half of 2026, as cost reductions, portfolio simplification and changes in programming amortization offset continued weakness in TV advertising.
CEO Marco Giordani said the company’s transformation program was “delivering results,” pointing to nearly 6% growth in digital and smart revenue in the first half, a significantly improved EBITDA result and a debt level within the group’s target leverage range. The company confirmed its outlook for the full year.
Revenue Declines as TV Advertising Remains Weak
On an organic basis, excluding portfolio and currency effects, revenue declined 2% in both the quarter and the first half.
The Entertainment segment, the company’s core business, posted revenue declines of 4% in the second quarter and 6% in the first half. Entertainment advertising revenue fell 8% in the quarter and 9% in the half-year period, reflecting both cyclical advertising-market pressure and a continued shift in advertising budgets toward digital media.
Rajan also cited the Winter Olympics and FIFA World Cup as factors that affected viewing patterns and advertising demand during the reporting period. Giordani said that excluding major sporting events, the company’s linear-TV audience was stable compared with 2025.
Digital and smart advertising revenue increased 3% in the second quarter and 6% in the first half, led by the growth of streaming platform Joyn’s advertising-supported video-on-demand business, external platform contributions and podcast activities. Distribution revenue grew at mid-single-digit rates in both periods.
Cost Discipline Drives Return to Positive EBITDA
Despite the revenue decline, group EBITDA improved by €102 million in the second quarter and €152 million in the first half, returning to positive territory after negative EBITDA in the comparable 2025 periods.
The improvement was primarily driven by lower costs, including reduced programming and personnel expenses. Personnel expenses fell by €91 million in the second quarter and €117 million in the first half, though Rajan noted that the prior-year comparison included €68 million in reorganization costs recognized in the second quarter of 2025.
Entertainment EBITDA reached €81 million in the second quarter and €115 million in the first half, compared with negative EBITDA a year earlier. Total costs in the segment fell €132 million in the quarter and €182 million in the first half.
Programming expenses declined €60 million year over year to €195 million in the second quarter and fell €93 million to €404 million in the first half. Rajan said that approximately €65 million to €75 million of the first-half reduction resulted from a change, effective Jan. 1, to straight-line amortization of significant parts of the company’s licensing rights over their respective license terms.
The company also reported positive free cash flow before mergers and acquisitions of €27 million in the second quarter, supported by EBITDA improvement and lower programming and other capital expenditures.
Commerce and Dating Results Reflect Disposals, flaconi Growth
Commerce and Dating segment revenue declined 16% to €269 million in the second quarter and 14% to €591 million in the first half on a reported basis. However, organic revenue increased 3% in the second quarter and 5% in the first half, primarily driven by flaconi, the company’s beauty and lifestyle platform.
Digital platform and commerce revenue rose 13% in the second quarter and 3% in the first half. Giordani said flaconi generated more than €300 million in external revenue during the first half, with international revenue accounting for more than 20% of the total and rising 60% from the prior year.
In response to an analyst question, Rajan said management expects flaconi’s top-line growth to continue in the low-double-digit range. He did not provide a margin target.
Dating and video revenue fell 29% in the second quarter and 27% in the first half, as the business faced weak consumer spending and intense global competition in online dating. Segment EBITDA was negative €2 million in the second quarter, reflecting deconsolidation effects from portfolio changes, but improved €27 million to positive €8 million for the first half.
The company said it divested six businesses during the first six months of 2026, primarily in the Commerce and Dating segment. Sales of wetter.com and Studio71 US contributed to debt reduction.
Debt, Streaming Platform and Outlook
Net financial debt stood at €1.467 billion at June 30, down €73 million from a year earlier. The leverage ratio was 3.2 times EBITDA, within the company’s target range of 3.0 to 3.5 times.
ProSiebenSat.1 reduced its bridge facility by approximately €75 million using proceeds from disposals, leaving an outstanding balance of €225 million. Its €400 million revolving credit facility was undrawn during the first half.
Giordani also highlighted plans to build a shared streaming technology platform with parent company MFE-MediaForEurope across six European countries. He said the project is expected to produce greater savings than originally anticipated, while preserving local brands and content. Joyn is scheduled to receive its new platform rollout in the first half of next year.
Joyn revenue increased 7% in the first half, with monthly video users up 21% and viewing time up 26%, according to Giordani. The company also announced a partnership with ZDF that will bring ZDF on-demand content to Joyn.
For 2026, ProSiebenSat.1 continues to expect moderate reported group revenue pressure from portfolio and currency effects, while forecasting slight organic revenue growth at the group level. It expects Entertainment revenue to decline slightly for the full year, with Commerce and Dating expected to offset that development.
The company maintained its expectation for significant year-over-year EBITDA growth, citing continued cost discipline, further cost reductions and a more focused portfolio. Giordani said advertising-market visibility remains limited, though he noted that July performance was similar to June and August had improved toward April and May levels.
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.
