Shares in ProSiebenSat.1 Media faced a decline on Thursday as the company reported a widened net loss for the second quarter. The German media company’s net loss reached €54 million ($59.1 million) in Q2, compared to a loss of €28 million in the same period last year.
Advertising Revenue Declines, Dragging Overall Revenue
ProSiebenSat.1’s revenue also saw a decrease, falling to €868 million from €1.04 billion. The decline was primarily driven by a 13% drop in advertising revenue.
Adjusted EBITDA Nearly Halved
Additionally, the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) almost halved to €79 million.
Outlook for Full Year Remains Stable
Despite the disappointing Q2 results, ProSiebenSat.1 has maintained its outlook for the full year. The company expects adjusted EBITDA to remain stable in the third quarter compared to the same period last year.
Optimism for Second Half of the Year
Chief Financial Officer Martin Mildner expressed optimism for the second half of the year, anticipating a recovery in the advertising business due to brighter economic conditions. Mildner expects significant catch-up effects in terms of both revenues and earnings.
Uncertainty Surrounding Ad Outlook
However, UBS analysts have highlighted limited certainty around the ad outlook. While ProSiebenSat.1’s guidance suggests that the majority of earnings will be generated in the second half of the year, uncertainties remain.