ProSiebenSat 1 Media : P7S1 Q1 2024 Results Presentation

Q1 2024

Results Presentation May 14, 2024

© ProSieben / Sven Doornkaat

© Seven.One / Claudius Pflug

© Sat.1/ Willi Weber

© Pro7/Willi Weber

© Seven.One / Willi Weber

01 02 03 04

Summary

Financials

Operations

Outlook

01

Summary

© Seven.One / Claudius Pflug

Group revenue growth of 6% to EUR 867m in Q1 2024

supported by continuing recovery of Entertainment DACH advertising revenues

Entertainment business and non-core activities each contribute about half to Group revenue growth

while strong growth of Commerce & Ventures offsets softer performance of Dating & Video

Entertainment advertising DACH revenue growth of 5%

in Q1 2024 driven by increase of both TV Core and Digital & Smart advertising revenues. Joyn records AVoD revenue growth of 50%

Adjusted EBITDA		FY 2024 Outlook
increased by 35%		confirmed
despite already announced significant increase in		Q1 2024 financial performance in line with full-year targets
programming expenses. Commerce & Ventures segment		communicated in March 2024
quadrupled adjusted EBITDA in Q1 2024 driven by Digital
Platform & Commerce assets Verivox und flaconi

KEY FINANCIAL HIGHLIGHTS

4

02

Financials

© Sat.1/ Willi Weber

PROSIEBENSAT.1 OFF TO A STRONG START IN 2024, AS EXPECTED - ADJUSTED EBITDA UP 35% IN Q1 2024

REVENUES, EARNINGS AND CASH FLOW KPIS [IN EUR M]

	Q1 2024	Q1 2023	YoY
Group Revenues
867	816	+6%
Organic
867	811	+7%
Group Advertising
480	459	+5%
DACH	421	403	+4%
Rest of the World	59	56	+5%
Adjusted EBITDA
72	53	+35%
Adjusted net
8	-15	n/a
income1)
Adjusted
38	-24	n/a
operating FCF

1) Attributable to shareholders of P7S1

Note: Organic = adjusted for portfolio and currency effects

COMMENTS

• Group revenues increased by 6% to EUR 867m in Q1 2024 reflecting continued positive trend of Group advertising DACH business and strong growth of Commerce & Ventures segment
• On currency- and portfolio adjusted basis Group revenues grew by 7% in Q1 2024
• Adjusted EBITDA increased by 35% or EUR 19m to EUR 72m in Q1 2024 despite higher programming expenses. This reflects both
  Group's revenue growth and its consistent cost management. Last year, ProSiebenSat.1 Group took targeted cost measures. Resulting savings effects will fully materialize in the course of 2024
• Adjusted net income improved significantly by EUR 22m, mainly reflecting development of adjusted EBITDA
• Adjusted operating FCF with significant increase by EUR 63m to EUR 38m

6

ENTERTAINMENT REVENUES UP 5% WITH ALMOST ALL BUSINESSES CONTRIBUTING TO REVENUE GROWTH

ENTERTAINMENT EXTERNAL REVENUES AND ADJ. EBITDA [IN EUR M]

	Q1 2024	Q1 2023	YoY
External Revenues
554	527	+5%
Organic	554	528	+5%
Advertising
451	432	+5%
o/w DACH
393	376	+5%
TV Core
326	315	+4%
Digital & Smart	66	61	+9%
o/w Rest of the World
59	56	+5%
Distribution
50	46	+9%
Content
27	28	-4%
Other
25	21	+18%
Adjusted EBITDA
45	31	+47%

Note: Organic = adjusted for portfolio and currency effects

COMMENTS

• Entertainment revenues increased by 5%, both on reported basis and on portfolio and currency-adjusted basis
• Entertainment advertising DACH revenue growth of 5%, driven by solid growth in TV core business of 4%. In addition, Digital & Smart advertising revenues continued to grow by 9%, mainly driven by streaming platform Joyn, which increased its AVoD revenues by 50% in Q1 2024 vs. Q1 2023
• Distribution revenues grew by 9% in Q1 2024 due to higher reach and increased HD penetration through full coverage on all major distribution platforms
• Main growth driver of Other was Joyn (SVoD business)
• Adjusted EBITDA increased significantly by 47% despite announced increase in programming expenses. At EUR 242m, they were 8% or EUR 18m above previous year's quarter. However, this negative effect was more than offset by positive revenue development of high-margin advertising business and lower costs due to efficiency program implemented last year

7

COMMERCE & VENTURES SHOWS DYNAMIC AND PROFITABLE GROWTH IN Q1 2024

COMMERCE & VENTURES EXTERNAL REVENUES AND ADJ. EBITDA [IN EUR M]

	Q1 2024	Q1 2023	YoY
External Revenues
206	172	+20%
Organic	206	167	+23%
Advertising
28	27	+4%
Digital Platform &
177	144	+23%
Commerce
Consumer Advice	76	58	+31%
Experiences	3	5	-34%
Beauty & Lifestyle	98	81	+21%
Other
1	1	+8%
Adjusted EBITDA
17	4	>+100%

Note: Organic = adjusted for portfolio and currency effects

COMMENTS

• Commerce & Ventures segment recorded very dynamic revenue growth of 20% on a reported basis and of 23% on a portfolio and currency-adjusted basis
• Due to improving market environment, the Advertising business, in particular SevenVentures, also increased by 4% in Q1 2024
• The Digital Platform & Commerce business grew by 23% with the online comparison portal Verivox and the online beauty provider flaconi being the main contributors. Decline in Experiences revenues due to deconsolidation of Regiondo (Q1 2023: EUR 2m)
• Adjusted EBITDA quadrupled, primarily attributable to profitable revenue growth of Verivox and flaconi. Disposal of Regiondo also had a positive effect

8

DATING & VIDEO SEGMENT STILL NEGATIVELY AFFECTED BY CONSUMER CONTRACT REGULATION

DATING & VIDEO EXTERNAL REVENUES AND ADJ. EBITDA [IN EUR M]

	Q1 2024	Q1 2023	YoY
External Revenues
107	117	-9%
Organic	107	116	-8%
Dating
57	65	-12%
Video
50	53	-4%
Adjusted EBITDA
17	21	-21%

Note: Organic = adjusted for portfolio and currency effects

COMMENTS

• Dating & Video segment recorded revenue decrease of -9% in Q1 2024
• Dating revenues in Q1 2024 declined by -12% vs. Q1 2023. Parship and ElitePartner continue to face challenging yoy comparisons due to impact of German Consumer Contract Regulation and general consumer restraint in Europe
• Video business revenues narrowing the yoy decrease to -4%, representing 18% sequential growth vs. Q4 2023. Focusing Livebox on our owned-and-operated brands has seen a good start into the year, with revenues from virtual goods growing double digit yoy
• Adjusted EBITDA decreased by -21% in Q1 2024. While growth of our video apps MeetMe and Tagged was supported by promotional activities and streamer incentives leading to higher broadcaster fees, efficiency measures helped offset revenue decline

9

NET FINANCIAL DEBT REDUCED COMPARED TO END OF PRIOR YEAR'S FIRST QUARTER -

FINANCIAL LEVERAGE IMPROVED SLIGHTLY TO 2.6X

NET FINANCIAL DEBT IN EUR M		DEBT MATURITY PROFILE IN EUR M (as of April 2024)

-129

SSD2) 2016 SSD2) 2021 Term Loan Extended Term Loan RCF3)

2.7x1)	2.7x1)	2.6x1)
1,682	1,546	1,553
03/31/2023	12/31/2023	03/31/2024

			1,153
			353
				500
				(undrawn)
	400		800		346
226	353	225
					80
						48
	47
2025	2026	2026	2027	2027	2027	2029	2031

1. Financial leverage: Net debt/LTM adjusted EBITDA; Note: IFRS net debt as per P7S1 definition (i.e., excluding lease liabilities and real estate liabilities)
2. SSD = Schuldscheindarlehen/Promissory Loans; 3) RCF = Revolving Credit Facility

Note: Debt maturity profile excluding other loans and borrowings

10