FRANKFURT (dpa-AFX) - ProSiebenSat.1 shares staged a recovery rally on Tuesday. One trader assessed both the quarterly figures and the outlook of the media group as rather weak. However, after the figures of competitor RTL and in view of the recent share price weakness, much of the negative had already been priced in, he added. Investors were obviously relieved that ProSiebenSat.1 intends to at least achieve an operating profit in the lower half of the annual target range. This weighed more heavily than the capped revenue outlook.
After a more than 13 percent jump in the share price, the shares maintained a plus of around nine percent to EUR 5.35 at midday. That was still enough for the undisputed top spot in the friendly MDax. However, this is unlikely to be more than a consolation for investors: The previous day, the shares had remained only just above the low marked in October since 2009. Despite the current development, ProSiebenSat.1 is down a whopping 36 percent since the beginning of the year, making it one of the biggest losers in the index of medium-sized German companies.
RTL shares at least recovered by 1.5 percent on Tuesday in the wake of ProSiebenSat.1. Just under a week ago, the Luxembourg-based company presented a weak quarterly report and revised its revenue and earnings targets downwards due to the lack of recovery in the advertising markets. However, with a drop of around 17 percent for the year to the end, the share price balance sheet does not look quite as gloomy as that of its rival from Unterfohring.
In initial assessments, analysts attested ProSiebenSat.1 a third quarter that was mixed to largely in line with expectations. After the recent negative news from the industry, however, the market had feared a clear profit warning, said Jorg Philipp Frey from the analyst firm Warburg Research. Accordingly, relief prevailed in view of the only slightly changed company targets.
Adam Berlin from the major Swiss bank UBS noted that, in his opinion, the completion of a cost efficiency program should go down just as well with investors as the expectation that advertising revenues in the Entertainment segment in the Germany, Austria and Switzerland region should be at the previous year's level in the fourth quarter.
The Unterfohring-based company now expects annual sales to be "slightly below" the previously targeted range of EUR 3.95 to 4.25 billion. In addition, earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects should only reach the lower half of the targeted range of 550 to 650 million euros./gl/tih/mis