ProSiebenSat.1: Profit target in sight despite sales losses - financial experts analyze quarterly figures

ProSiebenSat.1: Profit target in sight despite sales losses - financial experts analyze quarterly figures

How www.finanzen.net reports, the television group ProSiebenSat.1 is struggling to at least achieve its profit target for the current year. Despite an expected improvement in sales and earnings development in the fourth quarter, the annual sales target will probably no longer be achieved. The company's share price has fallen by a third, although sales and earnings have recovered following the quarterly figures. A long-term lull in consumption and a lack of market recovery have meant that sales revenue for 2023 is expected to be below the targeted range. Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) are also expected to only reach the lower half of the targeted range. In addition, the group has warned of major job cuts and cost savings.

The rival RTL has also revised down its sales and earnings targets due to weaker than expected European advertising markets. In contrast, the outdoor advertising specialist Ströer has announced positive growth forecasts.

ProSiebenSat.1 shares have rallied following the announcement of a recovery in operating profit, but the company's market value has still fallen sharply. Analysts were mixed in their assessments as the market feared a significant profit warning and is now reacting to it with relief. There were only minor changes to the company's goals, which led to this reaction.

The outlook for ProSiebenSat.1 remains critical as the company strives to achieve its profit target and improve its sales figures. The impact on the market and the industry could continue to be felt through the necessary cost-saving measures and job cuts. If the company fails to meet its targets, this could have a long-term impact on the share price and investor confidence.