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ProSiebenSat.1 earnings up as MCN deal kicks in

An improved advertising market in German-speaking markets and the impact of digital acquisitions helped lift broadcaster ProSiebenSat.1’s performance in the third quarter.

Thomas EbelingThe media group posted 17.2% growth in revenue to €747.1 million (US$822.6 million) and EBITDA growth of 9.1% to €177.8 million.

In the German-speaking region, the broadcaster increased its revenues by 6.3% to €465.1 million, boosted by an increase in its audience share in a market that also saw strong growth in TV advertising.

ProSiebenSat.1’s digital activities received a boost from its acquisition of MCN Collective Digital Studio and comparison site Verivox. Digital revenues amounted to €207.9 million for the quarter, up 31%, while EBITDA was up 16.7% to €37.7 million.

Content production and global sales saw revenue grow by 79.9% to €74.1 million in quarter, with EBITDA more than doubling to €5.3million. the division was boosted by organic growth, particularly in the US from Red Arrow Entertainment.

“In the third quarter, we again increased revenues and earnings dynamically and have grown profitably in all segments,” said Thomas Ebeling, ProSiebenSat.1 CEO. “We are therefore heading for another very good year. At the same time, we will continue on our successful growth course. By 2018, we plan to increase our revenues to €4.2 billion versus 2012 and we are targeting recurring EBITDA of €1.1 billion.

“We are adhering to our shareholder-friendly dividend policy and will continue to pay out 80% to 90% of underlying net income in the future. This will allow us to continue to offer investors significant added value in the future.”

Yesterday, the group secured German free, pay and online rights to films and original programming from The Walt Disney Company, a coup in its battle against rival, and former rights owner, RTL.