ProSiebenSat.1 Raises Sales Targets After Digital Purchases

(Bloomberg) -- ProSiebenSat.1 Media SE increased its sales target for this year and boosted its longer-term forecasts for 2018 because of e-commerce and digital media acquisitions and stronger-than-expected growth in the third quarter.

Sales will rise at least 15 percent this year, more than the previous prediction for growth of at least 10 percent, the company said Thursday in a statement. The broadcaster, based in Unterfoehring near Munich, increased its 2018 sales forecast by 300 million euros ($330 million) to 4.5 billion euros, citing contributions from acquisitions including internet travel business eTraveli and dating site Parship.

“Our new investments are developing very well,” Chief Executive Officer Thomas Ebeling said in the statement. ProSiebenSat.1 projected recurring earnings before interest, taxes, depreciation and amortization of 1.15 billion euros in 2018.

The broadcaster, which uses TV advertising to promote its online brands, is accelerating a push into internet-based business and digital media even as the traditional German TV advertising market continues to grow at slightly more than 2 percent.

Group sales rose about 15 percent and recurring Ebitda increased more than 10 percent in the third quarter from 747 million euros and 178 million euros last year, respectively, ProSiebenSat.1 said. The broadcaster, which is holding a capital markets day Thursday, will publish more detailed figures for the period on Nov. 3.

ProSiebenSat.1 furthered its online push this week by becoming the largest strategic shareholder in Los Angeles-based Pluto Inc. after leading a funding round in the ad-financed TV streaming service. Pluto, which says it has 5 million active monthly users and offers access to more than 100 linear channels, as part of the deal bought ProSiebenSat.1’s German streaming service Quazer to aid its expansion abroad.

Shares of ProSiebenSat.1 lost 0.8 percent to 38.06 euros at 11:30 a.m. in Frankfurt. They’ve lost 19percent this year.

To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net. To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Phil Serafino