Do you still belong to the generation that went along with the switch from black and white television to color TV as a child, or who grew up with only three programs and heard the national anthem when the broadcast ended?

My 13-year-old daughter recently looked at me with a laugh and said: "How funny that was back then."

Young people can no longer imagine that today.

The media landscape of the 21st century has less to do with TV and more to do with streaming.

Younger age groups in particular consume more of their programs via smartphones or tablets, be it in media libraries, on YouTube or via streaming services.

ProSiebenSat.1 is a group that has grown up in Germany alongside public broadcasting and has been working successfully for a long time.

With 15 free and pay TV channels, the group claims that it reaches more than 45 million TV households in Germany, Austria and Switzerland.

In addition, around 33 million consumers use the online offers that are marketed each month. 

You may not even want to look at the formats of the group (the good old “Tatort” runs “in the first” after all).

Nevertheless, various formats are popular with the important audience age group of 14 to 29 year olds, who ensure that the advertising slots are well filled at certain times and thus money is flushed into the coffers of the entertainment group.

A top format for this is, for example, at the M-Dax group "Germany's Next Top Model", which helped to significantly fill the marketing of the advertising blocks - especially in the Corona year 2020 - with good audience ratings.

Analysts believe (again) in the group

Anyone who thinks of ProSiebenSat.1 as an investor will certainly think of an unsuccessful share that for years (from the record high in 2015 at 50.95 euros) up to last year saw a massive drop in price of almost 90 percent. March 2020 the price board showed only 5.70 euros, which was the lowest level since the financial crisis year 2009. Anyone who believed in the media share after the Corona crash was rewarded - today the share price is back at almost 17 euros.

Analysts are still in a positive mood, the majority of them recommend buying and give price targets averaging 22 euros.

The advertising business in the media company's core markets is developing dynamically, Warburg Research recently judged and also referred to future price drivers and the dividend.

The latter can be seen.

The payout ratio is currently 4 percent, next year the estimates are almost 4.5 percent.

NordLB recently left the ProSiebenSat.1 rating on "Buy" with a target price of EUR 21 based on the final business figures for the second quarter.

Strong recovery in advertising business

The figures for the second quarter of 2021 showed that ProSiebenSat.1 was able to leave the Corona crisis behind.

In comparison to the previous year, revenues climbed by 48 percent to 1.05 billion euros.

A record for a second quarter.

The main reason for this strong growth was the surprisingly strong recovery in the advertising business.

This is one of the reasons why adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose more than sevenfold to EUR 166 million over the quarter.

For the full year 2021, the management is now assuming an increase in sales of 9 to 11 percent to 4.4 to 4.5 billion euros.

The adjusted group EBITDA is seen between 800 and 840 million euros, which on average would correspond to an increase of 16 percent compared to the previous year.

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