Shares of ProSiebenSat.1 Media have seen a significant increase in trading after the company announced higher adjusted earnings for the third quarter. This growth can be attributed to cost savings and nearly flat organic revenue, which had been declining in recent quarters.
At 0845 GMT on Tuesday, shares in the German media group were trading 12% higher at EUR5.50, although they still remain down 34% over the past three months.
ProSiebenSat.1 reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 111 million euros ($118.7 million) for the quarter, up from EUR108 million in the same period last year.
However, revenue for the quarter experienced a 2.5% decline, amounting to EUR888 million.
The company now expects adjusted EBITDA to be at the lower end of its previous guidance range, around EUR600 million, with a potential variation of up to EUR50 million. Additionally, revenue is projected to fall below the target range of EUR4.10 billion, with an allowance of plus or minus EUR150 million.
ProSiebenSat.1 attributes this revised guidance to a weaker-than-expected economic recovery. Nevertheless, it anticipates a slightly improved performance in revenue and earnings during the fourth quarter.
According to Citi analyst Thomas Singlehurst, ProSiebenSat.1 Media’s updated outlook aligns with consensus expectations. This positive outcome may provide some relief for the company’s shares, as stated in a note to clients.