Changing channel

29 August 2017 By Liam Proud Follow @liamwardproud

Media stocks sagged after the German broadcaster cut ad-revenue forecasts for its main market. The optimistic reading is that a few big advertisers are holding back. But the divergence between buoyant GDP growth and sluggish TV ad spend points to the sector’s structural decline.

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German free-to-air broadcaster ProSiebenSat.1 on Aug. 28 warned that TV advertising revenue in German-language markets would decline in the third quarter, but upheld its full-year profit guidance.

The company said revenue at its Broadcasting German-speaking segment would decline by a mid-single digit percentage year on year, where it had previously predicted an improvement.

Due to a better performance in other divisions such as TV distribution, content production and digital, ProSiebenSat.1 said group revenue should increase by a mid-single digit percentage in the third quarter compared to the same period a year earlier.

The statement, released after markets closed on Aug. 28, hit the broader European TV sector on the morning of Aug. 29.

ProSieben shares were down 11 percent to just over 29 euros by 0930 BST. Shares in broadcasters RTL and ITV were down 8.1 percent and 3.5 percent respectively.

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