ProSiebenSat.1 in 'constructive' talks with suitors as profit falls

By Klaus Lauer, Riham Alkousaa and Bernadette Hogg

(Reuters) -ProSiebenSat.1 said on Thursday it was in constructive talks with top shareholders and rival suitors MFE-MediaForEurope and PPF, as the German broadcaster posted lower quarterly earnings in a tough advertising market.

Czech investment group PPF on Monday launched a bid to lift its stake in ProSiebenSat.1 to just under 30%, countering plans by top shareholder MFE-MediaForEurope to tighten its grip on the firm.

Asked why the company had responded positively to the offer from PPF, finance chief Martin Mildner said the approach was mathematical - based on the higher price offered by PPF - and not a sign ProSiebenSat.1 preferred one company over the other.

PPF said on Monday it would offer 7 euros ($7.85) per share, a 21% premium to the price implied by MFE's bid.

"The representatives of both shareholders in the supervisory board are clearly active, and they're clearly helping us in forming the strategy," Mildner added.

ProSiebenSat.1 reported a 39% drop in first-quarter core profit, as revenues fell in the highly profitable but cyclically sensitive linear TV advertising business.

The company's earnings before interest, taxes, depreciation and amortisation came in at 44 million euros, just above the 43 million euros expected by analysts in a poll provided by LSEG.

Revenue fell to 855 million euros, below the previous year's 867 million euros, exactly meeting expectations in the poll.

"It has been confirmed that the economic situation is still challenging and that advertising revenues in the German-speaking region will decline in the first half of the year," Mildner said in a statement.

The company confirmed its 2025 guidance for 3.85 billion euros in revenues and adjusted EBITDA of around 520 million euros.

($1 = 0.8949 euros)

(Reporting by Bernadette Hogg, Riham Alkousaa, Klaus Lauer. Editing by Kirsti Knolle and Mark Potter)