German ProSieben targets expansion into China and India

5 October 2011 23 h 46 min 8 comments

During a press meeting at the company’s headquarters on Tuesday 4 October, ProSiebenSat.1 (the second-largest broadcasting group in Europe, reaching more than 78 million TV households) announced its intention to invest in China and India.

According to Thomas Ebeling, CEO of the group: Television is the heart of ProSiebenSat.1. It gives us the strength to develop the company into a powerhouse for TV and digital entertainment. In our growth strategy which we present today, we have identified additional revenue potential of more than EUR 750 million by 2015. We want to take another major step forward and further consolidate our leading position as one of the most profitable media companies in Europe, partly by reducing its dependence on its home-market television business. We will utilize the attractive growth opportunities in the digital world and abroad and work hard to achieve further profitable growth.” .

According to its management, ProSiebenSat.1 which owns and operates commercial television stations and radio networks in Germany and across several northern and southeastern European countries “will target expansion into China and India”.

“Even though debt reductions could put ProSiebenSat.1 in a position to spend as much as EUR400 million on acquisitions, the company has no plans to spend that much money”, CFO Salzmann said. Of the EUR750 million additional revenue figure, the company sees a potential of at least EUR250 million in TV revenue from the German-speaking region and more than EUR150 million from its international TV segment. “In 2015, we expect to be generating nearly half of our revenue outside the traditional TV advertising market in Germany,” Ebeling said.

In the “Broadcasting International” pilar, ProSiebenSat.1 is mainly pushing for organic growth as well as evaluating opportunities in high-growth markets. Additional organic revenue opportunities in the international TV business are estimated at more than EUR 150 million, with the average annual growth rate (CAGR) set at an upper single digits level until 2015. To achieve this, the Group will be expanding existing activities as well as evaluating future growth markets. Thomas Ebeling commented, “We want to exploit our international opportunities more actively and more effectively than ever. We will also be focusing on attractive, dynamic growth markets. “

In the area of production and global sales of program content, the Group aims to grow by more than EUR 100 million, with a CAGR significantly above 20% until 2015.

We will systematically internationalize our strong content, develop collaboration with partners and consolidate our presence, particularly in the USA and dynamically growing markets“, stated the CEO on Capital Markets Day.

The Chinese presence of SevenOne International

ProSieben is already active in China through SevenOne International, the ProSiebenSat.1 Group’s programming sales company.

“Galileo”, the first-rate sciencetainment program that explains common, technical and scientific phenomena is shown by ProSieben since 1998 and is adapted in China, by Shanghai DocuTV.

“My Man Can” (produced by Redseven Entertainment) which follows four women gamble with their partners’ abilities is already a ”smash hit in China, airing prime-time on Jiang Su Satellite Channel. In fact, the game show was the most successful foreign entertainment adaption in China in 2010″, according to SevenOne.

ProSiebenSat.1 is controlled by private equity firms Kohlberg Kravis Roberts & Co. and Permira and had an operating margin of 30.4% on sales of EUR2.6 billion in 2010, excluding the sold Benelux assets.

SOURCES: Dow Jones, ProSiebenSat.1

Related posts:

Leave a Reply

You must be logged in to post a comment.

Other News

  • China (mainland) film Brilliant future expected for Chinese cinema: interview

    Brilliant future expected for Chinese cinema: interview

    Jiang Wen (R), a well-known Chinese director, walks down the red carpet with his wife Zhou Yun at the opening ceremony of the 70th Venice Film Festival in Venice, Italy, Aug 29, 2013. [Photo / Xinhua] (Xinhua, 04 Sep, 2013)Chinese films have achieved over the past few years very positive results in terms of both quantity and quality, and will drive their technology-led development, 70th Venice Film Festival president Alberto Barbera told Xinhua in a recent exclusive interview. This venerable [...]

    Read more →
  • Breaking news China (mainland) film Cloudary extends script to movie industry

    Cloudary extends script to movie industry

    (, 26 Aug, 2013) Cloudary Corp – an online literature platform owned by interactive media giant Shanda Group – said on Friday that it reached a film script agreement with the Chinese movie firm Seven Stars Films. Seven Stars Films, a movie production and investment firm owned by Chinese media entrepreneu r Bruno Wu, will link Cloudary’s literature with the world’s movie industry. Wu, who is married to popular TV host Yang Lan, founded Seven Star Films in 2012. The [...]

    Read more →
  • Breaking news China (mainland) film China’s movie market booms with local content

    China’s movie market booms with local content

    ( Agencies, 23 Aug, 2013) In “American Dreams in China”, Cheng Dongqing is giving a lecture in an abandoned factory in Beijing . Snow falls through the damaged roof and a power cut sends students reaching for their flashlights. The movie , about how young Chinese in the 1990s tried every means to learn English so they could study overseas, is part of a boom in domestic productions that is outpacing foreign film s at the box office in China. [...]

    Read more →
  • Breaking news China (mainland) film Fast forward with film

    Fast forward with film

    (China Daily, 23 Aug, 2013) In the past year, Chinese films have galloped ahead like a dark horse, beating Hollywood imports. It is hardly surprising that most of these domestic hits are comedies. Comedy is mostly local. When Hollywood sent scouts to recover the secret formula, many of them reported that these Chinese movies were not particularly funny. Of course not. When you translate every line into English, you have lost much of the fun, leaving only a few sight [...]

    Read more →
  • Breaking news China (mainland) Digital Mobile game firms looking abroad

    Mobile game firms looking abroad

    (China Daily, 21 Aug, 2013) Intensifying domestic competition is driving Chinese mobile game developers into overseas markets, said Google Inc, owner of the world’s most used smartphone operating system. Japan and South Korea may become “sizeable” money-spinners for developers in China in the coming years, it added. “Tapping into South Korea and Japan makes sense for Chinese developers, because both countries have a large smartphone user base and high sales volume in the mobile gaming sector,” said Ben Zhang, China [...]

    Read more →
  • Breaking news China (mainland) tv PPTV denies buyout rumors

    PPTV denies buyout rumors

    (, 14 Aug, 2013) Online video provider PPTV has denied rumors it will be jointly acquired by e-commerce giant Alibaba Group Holding Ltd and Hunan Satellite TV. “We have noticed related media reports. PPTV is operating independently, well, and we have nothing to announce at present,” PPTV told China Daily on Wednesday. A report from IT industry portal said on Wednesday that the prospective deal is almost closed, with the transaction reaching $400 million. It cited venture capital sources [...]

    Read more →
  • Breaking news China (mainland) film Film industry needs long tail to grow

    Film industry needs long tail to grow

    (China Daily, 15 Aug, 2013) The domestic film market registered record half-yearly box office returns of 10.9 billion yuan ($1.77 billion) in the first six months of this year, up 35 percent year-on-year, and there have been excited voices saying that the Chinese film industry is about to boom in the international market. However, box office success is just part of the industry’s chain, and without the further development of licensed movie merchandising, the Chinese film industry is still in [...]

    Read more →
  • Breaking news China (mainland) Digital New WeChat game becoming painfully popular

    New WeChat game becoming painfully popular

    (, 15 Aug, 2013) A new mobile phone game on WeChat, a social network app in China, is proving so popular that it’s causing hand injuries for many Chinese users. The game, which was recently introduced to WeChat’s 400 million subscribers, allows users to compete online with their friends in aircraft battles. Within two hours after the release of the game on Aug 5, there were more than 180 million downloads. But Zou Cheng, an orthopedic doctor at Hangzhou First [...]

    Read more →