Transformation Delivers EBITDA Turnaround Amid Revenue Decline
When Marco Giordani opened ProSiebenSat.1's Q2 2026 call by declaring that “our transformation is delivering results” — Marco Giordani, Chief Executive Officer · 2026-08-06, he was not overstating. The German broadcaster has been executing a multi-quarter strategic pivot, and this quarter's numbers—while showing a top-line decline—finally demonstrate the profitability payoff. Group revenues fell 9% year-on-year, but EBITDA swung from a loss to a gain: “our group EBITDA increased significantly by EUR 102 million in the second quarter and by EUR 152 million in the first half” — Bob Rajan, Chief Financial Officer · 2026-08-06. The turnaround is the product of a relentless focus on cost discipline, a change in programming amortization policy, and the continued divestment of non-core assets.
The Profit Engine: Cost Discipline and Amortization Tweaks
The revenue decline was largely a function of a weak TV advertising market—industry-wide budgets shifted to digital and were further dented by the World Cup drawing viewers to public broadcasters. Yet the EBITDA recovery was dramatic. CFO Bob Rajan explained that the swing was driven by a substantial reduction in costs, particularly in programming:
Crucially, he attributed the majority of that drop to a change in accounting: “ProSiebenSat.1 has adjusted its amortization policy for significant parts of its programming assets... resulting in a lower amortization expense” — Bob Rajan, Chief Financial Officer · 2026-08-06. This is a non-cash, yet material, driver of reported profitability—a nuance investors must weigh against the underlying operational savings.programming expenses in the second quarter amounted to EUR 195 million, representing a year-on-year decrease of EUR 60 million.
This is not the first time ProSiebenSat.1 has leaned on restructuring. In prior quarters, management had flagged a company-wide efficiency push. As former CEO Hubertus Habets noted in August 2025, “our strategy continues to be very focused on building a [free scaled] DACH superstreamer” — Hubertus Habets, Chief Executive Officer (CEO) · 2025-08-01—a pivot that now extends into a deeper streaming partnership with its parent MFE.
Streaming Pivot and Strategic Partnerships
The most forward-looking news from the call was the renewed emphasis on Joyn and the new partnerships. Giordani highlighted growing user engagement—Joyn monthly video users were up 21% and view time 26%—and announced a landmark content partnership: “we announced a couple of weeks ago the new partnership with ZDF that will bring all the ZDF on-demand content to Joyn” — Marco Giordani, Chief Executive Officer · 2026-08-06. This positions Joyn as an open, aggregated platform, a clear strategic shift from a siloed broadcaster.
Beyond content, ProSiebenSat.1 is also consolidating its technology stack with MFE. A shared streaming platform across six European countries was announced, promising synergies and better scalability. This is a direct continuation of the transformation narrative, and the programming expenses discipline is also being applied to the tech layer.
Divestments, Debt Reduction, and Flaconi's Momentum
The company has been shedding non-core assets—six disposals in the first half, including Studio71 U.S., wetter.com, and Verivox. These portfolio changes have simplified the group and directly reduced debt. Net finance debt fell to EUR 1.467 billion, and leverage sits at 3.2x, within its target range. The divestment proceeds also funded a reduction in the bridge facility, as CFO Rajan detailed.
Meanwhile, the beauty retail platform Flaconi continues to outpace the market. CFO Rajan offered confidence in its trajectory: “we believe that the Flaconi growth will continue in the low double-digit ranges” — Bob Rajan, Chief Financial Officer · 2026-08-06. Flaconi surpassed EUR 300 million in external revenue in H1, with international share now over 20%.
Outlook: Cautious Optimism Despite Weak Visibility
Management maintained its full-year guidance, expecting a slight organic growth in group revenue and significant EBITDA growth. However, they were candid about the macro and ad-market uncertainty. On the World Cup's impact, Giordani clarified: “usually, the World Cup effect is enlarging the market” — Marco Giordani, Chief Executive Officer · 2026-08-06, though he conceded visibility is short.
This quarter marks a genuine inflection point: profitability has returned, the portfolio is leaner, and the streaming strategy is gaining traction. Yet the reliance on amortization changes and continued divestments means the quality of the EBITDA beat deserves scrutiny. The €152 million swing is real, but part of it is accounting-driven. The next few quarters will reveal whether operational efficiency can sustain this momentum as the ad market stabilizes.