By Adria Calatayud
ProSiebenSat.1 Media shares traded sharply higher Wednesday after the company reported preliminary fourth-quarter adjusted earnings that topped its guidance.
At 0838 GMT, shares in the German media company were up 10% at EUR6.20, returning to the levels where they traded before ProSiebenSat.1 warned in December that 2024 earnings would take a hit from increased content investment.
ProSiebenSat.1 said fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization rose 11% from the year-earlier period to 335 million euros ($358.7 million), taking the full-year result to EUR578 million. The company had guided for slightly higher fourth-quarter adjusted Ebitda.
For 2024, the company continues to expect an adjusted Ebitda at around 2023’s level, but specified this now translates into EUR575 million, plus or minus EUR50 million.
Analysts polled by Visible Alpha forecast ProSiebenSat.1’s 2024 adjusted Ebitda at EUR565.8 million.
The company’s update is likely to be well received by investors as guidance for flat earnings in 2024 given in December was maintained despite a higher base in 2023, Citi analysts Thomas Singlehurst and Praveen Shetty wrote in a note to clients.
Write to Adria Calatayud at adria.calatayud@wsj.com
