Prosiebensat acquires streaming platform Joyn from Warner Bros. Discovery
Reuters
Published Sep 13, 2022 08:54
Updated Sep 13, 2022 12:10
BERLIN (Reuters) -Prosiebensat 1 Media SE has revised lower its 2022 core earnings outlook after acquiring the remaining 50% of shares in streaming service Joyn from Warner Bros. Discovery, the German media company said on Tuesday.
The company expects the full consolidation of Joyn to make a 25-million-euro dent in 2022 adjusted earnings before interest, tax, depreciation and amortization (EBITDA).
As a result, it revised down its outlook for 2022 adjusted EBITDA to 780 million euros, with a variance of plus/minus 25 million euros, versus a previously forecast 805 million euros plus/minus 25 million euros.
The group, however, stuck to its previous 2022 forecast for adjusted net income of around 4.375 billion euros ($4.45 billion), with a variance of plus/minus 75 million euros, largely in line with the previous year.
ProSiebensat will acquire the remaining 50% stake in Joyn, launched in 2019, for the symbolic price of one euro, Prosiebensat CEO Rainer Beaujean told Reuters.
"This gives us strategic security," he said.
Like rivals Netflix (NASDAQ:NFLX) and Disney, Warner Bros. Discovery is focusing on global subscription models, while Joyn will remain ad-financed and limited to German-speaking countries, Beaujean added.
ProSiebensat hopes to make Joyn profitable by 2025. The streaming platform is expected to make a loss of 75-80 million euro in the current year, the CEO said.
($1 = 0.9839 euros)
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Written By: Reuters
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