Good
day, ladies
and
gentlemen,
welcome
to
the
Full
Year
2021
Results
Conference
Call
of
ProSiebenSat.1
Media
SE.
This
conference
is
being
recorded.
Today's
call
is
hosted
by
Mr.
Dirk
Voigtländer.
Please
go
ahead,
sir.
D
Dirk Voigtländer
Yeah,
thank
you,
operator,
and
good
afternoon,
ladies
and
gentlemen,
and
welcome
to
ProSiebenSat.1's
analyst
and
investor
conference
call
on
the
occasion
of
the
full
year
2021
results
published
today.
Our
Group
CEO,
Rainer
Beaujean,
will
start
today's
presentation
with
highlights
of
the
financial
year
2021.
Ralf
Gierig,
CFO
of
ProSiebenSat.1,
will
then
take
you
through
the
financials
of
the
group
and
segments
for
both
the
fourth
quarter,
as
well
as
full
year
2021.
In
the
second
part
of
the
presentation,
Rainer
will
provide
an
update
on
the
group's
strategy
and
what
makes
us
confident
to
achieve
our
new
mid-
to
long-term
organic group
revenue
growth
ambition.
Rainer
will
also
present
the
dividend
proposal
for
fiscal
2021
and
our
new
outlook
for
2022.
As
always,
the
presentation
will
be
followed
by
a
Q&A
session.
With
these
opening
remarks,
I
now
hand
over
to
Rainer.
R
Rainer Beaujean
Thanks,
Dirk.
Good
afternoon
also
from
my
side
and
welcome
to
our
analyst
and
investor
call
on
our
financial
results
2021.
We
are
all
looking
with
shock
on
what
is
happening
in
the
Ukraine.
Our
thoughts
are
with
all
those
who
suffer
from
this
war.
Of
course,
we
also
ask
ourselves
what
we
can
do
at
a
time
like
this.
Our
answer
is
clear,
we
have
to
use
our
reach.
The
current
events
show
once
again
how
important
it
is
to
provide
viewers
with
comprehensive,
and
above
all,
independent
reporting.
We
are
making
our
contribution
to
this
and
report
intensively
on
our
stations
and
platforms.
At
the
same
time,
of
course,
our
concern
is
for
our
employees.
We
have
employees
on
the
ground
through
two
portfolio
companies
with
whom
we
are
in
close
contact.
In
times
like
this,
it
is
challenging
to
announce
record
revenues
and
to
come
back
to
business
as
usual.
But
you
are
here
today
to
talk
about
our
results
and
our
outlook.
So
let's
start.
In 2021,
we
have
shown
that
ProSiebenSat.1
is
on
a
successful
path
to
becoming
a
globally
operating
digital
group.
Our
strategic
focus
is
on
a
diversified
portfolio
comprising
three
strong
segments
that
complement
each
other:
Entertainment,
Dating
&
Video
and
Commerce
&
Ventures.
Besides
our
full
year
2021
results,
we
also
want
to
present
today
our
clear
strategic
path
into
our
future,
as
well
as
our
growth
ambitions. Let's
have
a look
at
today's
agenda.
We
will
begin
with
a
short
overview
of
what
shaped
our
past,
followed
by
an
update
on
our
group
financials.
Afterwards,
we
will
highlight
our
strategic
priorities
and
will
end
the
presentation
with
an
outlook
regarding
the
full
year
2022.
So
let's
start
on
slide
number
3. 2021
was
a
record
year
for
us
and
we
saw
our
strategy
succeed.
We
fully
achieved
our
financial
targets,
which
we
had
raised
three
times
throughout
the
year.
And
that
even
despite
the
continued
challenging
market
environment
due
to
COVID-19,
we
significantly
increased
our
group
revenues
by
11%
to
€4.5
billion.
We
substantially
grew
our
adjusted
EBITDA
by
19%
to
€840
million.
Both
results
hit
right
our
target
ranges.
The main
driver
was
our
Entertainment
segment,
which
recorded
a
strong
revenue
and
earnings
performance.
In
this
context,
our
advertising
business
recovered
much
faster
from
pandemic
impact
than
expected
at
the
beginning
of
the
year.
We
continue
to
focus
on
profitability
and
cash
flow.
That
is
why
active
portfolio
management
still
plays
an
important
role
in
our
strategy.
Next
to
divesting
from
companies
we
are
no
longer
the
best
owner
for,
we
also
strengthened
the
position
of
assets
with
significant
synergies
to
our
Entertainment
business.
The
best
example
is
ParshipMeet
Group
which
forms
our
Dating
&
Video
segment.
Thanks
to
our
strong
operating
performance,
we
substantially
decreased
our
net
financial
debt
with
our
financial
leverage
narrowing
to
2.2
times.
With
this,
we
are
back
in
our
target
range
of
1.5
times
to
2.5
times.
Furthermore,
we
diversified
the
maturity
of
our
debt
profile
after
refinancing
in
2021.
We
also increased
our
adjusted
net
income
considerably
by
64%
to
€362
million.
Hence,
we
are
happy
to
offer
our
shareholders
a
substantial
higher
dividend
of
€0.80
per
share,
compared
to
€0.49
last
year.
We
will
later
present
to
you
our
outlook
and
new
financial
targets
for
2022.
We
also
set
our
aspiration
to
grow
revenues
by
an
average
of
4%
to
5%
originally –
sorry.
We
also
set
our
aspiration
to
grow
revenues
by
an
average
of
4%
to
5%
organically
each
year
over
the
medium
to
long term.
With
this,
let
me
now
hand
over
to
our
Group
CFO,
Ralf
Gierig,
who
will
guide
you
through
our
group
financials
for
the
full
year
of
2021
and
the
fourth
quarter.
R
Ralf Peter Gierig
Thank
you,
Rainer,
and
good
afternoon
also
from
my
side.
I'll
now
continue
with
a
review
of
the
group's
financial
performance
in
financial
year
2021
and
start
with
our
revenue
performance.
As
Rainer
already
stated,
2021
was
a
record
year
for
ProSiebenSat.1.
Thanks
to
a
steadily
improving
operating
performance
throughout
the
year,
we
increased
our
financial
outlook
three
times
in
2021,
most
recently
in
November
of
last
year.
We
have
grown
dynamically
and
profitably
as
a
group
even
in
this
challenging
environment
by
focusing
on
executing
our
strategy
and
by
further
streamlining
our
portfolio
to
make
it
even
more
focused
and
synergistic.
Group
revenues
increased
significantly
by
11%
to
a
record
level
of
€4.494
billion,
despite
the
continuing
impact
of
the
COVID-19
pandemic.
The
main
growth
driver
was
the
Entertainment
segment.
At
the
same
time,
the
synergistic
diversification
across
all
segments
continued
to
pay
off.
Part
of
this
strategy
was
also
the
acquisition
of
The
Meet
Group
in
September
2020,
which
has
since
strengthened
the
Dating
&
Video
segment
and
has
had
a
very
positive
impact
on
group
revenues,
too.
Let
me
briefly
explain
that the
newly
formed
Dating
&
Video
segment
corresponds
to
the
previous
ParshipMeet
Group
segment
and
remained
unchanged
in
its
composition
compared
to
year-end
2020.
On
a
portfolio
and
currency-adjusted
basis,
group
revenue
growth
reached
a
strong
10%-plus
in
full
year
2021. The
Entertainment
segment
reported
revenue
growth
of
12%
to
€3.098
billion
in
full
year
2021.
This
increase
was
in
particular
driven
by
the
positive
momentum
of
the
advertising
business,
which
recovered
significantly
and
faster
than
initially
expected
from
the
negative
effects
related
to
the
COVID-19
pandemic.
Advertising
revenues
increased
by
11%
to
€2.323
billion.
This
reflects
the
strong
growth
in
the
second
and
third
quarter
of
2021
and
proves
that
once
the
economic
environment
began
to
improve,
TV
advertising
bounced
back
quickly,
again,
highlighting
the
relevance
of
TV
for
advertisers
in
building
reach
and
brands
in
a
high-value
secure
environment.
In
Q4
2021,
revenues
exceeded
the
already
comparatively
high
prior
year
figure
and
came
in
also
above
pre-COVID-19
crisis
levels
of
Q4
2019.
Again,
the
distribution
business
delivered
very
solid
revenue
growth
and
posted
an
increase
of
6%,
primarily
driven
by
HD
subscriber
growth
and
new
agreements
with
major
distribution
partners.
With
a
25%
increase
in
revenues,
the
content
business
also
showed
continued
progress
and
certainly
a
clear
recovery
from
the
temporary
dip
the
business
partly
saw
in
the
financial
year
2020.
Other
revenues
decreased
by
9%
year-on-year,
mainly
due
to
the
deconsolidation
of
the
hosting
provider
myLoc
in
September
2020.
The
Dating
&
Video
segment
revenues
grew
substantially
by
63%
to
€542
million,
reflecting
the
acquisition
of
The
Meet
Group
in
September
2020.
On
a
pro
forma
basis,
i.e.,
taking
into
account
The
Meet
Group's
currency-adjusted
revenues
for
full
year
2020
and
full
year
2021,
segment
revenues
increased
by
plus
7%
in
full
year
2021.
This
shows
that
we
were
able
to
continue
to
expand
the
business
even
against
the
backdrop
of
strong
comparable
figures
at
the
beginning
of
the
COVID-19
pandemic
and
despite
the
regulatory
changes
we
had
to
cope
with
in
the
German-speaking
subscription
business.
Dating
with
its
eharmony,
Parship,
ElitePartner
and
LOVOO
businesses
contributed
€278
million
or
51%
to
segment
revenues,
with
eharmony
recording
strong
organic
revenue
growth
year-on-year.
As
a
result,
eharmony
therefore
also
became
the
largest
matchmaking
brand
in
our
portfolio,
which
is
a
good
foundation
for
future
growth
of
subscription-based
Dating
business.
The
Video
business
continue
to
develop
positively
in
2021,
contributing
revenues
of
€263
million,
compared
to
€84
million
in
2020.
The
previous year
figure
corresponds
to
the
revenue
contribution
of
the
Video
business
from
the
acquisition
of
The
Meet
Group
in
September
2020.
On
an
organic
basis,
revenues
in
the
Dating
&
Video
segment
remained
on
the
already
strong
prior year's
level.
Please
be
reminded
that
2020
was a
record
year
and
the
segment
had
benefited
strongly
from
a
stay-home
effect
due
to
the
restrictions
of
public
life
as
a
result
of
the
COVID-19
pandemic.
Full
year
2021
revenues
of
the
Commerce
&
Ventures
segment
decreased
by
10%,
mainly
due
to
the
deconsolidation
of
WindStar
Medical
in
December
2020.
As
a
reminder,
the
asset
contributed
€114 million
of
revenues
or
12%
to
segment
revenues
in
full
year
2020.
However,
on
an
organic
basis,
revenues
increased
by
3%
in
full
year
2021,
mainly
driven
by
the
growth
of
the
online
beauty
provider,
Flaconi;
and
the
car
rental
comparison
portal,
billiger-mietwagen.
Especially
in
the
important
fourth
quarter,
organic
revenue
development
was
exposed
to
an
overall
increased
macroeconomic
uncertainty
and
restrictions
related
to
the
Omicron
COVID-19
variant,
as
well
as
a
disruption
of
the
German
energy
market.
This
led
to
a
slowdown
in
the
business
of
Verivox
and
Jochen
Schweizer
mydays
in
particular.
Let
me
continue
on
page
6
with
a
review
of
the
adjusted
EBITDA
development. Group
adjusted
EBITDA
improved
by
19%
in
full
year
2021
and
mirrors
the
dynamic
revenue
growth
and
the
recovery
of
the
advertising
business.
Adjusted
EBITDA
of
the
Entertainment
segment
was
up
by
€137
million,
or
24%,
to
€698
million
in
last
year.
As
mentioned
before,
this
positive
trend
is
mainly
attributable
to
the
advertising
business
which
has
steadily
recovered
from
the
negative
effects
of
the
pandemic
since
the
record
quarter
of
2021.
Earnings
were
also
positively
impacted
by
revenue
growth
in
the
distribution
and
content
business.
Hence,
we
were
able
to
further
strengthen
our
program
lineup
and
platforms
by
increasing
programming
cost
by
3%
to
€1.054
billion
in
the
full
year.
This
also
puts
us
in
a
strong
position
to
capitalize
on
our
program
investments
in
the
current
financial
year.
The
Dating
&
Video
segment
also
recorded
an
increase
in
earnings.
Adjusted
EBITDA
grew
by
€39
million
to
€119
million,
reflecting
the
first-time
consolidation
of
The
Meet
Group
in
September
2020.
Commerce
&
Ventures
adjusted
EBITDA
declined
by
41%
in
full
year
2021,
mainly
reflecting
the
deconsolidation
effect
of
WindStar
Medical
in
December
2020.
WindStar
Medical
had
contributed
€18
million
to
earnings
in
the
prior
year.
Like
revenues,
adjusted
EBITDA
was
affected
by
temporary
effects,
especially
in
Q4
2021.
Economic
uncertainties
due
to
the
Omicron
COVID-19
variant
had
a
negative
effect
on
consumer
behavior.
The
increasingly
tense
situation
on
the
energy
market
also
weighed
on
earnings.
The
latter
impacted
the
business
of
our
otherwise
very
profitable
price
comparison
portal,
Verivox.
Please
turn
to
page
7.
Although
adjusted
EBITDA
showed
a
sharp
increase
in
2021,
reported
EBITDA
and
EBIT
remained
stable
year-on-year.
This
was
due
to
reconciling
items
of
minus
€36
million,
compared
with
plus
€95
million
in
the
prior
year.
The
main
component
of
the
prior
year
figure
was
the
income
from
changes
in
the
scope
of
consolidation,
i.e.,
the
onetime
disposal
gains
of
WindStar
Medical
and
myLoc.
Net
income
showed
a
significant
increase
of
68%
versus
the
prior
year.
This
was
due
to
a
significantly
better
financial
result
of
plus
€54
million,
compared
to
minus
€183
million
in
2020,
reflecting
better
at
equity
and
interest
results
and
positive
valuation
effects
from
financial
assets
in
the
other
financial
result.
Adjusted
net
income increased
strongly
by
64%,
reflecting
the
improved
operating
profitability.
This
has
clearly
been
the
strongest
sign
that
ProSiebenSat.1
has
been
on
a
growth
path
in
full
year
2021
and
that
many
of
our
initiatives
to
improve
earnings
have
paid
off.
As
you
all
know,
adjusted
net
income
is
the
relevant
financial
KPI
for
our
dividend
policy.
Rainer
will
present
our
dividend
proposal
later
on
and
will
reflect
this
earnings
improvement.
And
lastly,
ProSiebenSat.1
Group's
adjusted
operating
free
cash
flow
improved
notably,
reaching €599
million
versus
€424
million
in
full year
2020.
This
development
primarily
reflects
the
group's
earnings
growth
and
underlines
our
effective
cash
flow
management.
Let
me now
continue
with
comments
about
the
financial
leverage
and
net
debt
improvement
on
page
8.
As
you can
see
on
this
slide,
we
were
able
to
lower
our net
financial
debt
by
€117
million
to
€1.852
billion,
despite
the
dividend
payout
of
€111 million
in
June
2021.
The
reduced
net
financial
debt
results
from
the
group's
strong
cash
generation
and
effective
portfolio
management
in
2021.
As
a
result,
the
group's
leverage
ratio
also
improved
from
2.8
times
at
year-end
2020
to
2.2
times
at
year-end
2021,
returning
well
and
earlier
than
previously
expected
into
the
financial
leverage
target
range
of
1.5
times
to
2.5
times.
In
2021, the
group
took
advantage
of
the
favorable
conditions
in
the
debt
markets
and
diversified,
as
well
as
extended
its
debt
maturity
profile
by
issuing
new
€700
million
promissory
loans
in
October 2021.
In
addition,
the
company
prepaid
€900
million of
its existing
term
loans
under
its
senior
facilities
agreement
in
October
last
year,
but
inter
alia,
applying
the
total
gross
proceeds
from
the
new
€700 million
promissory
loans.
The
partial
early
repayment
of
the
term
loans
and
the
full
repayment
of
the
senior
notes
in
the
amount
of
€600
million
resulted
in
a
significant
reduction
of
gross
debt
by
€747
million
to
round about
€2.4
billion.
This
all
said,
the
group
has
a
solid
financial
position
in
the
long
term.
Let
me now
close
my
part
of
the
presentation
with
some
comments
about
our
investment
criteria
on
page
9.
As
already
pointed
out
in
our
Q3
conference
call
in
November,
we
have
defined
clear
criteria
across
all
segments
to
ensure
the
financial
soundness
of
all
projects
and
guarantee
that
we
continue
to
focus
on
the
realization
of
synergies
within
the
group.
For
example,
we
ensure
that
expansion
and
new
investments
have
a
payback
period
of
not
more
than
three
years
and
generate
an
internal
rate
of
return
of
at
least
18%.
Strategic
projects
are
generally
expected
to
pay
off
within
five
years.
In
addition,
projects
must
be
closely
related
to
TV
or
a
platform
business
to
maximize
our
synergy
potential.
Overall,
these
criteria
contribute
to
our
15%
P7S1
ROCE
group target
and
our
sustainable
growth
objective.
As
you
can
see
on
the
slide,
P7S1
ROCE
has
improved
by
3.6
percentage
points
from
2020 to
2021
and
was
at
14.1%
at
year-end
2021.
I
now
hand
back
to
Rainer who
will
provide
an
update
on
our
strategic
objectives
and
an
overview
of
our
financial
targets
for
the
year
2022.
R
Rainer Beaujean
Thank
you,
Ralf.
Let's
now
have
a
closer
look
at
what
we
achieved
on
our
operational
level
in
2021,
how
this
fit
into
our
strategy,
and
how
we
plan
to
continue
this
path.
Onto
slide
number
11.
We
believe that
our
synergistic
company
setup
will
continue
to
boost
revenues
and
create
shareholder
value
also
in
the
future.
Over
the
past
10 years,
we
have
consistently
diversified
our
business,
particularly
through
the
Dating
&
Video
and
Commerce
&
Ventures
segments.
With
this
successful
strategy,
we
have
grown
by
an
average
of
7%
per
year,
more
than
doubling
our
revenues
in
this
period.
Back
in
2011,
around
80%
of
our
revenues
came
from
TV
advertising
alone.
Since
then,
we
have
broadened
our
revenue
sources.
Today,
traditional
TV
advertising,
which
maintained
an
unchanged
high
level,
only
accounts
for
around
40%
of
our
group
revenues,
while
our
new
business
areas
contribute
about
60%.
What is
important
here,
these
diversification
efforts
came
at
no
cost
for
our
shareholders,
but
instead
created
value
for
them.
While
we
spent
€2.1
billion
in
the
last 10
years
for
M&A
and
have
already
regained
€800
million
from
disposals,
we
nonetheless
distributed
€3.2
billion
in
this
period
to
our
shareholders,
and
we
kept
net
financial
leverage
and
net
financial
debt
about
stable.
This
would
not
have
been
all
possible
without
tangible
synergies,
especially
those
related
to
advertising. We
will
address
them
later
in
this
presentation.
Starting
from our
already
high
revenue
level
of
over
€4
billion
that
we
achieved
today,
we
set
ourselves
the
ambition
to
increase
our
group
revenues
organically
by
an
average
of
4%
to
5%
per
year
in
the
medium
to
long
term.
We
want
to
continue
this
revenue
growth
by
a
clear
number
of
initiatives,
which
we
will
explain
in
detail
on
the
following
slides
and
to
which
all
three
segments
will
contribute.
Let's
start
on
slide
number
13.
This
chart
describes
the
core
of
our
ProSiebenSat.1
alignment.
Almost
all
of
our
businesses
have
evolved
following
this
approach.
Our
reach
leads
and
is
the
basis
for
our
monetization.
This
is
the
foundation
of
our
growth
ambition.
All
our
three
segments
are
linked
with
one
shared
vision,
we
empower
brands
and
create
moments
that
matter.
This is
the
core
of
our
group
and
what
drives
us
every
day.
We
inform,
entertain
and
bring
people
together
around-the-clock.
We
offer
them
products,
services
and
experiences
that
enrich
their
everyday
lives.
Driven
by
this
vision,
we
want
to
strengthen
our
position
as
a
leading
digital-first
video
entertainment
provider
in
the
German-speaking
region
and
use
this
strength
to
power
synergistic
consumer
platforms.
How
do
we
want
to
achieve
this?
By
maximizing
our
reach
and
by
diversifying
our
monetization.
Reach
and
monetization
are
our
greatest
assets,
and
we
can
monetize
them
in
different
ways.
Our
focus
here
is
clear,
all
our
efforts
result
in
increasing
returns
for
our
shareholders.
This
makes
ProSiebenSat.1
a
valuable
investment
also
in
the
medium
to
long
term.
Let's
start
with
our
reach.
We
maximize
our
reach
by
providing
local,
live
and
relevant
content
on
our
broad
array
of
platforms.
We
have three
levers
that
are
playing
into
this.
Let's
start
on
slide
number
15.
First,
we
are
the
leading
independent
digital
entertainment
platform
in
the
German-speaking
region.
Why?
Because
we
have
a
unique
content
offering
that
differentiates
us
from
our
competitors,
which
is
relevant
and
matters
to
the
millions
of
people
we
cater
to
across
all
platforms.
Despite
all
the
prophecies
of
doom,
TV
is
alive
and
kicking.
In
2021,
we
have
clearly
shown
how
well
we continue
to
reach
viewers,
especially
young
target
groups.
The
average
daily
TV
viewing
time
in
Germany
is
around
209
minutes.
Hence,
we
want
to
create
the
fireside
moments
that
our
viewers
chose
to
spend
this
time
with.
In
2021,
we
created
a
lot
of
talk-of-town
formats
such
as
The
Masked
Singer,
Germany's
Next
Topmodel
with
the
most
successful
season
in 12
years,
relevant
formats
such
as
our
seven-hour
documentary
#Nichtselbstverständlich
on
the
situation
of
health
care
workers
and
our
sports
portfolio
with
the
German
Bundesliga
or
the
NFL
and
the
Super
Bowl.
Overall,
we
thus
achieved
a
significant
reach
of
an
average
of
59
million
monthly
viewers
with
linear
TV
and
11
million
monthly
unique
users
with
our
digital offers.
This
strategy enables
us
to
outperform
our
peers
on
linear
channels
and
to
create
significant
traction
digitally,
as
you
can
see
on
slide
number
16.
In
2021, we
continued
to
be
the
number
one
in
the
German
audience
market.
We
reached
an
audience
share
of
25.6%,
and
hence,
more
than
2
percentage
points
ahead
of
our
competitor,
Ad
Alliance,
which
markets
the
RTL channels.
As
you
can
see,
we
were
able
and
we
were
ahead
of
them
every
single
quarter
and
even
expanded
our
market
leadership
significantly
in
the
crucial
fourth
quarter.
Furthermore,
we
put
particular
focus
on
Joyn
as
our
most
relevant
digital
platform.
Our
top
formats,
such
as
The
Taste,
are
driving
its
reach,
as
well
as
the
exclusive
coproductions
that
we
initiate
or
decide
to
show
first
on
Joyn,
such
as
our
successful
fiction
series,
Blackout. Our
own
content
already
contributes
for
90%
of
the
top
10
AVOD
formats
on
Joyn.
This
demonstrates
the
consistent
windowing
strategy
between
our
linear
channels
and
Joyn
that
we
will
further
enhance
this
year.
The
second
step
in
maximizing
our
reach
is
to
lever
our
market-leading
tailored
content
that
is
focused
on
local
relevance
and
exclusivity.
A
similar strategy
is
also
successfully
pursued
by
our
main
shareholder,
Mediaset,
in
Italy
and
Spain,
or
by
our
French
peer,
[ph]
TFR
(00:29:01),
in
France.
So
let's
take
a
closer
look
at
our
content
strategy
on
slide
17.
We
are
increasing
our
local
content
share
on
our
biggest
challenge
in
prime
time,
which
is
the
strongest
advertising
period
starting
at
8:00
PM.
We
make
local
contents
our
investment
priority.
This
not
only
differentiates
us
from
our
international
streaming
providers,
it
also
enables
us
to
make
better
use
of
and
thus
better
monetize
these
formats
because
of
their
unique
character.
We
are
currently
establishing
an
in-house
production
hub
for
factual
and
show
content,
alongside
our
successful
production
companies
like
RedSeven
Entertainment
or
Pyjama
Pictures.
Additionally,
we
will
launch
our
own
news
department
in
2023.
All
this
with
the
goal
to
internalize
production
costs
and
margins,
and
to
become
independent
from
the
market
and
own
our
IP.
We
integrate
program
and
reach
planning
in
order
to
ensure
that
all
available
platforms
that
broadcast
our
content
work
well
together.
All
the
shows
we
think
in
terms
of
live
and
on-demand
completely
platform
agnostic
in
order
to
create
the
best
possible
reach
for
our
content.
And
third,
we
utilize
multiple
channels
to
reach
and
target
our
audience
anywhere
and
anytime
across
all
platforms.
On
slide
18,
you
can
see
the
ecosystem
of
our
linear
and
digital
platforms,
both
owned
and
operated
and
third
party
that
we
lever
to
access
the
biggest
share
of
users.
In
short,
we are
where
our
customers
and
viewers
are
and
use
our
relevant
content
as
a
driver
for
reach.
Next
to
our
own
platforms,
third-party
platforms
play
an
important
role
in
distributing
our
content.
And
they
are
highly
profitable –
they
are
highly
profitable
line
of
business
and
a
stable
source
of
revenue
for
us.
Let
me dive
deeper into
the
streaming
platform,
Joyn,
in
this
context.
Joyn
is
the
cornerstone
of
our
digital
platform
strategy.
We
highly
believe
in
our
advertising
video-on-demand
offering
because
it
perfectly
fits
the
zeitgeist.
Most
households in
Germany
can
only
afford
a
limited
number
of
streaming
subscriptions.
German
users
are
willing
to
pay
for
a
maximum
of
2.5
SVOD
services
and
spend
a
maximum
of
€17
for
this.
Against
this
backdrop,
we
see
that
large
subscription
providers
are
reaching
the
limits
of
their
growth.
They
have
greatly
benefited
from
the
pandemic,
but
now,
it
gets
hard
for
them
to
attract
new
users.
That's
different
with
Joyn.
We
are
convinced
of
the
success
of
our
hybrid
model
because
it
allows
us
to
meet
the
sweet
spot
as
a
broadcaster
or
advertising
video-on-demand
service.
Meaning,
we
have
a
strong
advertising
finance
layer
where
we
stay
close
to
our
free
TV
channels,
combined
with
a
slim
but
highly
attractive
subscription
offering
to
attract
new
customers.
I've
talked about
the
great
assets
we
have
in
our
company,
how
we
are
increasing
our
platform
independent
reach
driven
by
local,
live
and
relevant
content,
how
we
are
growing
the
reach
of
our
digital
platforms
such
as
Joyn
and
lever
our
distribution
income.
Now
onto
slide
number
20.
I
would
like
to
turn
to
how
we
monetize
these
assets.
On
the
one
hand,
our
traditional
sales
business
markets
our
TV
reach
to
our
advertising
partners.
Here,
we
can
directly
monetize
our
reach.
In
addition,
we
can
also
drive
monetization
in
an
indirect
way.
In
our
Commerce
&
Ventures
segment,
we
invest
in
young
companies
and
offers
an
advertising
space.
In
return,
we
receive
shares
in
the
revenue
or
the
company
itself
as
media-for-revenue
and
media-for-equity
investments.
This
means
that
our
Commerce
&
Ventures
segment
is
100%
synergistic
with
our
Entertainment
business.
In
selected
cases
with
high
synergy
potential,
we
also
invest
own
capital
to
drive
additional
returns.
ParshipMeet
Group
is
an
excellent
example
for
this
and
that's
a
logical
continuation
of
our
business.
First
of
all, let's
have
a
look
at
our
direct
monetization
business
on
slide
21.
Our
successful
advertising
business
is
supported
by
strong
market
fundamentals.
If
you
look
at
the
average
daily
viewing
time
of
video
content
in
Germany,
you
see
that
TV
usage
has
been
about
stable
over
the
past
years
while
there
is
still
growth
potential
in
online
video usage.
This
growth
potential
is
also
reflected
within
the
advertising
market.
While
the
market
for
TV
advertising
revenues
remained
and
is
to
remain
about
stable,
the
market
for
video
advertising
increased
dynamically,
and
will
do
so
in
the
upcoming
years.
This
shows,
with
our
digital
focus,
we
are
strengthening
our
total
reach
and
our
opportunities
for
monetization
because
we
are
addressing
a
growing
advertising
market.
In
this
market environment,
we
continued
to
hold
the
number
one
position
in
2021,
as
you
can
see
on
slide
number
22.
With
a gross
advertising
revenue
share
of
37.6%,
we
were
again
clearly
ahead
of
Ad
Alliance.
Please
note
that
German
regulations
prohibit
public
broadcasters
from
advertising
competitively.
For
example,
they
are
not
allowed
to
air
commercials
after
8:00 PM
or
on
Sundays
when
their
reach
is
very
high.
This
also
creates a
stronger
level
playing
field
for
private
media
offerings.
As
you
all
know,
we
had
a
difficult
start
into
the
year
due
to
COVID-19
restrictions
still
in
place.
But
in
full
year
2021,
we
have
seen
very
strong
growth
in
almost
all
of
our
German
TV
advertising
industries.
The
top
10
industries
came
back
strongly,
especially
the
telecommunications
and
the
computer
industry,
while
automotive
still
has
a
great
catch-up
potential.
So,
I'm
also
optimistic
for
2022.
But
this
is
not
all.
With
modern
digital
advertising
products,
we
enable
our
advertising
customers
to
address
users
in
a
targeted
manner.
We
are
charging
TV
with
digital
benefits
such
as
addressability.
This
makes
it
even
more
attractive
as
an
advertising
medium.
Hence,
we
received
an
increased
interest
from
customers
for
this.
In
2021,
we
increased
our
addressable
TV
campaigns
by
20%
and
we
realized
more
than
60
campaigns
with
our
cross-device
offer.
Another
example
is
our
total
video
product
CFlight. Here,
we
are
unifying
the
previously
different
booking
logics
and
the
different
media
quality
of
TV
and
digital.
Our
customers
can
now
play
advertising
campaigns
across
our
entire
TV
and
digital
offering,
including
Joyn
and
Studio71.
The
demand
of
our
customers
here
clearly
exceeded
our
sales
expectations.
This
shows
our
position
on
the
advertising
market
is
strong,
and
with smart
approaches,
we
can
even
get
further
ahead
of
our
competitors.
Let's
now
turn
to
the
indirect
monetization
side
of
our
business
on
slide
23.
What
does
this
mean?
If
you
look
at
our
total
advertising
inventory
available,
you
see
that
we
are
not
selling
everything
to
traditional
advertising
customers
over
the
full
year.
In
several
months
and
partly
also
quarters,
we
are
sold
out
with
100%.
Over
a full
year,
we
have
around
25%
of
idle
inventory
available
for
internal
usage
for
our Commerce
&
Ventures
investments,
as
well
as
for
ParshipMeet
Group
or
Joyn,
at
market-based
prices,
of
course.
Otherwise,
we
would
need
to
fill
this
inventory
with
content,
expensive
formats
we
would
have
to
acquire
or
produce
ourself.
Thus,
we
lower
our
external
spending
while,
at
the
same
time,
building
up
strong
consumer
brands
with
our
own
media
power.
When
we
invest in media,
we
create
synergies
with
our
Entertainment
business,
and
this
benefits
our
group
as
a
whole.
First
of
all,
we
can
use
our
idle
inventory
to
market
our
investments.
This
offers
us
and
the
brands
highly
attractive
conditions
due
to
the
effective
use
of
our
reach.
Second,
we
can
stimulate
the
ad
market
in
general
by
pushing
new
client
groups.
In
the
past
year,
we,
for
example,
saw
an
increase
of
digital
companies
among
our
advertising
clients.
Third,
we
then
can
develop
these
investments
into
classic
customers
of
our
sales
business
at
Seven.One
Media.
Fourth,
our
investments
create
very
attractive
returns
for
us.
And
by
using
our
idle
inventory,
this
comes
with
very
limited
risk.
And
fifth
and
lastly,
we
can
develop
companies
with
high
synergy
potential
into
market
leaders.
So
how
do
we
invest?
We
have
different
investment
vehicle
as
slide
25
shows.
We
foster
digital-oriented,
consumer-focused
assets
that
have
a
long-term
structural
growth
potential.
All
of
them
must
have
synergies
with
our
Entertainment
business.
With
our
media-for-equity
and
media-for-revenue
deals,
we
offer
those
growth
companies
advertising
time,
combined
with
the
high
reach
and
strong
impact
of
the
medium
TV
to
increase
brand
awareness
and
ultimately
enterprise
value.
In
SevenGrowth,
we
also
bundled
bigger
minority
and
majority
investments
with
high
strategic
value
for
us.
By
building up these
assets
with
our
entertainment
power,
we
create
value.
We
do
this
using
two
routes.
We
can
sell our
shares
in
the
asset
and
thus
realize
a
strong
financial
gain.
A
great
example
here
is
ABOUT
YOU.
We
initially
invested
in
the
retailer
in
2016
and
increased
our
shares
in
2020.
When
ABOUT
YOU
went
public
in
2021,
we
also
saw
a
good
profit
here.
Another
possibility
is
to
incorporate
an
investment
as
a
new
pillar
to
our
business
if
we
see
great
future
potential
and
further
synergies
with
our
group.
The
best
example
here,
our
ParshipMeet
developed
from
a
successful
Commerce
&
Ventures
business.
We
made
the
initial
investment
in
a
media-for-revenue
participation
in
Parship
in
2012.
In
the
following
years,
we
acquired
the
majority
and
bought
further
online
dating
brands,
most
recently
The
Meet
Group.
Today,
ParshipMeet
Group
offers
a
broad
spectrum
of
online
dating
platforms
and
forms
Dating
&
Video
segment
of
our
group.
For
our
investment,
companies
have
to
fulfill
clear
criteria,
which
you
can
see
on
slide
number
27.
We
concentrate
on
attractive
consumer-focused
business
models
with
high
marketing
spend
that
benefit
from
reach
and
that
address
large
consumer
markets
offering
mass
market
products
in
the
German-speaking
region,
thus
having
a
strong
ability
to
grow
their
businesses
via
advertising.
The
business
is
in
the
early
growth
stage
of
its
development
and
it
has
to
be
asset light
with
high
prospects
of
future
growth
based
on
their
own
cash
flow.
This
makes
our
investment
strategy
highly
focused. We
finance
growth
with
a
little
cash
as
possible
by
using
media.
We
tap into new
market
segments
and
generate
increasing
returns.
Once we
have
successfully
build
up
such
companies,
we
decide
whether
to
selectively
deploy
additional
cash
to
enhance
value
creation.
Let
me
provide
you
with
some
examples.
Let's
look
at
WindStar
Medical
that
we
sold
in
2020.
Initially,
we
invested
€80
million
in
2016,
with
a
follow-up
investment
in
2018.
By
2020,
the
internal
rate
of
return
was
at
37%.
This
was
also
thanks
to
the
increased
brand
awareness
created
with
TV
advertising.
The
same is
true
for
Etraveli,
which
we
divested
in
2017,
with
an
IRR
of
49%.
ParshipMeet
Group
builds
our
Dating
&
Video
segment
since
2020.
Here,
we
see
great
synergy
potential
with
our
core
business
and
a
margin-strong
business
model
with
a
good
cash
flow
contribution.
But let's
not
forget,
we
continuously
monitor
our
assets
to
decide
if
we
are
still
the
best
owner
and
manage
our
portfolio
accordingly.
Let
me
take
you
through
the
different
steps
shown
on
slide
28.
As
just
explained, we
search for
investment
opportunities
that
we
can
link
to
our
entertainment
reach.
We
specialized
the
digital
companies
with
a
consumer
focus
as
we
firmly
believe
that
they
can
leverage
and
benefit
from
our
media
power.
When
invested,
we
use
our
media
inventory
to
strengthen
the
companies
and
to
achieve
maximum
scalability
in
the
German-speaking
countries.
It
always
is
our
goal
to
invest
as
little
cash
as
possible.
During
that
period,
we
are
the
right
owner
for
the
company.
At
some
point,
we
cannot
drive
growth
via
our
reach
in
our
core
markets
anymore.
This
is
when
we
reassess
our
investment
and
decide
on
whether
to
hold
on
to
our
investment
or
to
sell
our
stakes.
Some key
questions
define
our
decision.
Is
the
asset
synergistic
to
our
business?
Is
the
asset
accretive
to
our
key
performance
measures
such
as
profitability,
cash
flow
or
ProSiebenSat.1's
return
on
capital
employed? Does
the
platform
business
have
the
potential
to
scale
internationally?
And
if
one
of
these
questions
is
answered
with
no,
we
evaluate
sale
options.
This
has,
for
example,
been
the
case
with
Amorelie, moebel.de,
Gravitas
Ventures
in
2021
or
WindStar
Medical
in
2020.
Overall,
it
must
be
clear,
we
constantly
reconsider
our
investment
options.
We
always
verify
if
we
are
still
the
best
owner
and
we
always
consider
attractive
offers
on
our
assets
when
it
comes
to
disposals.
We
actively
strengthened
our
cash
flow
by
selling
our
stakes
in
Commerce
businesses
that
we
developed
successfully
with
our
media
power.
Companies
that
align
with
all
requirements
will
be
held
in our
portfolio.
For
example,
this
is
the
case
with
ParshipMeet
Group
that
forms
our
Dating
&
Video
segment.
But
I
want
to
make
it
clear
that
as
with
all
portfolio
companies,
there
are
no
sacred
cows.
ParshipMeet
Group
also
will
be
regularly
reviewed
to
make
sure
we
remain
the
best
owner.
In
this
context,
you
all
know,
we
have
been
evaluating
a
potential
IPO
for
ParshipMeet
Group
together
with
our
partner,
General
Atlantic,
and
we
are
well
advanced
in
our
preparations.
The
current
market environment,
especially
with
regard
to
the
war
in
Ukraine,
does
not
allow
us
a value-creating
transaction.
This
does not
mean,
by
the
way,
that
we
stop
pursuing
our
plan,
but
that
we
have
to
wait
for
the
right
timing.
As
soon
as
the
right
moment
arrives,
we
are
prepared
and
ready
to
go.
Let's
now focus
on
our
initial
slide.
I
have
shown
you
our
two
clear
focus
points
to
further
exploit
our
potential
as
a
digital
group.
The
maximization
of
our
reach
and
the
diversification
of
our
monetization
both
[indiscernible]
(00:47:27)
one
goal,
to
become
an
even
more
diversified
digital
company
and
to
accelerate
our
transformation
process,
because
this
enables us
to
create
superior
value
for
our
shareholders
and
therefore
also
for
us.
On
slide 30,
you
can
see
what
this
means
in
numbers. Since
our
management
team
assumed
office
in
2020,
we
generated
€722
million
of
adjusted
operating
free
cash
flow
via
direct
monetization.
And this
is
also
during
the
pandemic.
This
mainly
comes
from
advertising,
distribution
and
content.
Here,
our
Entertainment
segment
is
the
main
driver.
Via
indirect
monetization,
[ph]
that's
(00:48:17) mainly
the
Commerce
&
Ventures,
as
well
as
the
Dating
&
Video
segment,
we
generated
€368
million
overall
in
the
past
two
years
in
total
and
minus
holding
cash
flow
for
nearly
€33
million
per
year,
and
that's
around
€67
million
over
the
last
two
years.
We
thus
generated
an
adjusted
operating
free
cash
flow
of
more
than
€1
billion
with
our
business
models
within
the
last
two
years.
This
is
outstanding
throughout
the
industry,
and
it
all
underlines
our
diversification
strategy
creates
substantial
cash
flow,
and
this
results
in
significant
value
for
our
shareholders.
Our
dividend
payout
is
€292
million
and
in
relation
to
the
closing
prices
of
the
respective
years
before
payout
amounts
to
5.7%
and
3.6%.
More
[ph]
important
then in (00:49:16)
the
past,
however,
is
that
I
hopefully
been
able
to
show
you
that
our
business
model
will
continue
to
create
a
lot
of
value
and
that
we
have
a
clear
and
value-creating
strategy
going
forward.
I
hope
I
have
been
able
to
give
you
a
clear
overview
on
our
strategic
priorities.
We
are
well positioned
for
2022
and
have
a
solid
financial
basis
underpinned
by
clear
corporate
strategy.
How
does
this
translate
into
our
financial
targets
for
2022?
Please
move
with
me
to
slide
32. First
of
all,
I
want
to
give
you
an
overview
of
our
revenues
and
our
adjusted
EBITDA,
both
adjusted
by
portfolio
and
currency
effects.
As
you
all
know,
we
have
made
some
changes
in
our
portfolio
last
year.
These
disposals
such
as
the
film
distribution
business
of
Gravitas
or
the
Commerce
&
Ventures
investments,
Amorelie
and
moebel.de,
must
be
taken
into
account.
Adjusted
for
these
portfolio
and
currency
effects,
our
revenues
totaled
€4.413
billion
in
2021.
Our
adjusted
EBITDA
was
at
€825
million.
These
adjusted
numbers
form
the
basis
for
our
outlook
for
2022.
As
the
macroeconomic
development in
our
core
markets
remain
uncertain,
we
have
decided
to
provide
a
midpoint
with
a
plus/minus
variance
for
both
our
revenue
and
adjusted
EBITDA
outlook.
Without
further
portfolio
changes,
the
group
expects
revenues
in
2022
of
around
€4.6
billion
with
a
variance
of
plus/minus
€100
million.
This
translates
into
a
group
revenue
growth
range
in
financial
year
2022
of
at
least
2%
to
around
6%.
The
revenue
target
range
depends
particularly
on
the
development
of
advertising
revenues
in
the
German-speaking
region,
where
we
expect
a
stable
development
for
the
lower
variance
and
a
growth
of
3%
for
the
upper
variance.
Based
on
these
revenue
assumptions
and
excluding
further
portfolio
changes,
we
expect
group
adjusted
EBITDA
for
the
full
year
of
2022
of
around
€840 million
with
a
variance
of
plus/minus
€25
million.
This
is
mainly
supported
by
the
Entertainment
segment.
The
Entertainment
programming
costs
will
be
in
total
at
the
previous
year's
level,
and
the
main
part
will
be
attributed
to
local
contents.
The
amount
that
might
be
varied
by
around
€50
million depending
on
the
development
of
the
advertising
market.
Here,
we
take
advantage
of
our
leading
positions
in
the
audience
market.
Without
further
portfolio
changes,
we
expect
our
adjusted
net
income
for
2022
to
be
at
or
slightly
above
the
previous
year's
levels
of
€362
million.
The
adjusted
operating
free
cash
flow
is
our
relevant
cash
flow
management
indicator.
Reaching
a
midpoint
of
the
adjusted
EBITDA
target
range,
we
assume
that
the
adjusted
operating
free
cash
flow
for
the
full
year
should
develop
at
or
slightly
above
the
previous
year's
figure
of
€599
million.
For
ProSiebenSat.1
return
on
capital
employed, we
expect
the
development
slightly
above
the
level
of
the
previous
year
of
14.1%.
In
general,
we
aim
for
leverage
ratio
of
between
1.5
times
and
2.5
times.
At
the
end
of
2022,
we
expect
the
leverage
ratio
at
or
slightly
below
the
previous
year's
levels
at
around
2.2
times.
And
of
course,
we
confirm
our
dividend
policy
to
distribute
approximately
50%
of
our
adjusted
net
income
to
our
shareholders.
Please
note
that
impacts
on
our
business
due
to
the
further
[ph]
course
(00:53:55) of
the
COVID-19
pandemic
or
due
to
negative
effects
of
the
Russia/Ukraine
war
on
our
core
markets
are
not
reflected
in
this
outlook.
However,
we
do
not
see
any
major
impact
on
our
customers'
advertising
bookings,
which
should
not
come
as
a
surprise
given
our
positioning
was
focused
on
Germany,
Austria
and
Switzerland.
In
the
past,
short-term
losses
due
to
the
macroeconomic
development
were
quickly
compensated
for,
to
a
large
extent,
in
the
following
quarters
because
we
are
an
early
cycle
company.
Of
course,
it
is also
true that
there
hasn't
been
a
war
on
this
scale
since
our
company
has
existed,
but
I
still
believe
that
we
can
look
ahead
with
confidence.
Let
me also
give
you
a
brief
outlook
on
the
start
of
2022
at
this
point.
As
the soccer
World Cup
will
take
place
in
November
and
December,
we
adapted
our
planning
for
2022
accordingly.
This
means
that
you
will
see
a
phasing
of
programming
costs
for
the
first
and
second
quarter,
usually,
to
a
large
extent,
spent,
especially
in
the
fourth
quarter.
Although
we
currently
expect
our
advertising
revenue
growth
in
the
first
quarter
of
2022
to
be
above
the
level
for
the
full
year,
the
slightly
higher
programming
costs
are
likely
to
have
a
corresponding
impact
on
profitability.
We
also
expect
the
pandemic-related
impact
on
our
Commerce
&
Ventures
and
Dating
&
Video
businesses
to
affect
the
profitability
in
the
first
quarter
to
a
certain
extent. While
Verivox
business
developed
normal
in
the
previous year
period,
it
can
be
assumed
that
the
energy
market
will
remain
very
volatile
in
the
current
and
probably
also
in
the
coming
quarter
due
to
the
war
in
the
Ukraine,
as
well
as
sanctions. Please
note
that
in
the
previous
year,
we
recorded
the
strongest
quarter
ever
for
ParshipMeet
Group
due
to
both
the
third
stimulus
checks
issued
in
the
US
and
high
usage
of
Dating
&
Video
platforms
during
the
pandemic.
The
group's adjusted
EBITDA
is,
thus,
likely
to
be
negative
in
the
first
quarter.
However,
this
is
fully
reflected
in
our
full year
outlook. By
the
way,
when
I
say
likely
to
be
negative
in
the
first
quarter,
I
mean
compared
to
the
first
quarter
last
year.
We
are
also
convinced
that
the
easing
of
COVID-19
restrictions
on
public
life
announcement
for
the
end
of
March
and
recovery
of
[ph]
EG's
experience
(00:56:57) market
will
have
a
positive
impact
on
revenue
and
earnings
in
the
further
course
of
the
year.
Please
note that
further
development
in
March
could
still
be
significantly
impacted
by
potential
negative
effects
resulting
from
the
Russia/Ukraine
war.
Let's
finish
with
our
dividend
proposal.
Our
strong
growth
in
adjusted
net
income
translate
into
a
substantial
dividend
increase
for
financial
year
2021.
Together
with
the
Supervisory
Board,
we
will
propose
a
dividend
payout
of
€0.80
to
the
Annual
General
Shareholder
Meeting.
In
the previous
year,
we
paid
a
dividend
of
€0.49.
We,
thus,
see
an
increase
of
63%
here.
This
corresponds
to
a
total
dividend
payout
of
€181
million
and
a
dividend
yield
of
5.7%.
We
are
delighted
that
our
shareholders participate
in
the
success
of
our
strategy
in
such
an
attractive
way.
So,
let
me sum
up.
We
strengthened our
total
reach
because
we
already
have
the
leading
mass
audience
reach
in
the
German-speaking
regions,
and
we
offer
unique
live
and local
contents
to
our
viewers,
this
on
a
broad
array
of
linear
and
digital
platforms.
We
are
monetizing
this
reach
successfully
because
an
intact
media
consumption
drives
solid
growth
in
advertising.
We
realize
incremental
media
value
from
indirect
monetization
models,
and
we
select
synergetic
platform
investments
and
constantly
review
if
we
are
still
the
best
owner.
With
this
strategy,
we
generate
attractive
returns.
Our
ambition
is
to
grow
revenues
organically
by
an
average
of
4%
to
5%
per
year
in
the
medium
to
long
term.
Our
strong
free
cash
flow
focus
enables
us
to
pay
out
robust
dividends.
Hence,
we
have
an
incremental
distribution
upside
from
crystallizing
investments
over
time.
All
this
plays
into
our
goal
to
continue
to
create
value
for
our
shareholders.
Thank
you very
much
for
your
attention.
We
are
now
looking
forward
to
your
questions.
Operator
Thank
you.
[Operator Instructions]
And
we
will take
our first
question from
Annick
Maas with
BNP
Paribas.
Please
go
ahead.
Your
line
is
open.
A
Annick Maas
Analyst, Exane BNP Paribas
Hi.
Good
afternoon.
So,
my
first
two
questions
are
with
regards
to
Parship.
So,
first
of
all,
the
IPO
potentially
being
late,
does
that
open
up
the
possibility
that
it
might
be
a trade
sale
as
opposed
to
an
IPO?
And
my
second
question
on Parship
is
if
you
could
comment
on
the
churn
rate
at
PARSHIP
ELITE
since
the
subscription
cancellation
policy
has
changed
in
Germany.
And
then
just
unrelated
to
Parship,
if
you
could
give
us
an
update.
I
mean,
you've
mentioned
quite
a
bit
that
you
can
monetize
some
of
these
assets
and
that
you've
had
done
that
in
the
past.
Can
you
maybe
give
us
an
update
on
what
in
your
portfolio
is
the
most
likely
to
be
monetized
in
the
short
term
and
–
yeah.
Thank
you.
R
Rainer Beaujean
So, let
me
start
with
the
first
question.
We
all
see
the
current
market
environment
with
the
Ukraine/Russia
war.
I
think,
to
expect
our
IPO
not
happening
right
now
is,
I
think,
a
very
good
and
thoughtful
discussion.
And
we
totally
prepare
the
IPO
and
we
are
ready
to
go.
And
now,
we
have
to
see
how
the
overall
market
will
develop
during
the
next
weeks
and
months
and
then
pursue our –
our
idea
is
clearly
to
perform
the
IPO.
When?
How?
That's
something
we
have
to
define
when
we
know
how
the
overall
market
develops.
And
again,
Russia/Ukraine
is
an
issue,
but
also,
you
have
seen
a
lot
of
tech
companies
also
struggling
also
based
on
that
what
you
can
see
in
the
overall
market.
So
churn
rate,
we
are
not
commenting
on
that,
but
I
can
clearly
say
the
change
is
not
hurting
us
in
churn
rate
because
the
products
are
good
and
we
are
very
well.
And
you are
referring
to
the
regulatory
change, this
has
currently
no
influence
on
that
what
we
do.
And
the
next,
what
is
happening
to
the
portfolio?
Again,
same
answer
as
I
did
before
on
ParshipMeet.
We
have
to
see
the
overall
environment,
and
then,
obviously,
we
can
talk
about
that
when
the
market
is
getting
better
again.
Again,
our
target
is
not
to
sell
for
every
price.
If
we
sell
companies,
we
want
to
do
that
on
the
best
possible
way
for
value
creation
for
our
shareholders.
And
in
this
market
environment,
this
is
a
difficult
situation.
So,
we
have
to
wait
up
to
this
point
that
the
overall
market
gets
better
again.
A
Annick Maas
Analyst, Exane BNP Paribas
Thank
you.
Operator
Thank
you.
And
we
take
our
next
question
from
Nizla
Naizer
with
Deutsche
Bank.
Please
go
ahead.
Your
line
is
open.
N
Nizla Naizer
Analyst, Deutsche Bank AG
Great.
Thank
you.
I
just
have
three
questions
from
my
end.
The
first
is
on
ParshipMeet.
Could
you
perhaps guide
us
towards
how
you
think
of
organic
growth
in
2022
for
the
business,
a
range
maybe
that
you
can
guide
us
towards,
that
would
be
great.
And
how
is
the
B2B
sort
of
product
within
the
group
performing
and
is
that
sort of
outperforming
the
B2C
sort
of
element
of
the
business
these
days?
Some
color
would
be
great.
The
second
question
is
on –
a
clarification
on
the
Q1
EBITDA.
You
mentioned
that
it
would
be
negative,
meaning,
it
would
be
lower
than
Q1
last
year.
But
is
there
any
sort
of
range
that
you
can
give
us
as
to
the
magnitude
of
how
declines
would
be
as
you
front-load
some
of
your
programming
costs?
That
would
be
great.
And
my
last
question
is
on
the
Football
World
Cup
in
Q4
this
year.
What
sort
of
an
impact
are
you
incorporating
into
your
own
assumptions
since
it
would
not
be
screened
by
your
channels?
Thank
you.
R
Rainer Beaujean
So, let
me
start
with
your
ParshipMeet
Group
organic
growth
in
2022.
I
think,
we
had
very
strong
comparable
figures
beginning
2021
in
the
first
and
second
quarter,
and
that's
what
you
have
to
have
in
mind
when
you
look
on
the
performance
and
model
it
in.
So,
I
wouldn't
expect
us
to
grow,
it
could
even
be
possible.
And
I
also
mentioned
that
before
in
my
speech
in
the
first
quarter
for
ParshipMeet,
that
we
can
see
a
slight
decline
due
to
the
fact
that
there
was
a
huge
US
stimulus at
the
beginning
of
the
year
2021
in
the
US
market.
So,
I'll
answer
the
last
one,
which
is
football
or
soccer
world
championship.
We
were
testing
the
market
in
Q4
a
lot,
especially
when
others
have
shown
soccer
matches.
And
clearly,
we
think,
with
the
program
which
we
tested,
which
is
then,
for
instance,
highlight
programs,
The
Masked
Singer
or
Joko
&
Klaas,
or
something
like that,
we
have
a
good
chance.
But
for
sure,
we
will
go
out
of
the
way
of
the
German
team.
So,
we
have
to
be
a
little
bit
more
flexible how
we
manage
it.
So,
our
customers
can't
expect
if
Germany
would
play,
for
instance,
on
a
Thursday; couldn't
expect then that
Germany's
Next
Topmodel
is
happening
when
Germany
plays,
because
we
don't
want
to create
a
big
issue
in
the
families
where
then
someone
wants
to
see
Germany's
Next
Topmodel
and
the
other
one
wants
to
see
the
soccer
match.
So,
that
means
more
flexibility for
people
watching
our
program.
But
at
the
end
of
the
day,
what
I
mean
with
spending
more
in
the
former
quarters
for
programming
is
exactly
that
reason
that
we
have
learned,
that
we
prepare
for
a
good
fourth
quarter.
But
on
the
other
side,
we
have
to
see
and
to
figure
out
that
we
win
also
in
the
other
quarters.
And
when
I
would
look
on
our
reach
on
January/February,
you
would
see
great
performance.
And
then
March,
now
we
have
to
see
because
our
big
disadvantage
in
reach
is
that
we
have
no
big
news
department,
know
that
we
are
building
that
up
and
we
are
ready
to
–
we
make
ourself
ready
beginning
2023
and
our
people
are
doing
a
great
job
with
all
the
specials
we
are
doing,
with
Ukraine
war
and
so
on,
but
that's
also
something
which
we
have
seen
in
the
pandemic.
You
know
that
especially
here,
broadcasters
and
the
public
broadcasters
are
then
taking
reach.
But
I
also
have
to
say
this
is
then
reach,
not
monetization
because
the
public
broadcasters
legally
are
not
allowed
to
do
advertising
beyond
8:00
PM.
So
therefore,
even
if
we
would
have
a
strange
reach,
the
monetization
perhaps
is
not
hurt
as
much.
And
that's
the reason
why
we
also
said
for
the
Entertainment
business
that
we
will
grow in
the
first
quarter
and
also
with
a
good
amount,
percentage
wise,
because
obviously
last
year,
Q1
was
pretty
weak.
Ralf,
you
want
to
answer the
other
ones?
R
Ralf Peter Gierig
So,
Nizla,
I
think
what's
still
left
open
is
your
B2C
question
for
the
ParshipMeet
business.
Obviously,
this
is
relating
to
the
video
segment
of
our
Dating
&
Video
business.
And
what
I
can
say,
and
please,
yeah,
bear
with
us,
we
can't
make
specific
profit
forecasts
or
revenue
growth
forecasts
for
individual
vertical
as
we
are
in
preparation
for
a
potential
IPO.
You
should
assume
that,
what we
call the
[ph]
VPAS (01:09:08)
business,
i.e.,
yeah,
the
business
in
video
with
third
parties
will
probably be
the
strongest
growing,
yeah.
And
I
think
the
other
question
which
is
still
open
is
your
Q1
EBITDA.
As
Rainer
already
mentioned,
yeah,
we
expect
this
to
be
negative.
Last
year's
Q1
EBITDA
was
€143
million.
But
it's
yet
too
premature
to
give
you
precise
indication.
We
will
have
to
wait
where
we
end
up
in
March.
But
what
Rainer
said
is
obviously
true,
yeah,
it
will
be
softer
than
previous
year's
first
quarter.
R
Rainer Beaujean
Yeah.
And
to
add
on
that,
we
have
several
issues.
It's
also
when
you
look
on
the gas
development,
also
Verivox
in
Commerce
&
Ventures
will
be
hurt
again
as
it
was
hurt
in
the
fourth
quarter.
And
when
you've
seen
how
strong
the
performance
of
Verivox
was
in
the
first
nine
months
last
year,
you
can
see
how
relevant
that
is
for
this
kind
of
segment.
So,
at
the
end
of
the
day,
we
don't
know
exactly.
We
have
to
flag
it
here
and
we
want
to
prepare
you
because
that's
what
we
can
see.
I
think,
all
this,
what
we
have
explained
to
you,
is
clearly
priced
into
our
outlook.
So,
when
we
talk
about
the
€840
million
on
adjusted
EBITDA,
we
know
that
we
will
have
a little
bit
weaker
quarter
in
Q1
compared
to
last
year.
So,
this
is
no
surprise
for
us.
This
is
clearly
in
our
guidance.
But
we
want
to
flag
it
before
someone
is
too
optimistic
because,
for
sure, our
advertising
business,
as
strong
as
it
was
last
year,
also
will
grow
and
we
will
have
a
good
performance
in
the
first
quarter
here.
N
Nizla Naizer
Analyst, Deutsche Bank AG
Understood.
Thank
you
very
much.
Operator
Thank you.
And
we
take
our
next
question
from
Omar
Sheikh
with
Morgan
Stanley.
Please
go
ahead.
Your
line
is
open.
O
Omar F. Sheikh
Analyst, Morgan Stanley & Co. International Plc
Thank
you
very
much,
and
good
afternoon,
everyone.
I
have
three
questions,
if
I
may.
The
first
one
is
on
the
revenue
guidance.
So, you've
been
helpful
with
giving
us
some
– your
forecast
for
the
advertising
business in
Germany
is
0% to 3%
for
this
year.
Could
you
maybe
just
complete
the
picture
by
talking
about your
expectations
for the
non-advertising
part of
Entertainment
and
also
for
the
Commerce
&
Ventures
business
in
2022,
just
what
your
outlook
is
in
terms
of
organic
growth
year-on-year
for
the
whole
year.
That's
the
first
question.
Secondly,
on
the
medium-
to
long-term
revenue
growth
guidance,
the
4%
to
5%,
could
you
just
tell
us
what
you
think
that
will
translate
to
in
terms
of
adjusted
EBITDA
growth
and
growth
in
free
cash
flow
over
that
same
period. That's
the
second
question.
And
then
finally,
on
portfolio,
it's
helpful
to
have
your
thoughts
laid
out
on
slide
28.
Could
you
just
update
us
on
perhaps
which
of
the
assets
in
the
portfolio
you're
currently
sort of
considering
as
to
whether
or
not they
should
be
part
of
the
portfolio
going
forward.
You
talked
in
the
past
about
Flaconi,
you've
obviously mentioned
on
this
call
some
pressures
near term at
Verivox,
for
example.
It'd
be
helpful
to
maybe
hear your
thoughts
on
kind
of –
which
part
of
the portfolio
might
be
sort
of
eligible
for
sale.
Thank
you.
R
Rainer Beaujean
So,
when
we talk
about
our
revenue
guidance,
the
4%
to
5%,
I
would
assume
that
approximately
half
of
that
comes
through
Entertainment,
and
the
other
half
comes
from
both
other
segments,
so
that
means
Commerce
&
Ventures,
as
well
as
Dating
&
Video.
And
that
means
in
Commerce
&
Ventures
and
in
Entertainment,
you
have
a
situation,
and
I
also
tried
to
flag
that
in
my
presentation
that
we're
assuming
a
decline
in
linear
TV
during
the
years,
and
that's
a
market
assumption,
it's
not
ours,
of
minus
2%.
We
think
we
can
be
better
because
we
are
the
market
leader
in
that,
but
even
if
you
take
this
assumption
and
then
you
have
growth
for
the
other
areas
in
advertising,
and
that's
the reason
– that's
the
basis
for
the
growth
for
the
Entertainment
business.
And
for
sure,
you
know
that
we
have
a
very
strong
distribution
business,
which
is
growing
from
a
mid-
to
high-single
digit
and
so
on.
So,
I
think,
obviously,
this
is
possible.
On
profitability,
we
are
not
giving
EBITDA
forecast
currently,
but
what
we
have
done
is,
and
that's
the
focus
of
what
we
are
doing,
and
I
hope
I
could
describe
that
also
in
our
presentation,
our
focus
is
on
cash
flow,
our
focus
is
on
value
creation
via
all
this
kind
of
stuff.
And
therefore,
for
us, the
ProSiebenSat.1
return
on
capital
employed
is
very
relevant.
And
here,
we
are
assuming
to
be
above
15%.
So,
when
you
take
this
assumption
and
recalculate,
you
come
to
also
an
expectation
in
that,
yeah,
in
the
profitability.
But
again,
our
focus
is
here,
and
especially
the
free
cash
flow,
especially
the
return
on
capital
employed,
that's
how
we
manage
our
company.
So
nearly
everybody
who
leads
divisions,
people
or whatever
has
these
targets.
And
that's
clearly
our
general
idea.
So, Ralf?
O
Omar F. Sheikh
Analyst, Morgan Stanley & Co. International Plc
Yeah.
R
Ralf Peter Gierig
And,
Omar,
if
your
question
also
was
how
does
the
2022
guidance,
yeah,
decompose
in
Entertainment,
within
Entertainment,
obviously,
we
also
expect
distribution
to
grow.
The
content
business
will
be
affected
by
the
disposal
of
Gravitas
Ventures,
which
we
sold
last
year.
So,
there, we
could
be
slightly
negative,
but
this
is
purely
M&A
driven
as
we
are
losing
Gravitas
Ventures'
revenues.
R
Rainer Beaujean
And
companies
which
are
up
for
sale,
the
same
ones
like
in
the
past,
we
always
said
and
we
also
try
to
give
you
an
indication
via
our
decision
tree,
how
we
look
on
things.
And
obviously,
if
a
company
is
not
paying
into
our
ProSiebenSat.1
key
performance
indicators,
then
obviously,
if
they
are
not
getting
closer
to
that
on
a
longer
term,
then
they
are
obviously
for
us
on
our
watch
list.
And
for
sure,
the
overall
market
is
difficult
currently.
But
we
already
have
told
you
when
I
came
on
board,
and
this
is
approximately
two
years
when
we
[ph]
rolled (01:16:26)
that
out,
that
all
this
businesses
which
are
not
asset
light,
and
you
could
see
that
we
are
not
only
talking,
we
are also
delivering
on
that
because
we
sold
WindStar
Medical,
we
sold
Amorelie,
we
sold moebel,
and
then
you
can
have
a
look
which
is
also
in.
And
this
is
obviously
also
Flaconi.
And
Flaconi,
we
are
currently
a
very
good
owner.
You
can
see
that
on
the
growth
rates.
But
there
is
a
natural
point
where
this
business has
to
be
further
internationalized
or,
let's
say,
sourced
somewhere
else.
And
then
automatically,
if
someone
would
come
with
the
right
price,
value
creating
for
our
overall
story,
then,
obviously,
we
can
also
be
a
seller
for
it.
And
that
hopefully
gives
you
an
indication
how
we
think
and
gives
you
also
a
clearer
picture
how
we
manage
our
Commerce
&
Ventures
portfolio.
O
Omar F. Sheikh
Analyst, Morgan Stanley & Co. International Plc
That's
very clear.
Thank
you
very
much,
both.
Operator
Thank
you.
And
we
take
our
next
question
from
Lisa
Yang
with
Goldman
Sachs.
Please
go
ahead.
Your
line
is
open.
L
Lisa Yang
Analyst, Goldman Sachs International
Good
afternoon.
I
have
a
couple
of questions
as
well.
Just
wanted
to
come
back
to
the
guidance
for
the
full
year.
I
think
you're
guiding
towards
2%
to
6%
group
revenue
growth.
And
I think
your
advertising
assumption is
0%
to
3%.
So,
what's
really
driving
that
growth
rate?
And
if
you
think
about
in
the
most optimistic
scenario,
6%,
like,
what
is
growing
that
strongly,
both
the
advertising
range
that
you
gave
to
get
to
that
number?
I was
just
very, very
curious.
The
second
question
is
on
NuCom.
Obviously,
the
EBITDA
went
down
a
lot
from
€84
million
to
€50
million.
How
much
of
that
was
driven
by
Verivox
and
where
do you
think we
could
end
up
because
of
EBITDA
for
the
full
year?
And
the
third
question
is
in
terms
of
your
on
MFE,
any
sort
of
conversations
you
may
have
had
with
them
lately?
Any
sort of
developments?
Obviously,
they are
the
largest
holder, but
they
don't
have
any
board
seats.
And
given
the
current
market
environment
and
maybe
the
fact
that
you're
less
likely
to
IPO
Dating or,
say, other
assets,
do
you
think
there
could
be
some
value-creation
opportunities
on
the
TV
side, on
the
TV
business?
Thank
you.
R
Ralf Peter Gierig
I'll
start
with
your
Commerce
&
Ventures
question
on
EBITDA.
Yes,
you
are
right,
it
went
down
in
2021
on
a
full year
basis, yeah.
There
was
a
low-double-digit
percent
decline, yeah.
But
we
would
expect, yeah,
Verivox, yeah, to
perform
subject
to
the
energy
market
again
this
year.
And
as
we
all
know, yeah,
the
energy
market
has
started
difficult
also
in 2022,
and
we
will
have
to
see
how
the
Ukraine/Russia
war
will
pave
out
energy
prices
as
to – yeah,
rising,
unfortunately.
For
the
full
year
2022,
we
believe
that, yeah,
Commerce
&
Ventures
should
do
better
than
in
the
last
year, yeah.
We
expect
a
nice
improvement
in the
earnings
performance,
but
yet
to
be
premature
to
give
you
a
precise
figure.
I
mean,
you
have
seen
the
outcome
for
the
full
year
2021,
which
was
€50
million.
Here,
we
would
expect
a,
let's
say,
significant
double-digit
improvement.
But
yet
again,
yeah, it's
very
early
in
the
year
and
we
will
have
to
see.
R
Rainer Beaujean
Yeah.
And
your
last
question
is,
for
me,
not
100%
clear,
so
I
try
to
interpret
this.
So,
when
you
ask
me
about
media
for
Europe
and
conversations
and
so
on,
you
mean
if
we
are
in
discussions
with
them,
obviously,
we
are
in
the
same
market,
and
for
sure,
we
meet
each
other
several
times
in
the
different
areas.
And
by
the
way,
my
Supervisory
Board
already
had
a
governance
road show
during
the
last
four
weeks.
And
they
were
discussing
also
the
proposal
which
the
company
has
done
for
the
General
Shareholder
Meeting.
And
then,
obviously,
that's
something
which
will
be
decided
by
the
General
Shareholder
Meeting
what
is
happening
there.
On
the
other
side,
I
clearly
have
to
say,
we
are
always
listening
to
everybody
who
has
a
clear
idea
how
we
can
create
value
for
our
shareholders.
I've
said
that
several
times
in
the
past,
and
I
can
reiterate
that
this
is
clearly
our
positioning.
So
whenever
there
is
a
good
idea
to
do
something
which
is
value
creating
for
all
our
shareholders,
why
shouldn't
we
do
it?
But
nobody
reached
out
to
us.
And
I
also
can
answer
then
the
next
question
because
I
also
have got
them
already
in
the
press
call
this
morning,
what
about
RTL?
Because
they are
also
talking
about
that
ProSiebenSat.1
is
a
great
asset
everybody
wants
to
own
[indiscernible]
(01:22:24)
similar
situation.
So
at
the
end
of
the
day,
what
we
can
do
and
what
we
do
is
we
try
everything
to
create
value
for
all
our
shareholders.
But
I
clearly
have
to
say,
it
is
an
honor
for
us
if
a
company
or
a
family
like
the
Berlusconi
family
is
investing
in
us
because
that
proves
that
our
business
model
has
value.
By
the
way,
we
are also
doing,
as
I
already
said,
[ph]
STFR
(01:22:56)
similar
things
like
we
do.
They
also
concentrate
on
local,
live
and
relevant
in
their
local
markets,
in
their
home
markets.
And
that's
–
we
understand
that.
They
understand
what we
do,
and
that's
something
where we're –
yeah,
where
we
are
happy
about
and
where
we are,
overall,
where
we
don't
have
an
issue
with.
So,
at
the
end
of
the
day,
we
honor
every
shareholder.
We
treat
shareholders
hopefully
in
a
proper
way,
and
everybody
would
tell
you
that
this
is
the
case.
And
then we are
really
looking
forward
for
the
next
discussions.
And,
yeah,
we
will
have
our
road shows.
We
have
a
General
Shareholder
Meeting
in
front
of
us,
and
I'm
really
looking
forward
to
further
discussions.
If
this
is
your
question,
if
I
got
this...
L
Lisa Yang
Analyst, Goldman Sachs International
Yes,
that's
clear.
R
Rainer Beaujean
...right,
what
you...
L
Lisa Yang
Analyst, Goldman Sachs International
Yeah, yeah,
yeah. No, very
clear.
R
Rainer Beaujean
Yeah, okay. Good.
Perfect.
Thanks.
L
Lisa Yang
Analyst, Goldman Sachs International
And
what
about
the
question on
the
full year
outlook and
how
would
you
be
getting
to
the
6%
upper
end
if
your
ads
are
only
growing 0%
to
3%?
What's
driving
that?
R
Ralf Peter Gierig
Yes.
Obviously,
we
would
expect
that
also
the
Commerce
&
Ventures
business
will
be
growing
in
terms
of
revenues.
And
in
terms
of,
let's
say, maybe
the
underlying
trends,
yeah,
when
we
look
at
advertising,
there's
a
wide
array
of
estimates
for
2022
in
the
market
for
ad
growth,
yeah.
They
can
be
1%
or
they
can
be
5%.
So,
it
will
depend
where
we
end
up
ultimately
for
the
full
year,
but
this
has
basically
determined
also
our
assessment.
L
Lisa Yang
Analyst, Goldman Sachs International
And
do you
think
in
Q1 –
where
are
you
sitting
in
Q1
because of
that
revenue
growth range
of
2%
to
6%, upper
end
or lower
end?
R
Ralf Peter Gierig
Well,
as
you
know,
for
advertising,
Q1
last
year
was
negative.
2021
over
2020
was
down
14%,
15%
in
ad
terms.
And
so
far,
year-to-date
February, we
have
seen
really
nice
recovery.
But
for
the
– we
need
to
await
the
trends
in
March.
This
is
an
unusual
situation,
yeah.
We
haven't
had
a
war.
But
I'm
very
optimistic
that
we
can
demonstrate
a
very
good
outcome
for
advertising.
L
Lisa Yang
Analyst, Goldman Sachs International
Okay.
Thank
you.
Operator
Thank you.
R
Rainer Beaujean
Let
me
say
one
word
to
the
guidance.
So,
I
know
that
everybody
looks
on
€4.6
billion
plus/minus €100
million
as
a
range.
But
this
is
not
a
range.
So
what
we're
doing
here
is
we
give
you
an
orientation
of
€4.6
billion
and
€840
million
in
adjusted
EBITDA.
And
then
we
have
a
variance
where
we
don't
know
exactly
how
it
will
play
out.
So
we
are
not
at
the
lower
end
currently
and
we
are
not
at
the
higher
end
currently.
You
can
take
several
assumptions
to
get
there,
but
when
you
look
on
a
statistical
approach,
you
currently
end
in
our
assumption
exactly
in
these
numbers,
€4.6
billion
and
€840
million,
only
to
be
also
clear
here,
yeah.
Operator
Thank
you. We
take
our
next
question
from
Julien
Roch
with
Barclays.
Please
go
ahead.
Your
line
is
open.
J
Julien Roch
Analyst, Barclays Capital Securities Ltd.
Yes,
good
afternoon,
everybody.
My
first
question
for
Ralf
is,
can
we
get
this
2021
growth
in
smart
advertising
versus
the
€228
million
in
2020
within
DACH
advertising.
Second,
you
said
there
was
a
nice
recovery
in
advertising
in
January
and
February
but
it
was
too
early
to
talk
about
the
quarter
because
of
March.
Nonetheless,
could
you
tell
us
by
how
much
January and
February
were
up
by.
And
the
last
question
is,
Rainer,
I
believe
you
answered
Omar
2022
question
with
an
answer
on
the
long term.
So,
you
said
the
4%
to
5%
would
be in
the
medium term
in
terms
of
revenue
growth
would
be
coming
50%
from
Entertainment
and
50%
from
other.
But what
does
that
mean?
Because
if
we
say
it's
4%
rather
than
4%
to
5%,
so
just
one
number,
50/50
means
what,
they're
both
growing
at
4%
or
one
is
growing
at
2%,
the
other
is growing
at
6%?
R
Rainer Beaujean
Yeah.
J
Julien Roch
Analyst, Barclays Capital Securities Ltd.
So if – yeah.
So,
if
you
give
a
bit
more color on...
R
Rainer Beaujean
Yeah. So this is
pretty
easy
to
answer
–
yeah.
This
is
pretty easy
to
answer.
J
Julien Roch
Analyst, Barclays Capital Securities Ltd.
Yeah.
R
Rainer Beaujean
It
means
that
half
of
the
4%
to
5%
comes
approximately
from
Entertainment
and
the
other
half
comes
from
the
other
segments.
So,
when
you have
an
absolute
number
of
a
certain
amount,
yeah,
then
half
of
this
growth
comes
from
the
Entertainment
segment
and
the
other
half
comes
from
Commerce
&
Ventures
and
Dating
&
Video.
J
Julien Roch
Analyst, Barclays Capital Securities Ltd.
Okay.
R
Rainer Beaujean
For
the
group,
4%
to
5%
is for
the
group.
Half
approximately...
J
Julien Roch
Analyst, Barclays Capital Securities Ltd.
Yeah.
R
Rainer Beaujean
...Entertainment
and
the
other
half
comes
from
the
other
segment.
That's
the
general
guideline
of
this
aspiration,
yeah.
And
then
we
have
to
see
if
there
is
a
year
where
it's
0.5
percentage
point
more
here
and
0.5
percentage
point
more
there.
So,
it
all
depends
then
on
the
overall
development.
But
what
we
want
to tell
you
here
is
that
we
have
a
very
strong
belief
out
of
that
what
we
have
seen
that
ProSiebenSat.1
is
clearly
a
company
which
also
will
create
value
not
via
cost
cutting,
also
via –
and
we
also
will
be
strict
on
costs.
But
on
the
other
side,
we
also
will
grow
the
business
also
in
the
next
years.
So,
it's
not
only
2022,
it's
also
for
the
following
years
that
we
are
optimistic
with
the
things
which
we
have
done
here
and
with
the
things
which
we
are
preparing
that
we
are
also
ready
to
grow
in
the
next
years.
J
Julien Roch
Analyst, Barclays Capital Securities Ltd.
Okay.
And
maybe
if
we
– I understand
what
you're
saying
that
we
need
to
look
at
it
in
an
absolute
increase
in
millions
of
euros
and
let's
take
50/50.
But
we – if
we
think
about
it
in
growth
rate,
because 4% to
5%
is
a
growth
rate,
could
you
give
us
a
range
for
the
three
divisions
in
terms
of
growth.
R
Rainer Beaujean
This
4%
to
5%
is
the
growth
rate
every
year,
compounded
average
growth
rate
every
year
which
we
have
as
an
aspiration.
I
only
want
to say
that
all
segments
will
grow,
and that's
what
I
mean.
And
all
three
segments
will
grow.
And
for
sure,
automatically,
on
this
absolute
number,
then
Entertainment
growth
is
lower
than
–
from
the
lower –
from
the
higher
basis.
Then,
for
sure,
Dating
&
Video
and
Commerce
&
Ventures
have
to
grow
to
be
on
the
same
level.
But
this
is
totally
in
line
when
you
model
it
in
like
you
also
would
assume
it.
J
Julien Roch
Analyst, Barclays Capital Securities Ltd.
Okay. And on...
R
Ralf Peter Gierig
And,
Julien, with
respect
to
your
digital
and
smart
question,
I
presume
that
you
want
to
know
the
growth
rate
for
the
German-speaking
business, which
on
a
full year...
J
Julien Roch
Analyst, Barclays Capital Securities Ltd.
Yes.
R
Ralf Peter Gierig
...yeah,
which
on
a
full year
basis
was
round about
plus
16%,
yeah.
And
your
other
question
relates
to
Jan
and
February
advertising.
Yeah,
I
can
confirm
that
this
was
up
nicely,
yeah,
round about
20%,
yeah.
But
we
will
have
to
see,
we
will have to
see, how March pans
out.
This
is
a
new
situation.
So,
we
remain
cautious.
[ph]
J
Julien Roch
Analyst, Barclays Capital Securities Ltd.
Ralf
(01:30:51),
thanks.
R
Rainer Beaujean
And March is the biggest month
of
the
quarter,
like
always,
because
it's
in...
J
Julien Roch
Analyst, Barclays Capital Securities Ltd.
Yeah.
R
Rainer Beaujean
...front
of
Easter
and
so
on.
So,
January,
February
is
nice.
But
at
the
end,
the
decision
will
be
done
in
March.
J
Julien Roch
Analyst, Barclays Capital Securities Ltd.
Okay.
Very
good.
Very
clear.
Thank
you.
Operator
Thank
you.
And
we
take
our
next
question
from
Richard
Eary
with
UBS.
Please
go
ahead.
Your
line
is
open.
R
Richard James Eary
Analyst, UBS AG (London Branch)
Thanks.
Just hopefully
three
quick
questions.
Firstly,
Flaconi
[indiscernible]
(01:31:21),
I
didn't
see
anything
in
the
presentation
about
what
was
the
actual
underlying
organic
growth
for
Flaconi
last
year,
if
you
can
do
that.
The
second
thing
is
the
– I
don't
know
whether
you
can
expand
on
some
previous
comments
and
give maybe
a
little
bit
more
color.
Obviously,
there
was
a
disappointment
around
the
Commerce
&
Ventures
EBITDA
this
year.
But
as
we
look
into
next
year,
could
you
give
us
a
feel
in
terms
of
where
you
expect
that
to
land
within
your
guidance
of
€840
million,
plus
or
minus,
that
would
be
helpful.
And
then
just
lastly,
if
we
look
at
the
deferred
equity
that
sits
on
the
balance
sheet
within
Commerce
&
Ventures
and
Dating,
could
you
just
let
us
know
exactly
where
they
sit
at the
moment,
please.
R
Ralf Peter Gierig
Richard,
I'll
start
with
the
organic
growth.
You
believe
– you
asked
for
Flaconi,
if
I'm
not
wrong,
yeah. Flaconi
posted
double-digit
percent
growth,
yeah.
We
cannot
be
more
precise.
So,
overall,
the
development
was
really
okay.
And
we
look
for
continuous
growth
in
this
asset,
yeah.
But
please
bear
with
us,
we
are
not
providing,
let's
say,
granular
guidance
for
this
subsegment,
yeah.
So,
2022,
we
would
envisage
also
a
growth
for
this
asset,
as
well
as
for
the
entire
segment
versus
2021, yeah.
The
preferred
equity
for
Commerce
&
Ventures
and
Dating,
where is it
at
the
moment?
I
presume
you're
looking
for
the
amounts,
for
the
NuCom,
yeah,
it's
round
about
€200
million
and for
ParshipMeet,
it's
round
about €400
million.
R
Richard James Eary
Analyst, UBS AG (London Branch)
Okay.
R
Ralf Peter Gierig
And
have
I
missed
a
question?
R
Richard James Eary
Analyst, UBS AG (London Branch)
Yeah,
it was
about the
Commerce
EBITDA.
Obviously,
I don't
know
whether
you can
give us
any
more
color
in
terms
of
what
your
expectations
are
within
the
existing
guidance
for
2022.
This
year
was
obviously
light
at €50
million.
R
Ralf Peter Gierig
Yeah,
yeah, look
– yeah, yeah,
look...
R
Richard James Eary
Analyst, UBS AG (London Branch)
Thanks.
R
Ralf Peter Gierig
Yeah,
yeah.
Look,
its EBITDA
should
grow
double-digit
percent.
I
mean,
already
€5
million
is
10%,
yeah,
and
we
would
hope
for
more,
obviously.
So
this
will,
according
to
our
plan,
contribute
to
the
full
year
growth.
R
Rainer Beaujean
Yeah.
But
as
we
all
know,
similar
situation
like
we
have
this
year
when
we
see
the
gas
market
that
has
to
normalize
somewhere
then
in
the
second
half
of
this
year.
And
also,
we
have
to
see
how
the
pandemic
will
work
on
further
because Jochen Schweizer
mydays
is
also
a
cash
contributor,
as
well
as
with
Silvertours,
which
is
traveling.
This
is
also
one
of
the
issues
where
we
have
to
look
at,
again,
all
very
good
businesses.
Nothing
to
worry
about,
but
we
have
to
see
how
the
development in
the
overall
market
will look
like.
Again,
we
have
an
assumption,
as
Ralf
said,
and
we
are
very
optimistic
to
reach
that.
And
I
only
can
reiterate
that
when
we
look
on
our
year-end
guidance,
our
current
assumption
is
that we
should
reach
an
adjusted
EBITDA
of
€840
million
plus/minus
the
€25
million,
but
the
€840
million
is
the
orientation
line
after
€825
million
in
2021.
And
that's
where
we
are
and
that's
exactly
how
we are
managing
the
company.
And
for
sure,
we
also
look,
first
of
all,
on
our
group
guidance,
and
that's
the
numbers which
we
address
and
which
we
want to
reach.
And
then
there's
uncertainty
of
the
overall
market
and
the
further
development
of
all
these
[ph]
crisises (01:35:38)
which
we
have
currently.
R
Richard James Eary
Analyst, UBS AG (London Branch)
Okay.
Thank
you very
much.
Operator
Thank
you.
And that
will conclude
today's
Q&A
session.
I
would
now
like
to
turn
the
call
back
over
for
any
additional
or
closing
remarks.
Thank
you.
D
Dirk Voigtländer
Yeah,
thank
you,
operator.
As
has
already
been
mentioned,
that
was
the
last
question
for
today's
call.
As
always,
my
colleagues
in
the
IR
department
and
myself
will
be
available
for
any
follow-up
questions
in
the
next
couple
of
hours. So
thank
you,
everyone,
and
goodbye.
Operator
Thank
you.
And
that
will
conclude
today's
conference
call.
Thank
you
for
your
participation,
ladies
and
gentlemen.
You
may
now
disconnect.
Good day, ladies and gentlemen, welcome to the Full Year 2021 Results Conference Call of ProSiebenSat.1 Media SE. This conference is being recorded. Today's call is hosted by Mr. Dirk Voigtländer. Please go ahead, sir.
Yeah, thank you, operator, and good afternoon, ladies and gentlemen, and welcome to ProSiebenSat.1's analyst and investor conference call on the occasion of the full year 2021 results published today. Our Group CEO, Rainer Beaujean, will start today's presentation with highlights of the financial year 2021. Ralf Gierig, CFO of ProSiebenSat.1, will then take you through the financials of the group and segments for both the fourth quarter, as well as full year 2021.
In the second part of the presentation, Rainer will provide an update on the group's strategy and what makes us confident to achieve our new mid- to long-term organic group revenue growth ambition. Rainer will also present the dividend proposal for fiscal 2021 and our new outlook for 2022. As always, the presentation will be followed by a Q&A session.
With these opening remarks, I now hand over to Rainer.
Thanks, Dirk. Good afternoon also from my side and welcome to our analyst and investor call on our financial results 2021. We are all looking with shock on what is happening in the Ukraine. Our thoughts are with all those who suffer from this war. Of course, we also ask ourselves what we can do at a time like this. Our answer is clear, we have to use our reach.
The current events show once again how important it is to provide viewers with comprehensive, and above all, independent reporting. We are making our contribution to this and report intensively on our stations and platforms. At the same time, of course, our concern is for our employees. We have employees on the ground through two portfolio companies with whom we are in close contact. In times like this, it is challenging to announce record revenues and to come back to business as usual. But you are here today to talk about our results and our outlook. So let's start.
In 2021, we have shown that ProSiebenSat.1 is on a successful path to becoming a globally operating digital group. Our strategic focus is on a diversified portfolio comprising three strong segments that complement each other: Entertainment, Dating & Video and Commerce & Ventures.
Besides our full year 2021 results, we also want to present today our clear strategic path into our future, as well as our growth ambitions. Let's have a look at today's agenda. We will begin with a short overview of what shaped our past, followed by an update on our group financials. Afterwards, we will highlight our strategic priorities and will end the presentation with an outlook regarding the full year 2022.
So let's start on slide number 3. 2021 was a record year for us and we saw our strategy succeed. We fully achieved our financial targets, which we had raised three times throughout the year. And that even despite the continued challenging market environment due to COVID-19, we significantly increased our group revenues by 11% to €4.5 billion. We substantially grew our adjusted EBITDA by 19% to €840 million. Both results hit right our target ranges. The main driver was our Entertainment segment, which recorded a strong revenue and earnings performance. In this context, our advertising business recovered much faster from pandemic impact than expected at the beginning of the year.
We continue to focus on profitability and cash flow. That is why active portfolio management still plays an important role in our strategy. Next to divesting from companies we are no longer the best owner for, we also strengthened the position of assets with significant synergies to our Entertainment business. The best example is ParshipMeet Group which forms our Dating & Video segment.
Thanks to our strong operating performance, we substantially decreased our net financial debt with our financial leverage narrowing to 2.2 times. With this, we are back in our target range of 1.5 times to 2.5 times. Furthermore, we diversified the maturity of our debt profile after refinancing in 2021.
We also increased our adjusted net income considerably by 64% to €362 million. Hence, we are happy to offer our shareholders a substantial higher dividend of €0.80 per share, compared to €0.49 last year. We will later present to you our outlook and new financial targets for 2022.
We also set our aspiration to grow revenues by an average of 4% to 5% originally – sorry. We also set our aspiration to grow revenues by an average of 4% to 5% organically each year over the medium to long term.
With this, let me now hand over to our Group CFO, Ralf Gierig, who will guide you through our group financials for the full year of 2021 and the fourth quarter.
Thank you, Rainer, and good afternoon also from my side. I'll now continue with a review of the group's financial performance in financial year 2021 and start with our revenue performance. As Rainer already stated, 2021 was a record year for ProSiebenSat.1. Thanks to a steadily improving operating performance throughout the year, we increased our financial outlook three times in 2021, most recently in November of last year. We have grown dynamically and profitably as a group even in this challenging environment by focusing on executing our strategy and by further streamlining our portfolio to make it even more focused and synergistic.
Group revenues increased significantly by 11% to a record level of €4.494 billion, despite the continuing impact of the COVID-19 pandemic. The main growth driver was the Entertainment segment. At the same time, the synergistic diversification across all segments continued to pay off. Part of this strategy was also the acquisition of The Meet Group in September 2020, which has since strengthened the Dating & Video segment and has had a very positive impact on group revenues, too.
Let me briefly explain that the newly formed Dating & Video segment corresponds to the previous ParshipMeet Group segment and remained unchanged in its composition compared to year-end 2020.
On a portfolio and currency-adjusted basis, group revenue growth reached a strong 10%-plus in full year 2021. The Entertainment segment reported revenue growth of 12% to €3.098 billion in full year 2021. This increase was in particular driven by the positive momentum of the advertising business, which recovered significantly and faster than initially expected from the negative effects related to the COVID-19 pandemic.
Advertising revenues increased by 11% to €2.323 billion. This reflects the strong growth in the second and third quarter of 2021 and proves that once the economic environment began to improve, TV advertising bounced back quickly, again, highlighting the relevance of TV for advertisers in building reach and brands in a high-value secure environment.
In Q4 2021, revenues exceeded the already comparatively high prior year figure and came in also above pre-COVID-19 crisis levels of Q4 2019. Again, the distribution business delivered very solid revenue growth and posted an increase of 6%, primarily driven by HD subscriber growth and new agreements with major distribution partners.
With a 25% increase in revenues, the content business also showed continued progress and certainly a clear recovery from the temporary dip the business partly saw in the financial year 2020. Other revenues decreased by 9% year-on-year, mainly due to the deconsolidation of the hosting provider myLoc in September 2020.
The Dating & Video segment revenues grew substantially by 63% to €542 million, reflecting the acquisition of The Meet Group in September 2020. On a pro forma basis, i.e., taking into account The Meet Group's currency-adjusted revenues for full year 2020 and full year 2021, segment revenues increased by plus 7% in full year 2021. This shows that we were able to continue to expand the business even against the backdrop of strong comparable figures at the beginning of the COVID-19 pandemic and despite the regulatory changes we had to cope with in the German-speaking subscription business.
Dating with its eharmony, Parship, ElitePartner and LOVOO businesses contributed €278 million or 51% to segment revenues, with eharmony recording strong organic revenue growth year-on-year. As a result, eharmony therefore also became the largest matchmaking brand in our portfolio, which is a good foundation for future growth of subscription-based Dating business.
The Video business continue to develop positively in 2021, contributing revenues of €263 million, compared to €84 million in 2020. The previous year figure corresponds to the revenue contribution of the Video business from the acquisition of The Meet Group in September 2020.
On an organic basis, revenues in the Dating & Video segment remained on the already strong prior year's level. Please be reminded that 2020 was a record year and the segment had benefited strongly from a stay-home effect due to the restrictions of public life as a result of the COVID-19 pandemic.
Full year 2021 revenues of the Commerce & Ventures segment decreased by 10%, mainly due to the deconsolidation of WindStar Medical in December 2020. As a reminder, the asset contributed €114 million of revenues or 12% to segment revenues in full year 2020. However, on an organic basis, revenues increased by 3% in full year 2021, mainly driven by the growth of the online beauty provider, Flaconi; and the car rental comparison portal, billiger-mietwagen.
Especially in the important fourth quarter, organic revenue development was exposed to an overall increased macroeconomic uncertainty and restrictions related to the Omicron COVID-19 variant, as well as a disruption of the German energy market. This led to a slowdown in the business of Verivox and Jochen Schweizer mydays in particular.
Let me continue on page 6 with a review of the adjusted EBITDA development. Group adjusted EBITDA improved by 19% in full year 2021 and mirrors the dynamic revenue growth and the recovery of the advertising business. Adjusted EBITDA of the Entertainment segment was up by €137 million, or 24%, to €698 million in last year. As mentioned before, this positive trend is mainly attributable to the advertising business which has steadily recovered from the negative effects of the pandemic since the record quarter of 2021.
Earnings were also positively impacted by revenue growth in the distribution and content business. Hence, we were able to further strengthen our program lineup and platforms by increasing programming cost by 3% to €1.054 billion in the full year. This also puts us in a strong position to capitalize on our program investments in the current financial year.
The Dating & Video segment also recorded an increase in earnings. Adjusted EBITDA grew by €39 million to €119 million, reflecting the first-time consolidation of The Meet Group in September 2020.
Commerce & Ventures adjusted EBITDA declined by 41% in full year 2021, mainly reflecting the deconsolidation effect of WindStar Medical in December 2020. WindStar Medical had contributed €18 million to earnings in the prior year.
Like revenues, adjusted EBITDA was affected by temporary effects, especially in Q4 2021. Economic uncertainties due to the Omicron COVID-19 variant had a negative effect on consumer behavior. The increasingly tense situation on the energy market also weighed on earnings. The latter impacted the business of our otherwise very profitable price comparison portal, Verivox.
Please turn to page 7. Although adjusted EBITDA showed a sharp increase in 2021, reported EBITDA and EBIT remained stable year-on-year. This was due to reconciling items of minus €36 million, compared with plus €95 million in the prior year. The main component of the prior year figure was the income from changes in the scope of consolidation, i.e., the onetime disposal gains of WindStar Medical and myLoc.
Net income showed a significant increase of 68% versus the prior year. This was due to a significantly better financial result of plus €54 million, compared to minus €183 million in 2020, reflecting better at equity and interest results and positive valuation effects from financial assets in the other financial result.
Adjusted net income increased strongly by 64%, reflecting the improved operating profitability. This has clearly been the strongest sign that ProSiebenSat.1 has been on a growth path in full year 2021 and that many of our initiatives to improve earnings have paid off. As you all know, adjusted net income is the relevant financial KPI for our dividend policy. Rainer will present our dividend proposal later on and will reflect this earnings improvement.
And lastly, ProSiebenSat.1 Group's adjusted operating free cash flow improved notably, reaching €599 million versus €424 million in full year 2020. This development primarily reflects the group's earnings growth and underlines our effective cash flow management.
Let me now continue with comments about the financial leverage and net debt improvement on page 8. As you can see on this slide, we were able to lower our net financial debt by €117 million to €1.852 billion, despite the dividend payout of €111 million in June 2021. The reduced net financial debt results from the group's strong cash generation and effective portfolio management in 2021. As a result, the group's leverage ratio also improved from 2.8 times at year-end 2020 to 2.2 times at year-end 2021, returning well and earlier than previously expected into the financial leverage target range of 1.5 times to 2.5 times.
In 2021, the group took advantage of the favorable conditions in the debt markets and diversified, as well as extended its debt maturity profile by issuing new €700 million promissory loans in October 2021. In addition, the company prepaid €900 million of its existing term loans under its senior facilities agreement in October last year, but inter alia, applying the total gross proceeds from the new €700 million promissory loans. The partial early repayment of the term loans and the full repayment of the senior notes in the amount of €600 million resulted in a significant reduction of gross debt by €747 million to round about €2.4 billion. This all said, the group has a solid financial position in the long term.
Let me now close my part of the presentation with some comments about our investment criteria on page 9. As already pointed out in our Q3 conference call in November, we have defined clear criteria across all segments to ensure the financial soundness of all projects and guarantee that we continue to focus on the realization of synergies within the group.
For example, we ensure that expansion and new investments have a payback period of not more than three years and generate an internal rate of return of at least 18%. Strategic projects are generally expected to pay off within five years. In addition, projects must be closely related to TV or a platform business to maximize our synergy potential. Overall, these criteria contribute to our 15% P7S1 ROCE group target and our sustainable growth objective. As you can see on the slide, P7S1 ROCE has improved by 3.6 percentage points from 2020 to 2021 and was at 14.1% at year-end 2021.
I now hand back to Rainer who will provide an update on our strategic objectives and an overview of our financial targets for the year 2022.
Thank you, Ralf. Let's now have a closer look at what we achieved on our operational level in 2021, how this fit into our strategy, and how we plan to continue this path.
Onto slide number 11. We believe that our synergistic company setup will continue to boost revenues and create shareholder value also in the future. Over the past 10 years, we have consistently diversified our business, particularly through the Dating & Video and Commerce & Ventures segments. With this successful strategy, we have grown by an average of 7% per year, more than doubling our revenues in this period.
Back in 2011, around 80% of our revenues came from TV advertising alone. Since then, we have broadened our revenue sources. Today, traditional TV advertising, which maintained an unchanged high level, only accounts for around 40% of our group revenues, while our new business areas contribute about 60%. What is important here, these diversification efforts came at no cost for our shareholders, but instead created value for them.
While we spent €2.1 billion in the last 10 years for M&A and have already regained €800 million from disposals, we nonetheless distributed €3.2 billion in this period to our shareholders, and we kept net financial leverage and net financial debt about stable. This would not have been all possible without tangible synergies, especially those related to advertising. We will address them later in this presentation.
Starting from our already high revenue level of over €4 billion that we achieved today, we set ourselves the ambition to increase our group revenues organically by an average of 4% to 5% per year in the medium to long term. We want to continue this revenue growth by a clear number of initiatives, which we will explain in detail on the following slides and to which all three segments will contribute.
Let's start on slide number 13. This chart describes the core of our ProSiebenSat.1 alignment. Almost all of our businesses have evolved following this approach. Our reach leads and is the basis for our monetization. This is the foundation of our growth ambition. All our three segments are linked with one shared vision, we empower brands and create moments that matter. This is the core of our group and what drives us every day. We inform, entertain and bring people together around-the-clock. We offer them products, services and experiences that enrich their everyday lives.
Driven by this vision, we want to strengthen our position as a leading digital-first video entertainment provider in the German-speaking region and use this strength to power synergistic consumer platforms. How do we want to achieve this? By maximizing our reach and by diversifying our monetization. Reach and monetization are our greatest assets, and we can monetize them in different ways. Our focus here is clear, all our efforts result in increasing returns for our shareholders. This makes ProSiebenSat.1 a valuable investment also in the medium to long term.
Let's start with our reach. We maximize our reach by providing local, live and relevant content on our broad array of platforms. We have three levers that are playing into this. Let's start on slide number 15. First, we are the leading independent digital entertainment platform in the German-speaking region. Why? Because we have a unique content offering that differentiates us from our competitors, which is relevant and matters to the millions of people we cater to across all platforms.
Despite all the prophecies of doom, TV is alive and kicking. In 2021, we have clearly shown how well we continue to reach viewers, especially young target groups. The average daily TV viewing time in Germany is around 209 minutes. Hence, we want to create the fireside moments that our viewers chose to spend this time with.
In 2021, we created a lot of talk-of-town formats such as The Masked Singer, Germany's Next Topmodel with the most successful season in 12 years, relevant formats such as our seven-hour documentary #Nichtselbstverständlich on the situation of health care workers and our sports portfolio with the German Bundesliga or the NFL and the Super Bowl.
Overall, we thus achieved a significant reach of an average of 59 million monthly viewers with linear TV and 11 million monthly unique users with our digital offers. This strategy enables us to outperform our peers on linear channels and to create significant traction digitally, as you can see on slide number 16.
In 2021, we continued to be the number one in the German audience market. We reached an audience share of 25.6%, and hence, more than 2 percentage points ahead of our competitor, Ad Alliance, which markets the RTL channels. As you can see, we were able and we were ahead of them every single quarter and even expanded our market leadership significantly in the crucial fourth quarter.
Furthermore, we put particular focus on Joyn as our most relevant digital platform. Our top formats, such as The Taste, are driving its reach, as well as the exclusive coproductions that we initiate or decide to show first on Joyn, such as our successful fiction series, Blackout. Our own content already contributes for 90% of the top 10 AVOD formats on Joyn. This demonstrates the consistent windowing strategy between our linear channels and Joyn that we will further enhance this year.
The second step in maximizing our reach is to lever our market-leading tailored content that is focused on local relevance and exclusivity. A similar strategy is also successfully pursued by our main shareholder, Mediaset, in Italy and Spain, or by our French peer, [ph] TFR (00:29:01), in France.
So let's take a closer look at our content strategy on slide 17. We are increasing our local content share on our biggest challenge in prime time, which is the strongest advertising period starting at 8:00 PM. We make local contents our investment priority. This not only differentiates us from our international streaming providers, it also enables us to make better use of and thus better monetize these formats because of their unique character.
We are currently establishing an in-house production hub for factual and show content, alongside our successful production companies like RedSeven Entertainment or Pyjama Pictures. Additionally, we will launch our own news department in 2023. All this with the goal to internalize production costs and margins, and to become independent from the market and own our IP. We integrate program and reach planning in order to ensure that all available platforms that broadcast our content work well together. All the shows we think in terms of live and on-demand completely platform agnostic in order to create the best possible reach for our content. And third, we utilize multiple channels to reach and target our audience anywhere and anytime across all platforms.
On slide 18, you can see the ecosystem of our linear and digital platforms, both owned and operated and third party that we lever to access the biggest share of users. In short, we are where our customers and viewers are and use our relevant content as a driver for reach. Next to our own platforms, third-party platforms play an important role in distributing our content. And they are highly profitable – they are highly profitable line of business and a stable source of revenue for us.
Let me dive deeper into the streaming platform, Joyn, in this context. Joyn is the cornerstone of our digital platform strategy. We highly believe in our advertising video-on-demand offering because it perfectly fits the zeitgeist.
Most households in Germany can only afford a limited number of streaming subscriptions. German users are willing to pay for a maximum of 2.5 SVOD services and spend a maximum of €17 for this. Against this backdrop, we see that large subscription providers are reaching the limits of their growth. They have greatly benefited from the pandemic, but now, it gets hard for them to attract new users. That's different with Joyn.
We are convinced of the success of our hybrid model because it allows us to meet the sweet spot as a broadcaster or advertising video-on-demand service. Meaning, we have a strong advertising finance layer where we stay close to our free TV channels, combined with a slim but highly attractive subscription offering to attract new customers.
I've talked about the great assets we have in our company, how we are increasing our platform independent reach driven by local, live and relevant content, how we are growing the reach of our digital platforms such as Joyn and lever our distribution income.
Now onto slide number 20. I would like to turn to how we monetize these assets. On the one hand, our traditional sales business markets our TV reach to our advertising partners. Here, we can directly monetize our reach. In addition, we can also drive monetization in an indirect way. In our Commerce & Ventures segment, we invest in young companies and offers an advertising space. In return, we receive shares in the revenue or the company itself as media-for-revenue and media-for-equity investments. This means that our Commerce & Ventures segment is 100% synergistic with our Entertainment business. In selected cases with high synergy potential, we also invest own capital to drive additional returns. ParshipMeet Group is an excellent example for this and that's a logical continuation of our business.
First of all, let's have a look at our direct monetization business on slide 21. Our successful advertising business is supported by strong market fundamentals. If you look at the average daily viewing time of video content in Germany, you see that TV usage has been about stable over the past years while there is still growth potential in online video usage. This growth potential is also reflected within the advertising market. While the market for TV advertising revenues remained and is to remain about stable, the market for video advertising increased dynamically, and will do so in the upcoming years. This shows, with our digital focus, we are strengthening our total reach and our opportunities for monetization because we are addressing a growing advertising market.
In this market environment, we continued to hold the number one position in 2021, as you can see on slide number 22. With a gross advertising revenue share of 37.6%, we were again clearly ahead of Ad Alliance. Please note that German regulations prohibit public broadcasters from advertising competitively. For example, they are not allowed to air commercials after 8:00 PM or on Sundays when their reach is very high. This also creates a stronger level playing field for private media offerings.
As you all know, we had a difficult start into the year due to COVID-19 restrictions still in place. But in full year 2021, we have seen very strong growth in almost all of our German TV advertising industries. The top 10 industries came back strongly, especially the telecommunications and the computer industry, while automotive still has a great catch-up potential. So, I'm also optimistic for 2022.
But this is not all. With modern digital advertising products, we enable our advertising customers to address users in a targeted manner. We are charging TV with digital benefits such as addressability. This makes it even more attractive as an advertising medium. Hence, we received an increased interest from customers for this.
In 2021, we increased our addressable TV campaigns by 20% and we realized more than 60 campaigns with our cross-device offer. Another example is our total video product CFlight. Here, we are unifying the previously different booking logics and the different media quality of TV and digital. Our customers can now play advertising campaigns across our entire TV and digital offering, including Joyn and Studio71. The demand of our customers here clearly exceeded our sales expectations. This shows our position on the advertising market is strong, and with smart approaches, we can even get further ahead of our competitors.
Let's now turn to the indirect monetization side of our business on slide 23. What does this mean? If you look at our total advertising inventory available, you see that we are not selling everything to traditional advertising customers over the full year. In several months and partly also quarters, we are sold out with 100%. Over a full year, we have around 25% of idle inventory available for internal usage for our Commerce & Ventures investments, as well as for ParshipMeet Group or Joyn, at market-based prices, of course. Otherwise, we would need to fill this inventory with content, expensive formats we would have to acquire or produce ourself. Thus, we lower our external spending while, at the same time, building up strong consumer brands with our own media power.
When we invest in media, we create synergies with our Entertainment business, and this benefits our group as a whole. First of all, we can use our idle inventory to market our investments. This offers us and the brands highly attractive conditions due to the effective use of our reach. Second, we can stimulate the ad market in general by pushing new client groups. In the past year, we, for example, saw an increase of digital companies among our advertising clients.
Third, we then can develop these investments into classic customers of our sales business at Seven.One Media. Fourth, our investments create very attractive returns for us. And by using our idle inventory, this comes with very limited risk. And fifth and lastly, we can develop companies with high synergy potential into market leaders.
So how do we invest? We have different investment vehicle as slide 25 shows. We foster digital-oriented, consumer-focused assets that have a long-term structural growth potential. All of them must have synergies with our Entertainment business. With our media-for-equity and media-for-revenue deals, we offer those growth companies advertising time, combined with the high reach and strong impact of the medium TV to increase brand awareness and ultimately enterprise value.
In SevenGrowth, we also bundled bigger minority and majority investments with high strategic value for us. By building up these assets with our entertainment power, we create value. We do this using two routes. We can sell our shares in the asset and thus realize a strong financial gain. A great example here is ABOUT YOU. We initially invested in the retailer in 2016 and increased our shares in 2020. When ABOUT YOU went public in 2021, we also saw a good profit here.
Another possibility is to incorporate an investment as a new pillar to our business if we see great future potential and further synergies with our group. The best example here, our ParshipMeet developed from a successful Commerce & Ventures business. We made the initial investment in a media-for-revenue participation in Parship in 2012. In the following years, we acquired the majority and bought further online dating brands, most recently The Meet Group. Today, ParshipMeet Group offers a broad spectrum of online dating platforms and forms Dating & Video segment of our group.
For our investment, companies have to fulfill clear criteria, which you can see on slide number 27. We concentrate on attractive consumer-focused business models with high marketing spend that benefit from reach and that address large consumer markets offering mass market products in the German-speaking region, thus having a strong ability to grow their businesses via advertising.
The business is in the early growth stage of its development and it has to be asset light with high prospects of future growth based on their own cash flow. This makes our investment strategy highly focused. We finance growth with a little cash as possible by using media. We tap into new market segments and generate increasing returns. Once we have successfully build up such companies, we decide whether to selectively deploy additional cash to enhance value creation.
Let me provide you with some examples. Let's look at WindStar Medical that we sold in 2020. Initially, we invested €80 million in 2016, with a follow-up investment in 2018. By 2020, the internal rate of return was at 37%. This was also thanks to the increased brand awareness created with TV advertising. The same is true for Etraveli, which we divested in 2017, with an IRR of 49%.
ParshipMeet Group builds our Dating & Video segment since 2020. Here, we see great synergy potential with our core business and a margin-strong business model with a good cash flow contribution. But let's not forget, we continuously monitor our assets to decide if we are still the best owner and manage our portfolio accordingly.
Let me take you through the different steps shown on slide 28. As just explained, we search for investment opportunities that we can link to our entertainment reach. We specialized the digital companies with a consumer focus as we firmly believe that they can leverage and benefit from our media power. When invested, we use our media inventory to strengthen the companies and to achieve maximum scalability in the German-speaking countries. It always is our goal to invest as little cash as possible. During that period, we are the right owner for the company.
At some point, we cannot drive growth via our reach in our core markets anymore. This is when we reassess our investment and decide on whether to hold on to our investment or to sell our stakes. Some key questions define our decision. Is the asset synergistic to our business? Is the asset accretive to our key performance measures such as profitability, cash flow or ProSiebenSat.1's return on capital employed? Does the platform business have the potential to scale internationally? And if one of these questions is answered with no, we evaluate sale options. This has, for example, been the case with Amorelie, moebel.de, Gravitas Ventures in 2021 or WindStar Medical in 2020.
Overall, it must be clear, we constantly reconsider our investment options. We always verify if we are still the best owner and we always consider attractive offers on our assets when it comes to disposals. We actively strengthened our cash flow by selling our stakes in Commerce businesses that we developed successfully with our media power. Companies that align with all requirements will be held in our portfolio. For example, this is the case with ParshipMeet Group that forms our Dating & Video segment.
But I want to make it clear that as with all portfolio companies, there are no sacred cows. ParshipMeet Group also will be regularly reviewed to make sure we remain the best owner. In this context, you all know, we have been evaluating a potential IPO for ParshipMeet Group together with our partner, General Atlantic, and we are well advanced in our preparations.
The current market environment, especially with regard to the war in Ukraine, does not allow us a value-creating transaction. This does not mean, by the way, that we stop pursuing our plan, but that we have to wait for the right timing. As soon as the right moment arrives, we are prepared and ready to go.
Let's now focus on our initial slide. I have shown you our two clear focus points to further exploit our potential as a digital group. The maximization of our reach and the diversification of our monetization both [indiscernible] (00:47:27) one goal, to become an even more diversified digital company and to accelerate our transformation process, because this enables us to create superior value for our shareholders and therefore also for us.
On slide 30, you can see what this means in numbers. Since our management team assumed office in 2020, we generated €722 million of adjusted operating free cash flow via direct monetization. And this is also during the pandemic. This mainly comes from advertising, distribution and content. Here, our Entertainment segment is the main driver. Via indirect monetization, [ph] that's (00:48:17) mainly the Commerce & Ventures, as well as the Dating & Video segment, we generated €368 million overall in the past two years in total and minus holding cash flow for nearly €33 million per year, and that's around €67 million over the last two years. We thus generated an adjusted operating free cash flow of more than €1 billion with our business models within the last two years.
This is outstanding throughout the industry, and it all underlines our diversification strategy creates substantial cash flow, and this results in significant value for our shareholders. Our dividend payout is €292 million and in relation to the closing prices of the respective years before payout amounts to 5.7% and 3.6%.
More [ph] important then in (00:49:16) the past, however, is that I hopefully been able to show you that our business model will continue to create a lot of value and that we have a clear and value-creating strategy going forward. I hope I have been able to give you a clear overview on our strategic priorities. We are well positioned for 2022 and have a solid financial basis underpinned by clear corporate strategy.
How does this translate into our financial targets for 2022? Please move with me to slide 32. First of all, I want to give you an overview of our revenues and our adjusted EBITDA, both adjusted by portfolio and currency effects. As you all know, we have made some changes in our portfolio last year. These disposals such as the film distribution business of Gravitas or the Commerce & Ventures investments, Amorelie and moebel.de, must be taken into account. Adjusted for these portfolio and currency effects, our revenues totaled €4.413 billion in 2021. Our adjusted EBITDA was at €825 million. These adjusted numbers form the basis for our outlook for 2022.
As the macroeconomic development in our core markets remain uncertain, we have decided to provide a midpoint with a plus/minus variance for both our revenue and adjusted EBITDA outlook. Without further portfolio changes, the group expects revenues in 2022 of around €4.6 billion with a variance of plus/minus €100 million. This translates into a group revenue growth range in financial year 2022 of at least 2% to around 6%. The revenue target range depends particularly on the development of advertising revenues in the German-speaking region, where we expect a stable development for the lower variance and a growth of 3% for the upper variance. Based on these revenue assumptions and excluding further portfolio changes, we expect group adjusted EBITDA for the full year of 2022 of around €840 million with a variance of plus/minus €25 million. This is mainly supported by the Entertainment segment.
The Entertainment programming costs will be in total at the previous year's level, and the main part will be attributed to local contents. The amount that might be varied by around €50 million depending on the development of the advertising market. Here, we take advantage of our leading positions in the audience market. Without further portfolio changes, we expect our adjusted net income for 2022 to be at or slightly above the previous year's levels of €362 million.
The adjusted operating free cash flow is our relevant cash flow management indicator. Reaching a midpoint of the adjusted EBITDA target range, we assume that the adjusted operating free cash flow for the full year should develop at or slightly above the previous year's figure of €599 million. For ProSiebenSat.1 return on capital employed, we expect the development slightly above the level of the previous year of 14.1%. In general, we aim for leverage ratio of between 1.5 times and 2.5 times. At the end of 2022, we expect the leverage ratio at or slightly below the previous year's levels at around 2.2 times. And of course, we confirm our dividend policy to distribute approximately 50% of our adjusted net income to our shareholders.
Please note that impacts on our business due to the further [ph] course (00:53:55) of the COVID-19 pandemic or due to negative effects of the Russia/Ukraine war on our core markets are not reflected in this outlook. However, we do not see any major impact on our customers' advertising bookings, which should not come as a surprise given our positioning was focused on Germany, Austria and Switzerland. In the past, short-term losses due to the macroeconomic development were quickly compensated for, to a large extent, in the following quarters because we are an early cycle company. Of course, it is also true that there hasn't been a war on this scale since our company has existed, but I still believe that we can look ahead with confidence.
Let me also give you a brief outlook on the start of 2022 at this point. As the soccer World Cup will take place in November and December, we adapted our planning for 2022 accordingly. This means that you will see a phasing of programming costs for the first and second quarter, usually, to a large extent, spent, especially in the fourth quarter. Although we currently expect our advertising revenue growth in the first quarter of 2022 to be above the level for the full year, the slightly higher programming costs are likely to have a corresponding impact on profitability.
We also expect the pandemic-related impact on our Commerce & Ventures and Dating & Video businesses to affect the profitability in the first quarter to a certain extent. While Verivox business developed normal in the previous year period, it can be assumed that the energy market will remain very volatile in the current and probably also in the coming quarter due to the war in the Ukraine, as well as sanctions. Please note that in the previous year, we recorded the strongest quarter ever for ParshipMeet Group due to both the third stimulus checks issued in the US and high usage of Dating & Video platforms during the pandemic.
The group's adjusted EBITDA is, thus, likely to be negative in the first quarter. However, this is fully reflected in our full year outlook. By the way, when I say likely to be negative in the first quarter, I mean compared to the first quarter last year. We are also convinced that the easing of COVID-19 restrictions on public life announcement for the end of March and recovery of [ph] EG's experience (00:56:57) market will have a positive impact on revenue and earnings in the further course of the year. Please note that further development in March could still be significantly impacted by potential negative effects resulting from the Russia/Ukraine war.
Let's finish with our dividend proposal. Our strong growth in adjusted net income translate into a substantial dividend increase for financial year 2021. Together with the Supervisory Board, we will propose a dividend payout of €0.80 to the Annual General Shareholder Meeting. In the previous year, we paid a dividend of €0.49. We, thus, see an increase of 63% here. This corresponds to a total dividend payout of €181 million and a dividend yield of 5.7%. We are delighted that our shareholders participate in the success of our strategy in such an attractive way.
So, let me sum up. We strengthened our total reach because we already have the leading mass audience reach in the German-speaking regions, and we offer unique live and local contents to our viewers, this on a broad array of linear and digital platforms.
We are monetizing this reach successfully because an intact media consumption drives solid growth in advertising. We realize incremental media value from indirect monetization models, and we select synergetic platform investments and constantly review if we are still the best owner. With this strategy, we generate attractive returns. Our ambition is to grow revenues organically by an average of 4% to 5% per year in the medium to long term. Our strong free cash flow focus enables us to pay out robust dividends. Hence, we have an incremental distribution upside from crystallizing investments over time. All this plays into our goal to continue to create value for our shareholders.
Thank you very much for your attention. We are now looking forward to your questions.
Thank you. [Operator Instructions] And we will take our first question from Annick Maas with BNP Paribas. Please go ahead. Your line is open.
Hi. Good afternoon. So, my first two questions are with regards to Parship. So, first of all, the IPO potentially being late, does that open up the possibility that it might be a trade sale as opposed to an IPO? And my second question on Parship is if you could comment on the churn rate at PARSHIP ELITE since the subscription cancellation policy has changed in Germany.
And then just unrelated to Parship, if you could give us an update. I mean, you've mentioned quite a bit that you can monetize some of these assets and that you've had done that in the past. Can you maybe give us an update on what in your portfolio is the most likely to be monetized in the short term and – yeah. Thank you.
So, let me start with the first question. We all see the current market environment with the Ukraine/Russia war. I think, to expect our IPO not happening right now is, I think, a very good and thoughtful discussion. And we totally prepare the IPO and we are ready to go. And now, we have to see how the overall market will develop during the next weeks and months and then pursue our – our idea is clearly to perform the IPO.
When? How? That's something we have to define when we know how the overall market develops. And again, Russia/Ukraine is an issue, but also, you have seen a lot of tech companies also struggling also based on that what you can see in the overall market. So churn rate, we are not commenting on that, but I can clearly say the change is not hurting us in churn rate because the products are good and we are very well. And you are referring to the regulatory change, this has currently no influence on that what we do.
And the next, what is happening to the portfolio? Again, same answer as I did before on ParshipMeet. We have to see the overall environment, and then, obviously, we can talk about that when the market is getting better again. Again, our target is not to sell for every price. If we sell companies, we want to do that on the best possible way for value creation for our shareholders. And in this market environment, this is a difficult situation. So, we have to wait up to this point that the overall market gets better again.
Thank you.
Thank you. And we take our next question from Nizla Naizer with Deutsche Bank. Please go ahead. Your line is open.
Great. Thank you. I just have three questions from my end. The first is on ParshipMeet. Could you perhaps guide us towards how you think of organic growth in 2022 for the business, a range maybe that you can guide us towards, that would be great. And how is the B2B sort of product within the group performing and is that sort of outperforming the B2C sort of element of the business these days? Some color would be great.
The second question is on – a clarification on the Q1 EBITDA. You mentioned that it would be negative, meaning, it would be lower than Q1 last year. But is there any sort of range that you can give us as to the magnitude of how declines would be as you front-load some of your programming costs? That would be great. And my last question is on the Football World Cup in Q4 this year. What sort of an impact are you incorporating into your own assumptions since it would not be screened by your channels? Thank you.
So, let me start with your ParshipMeet Group organic growth in 2022. I think, we had very strong comparable figures beginning 2021 in the first and second quarter, and that's what you have to have in mind when you look on the performance and model it in. So, I wouldn't expect us to grow, it could even be possible. And I also mentioned that before in my speech in the first quarter for ParshipMeet, that we can see a slight decline due to the fact that there was a huge US stimulus at the beginning of the year 2021 in the US market.
So, I'll answer the last one, which is football or soccer world championship. We were testing the market in Q4 a lot, especially when others have shown soccer matches. And clearly, we think, with the program which we tested, which is then, for instance, highlight programs, The Masked Singer or Joko & Klaas, or something like that, we have a good chance. But for sure, we will go out of the way of the German team. So, we have to be a little bit more flexible how we manage it.
So, our customers can't expect if Germany would play, for instance, on a Thursday; couldn't expect then that Germany's Next Topmodel is happening when Germany plays, because we don't want to create a big issue in the families where then someone wants to see Germany's Next Topmodel and the other one wants to see the soccer match. So, that means more flexibility for people watching our program. But at the end of the day, what I mean with spending more in the former quarters for programming is exactly that reason that we have learned, that we prepare for a good fourth quarter. But on the other side, we have to see and to figure out that we win also in the other quarters.
And when I would look on our reach on January/February, you would see great performance. And then March, now we have to see because our big disadvantage in reach is that we have no big news department, know that we are building that up and we are ready to – we make ourself ready beginning 2023 and our people are doing a great job with all the specials we are doing, with Ukraine war and so on, but that's also something which we have seen in the pandemic.
You know that especially here, broadcasters and the public broadcasters are then taking reach. But I also have to say this is then reach, not monetization because the public broadcasters legally are not allowed to do advertising beyond 8:00 PM. So therefore, even if we would have a strange reach, the monetization perhaps is not hurt as much. And that's the reason why we also said for the Entertainment business that we will grow in the first quarter and also with a good amount, percentage wise, because obviously last year, Q1 was pretty weak.
Ralf, you want to answer the other ones?
So, Nizla, I think what's still left open is your B2C question for the ParshipMeet business. Obviously, this is relating to the video segment of our Dating & Video business. And what I can say, and please, yeah, bear with us, we can't make specific profit forecasts or revenue growth forecasts for individual vertical as we are in preparation for a potential IPO. You should assume that, what we call the [ph] VPAS (01:09:08) business, i.e., yeah, the business in video with third parties will probably be the strongest growing, yeah.
And I think the other question which is still open is your Q1 EBITDA. As Rainer already mentioned, yeah, we expect this to be negative. Last year's Q1 EBITDA was €143 million. But it's yet too premature to give you precise indication. We will have to wait where we end up in March. But what Rainer said is obviously true, yeah, it will be softer than previous year's first quarter.
Yeah. And to add on that, we have several issues. It's also when you look on the gas development, also Verivox in Commerce & Ventures will be hurt again as it was hurt in the fourth quarter. And when you've seen how strong the performance of Verivox was in the first nine months last year, you can see how relevant that is for this kind of segment.
So, at the end of the day, we don't know exactly. We have to flag it here and we want to prepare you because that's what we can see. I think, all this, what we have explained to you, is clearly priced into our outlook. So, when we talk about the €840 million on adjusted EBITDA, we know that we will have a little bit weaker quarter in Q1 compared to last year.
So, this is no surprise for us. This is clearly in our guidance. But we want to flag it before someone is too optimistic because, for sure, our advertising business, as strong as it was last year, also will grow and we will have a good performance in the first quarter here.
Understood. Thank you very much.
Thank you. And we take our next question from Omar Sheikh with Morgan Stanley. Please go ahead. Your line is open.
Thank you very much, and good afternoon, everyone. I have three questions, if I may. The first one is on the revenue guidance. So, you've been helpful with giving us some – your forecast for the advertising business in Germany is 0% to 3% for this year. Could you maybe just complete the picture by talking about your expectations for the non-advertising part of Entertainment and also for the Commerce & Ventures business in 2022, just what your outlook is in terms of organic growth year-on-year for the whole year. That's the first question.
Secondly, on the medium- to long-term revenue growth guidance, the 4% to 5%, could you just tell us what you think that will translate to in terms of adjusted EBITDA growth and growth in free cash flow over that same period. That's the second question.
And then finally, on portfolio, it's helpful to have your thoughts laid out on slide 28. Could you just update us on perhaps which of the assets in the portfolio you're currently sort of considering as to whether or not they should be part of the portfolio going forward. You talked in the past about Flaconi, you've obviously mentioned on this call some pressures near term at Verivox, for example. It'd be helpful to maybe hear your thoughts on kind of – which part of the portfolio might be sort of eligible for sale. Thank you.
So, when we talk about our revenue guidance, the 4% to 5%, I would assume that approximately half of that comes through Entertainment, and the other half comes from both other segments, so that means Commerce & Ventures, as well as Dating & Video. And that means in Commerce & Ventures and in Entertainment, you have a situation, and I also tried to flag that in my presentation that we're assuming a decline in linear TV during the years, and that's a market assumption, it's not ours, of minus 2%.
We think we can be better because we are the market leader in that, but even if you take this assumption and then you have growth for the other areas in advertising, and that's the reason – that's the basis for the growth for the Entertainment business. And for sure, you know that we have a very strong distribution business, which is growing from a mid- to high-single digit and so on. So, I think, obviously, this is possible.
On profitability, we are not giving EBITDA forecast currently, but what we have done is, and that's the focus of what we are doing, and I hope I could describe that also in our presentation, our focus is on cash flow, our focus is on value creation via all this kind of stuff. And therefore, for us, the ProSiebenSat.1 return on capital employed is very relevant. And here, we are assuming to be above 15%. So, when you take this assumption and recalculate, you come to also an expectation in that, yeah, in the profitability.
But again, our focus is here, and especially the free cash flow, especially the return on capital employed, that's how we manage our company. So nearly everybody who leads divisions, people or whatever has these targets. And that's clearly our general idea.
So, Ralf?
Yeah.
And, Omar, if your question also was how does the 2022 guidance, yeah, decompose in Entertainment, within Entertainment, obviously, we also expect distribution to grow. The content business will be affected by the disposal of Gravitas Ventures, which we sold last year. So, there, we could be slightly negative, but this is purely M&A driven as we are losing Gravitas Ventures' revenues.
And companies which are up for sale, the same ones like in the past, we always said and we also try to give you an indication via our decision tree, how we look on things. And obviously, if a company is not paying into our ProSiebenSat.1 key performance indicators, then obviously, if they are not getting closer to that on a longer term, then they are obviously for us on our watch list.
And for sure, the overall market is difficult currently. But we already have told you when I came on board, and this is approximately two years when we [ph] rolled (01:16:26) that out, that all this businesses which are not asset light, and you could see that we are not only talking, we are also delivering on that because we sold WindStar Medical, we sold Amorelie, we sold moebel, and then you can have a look which is also in. And this is obviously also Flaconi. And Flaconi, we are currently a very good owner. You can see that on the growth rates. But there is a natural point where this business has to be further internationalized or, let's say, sourced somewhere else. And then automatically, if someone would come with the right price, value creating for our overall story, then, obviously, we can also be a seller for it. And that hopefully gives you an indication how we think and gives you also a clearer picture how we manage our Commerce & Ventures portfolio.
That's very clear. Thank you very much, both.
Thank you. And we take our next question from Lisa Yang with Goldman Sachs. Please go ahead. Your line is open.
Good afternoon. I have a couple of questions as well. Just wanted to come back to the guidance for the full year. I think you're guiding towards 2% to 6% group revenue growth. And I think your advertising assumption is 0% to 3%. So, what's really driving that growth rate? And if you think about in the most optimistic scenario, 6%, like, what is growing that strongly, both the advertising range that you gave to get to that number? I was just very, very curious.
The second question is on NuCom. Obviously, the EBITDA went down a lot from €84 million to €50 million. How much of that was driven by Verivox and where do you think we could end up because of EBITDA for the full year?
And the third question is in terms of your on MFE, any sort of conversations you may have had with them lately? Any sort of developments? Obviously, they are the largest holder, but they don't have any board seats. And given the current market environment and maybe the fact that you're less likely to IPO Dating or, say, other assets, do you think there could be some value-creation opportunities on the TV side, on the TV business? Thank you.
I'll start with your Commerce & Ventures question on EBITDA. Yes, you are right, it went down in 2021 on a full year basis, yeah. There was a low-double-digit percent decline, yeah. But we would expect, yeah, Verivox, yeah, to perform subject to the energy market again this year. And as we all know, yeah, the energy market has started difficult also in 2022, and we will have to see how the Ukraine/Russia war will pave out energy prices as to – yeah, rising, unfortunately.
For the full year 2022, we believe that, yeah, Commerce & Ventures should do better than in the last year, yeah. We expect a nice improvement in the earnings performance, but yet to be premature to give you a precise figure. I mean, you have seen the outcome for the full year 2021, which was €50 million. Here, we would expect a, let's say, significant double-digit improvement. But yet again, yeah, it's very early in the year and we will have to see.
Yeah. And your last question is, for me, not 100% clear, so I try to interpret this. So, when you ask me about media for Europe and conversations and so on, you mean if we are in discussions with them, obviously, we are in the same market, and for sure, we meet each other several times in the different areas. And by the way, my Supervisory Board already had a governance road show during the last four weeks. And they were discussing also the proposal which the company has done for the General Shareholder Meeting. And then, obviously, that's something which will be decided by the General Shareholder Meeting what is happening there.
On the other side, I clearly have to say, we are always listening to everybody who has a clear idea how we can create value for our shareholders. I've said that several times in the past, and I can reiterate that this is clearly our positioning. So whenever there is a good idea to do something which is value creating for all our shareholders, why shouldn't we do it? But nobody reached out to us.
And I also can answer then the next question because I also have got them already in the press call this morning, what about RTL? Because they are also talking about that ProSiebenSat.1 is a great asset everybody wants to own [indiscernible] (01:22:24) similar situation. So at the end of the day, what we can do and what we do is we try everything to create value for all our shareholders. But I clearly have to say, it is an honor for us if a company or a family like the Berlusconi family is investing in us because that proves that our business model has value. By the way, we are also doing, as I already said, [ph] STFR (01:22:56) similar things like we do. They also concentrate on local, live and relevant in their local markets, in their home markets. And that's – we understand that. They understand what we do, and that's something where we're – yeah, where we are happy about and where we are, overall, where we don't have an issue with.
So, at the end of the day, we honor every shareholder. We treat shareholders hopefully in a proper way, and everybody would tell you that this is the case. And then we are really looking forward for the next discussions. And, yeah, we will have our road shows. We have a General Shareholder Meeting in front of us, and I'm really looking forward to further discussions.
If this is your question, if I got this...
Yes, that's clear.
...right, what you...
Yeah, yeah, yeah. No, very clear.
Yeah, okay. Good. Perfect. Thanks.
And what about the question on the full year outlook and how would you be getting to the 6% upper end if your ads are only growing 0% to 3%? What's driving that?
Yes. Obviously, we would expect that also the Commerce & Ventures business will be growing in terms of revenues. And in terms of, let's say, maybe the underlying trends, yeah, when we look at advertising, there's a wide array of estimates for 2022 in the market for ad growth, yeah. They can be 1% or they can be 5%. So, it will depend where we end up ultimately for the full year, but this has basically determined also our assessment.
And do you think in Q1 – where are you sitting in Q1 because of that revenue growth range of 2% to 6%, upper end or lower end?
Well, as you know, for advertising, Q1 last year was negative. 2021 over 2020 was down 14%, 15% in ad terms. And so far, year-to-date February, we have seen really nice recovery. But for the – we need to await the trends in March. This is an unusual situation, yeah. We haven't had a war. But I'm very optimistic that we can demonstrate a very good outcome for advertising.
Okay. Thank you.
Thank you.
Let me say one word to the guidance. So, I know that everybody looks on €4.6 billion plus/minus €100 million as a range. But this is not a range. So what we're doing here is we give you an orientation of €4.6 billion and €840 million in adjusted EBITDA. And then we have a variance where we don't know exactly how it will play out. So we are not at the lower end currently and we are not at the higher end currently. You can take several assumptions to get there, but when you look on a statistical approach, you currently end in our assumption exactly in these numbers, €4.6 billion and €840 million, only to be also clear here, yeah.
Thank you. We take our next question from Julien Roch with Barclays. Please go ahead. Your line is open.
Yes, good afternoon, everybody. My first question for Ralf is, can we get this 2021 growth in smart advertising versus the €228 million in 2020 within DACH advertising. Second, you said there was a nice recovery in advertising in January and February but it was too early to talk about the quarter because of March. Nonetheless, could you tell us by how much January and February were up by.
And the last question is, Rainer, I believe you answered Omar 2022 question with an answer on the long term. So, you said the 4% to 5% would be in the medium term in terms of revenue growth would be coming 50% from Entertainment and 50% from other. But what does that mean? Because if we say it's 4% rather than 4% to 5%, so just one number, 50/50 means what, they're both growing at 4% or one is growing at 2%, the other is growing at 6%?
Yeah.
So if – yeah. So, if you give a bit more color on...
Yeah. So this is pretty easy to answer – yeah. This is pretty easy to answer.
Yeah.
It means that half of the 4% to 5% comes approximately from Entertainment and the other half comes from the other segments. So, when you have an absolute number of a certain amount, yeah, then half of this growth comes from the Entertainment segment and the other half comes from Commerce & Ventures and Dating & Video.
Okay.
For the group, 4% to 5% is for the group. Half approximately...
Yeah.
...Entertainment and the other half comes from the other segment. That's the general guideline of this aspiration, yeah. And then we have to see if there is a year where it's 0.5 percentage point more here and 0.5 percentage point more there. So, it all depends then on the overall development. But what we want to tell you here is that we have a very strong belief out of that what we have seen that ProSiebenSat.1 is clearly a company which also will create value not via cost cutting, also via – and we also will be strict on costs. But on the other side, we also will grow the business also in the next years. So, it's not only 2022, it's also for the following years that we are optimistic with the things which we have done here and with the things which we are preparing that we are also ready to grow in the next years.
Okay. And maybe if we – I understand what you're saying that we need to look at it in an absolute increase in millions of euros and let's take 50/50. But we – if we think about it in growth rate, because 4% to 5% is a growth rate, could you give us a range for the three divisions in terms of growth.
This 4% to 5% is the growth rate every year, compounded average growth rate every year which we have as an aspiration. I only want to say that all segments will grow, and that's what I mean. And all three segments will grow. And for sure, automatically, on this absolute number, then Entertainment growth is lower than – from the lower – from the higher basis. Then, for sure, Dating & Video and Commerce & Ventures have to grow to be on the same level. But this is totally in line when you model it in like you also would assume it.
Okay. And on...
And, Julien, with respect to your digital and smart question, I presume that you want to know the growth rate for the German-speaking business, which on a full year...
Yes.
...yeah, which on a full year basis was round about plus 16%, yeah. And your other question relates to Jan and February advertising. Yeah, I can confirm that this was up nicely, yeah, round about 20%, yeah. But we will have to see, we will have to see, how March pans out. This is a new situation. So, we remain cautious. [ph]
Ralf (01:30:51), thanks.
And March is the biggest month of the quarter, like always, because it's in...
Yeah.
...front of Easter and so on. So, January, February is nice. But at the end, the decision will be done in March.
Okay. Very good. Very clear. Thank you.
Thank you. And we take our next question from Richard Eary with UBS. Please go ahead. Your line is open.
Thanks. Just hopefully three quick questions. Firstly, Flaconi [indiscernible] (01:31:21), I didn't see anything in the presentation about what was the actual underlying organic growth for Flaconi last year, if you can do that. The second thing is the – I don't know whether you can expand on some previous comments and give maybe a little bit more color. Obviously, there was a disappointment around the Commerce & Ventures EBITDA this year. But as we look into next year, could you give us a feel in terms of where you expect that to land within your guidance of €840 million, plus or minus, that would be helpful.
And then just lastly, if we look at the deferred equity that sits on the balance sheet within Commerce & Ventures and Dating, could you just let us know exactly where they sit at the moment, please.
Richard, I'll start with the organic growth. You believe – you asked for Flaconi, if I'm not wrong, yeah. Flaconi posted double-digit percent growth, yeah. We cannot be more precise. So, overall, the development was really okay. And we look for continuous growth in this asset, yeah. But please bear with us, we are not providing, let's say, granular guidance for this subsegment, yeah.
So, 2022, we would envisage also a growth for this asset, as well as for the entire segment versus 2021, yeah. The preferred equity for Commerce & Ventures and Dating, where is it at the moment? I presume you're looking for the amounts, for the NuCom, yeah, it's round about €200 million and for ParshipMeet, it's round about €400 million.
Okay.
And have I missed a question?
Yeah, it was about the Commerce EBITDA. Obviously, I don't know whether you can give us any more color in terms of what your expectations are within the existing guidance for 2022. This year was obviously light at €50 million.
Yeah, yeah, look – yeah, yeah, look...
Thanks.
Yeah, yeah. Look, its EBITDA should grow double-digit percent. I mean, already €5 million is 10%, yeah, and we would hope for more, obviously. So this will, according to our plan, contribute to the full year growth.
Yeah. But as we all know, similar situation like we have this year when we see the gas market that has to normalize somewhere then in the second half of this year. And also, we have to see how the pandemic will work on further because Jochen Schweizer mydays is also a cash contributor, as well as with Silvertours, which is traveling. This is also one of the issues where we have to look at, again, all very good businesses. Nothing to worry about, but we have to see how the development in the overall market will look like.
Again, we have an assumption, as Ralf said, and we are very optimistic to reach that. And I only can reiterate that when we look on our year-end guidance, our current assumption is that we should reach an adjusted EBITDA of €840 million plus/minus the €25 million, but the €840 million is the orientation line after €825 million in 2021. And that's where we are and that's exactly how we are managing the company. And for sure, we also look, first of all, on our group guidance, and that's the numbers which we address and which we want to reach. And then there's uncertainty of the overall market and the further development of all these [ph] crisises (01:35:38) which we have currently.
Okay. Thank you very much.
Thank you. And that will conclude today's Q&A session. I would now like to turn the call back over for any additional or closing remarks. Thank you.
Yeah, thank you, operator. As has already been mentioned, that was the last question for today's call. As always, my colleagues in the IR department and myself will be available for any follow-up questions in the next couple of hours. So thank you, everyone, and goodbye.
Thank you. And that will conclude today's conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect.