- ProSiebenSat.1 Media SE PBSFY slashed its 2022 core earnings outlook after acquiring the remaining 50% of shares in streaming service Joyn from Warner Bros. Discovery, Inc WBD.
- ProSiebenSat will acquire the remaining 50% stake in Joyn, launched in 2019, for the symbolic price of €1, ProSiebenSat CEO Rainer Beaujean told Reuters.
- ProSiebenSat 1 Media expects the complete consolidation of Joyn to make a €25 million dent in 2022 adjusted earnings before interest, tax, depreciation, and amortization (EBITDA).
- Therefore, it cut down its outlook for 2022 adjusted EBITDA to €780 million, with a variance of plus/minus €25 million, versus a previously forecast €805 million plus/minus €25 million.
- The group, however, stuck to its previous 2022 forecast for adjusted net income of around €4.375 billion ($4.45 billion), with a variance of plus/minus €75 million, primarily in line with the previous year.
- "This gives us strategic security," he said.
- Like rivals Netflix, Inc NFLX and Walt Disney Co DIS, Warner focused on global subscription models, while Joyn will remain ad-financed and limited to German-speaking countries, Beaujean added.
- After enjoying massive popularity during the pandemic, the streaming industry is battled subscriber loss amid recovery coupled with surging inflation and lower consumer spending.
- Warner wants to prioritize the upcoming integration of Discovery+ content into the HBO Max platform.
- Price Action: WBD shares traded lower by 2.22% at $13.02 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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