Unfortunately, we had expected the EBITDA margin to come out below the latest group forecasts. It finally stood at 21% over the whole year (management aimed for 22%) and, given the current business model shift which is leading to lower overall profitability, it should continue to erode in 2020. In a declining TV advertising market, the group has to invest more to maintain its market share and the scissor effect on free cash flow to pay the dividends is quite worrying.
05 Mar 2020
An EBITDA margin of only 21% for 2019
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An EBITDA margin of only 21% for 2019
ProSiebenSat.1 Media SE (PSM:WBO) | 0 0 2.1% | Mkt Cap: 7,340m
- Published:
05 Mar 2020 -
Author:
Jean-Michel Salvador -
Pages:
3
Unfortunately, we had expected the EBITDA margin to come out below the latest group forecasts. It finally stood at 21% over the whole year (management aimed for 22%) and, given the current business model shift which is leading to lower overall profitability, it should continue to erode in 2020. In a declining TV advertising market, the group has to invest more to maintain its market share and the scissor effect on free cash flow to pay the dividends is quite worrying.