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Prosiebensat acquires streaming platform Joyn from Warner Bros. Discovery

·1-min read
FILE PHOTO: FILE PHOTO: The logo of German media company ProSiebenSat.1 in front of its headquarters in Unterfoehring

BERLIN (Reuters) -Prosiebensat 1 Media SE has revised lower its 2022 core earnings outlook after acquiring the remaining 50% of shares in streaming service Joyn from Warner Bros. Discovery, the German media company said on Tuesday.

The company expects the full consolidation of Joyn to make a 25-million-euro dent in 2022 adjusted earnings before interest, tax, depreciation and amortization (EBITDA).

As a result, it revised down its outlook for 2022 adjusted EBITDA to 780 million euros, with a variance of plus/minus 25 million euros, versus a previously forecast 805 million euros plus/minus 25 million euros.

The group, however, stuck to its previous 2022 forecast for adjusted net income of around 4.375 billion euros ($4.45 billion), with a variance of plus/minus 75 million euros, largely in line with the previous year.

ProSiebensat will acquire the remaining 50% stake in Joyn, launched in 2019, for the symbolic price of one euro, Prosiebensat CEO Rainer Beaujean told Reuters.

"This gives us strategic security," he said.

Like rivals Netflix and Disney, Warner Bros. Discovery is focusing on global subscription models, while Joyn will remain ad-financed and limited to German-speaking countries, Beaujean added.

ProSiebensat hopes to make Joyn profitable by 2025. The streaming platform is expected to make a loss of 75-80 million euro in the current year, the CEO said.

($1 = 0.9839 euros)

(Additional reporting by Alexander Huebner in Munich; Writing by Rachel More; editing by Matthias Williams and Emelia Sithole-Matarise)