The television company Pro Sieben Sat 1 has to face massive criticism from its owners at the general meeting. Large investors and representatives of small shareholders found sharp words on Friday. “Pro Sieben Sat 1 gives the impression of a poorly produced reality show – a never-ending series of comedy and horror,” said Andreas Thomae from the fund company Deka Investment at the virtual shareholder meeting. “We shareholders are forced to watch everything in full length and in the end we also have to foot the bill.” Thomae also complained: “Five CEOs and four CFOs in five years.” In addition, the “share price performance of Pro Sieben Sat 1 over the past year and a half has been miserable”.
The television group had announced that it would only pay out around eleven million euros to shareholders in 2023, after 181 million the year before. The dividend should also be significantly lower in the future. “The dividend payment is very, very measly,” said Otto Laßkorn from the Protection Association of Investors (SdK). The stock market price of Pro Sieben Sat 1 is sluggish, added Daniela Bergdolt, Vice President of the German Association for the Protection of Securities (DSW). “The shareholders have been shaken up.” All in all, there is “not a pleasant breeze” for the shareholders.
Hard decisions: fewer dividends and fewer jobs
Pro-Sieben-Sat 1 boss Bert Habets admitted that the dividend cut was “not good news” for shareholders. However, the step is important in order to limit debt and invest more. Habets confirmed the forecasts for the current year, but presented the shareholders with the prospect of a difficult business because of the advertising slump. “2023 is another tough year,” said the Dutchman, who has been in office since November. That’s why you have to make “hard decisions” – such as cutting the dividend, saving and cutting jobs. “The first effects of our cost program will be visible in the fourth quarter of this year and are expected to amount to a low double-digit million amount,” said the former RTL boss. The full effect will then be achieved in 2024.
The group around Pro Sieben, Sat.1 and Kabel 1 will probably cut several hundred of its around 7,300 jobs. The job cuts will be “significantly more extensive than the previous restructuring,” Habets said recently. Most recently, around 120 full-time positions were lost in 2019. With regard to the major shareholders Media For Europe (MFE) from Italy and the PPF Group from the Czech Republic, Habets said that there was a constructive dialogue about the strategic goals and that options for more cooperation were being examined. Shareholders criticized the fact that for the fourth time in a row the Annual General Meeting was only held digitally and not in person. “Virtual is just cheese,” said Matthias Gaebler, a professional AGM speaker. The management does not get any boos, but also no applause.