UNTERFÖHRING (dpa-AFX) - Media group ProSiebenSat.1 is drastically cutting its dividend for the past fiscal year. Instead of the 80 cents distributed for 2021, there will only be five cents for 2022, the MDax-listed company announced in Unterföhring on Thursday evening. Experts had expected 66 cents.

The reason given was a change in dividend policy. In addition to the general economic environment and adjusted consolidated net income, the company now also takes into account "an appropriate level of gearing with a particular focus" when assessing distributions. In addition, ProSiebenSat.1 also takes into account the requirements for investments in the operating business, including the implementation of strategic growth options, particularly in the core business of entertainment.

The benchmark for dividend payments remains adjusted consolidated net income. However, instead of half as before, the company intends to distribute only 25 to 50 percent of this to shareholders. In terms of gearing, ProSiebenSat.1 is targeting the upper end of a range of 1.5x to 2.5x.

The company also announced a change at the top of the finance department. Martin Mildner will take over from Ralf Gierig as of May 1, it said.

In a second announcement, ProSiebenSat.1 also provided an outlook for the current financial year and announced key figures for 2022. Accordingly, revenues are expected to be in the range of EUR 3.95 to 4.25 billion in 2023. Last year, revenues fell by a good seven percent to EUR 4.16 billion. Analysts had expected this to be more or less the same.

In terms of adjusted earnings before interest, taxes, depreciation and amortization (Ebitda adj), the company aims to achieve 550 to 650 million euros, following a decline of almost a quarter in the previous year to 678 million euros.

2022 was impacted by macroeconomic gloom in the DACH region (Germany, Austria, Switzerland), it said. As an early-cyclical company, ProSiebenSat.1 was directly affected by consumer reticence and the resulting negative advertising market development - especially in the important fourth quarter.

Continued economic challenges are to be expected in the first half of the year. This resulted in burdens, especially in the high-margin advertising business. The economic recovery in the DACH region is not expected to begin until the second half of the year.

The price of ProSiebenSat.1 stock on the Tradegate trading platform recently plunged almost ten percent from the closing price on the Xetra main market./he/ck