With EURUSD on a low level from historical perspective I think about some Euro denominated investments. Well, there are not so much Aristocrats in Europe, but I found an interesting company – ProSiebenSat.1 Media SE.
ProSiebenSat.1 is a German media company, with quite diversified business.
Position on German market is very strong:
Recently I was looking on Netflix. Well, there is still huge potential for Pay TV to grow in Germany – ProSiebenSat.1 is trying to make us of it.
Business is systematically growing, with CAGR on revenues in years 2009-2015 of around 9%. The fastest growing segments are those connected to “new digital entertainment” – there growth is double digit 30-40%. Broadcasting is slightly growing, but that’s ok.
Company presents its’ targets to 2018 year – further growth is expected:
Growth targets 2018
- Group revenue target for 2018 raised by EUR 300 million to EUR 4.5 billion
- Group increases recurring EBITDA target by EUR 50 million to EUR 1.15 billion
- Increased targets reflect growth contributions from acquisitions
- More than 50 % of revenues outside traditional TV advertising business by 2018
- Total digital business with revenues of more than EUR 1.7 billion by 2018
- Dividend policy and financial leverage target range confirmed
If we look on 4-traders.com consensus we can see that results are expected to grow.
Dividend yield is very attractive at around 6%. Also it should be stated that.
It should be noted, that there was a share issue last month:
In the course of the transaction, a total of 14,202,800 no-par value registered shares were issued. Shareholders’ pre-emption rights were excluded. All new shares have been sold at a sales price of EUR 36.25 per share. The gross proceeds will primarily contribute to the financing of the company’s growth strategy by the acquisition of other companies and interests in other companies in particular in the digital space. The capital increase will furthermore serve general purposes as well as support the strengthening of the Company’s balance sheet.
Well, with current market price of around 32-33 Euro shares are traded with more than 10% discount. That’s seems like an opportunity!
Summing up, it seems like an interesting buying opportunity, although it is not Dividend Aristocrat company…
Disclaimer: PSM.DE – no position