Half Year 2026 ProSiebenSat.1 Media SE Earnings Call

August 6, 2026

Operator: Und Bob Rajan, die gleich durch die Quartalszahlen führen werden und die Halbjahreszahlen. Und Marco gibt einen Überblick zu Strategie und Operations des Unternehmens und der Bob führt Sie dann durch die Zahlen genauer. Wichtig, glaube ich, immer nach der Präsentation haben wir noch Zeit für Fragen. Wir zeichnen die Präsentation auch auf, werden wir sie nachher auch im Internet zur Verfügung stellen. Grundsätzlich machen wir heute alles auf Englisch. Wenn Sie nachher Fragen stellen wollen, entweder auf Englisch oder auf Deutsch. Ich glaube, für alle kein Hinderspiel. Von dem her, I welcome Marco and Bob, and Marco, then I hand over to you.

Speaker #1: And Bob Rajan. Die ist gleich durch das Quartalsplan führen werden, und die Halbjahreszahlen und Marco gibt einen Überblick zu Strategie und operativen Themen. Und der Bob wird sie dann durch die Zahlen im Genaueren führen.

Speaker #1: Wichtig: Ich glaube, wie immer, nach der Präsentation haben wir noch Zeit für Fragen. Wir zeichnen die Präsentation auch auf, weil wir sie nachher auch im Internet zur Verfügung stellen.

Speaker #1: Grundsätzlich machen wir heute alles auf Englisch. Wenn Sie nachher Fragen stellen wollen, entweder auf Englisch oder auf Deutsch. Es gab für alle Kinder das Spiel.

Speaker #1: Von dem her: So, I welcome Marco and Bob. And Marco, when I hand over to you.

Speaker #2: Thank you. Thank you, Stephanie, and welcome to everybody. And thanks for joining the call. This morning I will take you through the first half result 2026.

Marco Giordani: Thank you. Thank you, Stephanie, and welcome to everybody, and thanks for joining the call this morning. I will take you through the H1 results, 2026. Just in brief, going through the highlights. We are certainly closing a H1 that was really good in our way of viewing it. The market was not really the one we expected, but the actions and all the activities we carried out in the H1 of the year actually paid off. In terms of revenue, we were in line with the expectation, clearly with a different mix. We knew about the events on our competitors' channels. Advertising on linear channel has been affected too, but as I said, it was expected and clearly was also managed in terms of cost of the grids.

Speaker #2: Just in brief, going through the AIs: we are certainly closing a first half that was really good in our—let's say—way of viewing it. I mean, clearly the market was not really the one we expected, but the actions and all the activities we carried out in the first half of the year actually paid off.

Speaker #2: In terms of revenue, we were in line with expectations. Clearly, with a different mix. We knew about, let's say, the events on our competitors' channels, so clearly advertising on linear channel has been affected too, but as I said, it was expected.

Speaker #2: And clearly it was also managed in terms of cost of the grids. Digital and smart ad revenue blew by 6% in the first half, also in line with our expectations.

Marco Giordani: Digital and smart advertising revenue grew by 6% in the H1, also in line with our expectations. Joyn clearly made a great part of it, but also Flaconi is going and growing a lot. That's another good news for us. The strongest, I believe, highlights of the H1 was the profitability. The new way of managing the company, looking at cash and taking care about all the cost line was really paying off. As you can see, and as Bob will tell you, we were able to increase our EBITDA by a very significant amount, EUR 152 million more than last year, reaching EUR 124 million in the H1 of 2024, moving from a negative numbers last year to a pretty substantial positive number this year. Net debt goes under control.

Speaker #2: Joint, clearly, made a great part of it, but also plateauing is keep going and growing a lot. And it's—that's another good news for us.

Speaker #2: The strongest, I believe, highlights of the first half was the profitability. The new, let's say, way of managing the company—looking at cash and taking care about all the cost lines—was really paying off.

Speaker #2: As you can see, and as Bob will tell you, we were able to increase our EBITDA by a very significant amount, 152 million euros, more than last year, reaching 124 million euros in the first half of 2024, moving from a negative—let's say—numbers last year to a pretty substantial positive number this year.

Speaker #2: Net debt gross under control, cash is clearly crucial, and our debt was 1 billion 460.7 million euros at the end of June 2026, with a 3.2 times leverage in terms of ratio to EBITDA.

Marco Giordani: Cash is very crucial, our debt was EUR 1.467 billion at the end of June 2026, with a 3.2x leverage in terms of ratio to EBITDA. That's, again, a pretty good result. I would like to underline the teamwork, because that has been made through a pretty daily work, and that was an outstanding result for us. That's not the news, but our outlook for 2026 remain unchanged. We will go through it later on, but that's another important news. Just few words about what happened in the H1 2026, starting from portfolio management. Bob will elaborate on that. We were able to simplify the group and to dispose the asset that we thought was no more in line with our strategy, and it was the right time to sell it and to dispose it.

Speaker #2: That's clearly, again, pretty a good—a pretty good result. And I would like to underline the teamwork, because clearly that has been made through a pretty daily work, and that was an outstanding result for us.

Speaker #2: And lastly, I mean, clearly that's not the news, but I mean, our outlook for 2026 remains unchanged. We will go through it later on, but I mean, that's another important news.

Speaker #2: Just a few words about what happened in the first half of 2026: starting from portfolio management, clearly Bob will elaborate on that. We were able to simplify the group and to dispose of the assets that we thought were no more in line with our strategy, and that was the right time to sell it and to dispose of it.

Marco Giordani: As you know, at the beginning of the year, we organized the group in two business areas. One is the Entertainment, the other one is Commerce & Dating. That was coming from the need to be much more accountable and much more focused on the strategy going forward. That was a way to simplify the work of the entire organization. We have introduced new performance indicators that are closer to our strategy and are mainly focused on the Total Video Reach. Clearly, this is including not only the linear reach, but also the new digital reach. As you can remember, we have put Luca Poloni on the executive board. The choice was mainly driven by the fact that Luca is certainly very expert in AI and tech, and that would be our pillar for the future.

Speaker #2: As you know, at the beginning of the year we—let's say—reorganized the group in two business areas. One is the entertainment, and the other one is commerce and dating.

Speaker #2: That was, let's say, coming from the need to be much more accountable and much more focused on the strategy going forward. That was a way to simplify the work of the entire organization.

Speaker #2: We have introduced new performance indicators that are closer to our strategy and are mainly focused on the total video reach. Clearly, this is including not only the linear reach, but also the new digital reach.

Speaker #2: As you can remember, we have put Luca Poloni on the executive board, the choice was mainly driven by the fact that Luca is certainly very expert in AI and tech, and that's within our—let's say—pillar for the future.

Speaker #2: I think Luca can take really a good asset to the executive board in order to drive the company in the future challenges in tech and AI.

Marco Giordani: I think Luca can take really a good asset to the executive board in order to drive the company in the future challenges in tech and AI, and also in digital. We have a structure, as I said, in the organization below the executive board in a new way, trying to be very coherent with the strategy and also very accountable for all the results that was put in place the Q1. Now we are also completed the teams, and we have all the spots that was empty at the beginning of the year that now are covered, and we are ready to push forward in the new month in order to accomplish our strategy.

Speaker #2: And also, in digital. We have structured, as I said, the organization. Below the executive board, in a new way, trying to be very—let's say—coherent with the strategy and also very accountable for all the results.

Speaker #2: That was put in place in the first quarter, and now we are also—let's say—completed the themes, and we have all the spots that were empty at the beginning of the year that now are covered, and we are ready to push forward in the new month in order to accomplish our strategy.

Speaker #2: As we said, and I think the result is clearly showing it, a new culture and new, let's say, way of running the company is also granting really results in terms of, let's say, reducing the debt and also to, let's say, to reduce cost.

Marco Giordani: As we said, I think that the result is clearly showing it, a new culture, a new way of running the company is also granting clearly results in terms of reducing the debt and also to reduce costs. You see in the slide that we have already started to repay our financial facilities. Lastly, clearly, we always said that being part of a larger group at European level itself is clearly giving a sort of multiplier effect. In that respect, we are already announced that we have launched a project to have the same OTT platform throughout the whole country of the MFE-MediaForEurope group, starting in the H1 2025. That project will grant us savings, will grant us also a better platform for our viewers and our, let's say, results.

Speaker #2: You see in the slide that we have already started to repay our financial, let's say, facilities. And lastly, clearly, we always said that being part of a larger group at the European level itself, it's clearly giving a sort of multiplier effect, and in that respect, we are already announced that we have launched a project to have the same OTP platform throughout the whole country of the MFE group, starting in the first part of next year.

Speaker #2: And that project will grant us savings, will grant us viewers and our—let's say—results. I think in a few words, the last part, so the bottom part of the chart is just summary what we think is crucial and what are the best achievements of the first half of ProSiebenSat.1.

Marco Giordani: I think, in few words, the last part, so the bottom part of the chart is just summarizing what we think is crucial and what are the best achievements of the H1 of ProSiebenSat.1. As we said, speed, so we are executing everything in a very fast way. We are very focused on cost discipline, and that's clearly shown by the numbers that Bob will tell you shortly, that is taking us in a much more profitable company. The simplified governance is also a, let's say, a good asset for the future challenges. I will hand over to Bob, that will take us through the main financials.

Speaker #2: As we said, speed. So we are executing everything in a very fast way. We are very focused on cross-discipline, and that's clearly shown by the numbers that Bob will tell you shortly.

Speaker #2: That is taking us in a much more profitable company, and the simplified governance is also—let's say—a good asset for the future challenges. I will hand over to Bob, that will take us through the main financials.

Speaker #1: Great, thank you. Thank you, Marco. So I'll just go and highlight some numbers here through—first on a group basis, and then we'll talk a little bit about the segments, and then our net debt position.

Bob Rajan: Great. Thank you. Thank you, Marco. I'll just go and highlight some numbers here through, first on a group basis, and then we'll talk a little bit about the segments and then our net debt position. As Marco sort of already alluded to, it's been a challenging market for the first six months of the year for various factors, whether that's global or local market factors, but it's been a challenging market. Nonetheless, our group revenues, as you can see, we arrived at EUR 768 million in Q2 and for H1, EUR 1.54 billion. This is broadly in line with our expectations. Obviously, that represents a year-on-year decline of 9% in both Q2 and H1. However, on an organic or like-for-like basis, the revenues were only down by 2% in both Q2 and H1.

Speaker #1: As Marco sort of already alluded to, it's been a challenging market for the first 6 months of the year, for various factors, whether that's global or local market factors, but it's been a challenging market.

Speaker #1: Nonetheless, our group revenues, as you can see, we arrived at 768 million in the second quarter, and for the first half, 1.54 billion. This is broadly in line with our expectations.

Speaker #1: Obviously, that represents a year-on-year decline of 9% in both Q2 and H1. However, on an organic or like-for-like basis, the revenues were only down by 2% in both the second quarter and the first half of the year.

Speaker #1: So that's what we mean when we're broadly in line with expectations. The change, once again, the decline was mainly due to lower TV advertising and the impact of the major sporting events.

Bob Rajan: That's what we mean when we are broadly in line with expectations. The change, once again, the decline was mainly due to lower TV advertising and the impact of the major sporting events. If we remember, we had the Winter Olympics in February, and we just finished the World Cup in football. With these, we were able to improve our EBITDA significantly and return to positive territory. As you'll see, EBITDA increased by EUR 102 million in Q2, and for H1, EUR 152 million, reaching EUR 124 for H1. Once again, driven, as Marco alluded to, primarily by lower costs, a large amount of that was due to managing our programming expenses much more efficiently and effectively, there's a decrease there.

Speaker #1: If we remember, we had the Winter Olympics in February, and we just finished the World Cup in football. But with these, we were able to improve our EBITDA significantly, and return to positive territory.

Speaker #1: As you'll see, EBITDA increased by 102 million in the second quarter, and for the first half of the year, 152 million, reaching 124 for the first half of the year.

Speaker #1: So once again, driven, as Marco alluded to, primarily by lower costs, and a large amount of that was due to managing our programming expenses.

Speaker #1: Much more efficiently and effectively, and so there's a decrease there. And then lastly here, what we wanted to point out on this slide is with our free cash flow before M&A, was positive in the second quarter.

Bob Rajan: Lastly here, what we wanted to point out on this slide is with our free cash flow before M&A was positive in Q2. Our leverage ratio stood at 3.2 times, which is within our target range of three to 3.5, which you have heard us say at the beginning of the outlook review. All in all, despite the challenging market, there were a lot of positive things, as Marco alluded to, primarily with our cost reduction and focus on cash. We'll move to the next slide now to start talking about the segments. If we stick with Entertainment obviously being our core business, we can see that revenues declined by 4% in Q2 and 6% for H1.

Speaker #1: Our leverage ratio stood at 3.2 times, which is within our target range of 3 to 3.5, which you have heard us say at the beginning of the outlook here.

Speaker #1: So all in all, despite the challenging market, there were a lot of positive things as Marco alluded to, primarily with our cost reduction and focus on cash.

Speaker #1: We'll move to the next slide now to start talking about the segments. And if we stick with entertainment, entertainment obviously being our core business, we can see that revenues declined by 4% in the second quarter and 6% for the first half of the year.

Speaker #1: As we've seen across the market, and you've seen this in various reports, or you've heard us say this before, our advertisers have remained cautious in the current environment.

Bob Rajan: As we've seen across the market, you've seen this in various reports, or you've heard us say this before, our advertisers have remained cautious in the current environment. Once again, the sporting events, which we all knew about, they obviously do play an impact with regards to advertising spend when you have the FIFA World Cup and you have the Winter Olympics. That's on the linear TV advertising. We've seen that the revenues are down year-on-year, as we expected. What's positive news, Marco alluded to this as well, is our digital and smart advertising business has continued to grow. It increased by 3% in Q2 and overall for H1, 6%. That's mainly been supported by our continued growth of our joint AVOD business. Distribution revenues remain resilient. They continue to grow.

Speaker #1: And once again, the sporting events, which we all knew about, they obviously do play an impact with regards to advertising spend when you have the People World Cup and you have the Winter Olympics.

Speaker #1: So that's on the linear TV advertising. We've seen that the revenues are down year on year. As we expected, what's positive news, and Marco alluded to this as well, is our digital and smart advertising business has continued to grow.

Speaker #1: It increased by 3% in the second quarter, and overall for the first half of the year, 6%. And that's mainly been supported by our continued growth of our joint ABOD business.

Speaker #1: Distribution revenues, remain resilient. They continue to grow. We continue to be very active in the market, looking for partnerships and whatnot. And once again, despite this lower revenue, we still were able to improve profitability.

Bob Rajan: We continue to be very active in the market, looking for partnerships and whatnot. Once again, despite this lower revenue, we still were able to improve profitability. Specifically, if we look at EBITDA increased to EUR 81 million in Q2, and for H1, it's EUR 115 million. Once again, we've been able to manage and lower our programming expenses from a continued focus on using content efficiently across all our platforms. Another part of the improvement is due to a change in our amortization methodology for certain programming assets that we introduced at the beginning of the year. The whole period, once again, was managed quite well, and once again, we had to take into account the sporting events.

Speaker #1: Specifically, if we look at EBITDA, EBITDA increased 81 million in the second quarter, and for the first half year, it's 115 million. Once again, we've been able to manage and lower our programming expenses from a continued focus on using content efficiently across all our platforms.

Speaker #1: Another part of the improvement is due to a change in our amortization methodology. For certain programming assets, that we introduced at the beginning of the year.

Speaker #1: However, the whole period, once again, was managed quite well, and once again, we had to take into account the sporting events. But with that, we were able to continue our cost discipline and implement structuring measures that we needed to do to be able to continue this improvement in our entertainment business.

Bob Rajan: With that, we were able to continue our cost discipline and implement structuring measures that we needed to do to be able to continue this improvement in our entertainment business. If we switch to the other segment of our business, remember, we have two segments. We have the entertainment segment, we have the Commerce & Dating segment here. Once again, our organic momentum remains solid. This is a lot driven by our top-line performance at Flaconi. We've seen some other weaknesses, as you'll see in other segments, but that has been fully offset by the strong revenue performance and top-line performance of Flaconi. On an organic basis, once again, the segment delivered top-line growth of 3% in Q2 and 5% in H1.

Speaker #1: If we switch to the other segment of our business, remember we have two segments. We have the entertainment segment, we have the commerce and dating segment here.

Speaker #1: Once again, our organic momentum remains solid. This is a lot driven by our top-line performance at Flakoni, and we've seen some other weaknesses, as you'll see in other segments, but that has been fully offset by the strong revenue performance and top-line performance of Flakoni.

Speaker #1: On an organic basis, once again, the segment delivered top-line growth of 3% in the second quarter, and 5% in the first half. Which definitely alludes to our cleaning up of our portfolio and our streamlining of our portfolio that Marco talked about, and we had that on the second slide.

Bob Rajan: Which definitely alludes to our cleaning up of our portfolio and our streamlining of our portfolio that Marco talked about, and we have that on the second slide. If you remember, we did make some divestitures, and I'll come to that in a moment. Speaking about EBITDA, H1 EBITDA for the Commerce & Dating segment expanded significantly by EUR 27 million, and we arrived at EUR 8 million. Increase, once again, driven by a number of effects, portfolio streamlining, cost measures, and also, we had the prior year loss on the sale of Verivox, if you remember. We have to always account for that as we go quarter by quarter. EBITDA, if you look at for Q2, was -EUR 2 million, due to the deconsolidation from the disposals.

Speaker #1: If you remember, we did make some divestitures, and I'll come to that in a moment. Speaking about EBITDA, the first half of EBITDA for the commerce and dating segment expanded significantly by 27 million euros, and we arrived at 8 million euros.

Speaker #1: Increase, once again, driven by a number of effects. Portfolio streamlining, cost measures, and also we had the prior year loss on the sale of Verivox, if you remember.

Speaker #1: So that we have to always account for that as we go quarter by quarter. So EBITDA, if you look at for the second quarter, was minus 2 million, due to the deconsolidation from the disposals and remember that we had six transactions in the first part of this year.

Bob Rajan: Remember now, we had six transactions in the first part of this year, including Vector.com, esome, billiger-mietwagen.de, Bon2A, and one of the ones that was Studio71 US. Once again, notwithstanding those disposals, and once again, we make these disposals because we think that this is the right time to dispose of that as we have optimized the business as best we can. Couple that with strong cost discipline and portfolio management, we are building this segment into a very profitable foundation going forward. That's with the segments, and let me now turn to the balance sheet and the financial position here. If you remember, we have a couple of term facilities, and we have a bridge facility. As Marco alluded to, we are very actively managing our cash. We had a very good result on the financial leverage covenants.

Speaker #1: Including Vector.com, eSom, Billiger Meatbox and Food Day A, and one of the ones with the studio 71 in the US. But once again, notwithstanding those disposals and once again, we make these disposals because we think that at the right time, this is the right time to dispose of that, as we have optimized the business as best we can.

Speaker #1: Coupled that was strong cost discipline and portfolio management, we are building this segment into a very profitable foundation. Going forward. So that's what the segments, and let me now turn to the balance sheets and the financing position here.

Speaker #1: If you remember, we have a couple of term facilities, and we have a bridge facility. And we have, as Marco alluded to, we are very actively managing our cash.

Speaker #1: We had a very good result on the financial leverage covenant. And so we were able to actually reduce our financial debt from the when we took on the credit facility that the end of 2025.

Bob Rajan: We were able to actually reduce our financial debt from when we took on the credit facility at the end of 2025. Net financial debt, as you will see here, amounts to EUR 1.47 billion at the end of June, which is a reduction of circa EUR 73 billion compared to the prior year. This development reflects not only the free cash flow generation, however, it also includes when we have sold some of certain assets that we have done through the first part of the year, we have taken certain proceeds and paid down the debt. Once again, we are not only trying to generate free cash flow, we are trying to reduce our debt.

Speaker #1: Net financial debt, as you will see here, amounts to 1.47 billion at the end of June, which is a reduction of circa 73 million compared to the prior year.

Speaker #1: This development reflects not only the free cash flow generation, however, it also includes when we have sold some of certain assets that we have done through the first part of the year, we have taken certain proceeds and paid down the debt.

Speaker #1: So once again, we're not only trying to generate free cash flow, we are trying to reduce our debt. And so at the end of the day, as we said, our leverage ratio we landed at a 3.2 times at the end of June, which is in our target range of 3 to 3.5.

Bob Rajan: At the end of the day, as we said, our leverage ratio, we landed at a 3.2x at the end of Q2, which is in our target range of 3 to 3.5. That hopefully gives you a snapshot of our financial performance for Q2 and for H1. With that, I will pass this back to Marco. Thank you.

Speaker #1: So that hopefully gives you a snapshot of our financial performance for the second quarter and for the first half of the year. And with that, I will pass this back to Marco.

Speaker #2: Thank you. Thank you both.

Marco Giordani: Thank you, Paul. Now I'll take you through some of the highlights of H1 in terms of our activities. Starting from the market trends and the macro trends. Clearly, I don't want to bother you know already the numbers. Clearly was a six months where the market didn't help our business, as you can imagine, for many reasons. GDP development and consumer climate clearly was not the one that we were expecting at the beginning of the year. Nonetheless, in any case, the advertising market was not so bad. Unfortunately, that was mainly in favor of big platform and big US giants than traditional media operators in Germany. Having said that, market condition is still very uncertain, and the visibility is very poor going forward. Moving to our performance in terms of audience.

Speaker #1: And now I'll take you through some of the highlights of the first half in terms of activities. Starting from the market trends and the macro trends, clearly I don't want to bother you.

Speaker #1: You know already that numbers clearly was a six-month where the market didn't help. Our business, as you can imagine, for many reasons, GDP development and consumer climate clearly was not the one that we were expecting at the beginning of the year.

Speaker #1: Nonetheless, in any case, the advertising market was not so bad. Unfortunately, the debt was mainly in favor of big platform and big US giant than traditional media operators in Germany.

Speaker #1: But having said that, market condition is still very uncertain, and the visibility is very poor going forward. Moving to our performance in terms of audience, clearly we knew about the events on the public broadcaster.

Marco Giordani: Clearly, we knew about the events on the public broadcaster, clearly, we managed to be in a way to cope with it. In the chart, you have, let's say, the comparison with 2025 H1 audience numbers and 2026. If you exclude the two, let's say, big events, Olympics and World Cup, you can appreciate that in terms of audience, we were actually the same level than last year. That has been done through a grid management and also, in respect to the cost discipline we mentioned before, that was mainly the key driver for running that. The audience trend in our view was very good in H1 of 2026. Moving to the recent, let's say, announcement that we did a couple of weeks ago. We are clearly now starting to implement, let's say, a much stronger content strategy going forward.

Speaker #1: So clearly we managed to beat in a way to cope with it. In the chart, you have let's say the comparison with 2025 first half audience numbers.

Speaker #1: And 2026. If you exclude the two, let's say big events, so Olympics and World Cup, you can see you can appreciate that in terms of audience we were actually the same level as last year.

Speaker #1: This has been done through a grid management and also in respect to the cost discipline we were mentioning before that was mainly the key driver for running that.

Speaker #1: But the audience trend in our view was very good in the first half 2026. Moving then to the recent, let's say, announcement that we did a couple of weeks ago.

Speaker #1: We are clearly now starting to implement, let's say, a much stronger content strategy going forward. And one of the first examples of it is the launch of Sats2 for that slide.

Marco Giordani: One of the first example will be the launch of Sat.2 or Sat.1. Sorry for that. That has been already announced, so I will not go in detail, but clearly, this is a sign of the way we see the future. We need to focus on all the targets. We need to use all the assets we have, and the best way we can have is really to take our content to the viewers. That is very targeted, let's say, channel and also digital platform. We think that can really be a way to enlarge our portfolio of channel and also of GRP we can sell to our advertising investor. That's not the last, let's say, news we are going to have on content side, but we can say that in that way, we will have a complete portfolio of channel going forward.

Speaker #1: Sorry for that. But I mean, that's has been already announced, so I will not go into it in detail, but clearly this is a sign of, let's say, the way we see the future.

Speaker #1: We need to, let's say, focus on all the targets. We need to use all the assets we have and the best way we can have is really to take our content to the viewers.

Speaker #1: That's a very targeted channel, and also digital platform. And we see that we think that that can really be a way to enlarge our portfolio of channel and also of KPI we can sell to our advertising investor.

Speaker #1: That's not the last, let's say, news we're going to have on content size, but we can say that in that way we will have a complete portfolio of channel going forward.

Speaker #1: Another very important element of the first half has been the, let's say, the fact that we are targeting the, as we said at the beginning, the total video reach.

Marco Giordani: Another very important element of the H1 has been the fact that we are targeting the, as we said at the beginning, the Total Video Reach. Clearly, the performance of our format jewels in terms of content are really impressive in terms of how they can be, let's say, good in linear, but also very good in digital. That's clearly something that we go on doing. You have, on the right-hand side of the chart, some numbers. We have a monthly Total Video Reach of more than 60 million people. That is covering 76% of the German population. That's, again, a very important number.

Speaker #1: And clearly the performance of our crown jewels in terms of content are really impressive in terms of how they can be, let's say, good in linear, but also very good in digital.

Speaker #1: That's clearly something that is going on and doing. You have on the right-hand side of the chart some numbers. So we have a monthly total video reach of more than 60 million people.

Speaker #1: That is covering 70 6% of the German population. That's again a very important number. And you have a pretty long list of content that is also giving you a little bit of facts on the fact that we are targeting very large and broad audience without really being focused on what kind of platform they are watching our content.

Marco Giordani: You have a pretty long list of content that is also giving you a little bit of facts of the fact that we are targeting very large and broad audience without clearly, let's say, being focused on what kind of platform they are watching our content. This will be the strategy also for the future, and this will be the KPI we will target also in the coming months. Going to the next slide. We will also have events, as we call it. These are very, very strong brands that are clearly collecting a lot of people. We still think that big events can really take a lot of people back to TV, and that's the reason for which events will be part of our future.

Speaker #1: This will be the strategy also for the future. And this will be the KPI we will target also in the coming month. Going to the next slide, we will also have events as we call it.

Speaker #1: These are very, very strong trends that are clearly collecting a lot of people. We still think that, I mean, big events can really take a lot of people back to TV.

Speaker #1: And that's the reason for which events will be part of our future. These are the number of the Germany Next Top model, the edition that we run with the first half of 2026.

Marco Giordani: These are the number of the Germany's Next Topmodel, the edition that we ran in H1 2026, has seen more than 32 million Total Video Reach, 3 million unique user, and 4 million followers. These are numbers that are clearly impressive on an absolute terms, but is also showing that if we are able to produce and distribute good content, people will follow us on the platform. Moving to the next slide. That's clearly not only related to all the linear brands, but it also, let's say, applies to new brands that are coming not from linear TV, but from, let's say, the digital part of the company. THE RACE is a good example of how we can really be strong starting from Joyn. Again, these are numbers that shows that quality of content targeted are probably younger than the one that TV is really delivering.

Speaker #1: As you see, more than 32 million total video reach, 3 million unique user. And 4 million followers. These are numbers that are clearly impressive on an absolute term.

Speaker #1: That is also showing that if we are able to produce and distribute good content, people will follow us in all the platforms. Moving to the next slide.

Speaker #1: That's clearly not only related to old linear brands, but it also applies to new brands that are coming not from linear TV, but from, let's say, the digital part of the company.

Speaker #1: The race, it's a good example of how we can really be strong starting from joint. And again, these are numbers that shows that the quality of content target that are probably younger than the one that TV is really delivering.

Speaker #1: It's paying off. It is giving to the sales house target that are not so frequently viewing TV. And it's also really very requested by the advertising market.

Marco Giordani: It's paying off. It is giving to the sales house targeted are not so frequently viewing TV, and it's also clearly very requested by the advertising market. We will go on in investing in that, more than 15 formats planned on cross-platform strategy and going forward, really using not only own and operated platform like Joyn, but also using YouTube and Twitch. This is going to be the example of our strategy in taking our content where the viewers are independently from the platform we are on. Going forward into the next slide. Clearly, this is a very short highlights of what we air and stream in the next month. I would like to underline the sports. Clearly, we are going to have seven world championship on-air in the next month, and that's clearly part of the event strategy I was mentioning before.

Speaker #1: We will go on in investing in that. More than 15 format planned on cross-platform strategy going forward. Really using not only own and operated platform like joint, but also using YouTube and Twitch.

Speaker #1: This is going to be the example of our strategy in taking our content where the viewers are independently from the platform we are running.

Speaker #1: Going forward into the next slide, clearly this is a very short highlights of what we will air and stream in the next month. I would like to underline the sports.

Speaker #1: Clearly we are going to have seven world championship on air in the next month. And that's clearly part of the event strategy I was mentioning before.

Speaker #1: All the big brands and format will be back on our linear TV channels and also on joint. In order to sustain our strategy in enlarging the total video reach and audience performers.

Marco Giordani: All the big brands and format will be back on our linear TV channels and also on Joyn in order to sustain our strategy in enlarging the Total Video Reach and audience performance in the next month. Moving lastly to Joyn. Lastly, in terms of chronology, not certain in terms of priority. Again, the performance of Joyn has been great. Revenue were up 7% including AVOD, SVOD. We are still growing massively in terms of video viewers, plus 21% of last year, and also in terms of viewing time, plus 26% of versus 2025. Again, these are very large number that is also paying off our strategy to combine linear strength and also digital performance. There will be clearly many news coming with the new platforms.

Speaker #1: In the next month. Then moving lastly to joint. Lastly in terms of chronology, not certain in terms of priority. Again, the performance of joint has been great.

Speaker #1: Revenue were up 7% including April and SPLD. We are still growing massively in terms of video viewers plus 21% of last year. And also in terms of viewing time plus 26% of versus 2025.

Speaker #1: Again, these are very large numbers. That is also paying off our strategy to combine linear strength and also digital performance. There will be clearly many news coming with a new platforms.

Speaker #1: There will be verticals. There will be new functionality. And that's clearly something that will support the growth also in the coming month and next year.

Marco Giordani: There will be verticals, there will be new functionality, that's clearly something that will support the growth also in the coming months and next year. Again, on the digital part, that's something already you know. In the next slide, let's say the partnership where we signed a couple of weeks ago with ZDF, that's a very important event for the team and I think also for our viewership. I think that's the example in which we will focus our intention also in the coming months. We think that partnering up with other traditional media operator is important also to defend the German ecosystem versus the US giant. Joyn viewer will see starting from Q4, the ZDF content without changing platform, without clearly moving away from Joyn.

Speaker #1: Again, on the digital part, we have to, I mean, that's something already you know in the next slide. Let's say the partnership where we sign a couple of weeks ago with ZDF.

Speaker #1: That's a very important events for the team. And I think also for our viewership. I think that that's the example in which we will focus our attention also in the coming month.

Speaker #1: We think that back ending up with other traditional media important also to defend the German ecosystem versus the US giant. Joint viewer will see starting from the fourth quarter, the ZDF content without changing platform, without really moving away from joint.

Speaker #1: That's a very good, let's say, news for viewers, for content producers. And also for, I think, for the German ecosystem as I said before.

Marco Giordani: That's a very good, let's say, news for viewers, for content producers and also I think for the German ecosystem, as I said before. We will go on with ZDF, trying to enlarge as much as possible the partnership in the coming months. We had mentioned about the project we are having with our parent regarding the new streaming platform that will be launched next year. It will be a unique platform for all the six countries in which MFE-MediaForEurope is operating. The platform will be run from Unterföhring, so from here using the German and of course even technical capability. Will be a platform that certainly will be state-of-the-art in terms of functionality and in terms of experience for viewers.

Speaker #1: We will go on with ZDF trying to enlarge as much as possible the partnership in the coming month. We had mentioned about the project we are having with our parent.

Speaker #1: Regarding the new streaming platform that will be launched next year, it will be a unique platform for all the six countries in which M&T is operating.

Speaker #1: The platform will be run from Unterführing, so from here using the German and cross-event technical capability. It will be a platform that certainly will be state of the art in terms of functionality and in terms of experience for viewers.

Speaker #1: But it's going to be something that will allow us to save a pretty substantial amount of money. And honestly, even more than we expected before starting in detail the project.

Marco Giordani: It's going to be something that will allow us to save a pretty substantial amount of money, honestly, even more than we expected before starting in detail the project. That will also help us to focus on investment in content rather than in technology. We think content will remain the reason for which viewer will look for us. Technology should be delivered in the most efficient and effective way, without really being our strategy going forward. As I said before, the launch is set to be in Q2 2027, and we take, as I said before, a lot of new functionality for our views. Lastly, on Flaconi, Bob already mentioned it. We are still growing a lot, 23% in H1 2026. Again, a very good performance.

Speaker #1: And we'll also help us to focus on investment in content rather than in technology. We think content will remain the reason for which viewer will look for us.

Speaker #1: Technology should be delivered the most efficient and effective way without really being our strategy going forward. As I said before, the launch is set to be in the second quarter 2027.

Speaker #1: And we'll take as I said before, a lot of new functionality for our viewers. Lastly on Flaconi, Bob already mentioned it. We are still growing a lot.

Speaker #1: 23% in the first half 2026. Again, a very good performance. It's important to underline the fact that the growth is also coming from international revenue.

Marco Giordani: It's important to underline the fact that the growth is also coming from international revenue, with a more than 60% growth over last year, and now international share is more than 20%. App appreciation is very good, again, also customer appreciation is all-time high, and that's also, let's say, the base on which we will go on in growing also in the next month. Lastly, the outlook. We mentioned that we are not changing the outlook, and that chart is just reminding what we said at the beginning of the year. We are targeting for a full year a moderate decline in group revenue. In total, but really if you adjust it from currency and from M&A, we are still targeting a slight growth of revenue.

Speaker #1: With more than 60% growth over last year. And now international share is more than 20%. Up appreciation is very good. And again, also customer appreciation is all time high.

Speaker #1: And that's also let's say the base on which we will go on in growing also in the next month. Lastly, the outlook. We mentioned that we are not changing the outlook.

Speaker #1: And that chart is just reminding what we said at the beginning of the year. We are targeting for a full year a moderate decline in group revenue.

Speaker #1: In total, but clearly if you adjust it from currency and from M&A, we are still targeting a slight growth of revenue. We are targeting a significant increase in ABDA.

Marco Giordani: We are targeting a significant increase in EBITDA and net financial debt very close to last year numbers and financial leverage between 3x and 3.5x EBITDA, as Bob said. I think now we pass the mic over back to Stephanie that will run the Q&A section. Thanks.

Speaker #1: And net financial debt very close to last year numbers. And the financial leverage between three times and 3.5 times ABDA as Bob said. I think now we are amending back to Stephanie that we'll run the Q&A section.

Speaker #1: Thanks.

Speaker #2: Perfect. Thank you very much. We have already the first person who wants to ask a question. But just to make sure everyone can raise their hand.

Operator: Perfect. Thank you very much. We have already the first person who wants to ask a question, just to make sure everyone can raise their hand and ask the question directly, with or without camera, however you want to do it. You can also use the chat, you can do it in the chat as usual. Hi, Charles Lau. Great to have you here. Go ahead.

Speaker #2: And after this question directly, with or without camera, however you want to do it. You can also use the chat. And you can do it if you just in the gym.

Speaker #2: So hi Klaus Lauer. Great that you're here. Go ahead.

Speaker #3: Hi. I hope you can see and hear me. I have a couple of questions. You said you've sold six companies since the beginning of the year, which obviously are not no more core business.

Charles Lau: Hi. I hope you can see and hear me.

[Analyst 1]: Hi. I hope you can see and hear me.

Operator: Yes.

Charles Lau: I have a couple of questions. You said you sold 6 companies since the beginning of the year, which obviously were no more core business. I am wondering when I see what is left, because 6 is quite a few. I see Flaconi, Jochen Schweizer, mydays, Aroundhome, and on the dating side, Parship/The Meet Group. On Flaconi, you have stressed how good it is developing. Maybe could you give us a hint, are you still thinking this is definitely core business or just core as long as it develops well? Or what are your future plans? Because you have tried to sell it several times already. Jochen Schweizer and mydays, there has been interest from several investors lately, probably Schmidt and Jochen Schweizer, they are both the former founders. Maybe you can give us a clue. Is there official process already, due diligence? What are you expecting here?

[Analyst 1]: I have a couple of questions. You said you sold 6 companies since the beginning of the year, which obviously were no more core business. I am wondering when I see what is left, because 6 is quite a few. I see Flaconi, Jochen Schweizer, mydays, Aroundhome, and on the dating side, Parship/The Meet Group. On Flaconi, you have stressed how good it is developing. Maybe could you give us a hint, are you still thinking this is definitely core business or just core as long as it develops well? Or what are your future plans? Because you have tried to sell it several times already. Jochen Schweizer and mydays, there has been interest from several investors lately, probably Schmidt and Jochen Schweizer, they are both the former founders. Maybe you can give us a clue. Is there official process already, due diligence? What are you expecting here?

Speaker #3: So I'm wondering when I see what's left. What's left? Because six is quite a few. So I see Flaconi, Jochen Schweitzer, Midas around home and on the dating side Parship Meet Group.

Speaker #3: On Flaconi, you've stressed how good it is developing. Maybe could you give us a hint? Are you still thinking this is definitely core business or just core as long as it develops well or what are your future plans?

Speaker #3: Because you've tried to sell it several times already. Jochen Schweitzer and Midas, there's been interest from several investors lately. Fabriz Schmidt and Jochen Schweitzer.

Speaker #3: They're both the former founders. So maybe you can give us a clue how are the is there official process already due diligence? What are you expecting here?

Speaker #3: And around home, yeah, and Parship Meet Group. And if I may, just one thing on joint. As you said, ZDF, good cooperation. Are there more partnerships planned?

Charles Lau: Aroundhome, Parship/The Meet Group. If I may, just one thing on Joyn. As you said, the ZDF, good cooperation. Are there more partnerships planned, like ARD? Is that the big fish maybe you still want to get into business with? Maybe you can give us some examples for cost cutting. That would be it. Thanks. Sorry, it was a lot.

[Analyst 1]: Aroundhome, Parship/The Meet Group. If I may, just one thing on Joyn. As you said, the ZDF, good cooperation. Are there more partnerships planned, like ARD? Is that the big fish maybe you still want to get into business with? Maybe you can give us some examples for cost cutting. That would be it. Thanks. Sorry, it was a lot.

Speaker #3: Like R&D? Is that the big fish? Maybe you still want to get into business with and yeah, maybe you can give us some examples for cost cutting that would be it.

Speaker #3: Thanks. Sorry, it was a lot.

Speaker #1: So yeah, thanks Bob. Good lots of questions there. So I'll answer a couple and probably Marco will answer and top up. Just as far as the you made an astute observation, yes, six businesses is quite a bit.

Operator: That is all right.

Bob Rajan: Yeah, thanks. Well, that's right. Good. Lots of questions there. I'll answer a couple, and probably Marco will answer and top up. You made an astute observation. Yes, six businesses is quite a bit. I think we have to remember the, other than Studio71 US, a number of them are quite small in nature from a sales perspective and also from an EBITDA perspective. With regards to the remaining assets that you mentioned, we get calls all the time from various investors, and you've alluded to that you've heard some of those rumors as well in the market. We do get calls on what's remaining in our portfolio.

Speaker #1: I think we have to remember the other than Studio US 71, a number of them are quite small in nature. From a sales perspective and also from an even that perspective.

Speaker #1: With regards to the remaining assets that you mentioned, we get calls all the time. From various investors and you've alluded to that you've heard some of those rumors as well in the market.

Speaker #1: So we do get calls on what's remaining in our portfolio. As we've stated before, and we continue to do that, is we analyze our businesses all the time.

Bob Rajan: As we've stated before, and we continue to do that, is we analyze our businesses all the time, daily, weekly, monthly, to see whether or not it is still a fit and can we do something to optimize value. At some point, when we decide that there's probably a better owner, like we decided for the first six businesses that we've sold, then we're happy to engage, whether it's in some type of M&A duty contest or maybe it's just a specific strategic buyer or something where we think that maybe there is some type of joint arrangement that we could go forward. We're looking at all options. We don't have any prescribed playbook at this time where I can tell you this is what will happen and when. We continue to monitor the portfolio, primarily these businesses are in the Commerce & Dating segment, as you noted.

Speaker #1: And daily, weekly, monthly, to see whether or not it is a still a fit and can we do something to optimize value. And at some point when we decide that there's probably a better owner like we decided for the first six businesses, that we've sold, then it's in some type of M&A beauty contest or maybe it's 's just a specific strategic buyer.

Speaker #1: Or something where we think that maybe there is some type of joint arrangement that we could go forward. So we're sort of looking at all options.

Speaker #1: We don't have any prescribed playbook at this time where I can tell you this is what will happen and when. We continue to monitor the portfolio and primarily these businesses are in the commerce and dating segment as you noted.

Speaker #1: We primarily continue to monitor those and when the right time approaches, we'll make those types of decisions. Yeah.

Bob Rajan: We primarily continue to monitor those, and when the right time approaches, we'll make those types of decisions.

Marco Giordani: Yeah. Moving to the second question. As far as partnership, as I said, we are not excluding anything. We think we are in favor of partnership. I think it's the time in which competition on local markets should be abandoned, in a sense. We need to cope, to defend the system and to defend the media system in Germany. The DAF was a great achievement also in terms of direction and trajectory. We are working also on other partnerships. We think that that's the real way in which we can defend better our border versus the US giant. Clearly, ARD is one of the partners with which we would like to, let's say, to reach a partnership. I think that's something I cannot exclude, even if clearly I cannot really anticipate anything from that.

Speaker #4: Moving to the second question. I mean, as far as partnership, as I said, we are not excluding anything. We think we are in favor of partnership.

Speaker #4: I think it's the time in which competition on local market should be abandoned in a sense. We need to cope to defend the system and to defend the media system in Germany.

Speaker #4: So ZDF was a great achievement also in terms of direction and trajectory. And we are working also on other partnership. We think that that's the real way in which we can defend better our border versus the US giant.

Speaker #4: And clearly R&D is one of the partner with which we would like to, let's say, to reach a partnership. So I think that's something I cannot exclude even if clearly I cannot really anticipate anything of that.

Marco Giordani: As far as an example on costs, again, unfortunately, it was not one single action. It was really a daily action. First of all, I think the main reason for which we achieved so large a number was the approach and the way in which the daily business is run. We are very much focused on that. We clearly established governance rules for which every decision has to be evaluated in the best interest of the future and also in the best interest of the effectiveness of any decision. As I said, we have changed the organization, made all the managers much more accountable for what they are doing and what they are spending, and that is clearly another very important action we did in the first part of 2023 that made the cost savings possible.

Speaker #4: As far as example on cost, again, unfortunately, it was not one single action. It was really a daily action. First of all, I think the main reason for which we achieved a so large number was the approach and the way in which the daily business is run.

Speaker #4: We are very much focused on that. We clearly established, let's say, governance rules for which every decision has to be evaluated in the best interest of the future and also in the best interest of the effectiveness of any decision.

Speaker #4: Then as I said, we have changed the organization. Make all the manager much more accountable on what they are doing and what they are spending and that's clearly another very important action we did in the first part of 2026 that made the cost saving possible.

Speaker #4: And to be very practical, I think that the procurement department was very good in managing prices. Through auctions and really very, very factual savings came out from that.

Marco Giordani: Trying to be very practical, I think that the procurement department was very good in managing crises through auctions and really very factual savings came out from that. We are trying also to be more effective on headquarters, generally speaking. We are currently trying to change real estate usage throughout Germany, trying to save money as well. We are also saving money in the production companies where auctions and best practice sharing is clearly part of the day-to-day business. As I said, there is a long list of activities. No one was really that important, but all of them summing up savings and efficiency are creating the large numbers of savings we have seen. Just to give you an idea, we are now targeting a slightly higher than EUR 100 million savings for the full year.

Speaker #4: We are trying also to be more effective on headquarters, generally speaking. So we are currently trying to change really physical and real estate usage throughout Germany, trying to save money as well.

Speaker #4: We are also saving money in the production companies where auctions and best practice sharing is clearly part of the day-to-day business. But I mean, as I said, there is a long list of activities.

Speaker #4: No one was really so important, but all of them summing up savings and efficiency are creating the large numbers of savings we have seen.

Speaker #4: Just to give you an idea, we are now targeting a largely higher than 200 billion euros savings for the full years. As you may remember, we were at the 130 a couple of months ago.

Marco Giordani: As you may remember, we were at EUR 130 million a couple of months ago, so that shows also how things are moving. We are feeling certainly more effective in what we are doing, and that is a process that will never end. We need to be more efficient and more effective. That will give us the chance to invest more in content and give better content for our viewership.

Speaker #4: So that shows also how the things is moving. We are clearing, let's say, now certainly more effective in what we are doing. And that's a process that we'll never end.

Speaker #4: We need to be more efficient and more effective. That will give us the chance to invest more in content and give the better content for our viewership.

Speaker #2: Cool. Hello Herr Hintze vom Manager Magazin, please go ahead.

Operator: Good. Please go ahead.

Speaker #3: Good morning. I have one question regarding Tarconi and then a couple on the depth. As far as Larconi is concerned, they had an EBITDA margin of 5% in 2025 and with a growth there having now, will you keep that margin or did you did they keep that margin in the first half and will they keep it in the full year or will it lower?

[Analyst]: Good morning. I have one question regarding Flaconi and then a couple on the debt. As far as Flaconi is concerned, they had an EBITDA margin of 5% in 2025. With the growth they're having now, will you keep that margin, or did they keep that margin in H1, and will they keep it in the full year, or will it lower? When I look at the debt of the company as a whole, it has risen in H2, and I don't really understand how that happened. Please, can you refresh my mind because I can't find information. Actually, you're planning to be below 3x EBITDA, I believe, on the. I don't know the English word this morning, sorry. When are you planning to return to that target?

[Analyst 2]: Good morning. I have one question regarding Flaconi and then a couple on the debt. As far as Flaconi is concerned, they had an EBITDA margin of 5% in 2025. With the growth they're having now, will you keep that margin, or did they keep that margin in H1, and will they keep it in the full year, or will it lower? When I look at the debt of the company as a whole, it has risen in H2, and I don't really understand how that happened. Please, can you refresh my mind because I can't find information. Actually, you're planning to be below 3x EBITDA, I believe, on the. I don't know the English word this morning, sorry. When are you planning to return to that target?

Speaker #3: And that's when I look at the depth of the company as a whole, it has risen in the last half year. And I don't really understand how that happened.

Speaker #3: Please can you refresh my mind because I can't find information. And actually, you're planning to be below three times EBITDA, I believe, on the Verschuldungsgrade.

Speaker #3: I don't know the English word this morning, sorry. When are you planning to return to that target? And the free cash flow out of M&A, I believe it must be positive, but I can't tell it from the numbers.

[Analyst]: The free cash flow out of M&A, I believe it must be positive, but I can't tell it from the numbers. Please, maybe you can give me a hint on that. That's all. Thank you.

[Analyst 2]: The free cash flow out of M&A, I believe it must be positive, but I can't tell it from the numbers. Please, maybe you can give me a hint on that. That's all. Thank you.

Speaker #3: Please maybe you can give me a hint on that. That's all. Thank you.

Speaker #1: Okay. Hopefully, I'll remember all those questions.

Bob Rajan: Okay. Hopefully, I'll remember all those questions.

Speaker #3: I can repeat if necessary.

[Analyst]: I can repeat if necessary.

[Analyst 2]: I can repeat if necessary.

Speaker #1: So the first one on Flaconi, so we obviously can't say anything about going forward, but our working hypothesis is that we continue we want to improve, not only on the top line, but on the bottom line as well.

Bob Rajan: The first one on Flaconi, we obviously can't say anything about going forward, but our working hypothesis is that we want to improve not only on the top line but on the bottom line as well. Our goal will be to continue to beat previous year results. Okay, whether that's on a revenue basis or on an EBITDA basis. I think that's what I would say about that with regards to Flaconi. On the debt, you have to remind me now. You talked about covenants, let me answer the covenant, then maybe you can remind the questions. On the covenant, we'd always said we were going to be between three and three and a half as our outlook for this year. Our credit agreement, if you remember now, extends until 2030. There's a sliding covenant scale there.

Speaker #1: So our goal will be to continue to beat previous year results, right? Okay. Whether that's at a revenue basis or on an EBITDA basis.

Speaker #1: So I think that's what I would say about that with regards to Flaconi. On the debt, have to remind me now what you talked about covenant, which I think so let me answer the covenant and maybe you can remind the questions.

Speaker #1: So on the covenant, we'd always said we were going to be between three and three and a half. As our outlook for this year, our credit agreement, if you remember now, extends until 2030.

Speaker #1: There's a sliding covenant scale there. But once again, we are you saw that we got 3.2 at the end of June here. So we're trending in the right direction and with all the initiatives that Marco indicated, we'll continue to make sure we manage our covenants within our credit agreements.

Bob Rajan: Once again, you saw that we got 3.2 at the end of June here, we're trending in the right direction. With all the initiatives that Marco indicated, we'll continue to make sure we manage our covenants within our credit agreements. As far as when we'll be at what level, when and whatnot, that's difficult to say at this point. Our plan is to make sure we stay in line with our credit agreements and the covenant thresholds that we have. Once again, planning to always maintain between three and three and a half, at least for 2026. Then as we go through our process for 2027, we'll see where we end up, with regards to staying in line with our credit agreements.

Speaker #1: As far as when we'll be at what level, when and whatnot, that's difficult to say at this point, but we our plan is to make sure we stay in line with our credit agreements and the covenant thresholds that we have.

Speaker #1: Once again, planning is always maintained between three and three and a half, at least for 2026. And then as we go through our process for 2027, we'll see where we end up with regards to staying in line with our credit agreements.

Speaker #2: Yeah. That question wasn't that much of an issue.

Operator: Yeah. The other question was the leverage ratio.

Speaker #1: Oh, so that was the leverage ratio question it did. But you had a question, Hinz, on the debt, I believe, right?

Bob Rajan: That was the leverage ratio question. Your other question is on the debt, I believe, right?

Speaker #3: Yeah. I don't understand how the debt is.

[Analyst]: Yeah. I don't understand how the debt.

[Analyst 2]: Yeah. I don't understand how the debt.

Speaker #1: It's always going up. Why is it going up? So look, this is just purely timing. I would say, okay, when you do cutoffs at balance sheet dates, we manage working capital whether it's with receipts or with payables and whatnot.

Bob Rajan: Oh, why it's going up.

[Analyst]: Yeah.

[Analyst 2]: Yeah.

Bob Rajan: Look, this is just purely timing. I would say, okay, when you do cutoffs at balance sheet dates, we manage working capital, whether it's with receipts or with payables and whatnot. It's purely a time. If you look at, once again, our outlook, which Marco indicated, we're planning to be constant effectively compared to prior year with regards to the end of this year. That's what I would be focusing on. I think right now we're very happy with the way we've been managing the cash and managing our financial debt, and that goes hand in hand, obviously, with making sure we manage our leverage covenants proactively. Okay?

Speaker #1: So it's purely a time. If you look at once again our outlook with Marco indicated, we're planning to be constant effectively compared to prior year with regards to the end of this year.

Speaker #1: And that's what I would be focusing on. So I think right now we're very, very happy with the way we've been managing the cash and managing our financial debt.

Speaker #1: And that goes hand in hand, obviously, with making sure we manage our leverage covenants. Proactively. Okay.

Speaker #3: So sorry, I just didn't really understand how has it risen the debt?

[Analyst]: Sorry, I just didn't really understand how has it risen, the debt?

[Analyst 2]: Sorry, I just didn't really understand how has it risen, the debt?

Bob Rajan: This is purely timing, right? When you measure free cash flow, it's at a point in time, right?

Speaker #1: This is purely timing, right? When you measure free cash flow, it's at a point in time, right? So at the end of June, it could be a date on July 1, it would be another number, right?

[Analyst]: Yeah.

[Analyst 2]: Yeah.

Bob Rajan: At the end of June, it could be a date. On 1 July, it would be another number, right? This is purely that. There's nothing in particular. As you can see, our performance is strong, there's nothing in particular that's driven up the debt slightly compared to the year-end. Once again, we'll be in line at the end of June. We'll be in line at year-end again compared to prior year.

Speaker #1: So this is purely that. There's nothing in particular. As you can see, our performance is strong. So there's nothing in particular that is driven up the debt slightly compared to the year-end.

Speaker #1: Once again, we'll be in line at the end of June. We'll be in line at year-end again compared to prior year.

Speaker #3: Okay. Yep. And the last question was the free cash flow out of M&A.

[Analyst]: Okay.

[Analyst 2]: Okay.

Bob Rajan: Okay?

[Analyst]: Yep. The last question was the free cash flow out of M&A.

[Analyst 2]: Yep. The last question was the free cash flow out of M&A.

Speaker #1: Right. So I think so look, I think we've been pretty transparent on the first six deals we did. And I was trying to loop this at Klaus's question.

Bob Rajan: Look, I think we've been pretty transparent on the first six deals we did, and I was trying to allude this at Klaus' question. Studio71 US had a strong top line, which was in excess of $200 million on an annual basis. The other businesses were relatively small in comparison. Okay? Most of these businesses, I think we've alluded to this in the Q1 results as well, most of these businesses were not generating huge amounts of positive cash flow. Okay? As you can imagine, we don't disclose the details of the transaction, but these transactions, they were done on a mutual basis with parties where it wasn't generating, very honestly, we weren't getting tons of cash in. What we did get in on certain assets, we obviously used that to pay back the debt.

Speaker #1: Studio US 71 had a strong at a top line which was in excess of 200 million on an annual basis. The other businesses were relatively small in comparison.

Speaker #1: Okay. And most of these businesses, I think we've alluded to this at in the Q1 results as well, most of these businesses were not generating huge amounts of positive cash flow.

Speaker #1: Okay. So as you can imagine, we don't disclose the details of the transaction, but these transactions they were done on a mutual basis with parties where it wasn't generating very honestly, it wasn't we weren't getting tons of cash in.

Speaker #1: What we did get in on certain assets we obviously used that to pay back the debt. So you can use that as a proxy that if we paid 73 million of our debt down, that's a pretty good proxy for that would be a portion of the proceeds we would have received in relation to those six divestitures.

Bob Rajan: You can use that as a proxy, that if we paid EUR 73 million of our debt down, that's a pretty good proxy for, that would be a portion of the proceeds we would have received in relation to those six divestitures. That should give you a better idea on the free cash flow in relation to M&A activities.

Speaker #1: And that shall give you a better idea on the free cash flow in relation to M&A activities.

Speaker #3: Okay. Thank you.

[Analyst]: Okay. Thank you.

[Analyst 2]: Okay. Thank you.

Bob Rajan: Okay.

Speaker #2: I don't see any further questions. So just the question does anyone wants to know anything more? yes. Sorry, I just see a telephone number.

Operator: I don't see any further questions, so just the question, does anyone want to know any more than Arya? Sorry, I just see a telephone number, so just go ahead. We can't hear you at the moment.

Speaker #2: So just go ahead. We can't hear you. At the moment.

Speaker #4: Good morning. Can you hear me now?

Joachim Herr: Good morning. Can you hear me now?

Speaker #2: Yes. Perfect. Good morning.

Operator: Yes. Perfect. Good morning.

Speaker #1: Good morning.

Bob Rajan: Morning.

Speaker #4: Yes. You are sorry. You are in here. Mr. Giordano, you've mentioned that researchers are expecting improving advertising markets in H2. Do you see any concrete signs of a recovery in your linear TV advertising business?

Joachim Herr: Yes. Sorry. Joachim Herr, Der Sonntagszeitung. Mr. Giordani, you've mentioned that researchers are expecting improving advertising markets in H2. Do you see any concrete signs of a recovery in your linear TV advertising business, and how did that perform in July?

Speaker #4: And how did that perform in July?

Speaker #1: Yeah. Thanks. Clearly, July has been a month in which a World Cup was pretty dominant in terms of advertising. So June and July has been let's say certainly worse than the rest of the first six months because of that reason.

Marco Giordani: Yes. Thanks. Clearly, July has been a month in which World Cup was pretty dominant in terms of advertising. June and July has been, let's say, certainly worse than the rest of the H1 because of that reason. July cannot be seen as a proxy of what is going to be in the coming months. What we can tell you is that August is certainly better by definition for capital. Their audience are performing very well, and even it will be better than expected. We are expecting an August trend that is certainly much better than the H1 trends. As far as the remaining part of the year, as I said, I mean, visibility is very short and uncertainty on the macro side is very difficult to foresee concrete signs for September on.

Speaker #1: So July cannot be seen as a proxy of what is going to be in the coming months. What we can tell you is that August is certainly better by finishing.

Speaker #1: World Cup is not there audience are performing very well. And even it will be better than expected. And so we are expecting an August trends that is certainly much better than the first half trends.

Speaker #1: And as far as there are many parts of the year, as I said, I mean, visibility is very short. And uncertainty on the macros are very, very big.

Speaker #1: And so it's very difficult to foresee a concrete trends for September on. What I can tell you is that we are very focused on cash protection and cost management.

Marco Giordani: What I can tell you is that we are very focused on cash protection and cost management, we are ready to adapt our cost base in function of the trends more or less on a monthly basis. Entering in September, we will see a little more about that. As you remember, last year was not really very good for advertising market in Germany. In comparison terms, we are expecting an easier comparison with respect to the H1. That's our whole qualitative, let's say, sentence. The market will do what they will do, and the company will be ready to manage all the cycle we are going to face. Of course, for the time being, as I said, the visibility is very poor.

Speaker #1: So we are ready to adapt our cost base in function of the trends more or less on a monthly basis. So entering in September, we will see a little bit more about that.

Speaker #1: As you remember, last quarter last year was not really very good for advertising market in Germany. So in comparison terms, we are expecting an easier comparison respect to the first part of the year.

Speaker #1: But that's our all qualitative let's say sentence. The market will do what they will do. And the company will be ready to manage all the let's say the cycle we are going to face.

Speaker #1: Unfortunately, for time being as I said, the visibility is very poor.

Speaker #4: Okay. Second questions. If I may, you have mentioned the synergies especially the technology platform, the common technology platform. What are the main drivers beside that for the synergies you want to achieve in the next month?

Joachim Herr: Okay. A second question, if I may. You've mentioned the synergies, especially the technology platform, the common technology platform. What are the main drivers beside that for the synergies you want to achieve in the next month?

Speaker #1: Yes. I mean, as you said, that is probably the largest part of it. And the streaming platform is the first one we were disclosing that will be others coming in the next month.

Marco Giordani: Yes. As you said, tech is probably the largest part of it, and the streaming platform is the first one we were disclosing. There will be others coming in the next month. For instance, we are going to launch in Germany a small and medium business platform in the last quarter this year using a group technology. Also on the advertising tech stack, we are now aligning all the tech parts in order to get a better price for it and also to get a single experience for international advertiser. Tech is going to be one of the biggest parts of the savings coming from synergies. There is going to be others, clearly more related to, for instance, procurement.

Speaker #1: For instance, we are going to launch in Germany a small and medium business platform in the last quarter this year. Using a group technology.

Speaker #1: Also on the advertising tech stack, we are let's say now aligning all the tech part in order to get a better let's say price for it and also to get let's say a single experience for international advertiser.

Speaker #1: So tech is going to be one of the biggest parts of the savings coming from synergies. That there is going to be others clearly more related to for instance procurement as I mentioned we have set up let's say a sort of share experience and share let's say behaving with the remaining the rest of the group of which now we have some international supplier that are managed together with the MFP police in order to get the better price for the services we are buying at international level.

Marco Giordani: As I mentioned, we have set up a sort of share experience and share dealing with the rest of the group, of which now we have some international suppliers that are managed together with the MFE policies in order to get the better price for the services we are buying at the international level. We are trying also to see whether we can align interest in managing a partnership with the US giants, namely YouTube and the rest. Clearly, having a larger size, we can really get better condition and better terms. That's another activity we are running currently. The two departments, the MFE department and the procurement department, are now sharing information and experience in order to meet all together the big US platform operator and to get the best condition.

Speaker #1: We are trying also to see whether we can let's say align interest in managing partnership with US giants namely YouTube and the rest. Clearly having a larger size we can really get better condition and better let's say terms that's another activity we are running currently.

Speaker #1: And so the two partners so the MFP department and the proceeding department are now sharing information and experience in order to meet all together the big US let's say platform operator and to get the better the best condition.

Speaker #1: And lastly but clearly more importantly the revenue side I mean clearly managing international clients all together with MFP will take us advantage managing media agency or international level again will take advantages.

Marco Giordani: Lastly, but clearly more importantly, the revenue side. Clearly managing international clients all together with MFE will take as advantage. Managing media agency on international level, again, will take advantages. Also sharing product development in terms of advertising. It is certainly something that will take benefit to the revenue. This morning, we had the news that we are launching this new format that is already in place in Italy and Spain.

Speaker #1: So also sharing product development in terms of advertising is certainly something that will take benefit to the revenue. I mean this morning we had the news that we are launching this new format that is already in place in Italy and Spain.

Operator: ALL21.

Marco Giordani: ALL21. That's an example of how sharing experience throughout the group will help our revenue as well.

Speaker #1: All 21. So that's an example of how sharing experience throughout the group will help our revenue as well. I hope that I have answered.

Joachim Herr: Okay, thank you.

Speaker #1: Thank you.

Marco Giordani: Thank you.

Speaker #2: Good. Okay. If you don't have any questions anymore then just call me. Katrin Schneider or Martin Kunze. e. And otherwise I think I say thank you very much to Bob and Marco and wish you all a very nice summer break whoever will be on vacation.

Operator: Good. Okay. If you don't have any questions anymore, then just call me, Katrin Schneider or Martin Kunze. Otherwise, I think I say thank you very much to Rolf and Marco, and wish you all a very nice summer break, whoever will be on vacation.

Operator: Good. Okay. If you don't have any questions anymore, then just call me, Katrin Schneider or Martin Kunze. Otherwise, I think I say thank you very much to Bob and Marco, and wish you all a very nice summer break, whoever will be on vacation.

Speaker #1: Thank you all. Thanks. Thanks for joining. Thank you.

Marco Giordani: Thank you all. Thanks for joining. Thanks.

Speaker #2: Thank you. Bye-bye.

Operator: Thank you. Bye bye.

Marco Giordani: Bye bye.

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