German-speaking Europe is the group’s largest revenue-generating region, at 80% followed by Northern Europe, at 9%, and the Netherlands and Belgium, at 8%.

In the German-speaking Free TV division revenues rose 2.3% to 1.9 billion euros despite earlier fears of reduced consumer expenditure in the third quarter. A slowdown in advertising revenues at Sat.1 also held back revenue growth.

The Free TV International segment, which was first consolidated as of July 2007 saw second half revenues rising 8.8% to 403.9 million euros driven by higher growth in advertising revenues.

Outlook

ProSiebenSat.1 is upbeat on 2008, and expects revenues and profits to rise helped by the consolidation of SBS.

“In the current year we will continue to improve our competitive position in Free TV by focusing on content and launching new channels. We will further expand our revenue sources by rolling out our online services across our footprint,” said de Posch.

ProSiebenSat.1 says it expects to save 40 million euros from mergers in 2008 and between 80 million and 90 millions euros per year from similar ventures until 2010.

At the close of trading Wednesday, shares of ProSiebenSat.1 dropped 6.4% or 89 cents, to 13.08 euros.