RTL Group announces its interim results to 30 June 2004

RTL Group, Europe’s leading broadcaster and content provider, announces its interim results to 30 June 2004.

 EUR million

Half year 
to 30 June 
2004

 Half year 
to 30 June 
2003

Per cent
Change 
(%)

PRO
FORMA1
Half ye
ar to 
30 June 2004

PRO
FORMA1
Half year to
30 June 2003

Per cent 
Change 
(%)

 Revenue

 2,457

 2,212

 +11.1

2,505

 2,520

 (0.6)

 Reported EBITA 2

397

 253

 +56.9

 403

318

 +26.7

  Restructuring charges

 (9)

 (29)

 (69.0)

 (9)

 (29)

 (69.0)

  Start up losses 3 

(10)

 (5)

 +100.0

 (10)

 (5)

+100.0

 Adjusted EBITA

416

 287

 +44.9

 422

 352

 +19.9

  EBITA margin (%)

 16.2

  11.4

n.a

 16.1

 12.6

 n.a

  Adjusted EBITA margin (%)

 16.9

 13.0

 n.a 

 16.8

 14.0

 n.a

 Reported EBITA

  397

 253

 +56.9

 403

 318

 +26.7

 Amortisation and impairment of 
 goodwill 4

 (1)

(143)

 n.a

 (1)

(145)

 n.a

 Gain/(loss) from sale of 
 subsidiairies, joint ventures 
 and other investments

(19)

 1

 n.a

 (19)

1

  n.a

 Net financial expense

 (24)

(26)

 (7.7)

   (24)

 (27)

 (11.1)

 Income tax expense

(114)

(53)

  >100.0

  (116)

 (74)

 +56.8

 Minority interest

 (44)

 (7)

 >100.0

 (48)

 (49)

 (2.0)

 Profit for the period

195

25

>100.0

 195

 24

 >100.0

 Adjusted EPS EUR 5

 1.40

1.09

 +28.4

 1.40

 1.09

 +28.4

______________________________________________
Following the change in consolidation method for M6, which has been fully consolidated from February 2004, pro forma numbers have been provided as if M6 had been fully consolidated as of 1 January 2003
EBITA represents earnings before interest and income tax expense excluding amortisation and impairment of goodwill and gain from sale of subsidiaries, joint ventures and other investments, net of income tax expense
3 RTL Shop, RTL Televizija and RTL FM 
No amortisation of goodwill has been recognised for the period ended 30 June 2004 as a result of the early adoption of IFRS 3 as from 1 January 2004
5 Adjusted earnings per share represents the net profit for the period adjusted for amortisation and impairment of goodwill and gain or loss from sale of subsidiaries, joint ventures and other investments, net of income tax expense

Headlines

RTL Group Headlines

Profit Centre Highlights

Strategic developments

Gerhard Zeiler, Chief Executive Officer of RTL Group, said: “RTL Group has delivered a solid performance in the first half of this year with record results from our major businesses. RTL Television re-confirmed its leading position in Germany, M6 outperformed its market in France and five once again grew market share in the UK. Management actions in Spain and the Netherlands have delivered a significantly improved result and we have also increased the strength and quality of our portfolio.  
  
We successfully launched a new television channel in Croatia, set up our third channel in Belgium, Plug TV, and M6 acquired Paris Premiere in France. 

Due to our strong operational performance, combined with the positive financial effects of the disposals, RTL Group became debt free in June 2004. This is a solid base to take the Group to the next phase of internal and external growth based on our three-pronged strategy: to further strengthen the family of channels in the markets in which we already operate, to increase non-advertising revenue and to expand geographically. 

For the remainder of 2004 we continue to see mixed advertising market conditions across Europe with visibility remaining limited.  Despite this we remain confident on the outcome for the full year.”