RTL Group announces its interim results to 30 June 2005

 RTL Group, Europe’s leading broadcaster and content provider, announces its interim results to 30 June 2005

EUR, million	Half year to 30 June 2005	Half year to 30 June 2004	Per cent change (%)
Revenue	2,397	2,457	(2.4)
Underlying Revenue [1]	2,397	2,372	+1.1
Reported EBITA [2]	378	397	(4.8)
Restructuring charges	(11)	(9)
Start up losses [3]	(18)	(10)
Adjusted EBITA	407	416	(2.2)
EBITA margin (%)	15.8	16.2
Adjusted EBITA margin (%)	17.0	16.9
Underlying EBITA	407	407	+0.0
Reported EBITA	378	397	(4.8)
Amortisation and impairment of goodwill and fair value adjustments on acquisitions	(7)	(1)
Gain / (loss) from sale of subsidiaries, joint ventures and other investments	-	(19)
Net financial expense	(4)	(24)
Income tax expense	(6)	(114)
Profit for the period	361	239	+51.0
Attributable to:
Minority interest	49	44
Equity holders of the Company	312	195	+60.0
Adjusted EPS EUR [4]	2.08	1.40	+48.6

 

Continued strong operational performance

• Reported revenue and EBITA down marginally due to portfolio changes and start up losses for new businesses
• Underlying revenue up 1.1 per cent to EUR 2,397 million despite difficult advertising market conditions
• EBITA adjusted for portfolio changes maintained
• Record EBITA at M6, Antena 3 and Five compensated for the effects of difficult German market conditions, demonstrating the benefits of running an internationally diversified portfolio
• Net result up to EUR 312 million
• Strong operating cash conversion of 93 per cent
• Net cash position of EUR 251 million, up from EUR 188 million [5] at the beginning of the year

 

Profit Centre Highlights

• RTL Television channel family retains market leadership but revenue and EBITA down due to market decline
• M6 records highest audience share and profitability since launch
• Five significantly grows revenue and operating result
• Antena 3 gains in market share and almost doubles its net profit
• FremantleMedia continues format successes in telenovelas, daily drama and entertainment in particular in the US, Germany and France

Significant strategic progress

• Gain of full control of Five confirms commitment to the UK
• Expansion into Eastern Europe continues with the acquisition of a 30 per cent shareholding in REN TV in Russia
• Position in Southern Europe strengthened by increased shareholding in Media Capital in Portugal to 16.1 per cent

   

Gerhard Zeiler, Chief Executive Officer of RTL Group, said: “RTL Group has proven its resilience in the first half of this year despite difficult market conditions. We have maintained our level of adjusted EBITA and report the highest net result ever. We are benefiting from the effects of our geographically diversified portfolio of media assets with record performances coming from M6 in France, Five in the UK and Antena 3 in Spain making up for the EBITA shortfall in Germany. 

 

Our operating performance and cash generation remained strong. This enabled us to significantly increase the dividends paid to our shareholders and reduce our financial debt.

Advertising market conditions continue to be mixed across Europe and visibility is low. Given the strength of our business we remain confident for the outcome of the full year.

This half-year has seen significant strategic progress. I am delighted that we have acquired full control of Five, giving us flexibility for the next phase of growth. In Russia, one of the fastest growing advertising markets in the world, we have invested in a strategic participation in one of the national networks, REN TV. 

We continue to have the potential to create further value for our shareholders based on our three-pronged strategy: to further strengthen the channel families in the markets in which we already operate, to increase non-advertising revenue and to expand geographically.”

 

 

[1] Adjusted for the full consolidation of M6 and partial disposal of Sportfive in 2004
[2] EBITA represents earnings before interest and income tax expense excluding amortisation and impairment of goodwill and fair value adjustments on acquisitions and gain from sale of subsidiaries, joint ventures and other investments, net of income tax expense
[3] RTL Televizija, RTL FM and Yorin FM, launch of digital television channels and digital radio
[4] Adjusted earnings per share represents the net profit for the period adjusted for amortisation and impairment of goodwill and fair value adjustments on acquisitions and gain or loss from sale of subsidiaries, joint ventures and other investments, net of income tax expense
 [5] 31 December 2004 net cash position adjusted for impact of re-classification of EUR 58 million of marketable securities to equity (IAS 32 (revised))