RTL Group, the leading European entertainment network, announces its audited results for the year ended 31 December 2007.
Highlights
In EUR million |
Year to December 2007 |
Year to December 2006 |
Per cent change |
---|---|---|---|
Revenue | 5,707 | 5,640 | +1.2 |
Underlying revenue* | 5,615 | 5,422 | +3.2 |
Reported EBITA** | 898 | 851 | +5.5 |
Restructuring costs and non recurring items | (3) | 2 | |
Start up losses*** | 38 | 36 | |
Adjusted EBITA | 993 | 889 | +4.9 |
Reported EBITA margin (%) | 15.7 | 15.1 | |
Adjusted EBITA margin (%) | 16.3 | 15.8 | |
Reported EBITA |
898 |
851 |
+5.5 |
Amortisation and impairment of fair value adjustments on acquisitions of subsidiaries and joint ventures | (19) | (14) | |
Amortisation of fair value adjustments on acquisitions of associates | 0 | (2) | |
Impairment of goodwill and disposal groups | (133) | 0 | |
Gain from sale of subsidiaries, joint ventures and other investments | 76 | 207 | |
Net financial income | 22 | 35 | |
Income tax (expense)/income | (170) | 34 | |
of which: Current tax expense | (267) | (188) | |
Deferred tax income | 97 | 222 | |
Profit for the year | 674 | 1,111 | |
Attributable to: | |||
Minority interest | 111 | 221 | |
RTL Group shareholders | 563 | 890 | |
Adjusted EPS (EUR)**** | 3.54 | 3.52 | +0.6 |
Proposed/paid ordinary dividend per share (EUR) | 1.30 | 1.20 | +8.3 |
Proposed extraordinary dividend per share (EUR) | 3.70 | 1.80 | >100.0 |
* Adjusted for TPS, Belgian and Netherlands radio and other minor scope changes
** EBITA represents earnings before interest and income tax expense excluding impairment of goodwill, disposal groups and amortisation and impairment of fair value adjustments onacquisitions and gain or loss from sale of subsidiaries, joint ventures and other investments
*** Primarily launch costs of digital television channels in France, Germany and the UK
**** Adjusted earnings per share represents the net profit for the period adjusted for impairment of goodwill, disposal groups and amortisation of fair value adjustments on acquisitions, gain or loss from sale of subsidiaries, joint ventures and other investments, net of income tax expense and one-off tax effects
Another very successful year for RTL Group
- Reported EBITA of EUR 898 million, up 5.5 per cent
- Reported Group revenue up 1.2 per cent to EUR 5,707 million, despite the sale of TPS; underlying revenue up 3.2 per cent
- Reported EBITA margin improved to 15.7 per cent
- Net profit attributable to RTL Group shareholders down to EUR 563 million (2006: EUR 890 million). This is due to a number of negative one-offs in 2007 (the goodwill impairment and the German cartel fine) and positive one-offs in 2006 (the gain on disposal of TPS and recognition of a deferred tax asset)
- Net cash from operating activities of EUR 860 million resulting in an operating cash conversion of 110 per cent
- EUR 5.00 proposed total dividend payout, up 67 per cent compared to total dividend payout for 2006
- Improved advertising conditions in most countries
The major profit centres with significant contributions to RTL Group’s EBITA
- German family of channels increased its audience lead over ProSiebenSat1 to 4.6 percentage points, EBITA up 11.6 per cent
- EBITA of Groupe M6, adjusted for the sale of TPS, up 4.9 per cent
- Worldwide production arm FremantleMedia with another year of strong performance across its main markets, EBITA up 4.8 per cent, driven by higher earnings from the US
- Five group in the UK with positive EBITA of EUR 10 million, net advertising market share increased to 9.3 per cent, driven by additional sales from the digital channels Five US and Five Life
- RTL families of channels in the Netherlands and in Belgium with strong advertising business, both profit centres with record EBITA
- French radio family has regained market leadership, with RTL Radio gaining more than 600,000 additional listeners in one year
Focus on core businesses by further developing the families of channels and production, expansion of digital activities and cost control
- Best ever audience share for the German family of channels, with all channels reporting higher audience shares in the 14 to 49 target group
- Digital pay-TV channels in Germany already with more than 2 million subscribers one year after their launch
- Dynamic growth of Groupe M6’s digital channels, W9 the most-watched ‘new channel’ on free DTT in France in the second half of 2007
- M6 Mobile by Orange continues its rapid expansion, customer base up 52.5 per cent year-on-year to 1.17 million subscribers
- Major growth initiatives to expand RTL Group’s production business: launch of FremantleMedia Talent Fund and UFA Cinema in Germany
- Asset deal with Talpa Media to strengthen RTL Nederland: integration of Radio 538 and of successful Talpa programmes implemented, launch of fourth free-TV channel RTL 8
- New joint venture to enter the fast growing Russian satellite and cable TV market
- Launch of digital radio stations RTL L’Equipe and RTL Autrement in France
“We are guiding the company into a new phase”
Gerhard Zeiler, Chief Executive Officer of RTL Group said:
“2007 was the most successful business year in RTL Group’s history. By maintaining a firm focus on our core businesses, we grew our operating result for the sixth consecutive year, and generated our highest EBITA margin ever. Our families of channels in Germany, the Netherlands, Belgium and Groupe M6 in France - adjusted for the sale of TPS - in particular contributed to the increased operating result. Our worldwide production arm FremantleMedia again made significant contributions to the Group’s EBITA.
Following our strong results in 2007 and based on our consistently strong cash flows, we recommend the distribution of a gross dividend per share of EUR 5.00, up 67 per cent compared to the total dividend payout for the fiscal year 2006.
More than ever, RTL Group’s success is founded on numerous businesses across Europe. Building on this strong foundation, we are guiding the company into a new phase. We are developing our broadcasting operations into digital TV families with a presence on all new platforms. We will systematically meet the rising demand for attractive content and expand our production arm FremantleMedia, with new talent, new formats and by doing business in new markets.
Television will remain the key medium. And RTL remains the quality brand in commercial European TV.
With regard to advertising sales, we have - despite the current economic climate - no reason to be pessimistic. Nevertheless, we remain cautious given the continued low visibility in most markets.”
Conference Call RTL Group Results for press:
Date: | Wednesday, 5 March 2008 10.30 (Luxembourg) / 9.30 (London) |
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Number to dial: | +44 20 7162 0125 | |
Replay details: There will be a 13 day replay available from 5 March to 18 March 2008, |
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by dialing: | +44 20 7031 4064 | |
Passcode: | 783483 |
The slides of the presentation and the mp3-file will also be available on www.rtlgroup.com.
About RTL Group
RTL Group is the leading European entertainment network, with interests in 42 television channels and 32 radio stations in ten countries and content production throughout the world. The television portfolio of Europe’s largest broadcaster includes RTL Television in Germany, M6 in France, Five in the UK, the RTL channels in the Netherlands, Belgium, Luxembourg, Croatia and Hungary, Ren TV in Russia and Antena 3 in Spain. RTL Group’s flagship radio station is RTL in France, and it also owns or has interests in other stations in France, Germany, Belgium, the Netherlands, Spain and Luxembourg. RTL Group's content production arm, FremantleMedia is one of the largest international producers outside the US. Each year, it produces more than 10,000 hours of programming across 55 countries.