Revenue, EBITA, net profit – all indicators up

Luxembourg, 10 March 2011 - RTL Group, the leading European entertainment network, announces its audited results for the year ended 31 December 2010.


Highlights

In EUR million

Year to December
2010

Year to
December 20091

Per cent change

       
Revenue

5,591

5,156

+8.4

Underlying revenue2

5,464

5,142

+6.3

Reported EBITA3

1,111

796

+39.6

Restructuring charges

-

25

 
Start-up losses4

23

32

 

Adjusted EBITA

1,134

853

+32.9

Reported EBITA margin (%)

19.9

15.4

 

Adjusted EBITA margin (%)

20.3

16.5

 

 

 

   
Reported EBITA

1,111

796

+39.6

Impairment of goodwill and amortisation of fair value
adjustments on acquisitions

(63)

(89)

 
Loss from sale of subsidiaries, other investments and
re-measurement to fair value of pre-existing interest in
acquiree

(7)

-

 
Net financial income

14

27

 
Income tax expense

(268)

 (234)

 
                   of which: Current tax expense

(239)

 (201)

 
                                Deferred tax expense

(29)

 (33)

Profit for the year from continuing operations

787

500

+57.4

Loss for the year from discontinued operations

(57)

(202)

 

Profit for the year

730

298

 

Attributable to:    
                  Non-controlling interests

119

93

 
                  RTL Group shareholders

611

205

+198.0

       
Basic EPS continuing operations (in EUR)

4.34

2.64

 

Basic EPS discontinued operations (in EUR)

(0.36)

(1.31)

 

Reported EPS (in EUR)

3.98

1.33

 

Adjusted EPS (in EUR)5

4.23

2.85

 

Proposed/paid total dividend per share (in EUR)

5.00

3.50

+42.9 

_____________
Regulated information
1 Re-presented following application of IFRS 5 to Five (discontinued operations)
2 
Adjusted for Radical Media, RTL Klub in Hungary, other minor scope changes and at constant exchange rates
3 EBITA (continuing operations) represents earnings before interest and income tax expense excluding impairment of goodwill and disposal groups, amortisation and impairment of fair value adjustments on acquisitions and gain or loss from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree
4 Primarily Alpha TV in Greece
5 Adjusted earnings per share represents the net profit for the year adjusted for impairment of goodwill, disposal groups and amortisation of fair value adjustments on acquisitions, gain or loss from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree, net of income tax expense and one-off tax effects

Strong revenue growth, EBITA and profit margin on record levels

  • Reported Group revenue up 8.4 per cent to EUR 5,591 million as TV advertising markets across Western Europe grew strongly year-on-year

  • EBITA up 39.6 per cent to EUR 1,111 million, a new record level, EUR 195 million better than the best result so far; this performance was particularly driven by Mediengruppe RTL Deutschland, Groupe M6, RTL Nederland and RTL Belgium

  • Reported EBITA margin of 19.9 per cent (2009: 15.4 per cent); the EBITA margins of the four big broadcasting operations - Mediengruppe RTL Deutschland, Groupe M6, RTL Nederland and RTL Belgium – improved significantly

  • Net profit attributable to RTL Group shareholders almost tripled to EUR 611 million from EUR 205 million in 2009

  • Net cash from operating activities was EUR 1,130 million, resulting in an operating cash conversion of 110 per cent and a net cash position of EUR 1,456 million at the end of 2010

  • Proposed dividend for 2010 of EUR 5.00 per share, based on RTL Group’s improved financial performance and robust treasury position (for 2009: dividend of EUR 3.50 per share)


Significantly higher profit contributions from most profit centres

  • Mediengruppe RTL Deutschland increased its clear audience leadership over main competitor ProSiebenSat1 to 5.3 percentage points and outperformed a significantly growing TV advertising market; EBITA up 50.5 per cent to EUR 551 million

  • Groupe M6 in France showed EBITA growth across all its activities; EBITA up 25.6 per cent to EUR 245 million

  • RTL Nederland scored its best ratings since 1999; EBITA up 52.8 per cent to EUR 110 million, driven by significantly higher advertising sales

  • RTL Group’s production arm FremantleMedia reported revenue growth of 7.5 per cent, driven by higher revenue in North America and France plus portfolio and exchange rate effects; FremantleMedia’s EBITA amounted to EUR 140 million

  • EBITA of RTL Belgium up 25.0 per cent to EUR 45 million

  • RTL Radio in France reporting EBITA growth of 60.0 per cent, reaching EUR 24 million


A disciplined approach to portfolio management, Five sold

  • In July, RTL Group sold its UK broadcaster Five to the Northern & Shell company owned by British publisher Richard Desmond. The total cash consideration paid to RTL Group for its 100 per cent shareholding in Five was EUR 118 million

  • Targeted acquisitions to strengthen FremantleMedia’s business portfolio and international presence

    • October: acquisition of a 62.5 per cent share in Radical Media, FremantleMedia’s first large scale move into the branded entertainment market

    • October: acquisition of a further 51 per cent stake in Ludia, a leading developer and publisher of interactive casual games, increasing FremantleMedia’s shareholding to 80 per cent

    • April: takeover of the Netherlands-based independent production company Four One Media

    • March: acquisition of the remaining 25 per cent of the production company Blu, the market leader in Denmark and Sweden, taking FremantleMedia’s ownership to 100 per cent

  • In September, the Croatian Electronic Media Council granted RTL Televizija a concession for a new specialised channel, named RTL 2; the new channel went on air in January 2011

  • In September, Grupo Antena 3 launched its third digital channel, Nitro


RTL Group’s new media activities growing strongly

  • RTL Group’s online platforms and on-demand offers across Europe collectively generated more than 1.4 billion video views of professionally produced content – up 46 per cent year-on-year

  • Total online advertising revenue up 41 per cent year-on-year, driven by video advertising

  • Ongoing extension of RTL Group’s online and mobile video services

    • August: launch of a new catch-up TV service in Germany (Super RTL Now)

    • End of September, M6 Web launched ‘Pass Séries VIP’, a unique subscription service in Europe which gives viewers access to popular US TV series the day after they are broadcast in the United States

    • In October, M6 launched its I-Phone and I-Pad app that offers the channel live, as well as catch-up TV services and behind-the-scenes videos

    • In October, RTL Nederland launched RTLXL.nl, a new, centralised platform for its video-on-demand services, including the catch-up TV service, films, series and promotional content

    • In total, RTL Group companies have launched more than 60 mobile applications registering 10 million downloads to date

  • Pay-TV channels in Germany, France and the Netherlands are operating at a profit


“New levels of profitability, rock-solid financial position”

Gerhard Zeiler, Chief Executive Officer of RTL Group, said:

“RTL Group’s outstanding results of 2010 reflect a stronger than expected rebound in the Western European TV advertising markets, the enduring impact of our significant cost savings in 2009 and the leading market positions of our families of channels in our key territories. In other words: we’ve capitalised on the economic recovery because our TV channels emerged stronger from the crisis than before.

I am delighted that most of our profit centres improved their operating results, with particularly strong performances from Mediengruppe RTL Deutschland, Groupe M6, RTL Nederland and RTL Belgium. This resulted in new levels of profitability: a full-year EBITA of more than EUR 1.1 billion, a profit margin of 19.9 per cent and a 198.0 per cent jump in net profit to EUR 611 million.

Our continued focus on cash generation led to a net cash position of EUR 1,456 million at the end of 2010. Based on this improved financial performance and robust treasury position, the Board of Directors has decided to recommend a gross dividend payout of EUR 5.00 per share.

Despite the fact that TV profited more strongly than other media from the economic recovery in 2010, it is not possible to give reliable full-year guidance for 2011 at this point in time. As a consequence, RTL Group remains cautious while at the same time being very optimistic about the TV industry’s overall growth prospects.

Against this background, RTL Group’s strategy pursues two main goals: one is the ongoing, further optimisation of our core business as high audience shares will remain the basis of our success. The other goal is to advance the Group’s growth. In 2010, we strengthened our content arm FremantleMedia via several targeted acquisitions and we’ll continue to do so in future. We’ll also continue to invest in new programmes, new channels and in our rapidly growing new media activities.”

 

RTL Group results conference call for journalists:

Date:

Thursday 10 March 2011
11.00 (Luxembourg) / 10.00 (London)

Number to dial:

+44 (0)203 003 2666

Password: RTL Group

 

Slides from the presentation and an MP3 file will also be available to download at RTLGroup.com


 
For further information please contact:

Media
Oliver Herrgesell
Corporate Communications
Phone: +352/2486 5200


About RTL Group
RTL Group is the leading European entertainment network, with interests in 40 television channels and 33 radio stations in 10 countries and content production throughout the world. The television portfolio of Europe’s largest broadcaster includes RTL Television in Germany, M6 in France, the RTL channels in the Netherlands, Belgium, Luxembourg, Croatia and Hungary, Alpha TV in Greece, 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 9,500 hours of programming across 54 countries.