PRESS INFORMATION



 
 


 

RTL Group Shows Strong Performance in 2006

Luxembourg, 8 March 2007 – RTL Group, the leading European entertainment network, announces its audited results for the year ended 31 December 2006.


Highlights

In EUR million  Year to December 2006  Year to December 2005  Per cent change
       
Revenue  5,640  5,115   +10.3
Underlying revenue*  5,522  5,143   +7.4
Reported EBITA**  851  758   +12.3
Restructuring costs and non recurring items  2  8  
Start up losses***  36  31  
Adjusted EBITA  889  797  +11.5
Reported EBITA margin (%)  15.1  14.8  
       
Reported EBITA  851  758  +12.3
Amortisation of fair value adjustments on acquisitions  of subsidiaries and joint ventures   (14)  (16)  
Amortisation of fair value adjustments on acquisitions of associates  (2)  (2)  
Gain from sale of subsidiaries, joint ventures and other investments  207  1  
Net financial income / (expense)  35  (9)  
Income tax income / (expense), of which:  34  (116)  
                   Current tax expense  (188)  (134)  
                   Deferred tax income  222  18  
Profit for the year  1,111  616  +80.4
Attributable to:      
                  Minority interest  221  79  
                  RTL Group shareholders  890  537  +65.7
Adjusted EPS (EUR)****  3.52  2.96  +18.9
Proposed/paid ordinary dividend per share (EUR)  1.20  1.05  +14.3
Proposed extraordinary dividend per share (EUR)  1.80  -  n.a.

_____________

*     Adjusted for the full consolidation of Five and Mistergooddeal.com, disposal of TPS and other minor scope changes
**   
EBITA represents earnings before interest and income tax expense excluding amortisation of fair value adjustments on acquisitions 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 amortisation of fair value adjustments on acquisitions and impairment of goodwill, gain or loss from sale of subsidiaries, joint ventures and other investments, net of income tax expense and one-off tax effects

RTL Group managed to improve its key financial figures in 2006

• Reported EBITA of EUR 851 million, up 12 per cent

• Group revenue of EUR 5,640 million, up 10 per cent

• Reported EBITA margin improved to 15 per cent

• Net profit attributable to RTL Group shareholders of EUR 890 million, up 66 per cent

• Net cash from operating activities of EUR 864 million resulting in an operating
cash conversion of 98 per cent

• Based on strong operating performance, a proposed ordinary dividend of EUR 1.20 per share, up 14 per cent

• In the light of high cash generation following significant disposals, a proposed extraordinary dividend of EUR 1.80 per share

• Current income tax expense of EUR 188 million compensated by the recognition of a deferred tax asset, leading to an overall tax income of EUR 34 million

• Improved advertising conditions in most countries, Belgium stable, UK down

• Non-advertising revenue increased from 38 to 39 per cent of total revenue


The five biggest profit contributors - the German family of channels, M6 in France, FremantleMedia, RTL Nederland and Antena 3 in Spain - all achieved record EBITA

• German family of channels increased its audience lead over ProSiebenSat1,
good advertising business, significant EBITA improvement of 23 per cent (TV&radio)

• FremantleMedia successful with both new formats and established programme brands across all key markets, EBITA up 23 per cent

• M6 EBITA improved despite significant programme investments; deconsolidation of TPS more than offset by strong revenue growth from diversification activities

• RTL Nederland EBITA up over 50 per cent, driven by financial discipline and the discontinuation of its radio activities in 2006

• Five’s EBITA decreased due to declining UK TV advertising market and significant start up costs in the new digital channels

• In its second full year of operation, RTL Televizija in Croatia broke even


New digital activities across all profit centres

• New digital channels launched in the UK and Germany

• W9 in France already one of the country’s most watched new channels on digital terrestrial television (DTT)

• On-demand services and content already available from our broadcasters in France, Germany, UK, the Netherlands and from FremantleMedia

• Video websites Clipfish.de and Wideo.fr growing fast

• All big RTL radio stations offer podcasts


“2006 was a very satisfying year for RTL Group”

Gerhard Zeiler, Chief Executive Officer of RTL Group said:

“2006 was a very satisfying year for RTL Group. Our biggest profit contributors - the German family of channels, M6 in France, FremantleMedia, RTL Nederland and Antena 3 in Spain - delivered particularly strong performances. On Group level, we again managed to improve our key figures. Based on our strong operating earnings, we recommend the distribution of a gross ordinary dividend per share of EUR 1.20, up 14 per cent. In the light of significant disposals resulting in substantial cash generation in 2006 and at the beginning of 2007, we also propose an extraordinary dividend of EUR 1.80, making a total dividend payout for 2006 of EUR 3.00 per share.”

“In the four years since 2002, RTL Group has significantly improved its EBITA and increased its margin from 9.7 to 15.1 per cent. This has created considerable value for our shareholders. At year-end 2006, RTL Group’s market capitalisation was EUR 13.1 billion, up from EUR 4.4 billion at the end of 2002. The fact that these results were achieved under mixed and sometimes difficult market conditions provides solid proof that our pan-European strategy is a sound foundation on which to go forward.”

“RTL Group is preparing for the digital age by building multi-channel offerings in its key markets and by further increasing non-advertising revenue. For a content and brand company such as RTL Group, the digital world offers a lot of opportunities for new business models - be it video on demand, mobile TV, IPTV, or online communities. In 2007, our operations will step up their efforts to seize these opportunities. Now is the right time to try and test all new platforms and all new ways to the consumer. ”

“Although visibility still remains limited, we are cautiously optimistic about the advertising market in 2007. In France, M6 will benefit from the start of TV advertising by retailers and our channels in Germany had a promising start to the year.”


 
For further information please contact:

Media                                                           Investor Relations                                                                           
Oliver Herrgesell                                             Andrew Buckhurst
Executive Vice President                                Senior Vice President                              
Corporate Communications                             Investor Relations
Phone: +352/2486 5200                                  Phone: +352/2486 5074
oliver.herrgesell@rtlgroup.com                         andrew.buckhurst@rtlgroup.com


About RTL Group
RTL Group is the leading European entertainment network, with interests in 38 television channels and 29 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, 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 in more than 22 countries - series, drama, shows and documentaries that reach more than 250 million viewers all over the world.