With EUR 537 million, RTL Group delivers best half-year result ever, up 46 per cent

Stronger TV advertising rebound in Western Europe than previously expected
Broadly stable cost level after significant reduction in 2009

Luxembourg, 25 August 2010 - RTL Group, the leading European entertainment network, announces its interim results to 30 June 2010.


Highlights

In EUR million

Half year to
June 2010

Half year to
June 2009
1

Per cent
change
(%)

       
Revenue

2,661

2,475

+7.5

Underlying revenue2

2,620

2,475

+5.9

Reported EBITA3

537

367

+46.3

Restructuring charges

-

(12)

 
Start-up losses4

(10)

(23)

 

Adjusted EBITA

547

402

+36.1


Reported EBITA margin (%)

20.2

14.8

 

 

 

   
Reported EBITA

537

367

+46.3

Impairment of goodwill and amortisation of
fair value adjustments on acquisitions

(5)

 (77)

 
Loss from sale of subsidiaries,
joint ventures and other investments

(11)

 -

 
Net financial expense

(9)

 (5)

 
Income tax expense

(155)

 (142)

 
Profit for the period from continuing
operations

357

 143

+149.7
Loss for the period from discontinued
operations

 (49)

 (205)

 
Profit/(Loss) for the period

308

 (62)

Attributable to:    
                  Minority interest

51

 43

 
                  RTL Group shareholders

257

(105)

 

 

 

Basic EPS continuing operations (EUR)

1.99

0.66

 

Basic EPS discontinued operations (EUR)

(0.32)

(1.34)

 

Adjusted EPS (EUR)5

1.90

 1.01

 

_____________

Regulated information
1 Re-presented following application of IFRS 5 to Five (discontinued operations)
2 
Adjusted for 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, joint ventures and other investments
4 Primarily Alpha Media Group in Greece
5 Adjusted earnings per share represents the net profit for the period adjusted for impairment of goodwill and disposal groups, 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

Best first half-year EBITA and profit margin ever

  • Reported Group revenue up 7.5 per cent to EUR 2,661 million reflecting strong growth in Western European TV advertising markets in first half of 2010
  • First-half EBITA of EUR 537 million (up 46.3 per cent), mainly driven by significantly higher profit contributions from Mediengruppe RTL Deutschland, Groupe M6 and RTL Nederland
  • Reported EBITA margin of 20.2 per cent (2009: 14.8 per cent)
  • Net profit attributable to RTL Group shareholders comes to EUR 257 million
    (2009: net loss of EUR 105 million)
  • Net cash from operating activities of EUR 523 million (2009: EUR 237 million), resulting in operating cash conversion of 118 per cent and net cash position at the end of June of EUR 894 million
  • Following significant cost savings in 2009, operating costs remained broadly stable at EUR 2,168 million (2009: EUR 2,142 million)

All profit centres improved their results

  • Mediengruppe RTL Deutschland increased its clear audience leadership over main competitor ProSiebenSat1 to 5.2 percentage points and outperformed a significantly growing TV advertising market; EBITA up 62.7 per cent to EUR 257 million
  • Groupe M6 in France showed strong revenue and EBITA growth across all its activities; EBITA up 20.7 per cent to EUR 134 million
  • Despite general pressure on margins and volumes, RTL Group’s worldwide production arm FremantleMedia continued its strong performance, thanks to its well-balanced stable of hit entertainment shows; EBITA up 3.4 per cent to EUR 90 million
  • RTL Nederland doubled EBITA year on year to EUR 32 million
  • RTL Radio in France reporting EBITA growth of 87.5 per cent, reaching EUR 15 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 payable to RTL Group for its 100 per cent shareholding in Five was EUR 124 million
  • In March, FremantleMedia acquired 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 April, FremantleMedia took over 100 per cent of the Netherlands-based independent production company Four One Media
  • In January, RTL Nederland acquired Radio 10 Gold, expanding its family of radio stations, which also comprises market leader Radio 538 and digital station
    RTL Lounge Radio

RTL Group’s new media activities show strong growth

  • RTL Group’s online platforms and on-demand offers across Europe collectively generated more than 715 million video views of professionally produced content
    – up 50 per cent year-on-year
  • Total online advertising revenue up 55 per cent year-on-year, driven by video advertising
  • RTL Group companies have launched 40 mobile applications registering 5.5 million downloads to date; RTL Television became the first German channel to offer a mobile live stream app for its linear TV schedule
  • Pay-TV channels in Germany, France and the Netherlands are operating at a profit

“The strength of television”

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

“The stronger than expected rebound seen in the Western European TV advertising markets is the result of the overall economic recovery, but it also demonstrates the strength of television, as many advertisers have re-discovered its unique value for building brands and reaching mass audiences.

I am delighted that all our units improved their operating results and that RTL Group achieved its best half-year EBITA ever. This is also a benefit from our significant cost reductions in 2009.

We will achieve significantly better full-year results, though visibility for the important fourth quarter remains very low.

RTL Group’s strategy will continue to pursue two main goals. First, to further optimise our core broadcasting business. This includes a variety of measures such as strengthening our family of channels and a cautious but flexible cost approach.

The second main goal is to develop future growth by investing in content production, on-demand platforms and mobile services, leveraging our strong brands and creating a win-win-situation with platform operators. We will also continue to consider geographical expansion in high-growth regions. The digital world offers many business opportunities, and we have the creativity, flexibility and financial strength to take advantage of them.” 


 

Conference Call RTL Group Results for the media:

Date:

Wednesday 25 August 2010
11.00 (Luxembourg) / 10.00 (London)

Number to dial:

+44 20 3003 2666
Password: RTL Media

The slides of the presentation and an audio file of the conference call will 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 43 television channels and 31 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 57 countries.