Severstal Group and RTL Group agree on partnership to jointly run REN TV
Luxembourg and Moscow, 6 July 2005 – The future shareholders of REN TV, Severstal-Group and RTL Group, today met in Moscow at the offices of Severstal-Group and agreed to enter into a partnership to jointly run REN TV. The CEOs, Mr. Alexey Mordashov and Mr. Gerhard Zeiler, stressed the complementary character of the two groups, Severstal-Group being the Russian majority shareholder and RTL Group as pan-European broadcaster being the sole industrial partner and minority shareholder. RTL Group will work closely with Severstal-Group and will make available its professional experience and know-how to REN TV.
RTL Group and Severstal-Group plan to maintain and strengthen REN TV as a leading independent Russian channel with a broad programme offering of news and entertainment.
For the transition period until the completion of the new shareholder structure, Severstal-Group and RTL Group agreed to set up a joint committee, which will coordinate all relevant shareholder and business matters with the current REN TV management.
For further information:
Senior Vice President
External Communications and Investor Relations
Phone: 00352/2486 5075 or 5130
About Severstal Group
The core business of Severstal is metallurgy. The steel-making division unites assets of Severstal (Cherepovets, Russia), Severstal North America, and Group of Lucchini (uniting 20 industrial plants located in Italy, France, Poland, Great Britain and Sweden).
According to preliminary unaudited financial results, in 2004, the steel-making division produced 12.8 million tonnes of crude steel. The total sales were USD 6,415 million, a two-fold increase compared to USD 3,202 million in 2003. EBITDA increased to USD 2,376 million, with a margin of 37.0 per cent, versus EBITDA of USD 1,002 million and a margin of 31.3 per cent in 2003. The net profit increased by 127 per cent to USD 1,344 million, compared to USD 591 million in 2003.
About RTL Group
RTL Group is Europe's leading commercial broadcaster, with interests in 31 television channels and 33 radio stations in ten countries and content production throughout the world. Its television portfolio includes RTL Television in Germany, M6 in France, five in the UK, and the RTL channels in the Netherlands, Belgium, Luxembourg, Croatia and Hungary, as well as Antena 3 in Spain and TVI in Portugal. 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, Portugal and Luxembourg. RTL Group's content production arm, FremantleMedia is one of the largest international producers outside the US. It is currently producing more than 260 programmes in over 40 countries including the USA, providing a wide range of drama, entertainment and factual programming for viewers around the world.
About REN TV
The REN TV production company has been producing shows for the Russian channels since 1991. On the back of the successes enjoyed by the production company, REN TV was launched with broadcasting activities beginning on 1 January 1997. Today, REN TV is the one of Russia’s leading private broadcasters. The Moscow based television network reaches 97 million citizens with a technical coverage of approximately 87 per cent. REN TV operates through a broadcast network holding licences in Moscow, Chelyabinsk, Magnitogorsk, and Volgograd and through subsidiaries in Ekaterinburg, Voronezh, Bryansk and Rostov-on-Don and has more than 180 broadcasting agreements with local operators. The REN TV signal is received in all 18 Russian cities with more than 1 million inhabitants and in all 29 cities included in the TNS Gallup peoplemeter panel.
REN TV’s program grid includes news, documentaries, entertainment, music and sports programs as well as popular foreign series and movies.