Profits Down, Revenues Up at RTL Group

LUXEMBOURG: The RTL Group released its financial results for 2008. Profits dropped to 194 million euros, compared to 563 million euros in 2007, due mainly to an impairment of goodwill of the U.K. broadcaster Five, amounting to 337 million euros.

Despite the bad economy, however, revenue was up 1.2 percent to 5,7 billion euros, while EBITA increased 2.0 percent to 916 million euros.

The RTL Group’s German businesses, grouped under Mediengruppe RTL Deutschland, had their best year ever, with EBITA up 25.6 percent.

FremantleMedia reported an increase in revenues and EBITA, which was up by 18.3 percent, for the fifth consecutive year, driven by its slate of international prime-time hit formats.

Gerhard Zeiler, CEO of RTL Group, said: “In spite of increasingly difficult advertising markets in Europe, in 2008 RTL Group increased its revenue and operating result for the seventh year running. The company has a broad-based, secure setup, and is active in many countries and business areas. In particular, strong performances at Mediengruppe RTL Deutschland and FremantleMedia contributed to the increase in profits.
 
“Based on the 2008 results and the cash position, we propose a total dividend of 3.50 euros per share—consisting of an ordinary dividend of 1.40 and euros an extraordinary dividend of 2.10 euros,” continued Zeiler.  

“This position of strength is the result of our strategy, which is based on strict investment criteria. In 2008, we significantly stepped up our online activities with targeted acquisitions and investments. After our takeover of the Alpha Media Group in Greece, we now have 45 TV channels in 11 European countries.
 
“Operating in a very challenging time, we are experiencing a substantial slowdown in advertising bookings. We will respond to this by focusing on our core business, and by reviewing all costs and structures. This will result in a significantly lower cost base in all of our operations.”
 
“Given the current state of the advertising markets, and the very short-term bookings cycle, it is impossible to give reliable full-year guidance,” Zeiler concludes. “But it has to be expected that the profitability level will be down compared to 2008.”