Q3/2012: RTL Group’s EBITA up 5.8 per cent year-on-year

Luxembourg, 13 November 2012 - RTL Group, the leading European entertainment network, announces its interim management statement to 13 November 2012.

Financial highlights (continuing operations)

In € million

Q3/2012

Q3/20111

Per cent
change

Reported revenue

1,296

1,229

+5.5

Underlying revenue2

1,253

1,217

+3.0

Reported EBITA3

165

156

+5.8

Reported EBITA margin (%)

12.7

12.7

In the third quarter of 2012, with higher TV advertising sales from Mediengruppe RTL Deutschland and growing revenue at FremantleMedia, RTL Group’s reported revenue was up 5.5 per cent to €1,296 million (Q3/2011: €1,229 million). In an increasingly tough economic environment, almost all TV advertising markets across Europe decreased during the third quarter, while the German TV advertising market was estimated to be slightly up. RTL Group’s reported EBITA increased by 5.8 per cent to €165 million (Q3/2011: €156 million), driven by the Group’s content division FremantleMedia which, as anticipated at the half year, benefitted from the phasing of productions and a one-off effect, resulting from the sale of a building in London, during the third quarter. RTL Group’s reported EBITA margin was stable at 12.7 per cent.

In € million

January
to
September
2012

January
to
September
2011
1

Per cent
change

Reported revenue

4,111

3,954

+4.0

Underlying revenue2

4,019

3,915

+2.7

Reported EBITA3

671

744

(9.8)

Reported EBITA margin (%)

16.3

18.8


Regulated information. The figures presented in the interim management statement are unaudited
1 Re-presented following the application of IFRS 5 to Alpha Media Group (discontinued operations), disposed on 20 February 2012
2 Adjusted for the disposal of radio stations in the Netherlands, the acquisition of cable channels in Hungary, and other minor scope changes, and at constant exchange rates
3 EBITA (continuing operations) represents earnings before interest and taxes excluding impairment of goodwill and of disposal group, and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries and joint ventures, impairment of investment in associates and gain or loss from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree

During the nine-month period January to September 2012 reported revenue grew by 4.0 per cent to €4,111 million (Q1–3/2011: €3,954 million). This mainly reflects higher revenue from Mediengruppe RTL Deutschland and FremantleMedia, and exchange rate effects. Reported EBITA decreased by 9.8 per cent to €671 million (Q1–3/2011: €744 million), as a higher profit contribution from the German TV operations was offset by challenging market conditions in other countries, higher investment in programming and portfolio effects such as the disposal of the Dutch radio stations. The reported EBITA margin for the first nine months of the year was 16.3 per cent, compared to 18.8 per cent for the same period last year.

The net cash position as of 30 September 2012 amounted to €769 million
(30 September 2011: €970 million, 30 June 2012: €634 million). The operating cash conversion was 108 per cent (Q1–3/2011: 93 per cent).

RTL Group re-confirms the outlook given at the interim results presentation end of August 2012: for the full year 2012, RTL Group expects to deliver a solid level of EBITA, although not at the record level of 2011.

Highlights from RTL Group’s operations

RTL Group has defined three main investment areas – core, content and digital – and is making sound progress in all strategic fields:

Core

  • On-going investments in new TV channels:
  • 1 September 2012: launch of digital children’s channel RTL Telekids in the Netherlands
  • 1 October 2012: launch of family entertainment cable channel RTL II in Hungary 
  • 5 November 2012: launch of action entertainment channel Big RTL Thrill in India, RTL Group’s first broadcasting venture outside of Europe
  • 12 December 2012 (planned): 6ter, Groupe M6’s new general entertainment channel for the whole family, to launch in France
  • On 11 September 2012, Mediengruppe RTL Deutschland announced an exclusive multi-year volume deal with Sony Pictures Television which includes German free-TV rights to motion pictures beginning in 2013, TV series beginning with the 2013/14 US TV season, and rights to popular library titles
  • M6 in France had its best start into a new season since 2006, reaching an audience share of 17.5 per cent in the key commercial target group in September


 
Content

  • On 1 September 2012, Thom Beers took over as Chief Executive Officer (CEO) of FremantleMedia NorthAmerica (FMNA), reporting to Cécile Frot-Coutaz, CEO of FremantleMedia. Previously, Thom Beers had been CEO of Original Productions, a US subsidiary of FMNA
  • Got Talent has now aired more than 50 local versions across the world, and was the world’s top entertainment format for the second year running in 2011, according to Eurodata TV’s report One TV Year In The World. Belgium’s Got Talent on RTL-TVI  is currently airing a very successful first season with total audience shares of up to 37.2 per cent
  • The X Factor USA re-commissioned for a third season by Fox


Digital

  • RTL Group’s online platforms and on-demand offers across Europe collectively generated more than 1.8 billion video views of professionally produced content in the first nine months of 2012 – up 22 per cent year-on-year
  • In September 2012, RTL Interactive and HD Plus, a subsidiary of satellite operator SES, announced a new video on demand cooperation. The catch-up TV services
    RTL Now, Vox Now and Super RTL Now will become part of the upcoming ‘HD Plus Replay’ platform. This will enable viewers to watch programmes from these channels on their TV screens
  • On 17 October 2012, RTL Nederland announced the acquisition of Videostrip, the Netherland’s leading online video advertising network
  • FremantleMedia’s German subsidiary, UFA, will launch two Youtube channels with original content, “eNtR” (urban life style) and “Trigger” (crime) on 22 November 2012

 

For further information please contact:

RTL Group – Media
Oliver Fahlbusch
Corporate Communications
Phone: +352/2486 5200
Investor Relations
Andrew Buckhurst
Investor Relations
Phone: +352/2486 5074



About RTL Group
RTL Group is the leading European entertainment network, with interests in 53 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, the RTL channels in the Netherlands, Belgium, Luxembourg, Croatia, Hungary and Antena 3 in Spain – the company also operates the joint venture channel Big RTL Thrill in India and has interests in National Media Group in Russia. 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 9,200 hours of programming across 58 countries.