RTL Group, the leading European entertainment network, announces its audited results for the year ended 31 December 2008.

Highlights

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¹ Adjusted for scope changes and at constant exchange rates
² EBITA represents earnings before interest and income tax expense excluding impairment of goodwill, disposal groups and amortisation and impairment of fair value adjustments on acquisitions and gain or loss from sale of subsidiaries, joint ventures and other investments
³ Primarily launch costs of digital television channels in France, Germany and the UK
⁴ Adjusted earnings per share represents the net profit for the period adjusted for impairment of goodwill, disposal groups and amortisation of fair value adjustments on acquisitions and gain or loss from sale of subsidiaries, joint ventures and other investments, net of income tax expense and one-off tax effects

RTL Group increases revenue and EBITA, for the seventh consecutive year

• Reported EBITA of EUR 916 million, up 2.0 per cent, despite a tougher economic climate

• Reported Group revenue up 1.2 per cent to EUR 5,774 million; underlying revenue, at constant exchange rates, up 2.6 per cent

• Reported EBITA margin improved to 15.9 per cent

• Net profit attributable to RTL Group shareholders down to EUR 194 million (2007: EUR 563 million), mainly due to an impairment of goodwill of the UK TV activities amounting to EUR 337 million

• Net cash from operating activities of EUR 1,065 million resulting in an operating cash conversion of 114 per cent

• Proposed ordinary dividend for 2008 up to EUR 1.40, from EUR 1.30 for 2007; once again proposed extraordinary dividend of EUR 2.10 for 2008 (EUR 3.70 for 2007)

• Increasingly challenging advertising conditions across Europe

Mediengruppe RTL Deutschland and FremantleMedia with record EBITA

• Mediengruppe RTL Deutschland with its best year ever; EBITA up 25.6 per cent;
  leading position on the German TV advertising market significantly strengthened

• FremantleMedia reports growing revenue and EBITA figures for the fifth consecutive year, driven by its slate of international prime time hit formats; EBITA up 18.3 per cent

• EBITA of Groupe M6 in France impacted by a major programme investment for the European football championship 2008; free DTT channel W9 continued its rapid audience and revenue growth and generated positive EBITA for the first time

• RTL Nederland implemented a restructuring programme at the end of 2008;
  EBITA down 17.6 per cent also due to these one-time restructuring charges

Selective acquisitions and launches to strengthen core business activities

• Acquisition of a 66.6 per cent majority shareholding in Alpha Media Group, Greece’s number four broadcasting company

• RTL Group builds up comprehensive catch-up TV services in Germany (RTLnow.de), France (M6replay.fr), the Netherlands (RTLgemist.nl) and in the UK (Demand.Five.tv)

• Investments to strengthen RTL Group’s internet portfolio

  • Mediengruppe RTL Deutschland acquired the fast-growing social network Wer-kennt-wen.de

  • Groupe M6 acquired a 100 per cent stake in the Cyréalis group

• Launch of exclusive mobile TV channel RTL 24 in the Netherlands

• Relaunch of marketing agency UFA Sports to round off RTL Group’s portfolio and to further diversify revenue streams

“A position of strength”

Gerhard Zeiler, Chief Executive Officer 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 EUR 3.50 per share - consisting of an ordinary dividend of EUR 1.40 and an extraordinary dividend of EUR 2.10.

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. But it has to be expected that the profitability level will be down compared to 2008.”

About RTL Group
RTL Group is the leading European entertainment network, with interests in 45 television channels and 32 radio stations in 11 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, 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, Greece, Spain and Luxembourg. RTL Group’s content production arm, FremantleMedia, is one of the largest international producers outside the US. Each year, it produces 10,000 hours of programming across 57 countries.

The NRJ Group’s revenues (excluding barters transactions) came to 331.3 million euros in 2008, comparedwith 359.7 million euros in 2007, down 7.9% (-4.3% at constant scope and exchange rates). This changenotably reflects the consequences of the gradual reduction of the Group’s stake in NRJ Mobile, as well as theimpact of the end of the musical “Le Roi Soleil” following its final performances in July 2007. Excluding mobiletelephony and “Le Roi Soleil”, the Group’s revenues would have increased by 1.7%.In the fourth quarter, the Group generated 89.2 million euros in revenues, compared with 99.9 million euros in 2007, down 10.7% (-6.0% at constant scope and exchange rates). *** 

Following a particularly difficult fourth quarter due to the economic environment, the radio business inFrance recorded 222.1 million euros in revenues over 2008, compared with 239.6 million euros in 2007,representing a drop of 7.3% (-14.6% in Q4). In the fourth quarter, the downturn in business stems morespecifically from the fall in advertising investments for the retail, transport and telecommunications sectors. Over the full year, the retail sector’s advertising investments are up slightly, while the transport, services,telecommunications and toiletries-beauty product sectors show a marked downturn. 

Revenues from international radio activities climbed to 33.8 million euros in 2008, up 5.3% on 2007, notablydriven by growth in business on the Germanic region over the full year. Television activities generated 25 million euros in revenues over 2008, up 187.4% in relation to 2007. In thefourth quarter, despite the unfavourable economic environment, this business achieved sustained revenuegrowth (+186.7%). In December 2008, NRJ 12 achieved a national audience share of 1.1%* for this channel (1%* over the full year in 2008). NRJ 12 has continued to achieve satisfactory growth in its audience figures, and now attracts close to 24 million* viewers each week. 

* Source: Médiamétrie Médiamat Annuel 2008 Revenues on the telephony business came to 7.2 million euros in 2008, compared with 18.3 million euros in 2007 in light of the reduction of the Group’s stake in NRJ Mobile. This business has been deconsolidated since 1 May 2008, and the Group did not record any revenues for NRJ Mobile over the second half of 2008, compared with the 9.1 million euros in revenues booked over the second half of 2007. 

Non-media activities recorded 17.4 million euros in revenues over 2008, compared with 41.5 million euros in 2007. In 2008, the musical “Le Roi Soleil” contributed 0.8 million euros to consolidated revenues, compared with 23.4 million euros in 2007. Excluding “Le Roi Soleil”, the non-media division would have generated 16.6 million euros in revenues over 2008, compared with 18.1 million euros in 2007. 

Lastly, the Group’s broadcasting business contributed 24.7 million euros to consolidated revenues in 2008, up 35.7% on 2007, thanks in particular to the development of its activities on the digital terrestrial television (DTT) broadcasting market. In total, including revenues generated within the Group, the broadcasting business posted 37.6 million euros in revenues for 2008.

• Gulli’s audience share increased among all audiences over the last year, particularly among parents: the channel doubled its audience share in France (1.6%) with an increase of 71% among homemakers with children.
• Gulli also held onto its position among the Top 3 in DTT, achieving 3.3% audience share among DTT-only channels.

October’s Top 3 evening broadcasts in the age four-and-up demographic:

• Fort Boyard (game show): 269,000 viewers (Saturday 25 Oct. 8:55 pm)
• Le Parfum du succès (made-for-TV film): 241,000 viewers (Friday 3 Oct. 8:45 pm)
• Télé Grenadine (animation evening): 229,000 viewers (Tuesday 30 Sept. 8:45 pm)

October’s Top 3 audiences in the age four-and-up demographic:

• Famille Pirate (cartoon): 584,000 viewers (Friday 3 Oct. 5:30 pm)
• Inspector Gadget (cartoon): 565,000 viewers (Wednesday 15 Oct. 6:20 pm)
• La Panthère Rose (cartoon): 561,000 viewers (Friday 3 Oct. 5:20 pm)

Source: Médiamétrie – Médiamat survey (29 September to 2 November 2008)

With 8% growth, the month’s excellent results confirm the drawing power of the new programming strategy introduced at the start of the 2008 autumn season.

• In October, VIRGIN 17 registered the strongest growth among DTT-only channels in the age four-and-up demographic, with an increase of 8% compared to September 2008. Its nationwide audience share in France doubled over a one-year period.
• Virgin 17 continues to draw more viewers: each week: the channel is watched by 17,422,000 people over age four, representing growth of 67% versus October 2007.
• In October 2008, Virgin 17 registered a 25% increase in audience share in the 25-49 demographic with access to Virgin 17 versus the previous month.

October’s positive results confirm the success of the new prime-time programming policy introduced in September 2008:

• +20% in the age four-and-up demographic with access to Virgin 17 vs. September 2008.
• +11% in the 15-34 demographic with V17 access vs. September 2008.
• +33% in the 25-49 demographic with V17 access vs. September 2008.
• +25% in the DTT-only age four-and-up demographic vs. September 2008.

Broadcasts with the best audience figures included:

• The movies Universal Soldier and Lake Placid.
• The made-for-TV movies Prisonnières de l’ouragan and Le piège.
• The new magazine show Paparanews, which was among the channel’s Top 5 most-watched shows as of its broadcast première on 31 October.

Source: October 2008 Mediametrie-Mediamat survey, average audiences Monday-Sunday, 3 a.m.-2:59 a.m.

Orange cinema series, symbol of the Orange “Content Everywhere” strategy
For several years, Orange has committed itself to offering its customers content that is always more attractive and more exclusive by providing cutting-edge innovations in terms of content consumption. With the launch of Orange cinema series, Orange is offering cinema addicts a new way of watching films and TV series. Apart from traditional broadcasting, all programmes are available on demand and and can be watched on any screen at any time depending on the circumstances.
Quality, up-to-date films for everyone and previously unseen series
Orange cinema series includes a main “feature film” channel, called Orange cinemax, which is available in HD and groups together the best of recent films and TV series that have never before been seen in France. The offer also includes four other channels that are organised along the themes of family, action, arthouse and classics.

• Orange cinemax: all the blockbusters exclusive to Orange and in High Definition
• Orange cinehappy: cinema for all the family
• Orange cinechoc: all types of action film
• Orange cinenovo: a reference in independent cinema
• Orange cinégéant: cinema classics at your fingertips

a premium exclusive offer
Orange cinema series offers its subscribers more than 1,200 films, 1,000 hours of TV series, 200 documentaries and 300 hours of children’s series each year. To broadcast the best films and series, Orange is leading an intensive partnership policy with prestigious studios. Today many of the greatest Hollywood and French studios have signed an agreement with Orange cinema series: Warner Bros, Metro Goldwyn Mayer, HBO, Gaumont, BAC Films, Wild Side Films and Fidélité Film.
Orange cinema series subscribers will be able to watch several exclusive films from Warner Bros International TV (Harry Potter and the Order of the Phoenix, Ocean’s 13, I am Legend, Dark Knight…), and the new HBO TV series (True Blood, Generation Kill, John Adams, In Treatment…). They may also rediscover successful series from the Gaumont, Warner and HBO back catalogues (Six Feet Under, The Sopranos…).

And to be sure not to miss a single episode or film broadcast exclusively, all programmes shown on the five channels will be accessible on demand during 30 days after the first broadcast. Additional programs on demand including series and films will be also available so that cinema lovers will always have a good film to watch.
Orange cinema series, another form of television

The richness of the Orange cinema series offer goes beyond exclusive programming. In fact, Orange offers many innovations to subscribers that will revolutionise their experience of cinema and series. With the multi-screens approach, subscribers may watch Orange cinema series channels and programmes on-demand on five different screens (TV, PC and portable video players). Furthermore, Orange cinema series offers a catch-up service to see or re-watch programmes that have already been broadcast. In addition, subscribers will be able to pursue their journey in a film director’s world thanks to the “complementary” service that enables them to watch related programmes by theme. For example, when Rocky Balboa is broadcast, the five previous Rocky films will be available on demand as a complement.  From 2009, subscribers who have missed the beginning of a programme will be able to watch the film again thanks to the restart solution.

Users increasinly show their desire for more flexibility to be able to watch films and series wherever and whenever. To satisfy them, Orange cinema series enables them to freely transfer all video content from the five channels and on-demand programmes onto portable video players such as Archos devices and, in coming months, compatible mobile phones.

Orange cinema series, it’s happening now
TV + PC offer: €12 euros/month

• Free access to Orange cinéma séries channels available until 30 November for all Orange TV customers
• For all new subscription, the first three months are free until 14 January 2009

Mobile offer: €6 /month. Free access to Orange cinéma séries channels available until 12 January 2009

Lagardère Entertainment is boosting its audiovisual production activities by acquiring a controlling interest in production house Merlin.

According to Arnaud Molinié, “We are delighted to welcome Pascal Fontanille and François Aramburu, whose talent as authors and producers needs no introduction. The acquisition of Merlin marks another step in Lagardère’s strategy of reorganizing production so as to consolidate – with all our producers – a foundation for future growth.”

Pascal Fontanille adds, “We had reached a plateau in our development, so an alliance with Lagardère Entertainment will enable us to grow more rapidly and take on still more ambitious projects.”

Established in 2000 by Fontanille and Aramburu, Merlin has more than 70 hours of TV production under its belt, including the series Baie Ouest (TF1) and Faîtes Comme Chez Vous (M6), such miniseries as Un Été de Canicule (France 2) and La Prophétie d’Avignon (France 2), and one-off dramas like Un Amour à Taire (France 2). Merlin is currently producing a TV film featuring Lorie and Christophe Malavoy, De Feu et de Glace, coming soon to TF1.

A specialist in audiovisual production, live entertainment and audiovisual rights management, Lagardère Entertainment is a subsidiary of Lagardère Active.

Gulli is unveiling the new gulli.fr, a multimedia realm of discovery and interaction for children aged 7 to 14 and their parents. Boasting an incredible array of reference information, videos, games and community forums, gulli.fr is a rich, vibrant site where you’ll find everything that makes Gulli so enjoyable.

Gullipédia: the incredible encyclopedia
A powerful tool for discovery, learning and expanding your knowledge, Gullipédia offers:

• A lively, entertaining online encyclopedia produced in partnership with Universalis Junior: over 200 articles on ecology, science, myths and legends, politics, the animal kingdom, religion, sport and more. Enhanced content that includes photos, maps and illustrations for better comprehension.
• Fun vocabulary tools: a French dictionary (Littré Moderne), thesaurus, style guide and French/English dictionary (Websters), including an audio tool to be sure your pronunciation is “parfait”! And for anyone who might need to review the imperfect subjunctive or past perfect indicative, there’s a module for conjugating verbs in any tense you like.

Video for an action-packed site
TV anytime (GulliMag, Gulli’s daily magazine show; experiments conducted on Gulli’s science show Prouve-le!), Webisodes (exclusive behind-the-scenes action on series like Grand Galop and Oggy et les cafards), video clips (featuring Gullia and more), promotional clips of new films and TV programmes, and coming soon: a VoD service. There’s a lot happening at gulli.fr!

Gulli Tribu: a new “responsible” community forum for children and parents
gulli.fr has created fully moderated blogs and forums where children can talk about all their favourite topics. Meanwhile, parents can discuss issues relating to childrearing, while at the “Parents’ Corner” they’ll find information on the site’s content, programming on the Gulli TV network and advice on keeping the Internet safe for their families!

And with gulli.fr you get even more, including:

• A fun, interactive search engine hosted by Gullia, the channel’s mascot, that visitors can use to find what they need or simply browse through all the site has to offer!
• Virtual photo exhibitions on a range of topics, using photos taken from the catalogue of SIPA Press, France’s premier independent source of photojournalism
• Over 70 flash games and games to download, for having fun or competing with friends
• Competitions to win numerous prizes awarded each day
• And of course the world of Gulli, featuring all the most popular heroes among children and parents alike, from Oggy et les cafards and La panthère rose to Grand Galop and Plus belle la vie.

    From 9 August 2008, Orange customers will be able to follow  “Ligue 1” action on their TV, mobile and PC.
    Two new features: a TV studio travelling from stadium to stadium and eight matches available live via mobile phone.
    Orange is adopting a new editorial approach, with greater proximity and customisation of programmes.
    The Orange football service will be marketed from 3 July in Orange shops and through customer services.

Orange football: a unique service for enjoying live football on demand

Saturday night - the top league 1 match shown live on TV and in High Definition:
The Orange football Saturday night offering, which has been designed for a mainstream audience, focuses on the main league 1 match and the week’s football news, with exclusive reports and news on teams as they prepare for the match. Presented by Céline Géraud and Denis Balbird, the mobile TV studio will host pundits and guests to ensure the viewer is at the heart of the evening’s event.
Interactivity options will enable viewers to access real-time match statistics directly on their TV (goal count, attempts, corners, cards, etc.).

And in the week before the next championship matches are played, fans can view the highlights of all matches played on demand on their TV or PC: match summaries, “best of” sequences dedicated to the best goals and saves, plus a 52 minute-long ‘magazine programme’ covering all league 1 news…

Orange has expressed its satisfaction at obtaining a DVB-H mode frequency for its Orange Sports TV channel, following the request for applications issued on 6 November 2007 by the French Audiovisual Regulator (Conseil Supérieur de l’Audiovisuel) for the broadcasting of personal mobile television services.

Orange Sports TV, the sports news and discovery channel, will thus be one of the first channels to be broadcast on mobiles in France, via the new DVB-H standard. Winning this frequency will enable Orange Sports TV to continue its development and expand its audience. The channel, launched on 6 September 2007, is already available on TV capable mobiles, on the Internet and on Orange TV.

Orange, pioneer and leader of mobile TV
Orange, the first in Europe to launch live mobile TV in 2004, has now opened up access to television using Edge, 3G and 3G+ technology to 6 million of its French customers. Orange offers up to 62 live TV channels and 3,000 videos. Based on its experience, Orange believes strongly in the potential of personal mobile television, which the Group plans to support through all available technologies. This is why Orange is also committed to personal mobile television as a content producer. While the DVB-H business model is made clearer via a debate involving all the sector’s players, the success of the service is based on the design of channels adapted to mobile consumers.

Mobile Orange Sports TV: “All sport, wherever I want, whenever I want, however I want”
Orange Sports TV is the first French television channel specially created for multi-media broadcasting: TV, Internet, and mobile. Orange Sports TV is a sports information channel with a highly specialised team of writers and crew who are lent support from the experience and content provided by its prestigious partners such as CNOSF (The French Sports and National Olympic Committee) and the Sporever Group.

As part of the deployment of Orange’s triple play offer (telephone, Internet, TV), 24 million French households (98.3% of the mainland population) will be able to enjoy Orange TV from July 3rd. Agreements recently signed with Eutelsat have made it possible extend the Orange TV offer. Up until now, broadband TV technology only enabled half of France’s households to benefit from the offer. Thanks to this combined ADSL-satellite technology, Orange TV programmes will be available to virtually all French households.

At the MIPTV 2008 event in Cannes, Orange confirmed the selection of two orbital positions for Eutelsat HOT BIRD™ and ATLANTIC BIRD™3 (broadcasting from 13° East and 5° West) to handle the satellite broadcasting of the TV flow reception of its triple play offer (telephone, internet and TV), where this is not accessible via ADSL. Globecast, a subsidiary of the group, will handle the encoding, encrypting and transmission of the Orange TV channels.

As of July 3rd, nearly all French households will be able to subscribe to an Orange triple play offer (from €29.90 a month). Depending on where they live, customers will be equipped with either Orange TV via ADSL or via an installation combining ADSL and satellite reception. As of 23 May 2008, the orange internet site www.orange.fr will provide information on the practical aspects of Orange TV access and determine eligibility…