French groups TF1 and M6 propose merger
MUMBAI: Fierce competition forces alliances upon nations, people, and companies.
MUMBAI: European media company RTL Group has reported results for the first quarter ended 31 March 2013. It reported operating income (EBITA) of ?207 million, up 8.4 per cent, primarily driven by Mediengruppe RTL Deutschland. In India the company has a JV with RBNL.
Revenue was up by 0.5 per cent to ?1.3 billion. This reflects slightly higher revenue at Mediengruppe RTL Deutschland and the sale of the Handball World Cup rights in January 2013 by UFA Sports.
However television format creator and distributor FremantleMedia?s revenue decreased to ?303 million, mainly due to phasing effects in Germany, the UK, Australia and at Radical Media. Accordingly, EBITA decreased to ?10 million
Net profit attributable to RTL Group shareholders increased by 18.7 per cent to ?133 million, mainly reflecting higher operating profit and a partial reversal of an impairment on RTL Group?s shareholding in the Spanish broadcasting company Atresmedia (formerly Grupo Antena 3)
Net cash from operating activities was ?327 million, resulting in an operating cash conversion of 164 per cent. The company adds that ad market conditions in the first quarter remained challenging, in line with local macro-economic developments. Looking across the Group?s larger markets, RTL Group estimates that only the German TV advertising market was up by 1.3 per cent, while other markets were down.
Outlook: At the beginning of the second quarter, ad market conditions continued to be challenging, with negative growth in all of RTL Group?s core markets. As reported previously - at the time the full year results for 2012 were announced - there is a degree of uncertainty as to the further development of the general market conditions and therefore as to whether the profit for the full year will reach the same level as in 2012.
RTL Group co-CEOs Anke Sch?ferkordt and Guillaume de Posch said, "We?ve had a solid start to the year, with our best ever first quarter EBITA and high levels of net profit and cash conversion. Performance in Germany has been particularly strong and our other businesses are resilient facing the current economic conditions."
"Given this environment, RTL Group has a clear focus on maintaining its leadership positions and delivering financially while pursuing opportunities in broadcasting, content and digital which will develop the business further in future years," he further stated.
MUMBAI: European media and entertainment company RTL Group has announced that revenues for the year reached ?6 billion, despite an increasingly challenging economic environment
The increase of four per cent to ?6.0 billion, reflected higher revenue from Mediengruppe RTL Deutschland and FremantleMedia, and exchange rate effects.
However net profit attributable to RTL Group shareholders was down to ?597 million compared to ?696 million in 2011. This was mainly due to an impairment amounting to ?72 million on RTL Group?s shareholding in the Spanish broadcaster Grupo Antena 3
Net cash from operating activities was ?925 million, resulting in an operating cash conversion of 101 per cent and a net cash position of ?1,051 million at the end of 2012.
For the third consecutive year, RTL Group generated an EBITA of more than ?1 billion, despite an increasingly challenging economic environment
EBITA decreased 4.9 per cent to ?1,078 million as a significantly higher profit contribution from the German TV operations was offset by lower results from operations facing more challenging market conditions in other countries, higher investment in programming and portfolio effects such as the disposal of the Dutch radio stations.
Reported EBITA margin remains at a healthy level of 18.0 per cent compared to 19.7 per cent in 2011. Throughout 2012, European TV advertising markets clearly reflected local macro-economic developments: while the German TV advertising market was slightly up, the French, Dutch and Belgian markets were estimated to be down year-on-year, with a significant slowdown over the second half of the year; markets in Spain, Hungary and Croatia continued to experience a more pronounced decline.
44 per cent of RTL Group?s revenue originates from a range of non-advertising activities such as content production, rights trading, teleshopping, e-commerce, merchandising.
In total the RTL Group launched five new TV channels in 2012 - a significant investment to further strengthen the broadcasting business. On 5 November 2012 it launched the action entertainment channel Big RTL Thrill in India. This is RTL Group?s first broadcasting venture outside of Europe. The channel already reaches more than 25 million households.
The RTL Group noted that Bertelsmann is considering a reduction of its shareholding in RTL Group through a capital market transaction, while maintaining a qualified majority of approximately 75 per cent. While the Supervisory Board of Bertelsmann has in principle approved a potential reduction of shares in RTL Group, no final decision has been taken yet on whether or not Bertelsmann will offer any part of its shareholding in RTL Group.
RTL Group?s content production arm FremantleMedia continued to produce number one prime time shows for the leading broadcasters in almost every major TV market in the world; the company?s revenue grew by 19.7 per cent, driven by growth in the US, UK, Germany and Asia-Pacific, exchange rate effects, and recharges without margins to third parties for certain production contracts; EBITA decreased slightly to ?138 million.
?American Idol? has been the number one entertainment series in the US - the biggest TV market worldwide - for the past nine years.
With an average total audience share of 40.8 per cent, ?Britain?s Got Talent? was the highest rated entertainment series in the UK for 2012.
The local versions of ?The Farmer Wants A Wife? in France, the Netherlands and Germany are doing well with audience shares of up to 43.7 per cent.
FremantleMedia?s new management team has put a clear focus on fuelling its creative pipeline, developing new formats and building brands, across a broad range of genres, while maintaining market leadership in its core business areas.
The new structure announced on 1 February 2013 will create a Digital & Branded Entertainment division alongside a new global division focused on distribution and kids & family entertainment. Other commercial ancillary activities will be undertaken by the local production companies.
The kids and family entertainment division has signed a new five-year partnership with BBC Children?s to develop and co-produce a continuous sequence of new children?s programmes.
RTL Group co-CEO?s Anke Sch?ferkordt and Guillaume de Posch said, "In 2012, RTL Group has once again demonstrated that it can operate successfully even in a very challenging economic environment. For the third consecutive year, our EBITA exceeded ?1 billion. Our EBITA margin was very healthy at 18.0 per cent and our largest profit centre, Mediengruppe RTL Deutschland, achieved a new record EBITA of ?581 million. This on-going success is based on RTL Group?s unique set-up: we are the only pan-European free-TV group with a worldwide content production powerhouse.
"Based on our strong financials, we also stepped up our investments and initiatives in our three strategic fields of broadcasting, content and digital. During 2012, RTL Group successfully launched five new TV channels. We are also building a strong and rapidly growing presence in non-linear TV and exploring the field of online video networks, with our first Youtube channels produced by FremantleMedia.
"Our expertise in content and creativity has already proven to be a competitive advantage for the non-linear TV world as audiences are attracted by hit formats and established brands, across all screens and devices. This is why RTL Group is well positioned to develop a leading position in high-growth markets such as online video advertising.
"Looking to 2013, economic conditions remain challenging, in line with local market conditions, and visibility continues to be limited. Facing this environment, we have a clear focus on maintaining our leadership positions and delivering financially while pursuing opportunities in broadcasting, content and digital which will develop the business further in future years."
MUMBAI: Bilingual French channel TV5Monde has appointed ex- RTL executive Yves Bigot as the new chief executive officer of the French language network after extensive consultations between its founding and shareholding governments.
Yves Bigot takes over from Marie-Christine Saragosse, who was appointed chairwoman and CEO for the holding company gathering the assets of the French government in French media broadcasting abroad, Audiovisuel Ext?rieur de la France.
Bigot was born in Limoges, France in 1955 and has made a career in the world of media and journalism since 1973 as a journalist, presenter, director, scheduler and producer for television, radio and the written press.
His past tenures include top management positions at music label Phonogram (now Mercury) from 1994-1997, French public TV broadcaster France2 from 1998-2005, Belgian public TV broadcaster RTBF from 2006-2008 and Endemol from 2008-2010.
Since August 2010, Bigot had been managing director for RTL.
MUMBAI: Big RTL, the television JV between Reliance Broadcast Network (RBNL) and Europe?s entertainment firm RTL Group, has named its new channel as Thrill.
The new channel marks RTL Group?s entry into the Asian television market. This is Reliance ADAG?s second International JV in the broadcasting space, the first being with CBS Studios International.
Positioned as the ?first action entertainment? channel, it will be launched by the end of June. The company believes that there is a void in the action space. Thrill will serve international content from across the globe, dubbed in Hindi.
The target audience that the channel will cater to is males in the age group of 15-44, across metropolitan and non-metropolitan areas in the Hindi-speaking markets, who are action and adventure lovers.
RBNL CEO Tarun Katial said, ?We are excited to offer India its first action entertainment Channel, Thrill which will showcase world-class international content, dubbed in Hindi. The channel fills a need gap that exist in the entertainment landscape and we are confident that our proposition, backed by consumer insights, will resonate excellently with viewers and marketers alike.?
In order to provide diverse programming content, the channel has signed strategic deals with various leading international content providers for successful global formats and series across a variety of genres: action reality, action thrillers, fighting and wrestling championships, shocking, never seen before films, extreme sports, late night entertainment and a robust library of hit Hollywood action movies, all dubbed in Hindi.
Big RTL has teamed up with DTH service provider Reliance Digital TV, a Reliance ADAG company, to distribute Thrill. The company says that this will help in giving the channel access to 3 million digital television homes across India. It is in the process of closing deals with other operators.
Thrill will be distributed as part of a 7-channel bouquet of RBNL which includes Big CBS Prime, Big CBS Love, Big CBS Spark, Big CBS Spark Punjabi, Big Magic and UTV Bloomberg.
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