RTL Group: High depreciation and amortization depress profit
High write-downs in the UK more than halved the net profit of Europe's largest television provider RTL Group in 2008. Net profit fell from 674 million euros in the previous year to 296 million euros.
High write-downs in the UK have more than halved the net profit of Europe's largest television provider RTL Group in 2008. Net profit fell from 674 million euros in the previous year to 296 million euros, as the Luxembourg-based company announced on Thursday, according to SDA. Despite the difficult economic environment, operating profit increased by 2 percent to a record 916 million euros. However, the company had to make high unscheduled write-downs on television activities in the UK, which alone amounted to 337 million euros.
Adjusted for acquisitions, disposals and currency effects, revenues rose by 2.6 percent to 5.75 billion euros in the past year. Despite an increasingly difficult advertising market in Europe, RTL has increased its revenues and operating result for the seventh year in a row, explained CEO Gerhard Zeiler. RTL intends to pay its shareholders a dividend of 3.50 per share, of which 2.10 euros will be paid as a special dividend. The lion's share will go to Bertelsmann. The media group holds around 90 percent of RTL.
In view of the situation on the advertising markets and the very short booking cycles, Zeiler did not dare to make a forecast for the current year. But it is to be expected that the profitability level will be below that of 2008, said the RTL boss.
Adjusted for acquisitions, disposals and currency effects, revenues rose by 2.6 percent to 5.75 billion euros in the past year. Despite an increasingly difficult advertising market in Europe, RTL has increased its revenues and operating result for the seventh year in a row, explained CEO Gerhard Zeiler. RTL intends to pay its shareholders a dividend of 3.50 per share, of which 2.10 euros will be paid as a special dividend. The lion's share will go to Bertelsmann. The media group holds around 90 percent of RTL.
In view of the situation on the advertising markets and the very short booking cycles, Zeiler did not dare to make a forecast for the current year. But it is to be expected that the profitability level will be below that of 2008, said the RTL boss.
