Restructure helps German TV group return to profit
BERLIN — German TV group EM.TV is back in the black for the first time in five years.
Its pre-exceptional net result reached E44 million ($56.8 million) in 2004, up from a $167.7 million loss a year earlier. Including a one-time bookkeeping gain due to the restructuring of a convertible bond, net profit reached $173.4 million.
Revenue was down $82 million to $267 million on restructuring and the sale of major assets — still better than the company’s $258 million target for the year.
Last year, EM.TV sold its 45% stake in Tele Munchen back to company topper Herbert Kloiber.
The sale followed an agreement reached by EM.TV and its creditors to restructure a $630 million convertible bond that the company was unable to pay. Bondholders received the proceeds from the Tele Munchen sale as well as about 60% of the newly downsized EM.TV.
The Sdax-listed company said it expects single digit sales growth in 2005.
EM.TV added that 2003 figures did not provide an accurate basis for comparison because of last year’s restructuring.
Growth was driven by the acquisition of the remaining 50% of Junior.TV from the insolvent Kirch Media, providing EM.TV with one of the world’s largest rights libraries in the children’s and youth market. Collaboration with major clients such as the pay TV platform Premiere and terrestrial TV group ProSiebenSat 1 also helped boost profits.
Looking ahead, EM.TV is examining acquisitions in the children’s and youth business, where it wants to strengthen its market position.
Company also plans to expand its online portal Sport1 and invest in programming rights for its sports channel DSF.