AMSTERDAM — Profits before extraordinary gains and losses shot up by 36.4% in the first half of Dutch-based Endemol Entertainment’s 1999-2000 fiscal year, while revenues climbed a mere 13%.
Net profit (which rose 153% with the one-time gains and losses) and revenue numbers largely were driven by the deconsolidation of German distrib Helkon Media.
Spanish media giant Telefonica is in the process of taking over Endemol.
Profits to $20.8 mil
For the first half-year ended Jan. 31, Endemol posted a profit before extraordinary gains and losses of 48.3 million guilders ($20.8 million), up from $15.3 million in the year-earlier period. Net profit rose to $38.5 million over $15.2 million a year earlier.
The net profit figure was pushed by the sale of 26% of Endemol’s 51% stake in Helkon. Net revenues, booked at $224.9 million, were negatively affected by the Helkon deconsolidation and completion of the sale of Endemol’s last remaining live entertainment assets. Helkon launched onto the Frankfurt stock exchange last October, at which time Endemol reduced its shares to 25%.
TV’s vivid growth
Aside from the Helkon impact, TV production revenues rose by 24.9% overall year-to-year. Revs in Holland were up by 18.6% partly as a result of the successful multimedia project “Big Brother”; in all other territories except for Germany, revenues were up by 53.9%. German operations, which traditionally account for a huge slice of Endemol’s revenues, saw a tepid 5.3% rise in revenues.
Deconsolidation of Helkon also drove numbers down for Endemol’s TV distribution activities. Last year revenues for the first half-year were $16.8 million, with Helkon accounting for some $12.9 million of that. This year, revenues for the same sector were $9 million.