RTL, the owner of television broadcaster Five, yesterday tried to avoid adding further fuel to the rumours surrounding a merger with Channel 4, by saying it had to decide how to develop its multi-channel strategy first before any discussions take place.
At a presentation to unveil the group’s interim results, chief executive, Gerhard Zeiler, refused to say whether a deal with Channel 4 was on the cards but instead said that he was reviewing a range of options which include; a deal with another company, an acquisition or setting up its own channels.
Zeiler insisted that he will not rush his decision on the merger and will not succumb to the pressure of intense questioning by saying: “Six months ago, I said we had 18 to 24 months to decide. That’s a timeframe I will stick to. We are in no hurry to decide about it.”
RTL which owns a 65% stake of Five, saw pre-tax profits grow to â‚Ź195 million from January to June, up from â‚Ź25 million a year ago, spurred by a record period from Five which achieved pre-tax profits of £6 million, up from £1 million year-on-year.
In the interim statement RTL said, despite mixed advertising market conditions across Europe with modest growth in Germany and the Netherlands, moderate growth is beginning to show through in the UK which in turn is reflected in the results produced by Five, which ‘continues to outperform, gaining audience and advertising market share.’
Group revenues for the period were up over 11% to â‚Ź2.45 billion, boosted by consolidation of France’s second largest channel, M6. In RTL’s home market, Germany, revenues fell by 5% to â‚Ź912 million.
Zeiler said: “RTL Group has delivered a solid performance in the first half of this year with record results from our major businesses. RTL Television re-confirmed its leading position in Germany, M6 outperformed its marketing in France and Five once again grew market share in the UK.
Looking forward, he added: “For the remainder of 2004 we continue to see mixed advertising market conditions across Europe with visibility remaining limited. Despite this we remain confident on the outcome for the full year.”
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