RTL trading update

RTL Group is making the following trading update in advance of its interim results announcement in September, for the six months ended 30 June 2002. Didier Bellens, Chief Executive Officer of RTL Group, said: “In what has remained a tough operating environment we have several success stories to report, namely Channel 5, Radio France and FremantleMedia. Channel 5 has grown its audience share by 10 per cent and its share of the advertising market by 14 per cent since the beginning of the year.
"Our French radio business has extended its market leadership over commercial rivals and out performed in terms of advertising market growth. Finally, the performance of our production business, FremantleMedia, has continued to improve, helped by the success of 'Pop Idol' in both the UK and, I am pleased to report, in the US as well."
Despite difficult trading conditions over the half-year, the company said it continued to "perform well" and attract significant audience shares in our main markets. The company say that in Germany, RTL Group is now the clear number one family of television channels and in France they have consolidated their position as number two television broadcaster.
Mr Bellens added: "We have remained tightly focused on improving the operating performance of the business by reducing costs and selling or closing down non-core or under performing assets. Because of these measures to improve operating efficiency RTL Group will be well positioned to benefit when the rebound in advertising markets comes. RTL Group is now operationally stronger than ever before, is exploiting more and more synergies and has a lean, cost conscious structure. In addition, we believe a return to more reasonable pricing levels for sports and feature film rights will bring a reduction in programming costs.
"As we stated in March, at our full year results announcement, advertising market visibility is extremely low. While it appears that there are some first, tentative, positive signs in the UK and Netherlands, Germany is weak, and France flat. Despite these continuing difficult markets we believe we are on line to meet market expectations for the full year.”
(GB)