q1quarterly report 2007

Transcription

Q1_2007-E
04.05.2007
Q1
15:34 Uhr
Seite 2
QUARTERLY REPORT 2007
Content
Key Figures
2
First Quarter Highlights
3
Sports Segment
4
Entertainment Segment
9
The EM.TV AG Share
12
Interim Management Report
15
Consolidated Financial Statements
20
Notes on the Consolidated Financial Statements
25
Finance Calendar
30
Imprint
30
Forward-looking statements
This quarterly report contains statements relating to future events that are based on management’s assessments of future developments. A series of
factors beyond the control of the company, such as changes in the general economic and business environment and the incidence of individual risks or
occurrence of uncertain events, can result in the actual results differing substantially from those forecast. EM.TV does not intend to continually update
the forward-looking statements contained in the quarterly report.
Important notice
In case of any differences the German version of the quarterly report prevails.
2
Key Figures
Key Figures
3/31/2007
12/31/2006
175.7
80.8
355.6
70.9
192.8
54.2%
74.9
3.6
178.5
83.0
381.2
70.9
189.8
49.8%
105.4
0.0
1/1/to
3/31/2007
1/1 to
3/31/2006
Sales
> Sports
> Entertainment
> Others
60.3
54.7
5.6
0.0
60.1
46.1
13.9
0.1
Earnings before interest, taxes depreciation and amortization
(EBITDA)
10.3
7.3
-4.7
5.6
5.3
3.1
-4.3
3.0
0.3
-0.5
1.5
-4.2
-27.7
6.9
-11.3
1.1
3/31/2007
3/31/2006
64.0
4.65
297.6
56.1
4,69
263.1
1/1 to
3/31/2007
1/1 to
3/31/2006
Average number of outstanding shares (undiluted) in million
Earnings per share (undiluted) in Euro
60.6
0.05
53.7
-0.01
Employees (average for the period)
792
786
In Euro million
Non current assets
> Intangible assets
Total assets
Subscribed Capital
Equity
Equity ratio (in percent)
Long-term financial liabilities
Short-term financial liabilities
Depreciation and amortization
Earnings before interest and taxes (EBIT)
Earnings before taxes (EBT)
Shareholders’ interests
Cash flow from operational activities
Cash flow from investment activities
Cash flow from financial activities
Outstanding shares in million
Share price in Euro
Market capitalization (based on outstanding shares)
Business development in the first quarter 2007 exceeds expectations
Substantial increase in the earnings situation
Group sales stabilized as planned
Dynamic development of the Sports Segment.
Resolution passed on the concentration on activities in the sports sector.
EM.TV recorded a very successful first quarter in 2007. The business
developed exceeded the Management’s expectations. Group sales
achieved the high level of the previous year and quarterly earnings were
significantly higher than those in the same quarter of the previous year.
This encouraging development is mainly attributable to the sustained
growth course of the Sports Segment. The strategic decision made in
May to concentrate on this segment and to sell the activities of the Entertainment sector bears excellent perspectives for the Sports Segment.
3
4
Sports Segment
TV
DSF Deutsches SportFernsehen
The advertising market within the TV sector experienced overall positive growth during the first
quarter 2007; a general development that also benefited DSF. The months of January and February
were particularly successful, while, in contrast, March saw a somewhat negative growth environment. One contributory factor to this decrease was the fact that, during March, there was a relatively high volume of products being promoted across a variety of advertising sectors of little or
no interests to DSF's target group.
Sales and earnings exceed expectations
There was an increase in advertising revenues during the reporting period against the first quarter
of 2006. Revenues from the T-commerce sector (interactive call-in formats, phone-based valueadded services) also enjoyed positive growth during the first three months of this year compared
with the same period of the previous year. Sales and earnings for the first quarter 2007 came in
ahead of expectations.
In a meeting held on March 22, 2007, the media committee of the Bavarian State Authority for
New Media renewed DSF’s broadcasting license for a further eight years. In 2007, the sports
broadcaster started the new year with a “prime time promise” that guarantees no call-in formats
during prime viewing time – weekdays between 5.30pm and 11.00pm and weekends between
9.00am and 11.00pm.
Successful expansion of customer portfolio
During the first quarter 2007, DSF succeeded in expanding existing partnerships within its sponsoring and special advertising unit, and in securing new co-operation partners. Telecommunications
company CALLAX Telecom Holding, which currently presents Motorvision, Bundesliga aktuell and
Männer TV, also acquired the presentation sponsorship rights to all Formula 1 broadcasts on DSF.
Furthermore, Klarmobil secured a sponsorship package for regular features on Bundesliga – Die
Spieltaganalyse and Bundesliga aktuell, as well as the presentation sponsorship for U21 international matches. New partners in the sponsoring/special advertising unit include Sony Computer
Entertainment as presenter of the new Wechselzone format, and TEMOT Autoteile GmbH as title
sponsor of new format Die Autoprofis – die Werkstatt-Profis. In addition, Deichmann acquired the
title sponsorship for new format … dann laufen wir – mit Victory!, with its “Victory” product line,
while Erima is presenter and competition sponsor on Bundesliga – Die Spieltaganalyse and competition sponsor on Bundesliga aktuell. New customers in classic advertising include Daihatsu
and Griesson – de Beukelaer GmbH & Co. KG.
Stable market shares for DSF
The start of the year saw DSF sustain its stable market share position. With 1.9 percent among
the core target group of males aged 14 to 49 years and 1.0 percent among viewers overall, DSF
achieved almost identical figures to those of the same period the previous year (Q1 2006 – 1.1
percent of viewers overall; 1.8 percent of males aged 14 to 49).
Strong ratings with “Champions TV” and UEFA Cup
DSF reported ratings success during the first quarter of 2007 with “Champions TV” and the UEFA
Cup. On February 21 an average of 2.5 million viewers (peak 3.35 million) followed the match
5
played between FC Barcelona and FC Liverpool on DSF within the “Champions TV” format produced
by Premiere. Among the target group of males aged 14 to 49, it brought DSF a market share of
12.4 percent. DSF was equally successful with the UEFA Cup match between Blackburn Rovers
and Bayer Leverkusen, achieving ratings of almost two million viewers on average and a market
share among males aged 14 to 49 of 10.2 percent.
Handball booms on DSF – success with World Championship and Bundesliga
Alongside soccer on a national level (1st and 2nd Bundesliga, indoor soccer, test matches) and
international level (“Champions TV”, UEFA Cup, FA Cup, U21 international matches), one of the
most notable highlights of the reporting period was the Handball World Championship hosted by
Germany. DSF acquired transmission rights to all matches without German participation from
rights owner Sportfive, as well as to highlights of matches played by the German national team.
Overall, DSF broadcast 19 matches live from the Handball World Championship, some in lengthy
conference format lasting up to four and a half hours – with outstanding results. An average of
over 700,000 viewers followed the live matches from the Handball World Championship on DSF.
And with the second semi-final between Poland and Denmark, DSF reached an average of 2.1
million viewers, achieving a market share of 8.6 percent among males aged 14 to 49.
The boom inspired by the championship title victory of the German national team had a knock-on
effect in the first quarter on coverage of the German Handball Bundesliga. While an average of
260,000 viewers followed the Bundesliga live on DSF prior to the World Championship, the station achieved average ratings of 330,000 viewers from the four matches played after the World
Championship.
DSF acquires Formula 1 rights package and launches new formats for men
At the start of the 2007 sporting year, DSF further expanded its program portfolio with another
top-level license, with the acquisition of an extensive rights package to Formula 1. The contract
agreed with rights owner RTL runs initially for a period of one year, with an option to extend for a
further year.
During the current 2007 season, DSF is showing the first and second free training rounds of motorsport’s premium series on Fridays, either live or as detailed highlights. The highlights of the qualifying rounds and the race itself are broadcast on Saturdays and Sundays. The first race of the season on March 16 in Australia was watched on DSF by an average of half a million viewers.
Alongside Formula 1, the first quarter 2007 also saw DSF launch new male-oriented formats. Added
to the schedules in March were running magazine show … dann laufen wir – mit Victory! and automotive magazine Die Autoprofis – die Werkstatt-Profis. March of this year also saw the return of
the finest wrestlers from the WWE (World Wrestling Entertainment) to DSF in SmackDown (overall
52 series).
6
Sports Segment
Online
Sport1
Online advertising continued to be driven during the first quarter, too, by increased usage of broadband. The growing number of online users is also resulting in more demand for online advertising
from the more traditional sectors. During the first quarter 2007, Sport1 succeeded in continuing
the positive trend of the previous year, retaining a firm grip on its market leadership within the
online sports sector with continued growth in hit ratings and the acquisition of new big-name customers, as well as the expansion of its content and services business unit.
Significant growth in sales and earnings
Through the increase in its overall performance and the resulting increase in earnings, Sport1
succeeded in making an extremely positive contribution to the financial result of the EM.TV Group
Sports Segment during the reporting period.
Sport1 maintains strong hit ratings
Despite the absence of major sporting events such as the Winter Olympics, which took place in
the same quarter of 2006, Sport1 was able to report further growth in hit ratings of over 14 percent for the first quarter 2007, against the first quarter of the previous year.
A key factor in this ratings growth was the Men’s Handball World Championship, which took place
in Germany. Thus, during the reporting period, Sport1 maintained its place amongst the top 15
websites as rated by the IVW, with over 63 million visits and 441 million page impressions.
Success in securing and expanding customer portfolio
The main focus of the first quarter 2007 was to secure and expand existing successful sponsorship contracts. During the first three months of 2007, Sport1 succeeded in expanding co-operations with big-name customers such as Vodafone, Honda, Carrera and DKB.
The successful partnership with mediasquares GmbH for classic online marketing was consolidated via a second extension, and will continue for a further year.
Expansion of content and services unit
Intensification of activities within the content and services unit resulted in the acquisition of new
customers right at the start of the year and enabled long-term projects to be secured. An extensive
co-operation within the internet moving image sector was agreed with sporting rights marketer Sportfive. For a fee, users can call up a host of top soccer events – live and in full – on www.sport1.de
such as the UEFA Euro 2008 qualification matches, matches from the UI Cup, the UEFA Cup and
qualification matches from the Champions League.
February 2007 saw Sport1 reach a three-year co-operation agreement with NFL Europa for the
creation of its official website www.nfleuropa.de. Sport1 has initial responsibility for overall content,
graphic and technical design and development of the site. Under the terms of the co-operation
contract, Sport1 also has responsibility as a full service provider for hosting, editorial content and
– alongside NFL Europa – for marketing the website.
Sports Segment
Production Services
Sport1 now carries amateur soccer data
The online portal www.fussball.de, developed by Sport1 in co-operation with DFB Medien GmbH,
formed the basis for a new product launched February 1, 2007 under the auspices of T-Com.
Under the terms of the co-operation, Sport1 contributed its www.fussball.de internet domain, and
has since been publishing the latest match results from the world of amateur soccer up to the
district league level on www.sport1.de. The contract for this service with the DFB expired on
January 31, 2007.
Top athletes vote Sport1 best sports website
Germany’s top athletes voted www.sport1.de the best sports website of 2006. Winning the “2006
Herbert Award” in March 2007 is further confirmation of the successful route pursued by Germany’s
largest sports portal as market leader and quality benchmark. Sport1 secured a convincing win in
the ballot, in which 20,000 athletes cast their vote, against sports products such as those from
zdf.de and eurosport.de.
PLAZAMEDIA
Growth drivers in the first quarter were once again the broadcasting (playout) and outside production units. In addition, PLAZAMEDIA recorded an increasing requirement for exploitation of content
on new platforms such as mobile, IPTV, internet and pay-TV. Generally positive market conditions
also prevailed for pay- and free-TV products, which resulted in increased demand for the development of new formats and their associated production technology during the reporting period.
Further increase in sales and earnings
Through the systematic ongoing development of existing business units and the establishment of
new customer segments (format development and packaging as well as platform distribution),
PLAZAMEDIA is able to report a very dynamic and financially successful first quarter 2007. However, the absolute highlight was the production of the 2007 Men’s Handball World Championship
in Germany, for which PLAZAMEDIA served as host broadcaster. The World Football Gala, which
was produced by PLAZAMEDIA Austria, also contributed to the company’s success during the
reporting period.
Against the same period the previous year, PLAZAMEDIA achieved significant growth increases
during the first quarter 2007 in both sales and EBIT, helped by pleasing developments in the business of subsidiaries Creation Club and MUC Media.
Expansion of existing customer relationships and successful launch of new channels
The reporting period saw PLAZAMEDIA push forward with the technical development of its broadcasting center, in order to be able to remove tape from the entire production process. DSF, with
whom a new framework contract has been agreed, will also benefit from this.
7
8
Sports Segment
Production Services
Other positive effects on PLAZAMEDIA’s business activities were brought about by the expansion
of the sports program of arena, including line productions for the America’s Cup and the Spanish
soccer league.
A further highly promising development was the launch of three music channels for DELUXE MUSIC,
on the T-Home platform. PLAZAMEDIA is responsible for program management and is providing
DELUXE MUSIC with the overall technical infrastructure for the post-production. In addition, PLAZAMEDIA also succeeded in securing production contracts with “The History Channel” for soundtrack, packaging and management of the program “The Biography Channel” on the platform of
Kabel Deutschland GmbH (KDG).
New formats for Creation Club
The profitability of the company was further increased through new contracts from customers such
as ATV Austria for contributions to Hi Society features, as well as to the “Kochen mit Kids” format
and from the NFL Europa for the development and production of new formats for DSF. Additional
impetus also came from the production of trailers for the “ZDF-Sonntagsfilm” (ZDF Film on Sunday).
The agreement of a long-term production framework contract with DSF for the production of graphics/design and on-air promotions also laid an important foundation for the future.
Leadership through competence and innovation
On March 8, PLAZAMEDIA hosted the “Mobile Forum 2007” at its in-house studio together with
MEDIENTAGE MÜNCHEN and Mediencampus Bayern. 380 participants, 15 speakers, three discussion forums, as well as live presentations and showcases on the core topics of broadcast technology, mobile advertising and mobile content were not only proof of the relevance of the conference,
but also for the undisputed competence of PLAZAMEDIA, which commands an outstanding position within this sector.
Production
Production
The international advertising market showed no sustained upward trend during the first quarter.
This situation is forcing producers to seek at an even earlier stage co-production partners that are
increasingly from other sectors, alongside those from the traditional television sector. Decisive
trend was the marketing of programs via distribution channels such as video-on-demand (VOD)
and mobile. EM.Entertainment is staying abreast of this development with formats that are suitably structured in terms of content and technology.
Portfolio encompasses all genres and animation technologies
Productions from EM.Entertainment encompass all genres and animation technologies. By focusing
on production technologies such as CGI (“Computer Generated Imagery”) and Flash, the company
is securing itself marketing opportunities in the digital area that extend across all platforms, such
as VOD and mobile. The portfolio includes productions for pre-school children such as CGI adventure
series Zigby as well as formats for older target groups such as Adventure/Comedy No Cookies for
Trollz, based on the novels of Cornelia Funke and CGI-animated fantasy/adventure series Enyo,
which was realized in co-operation with German public broadcaster ZDF.
New management at Flying Bark Productions
At the end of February, Michael Hefferon took over as Provisional Managing Director of Flying Bark
Productions PTY. Ltd., a subsidiary of EM.Entertainment. In Michael Hefferon, Flying Bark Productions, leading producer of high quality children’s animation programs and family entertainment
formats in Australia, has secured the services of an internationally renowned expert within this
sector. Alongside his responsibilities as Managing Director, Hefferon also took over the co-ordination of all ongoing productions, as well as the restructuring of the production group, which is active in the production, licensing, marketing and interactive sectors, in line with the strategic positioning of EM.Entertainment.
Completion of pre-school series Dive Ollie Dive
Together with co-operation partner Mike Young Productions, Flying Bark Productions completed
the last 20 episodes of 52-part CGI pre-school series Dive Ollie Dive. Furthermore, by the end of
the reporting period, the company had produced a total of 22 episodes of action/comedy series
Staines Down Drains. The completion of all 26 episodes of the co-production with Flux Animation
Studio Ltd. and ZDF is scheduled for the second quarter.
9
10
Distribution
Distribution
The demand for cross-platform content within the national and international media sector witnessed ongoing growth in the first quarter. Thus, the marketing via new platforms such as VOD and
mobile increasingly gained in importance in comparison with classic rights distribution via TV and
DVD/video.
EM.Entertainment also accelerated the exploration of the emerging VOD distribution channel –
especially within the important US media market. In this regard, the company acquired, via an
intermediate holding company, 22.5 percent of new US VOD platform Kabillion at the beginning of
February. The Kabillion free-TV VOD product was launched in January 2007, and is aimed at fiveto twelve-year olds.
In addition, EM.Entertainment reached agreement with the ProSiebenSat.1 Group on a three-year
co-operation. Since the beginning of March, under the terms of this partnership, around 100 formats from the EM.Entertainment portfolio can be called up via DSL directly onto a PC or television
set from www.maxdome.de, the VOD portal of the ProSiebenSat.1 Group.
New distribution co-operation between EM.Entertainment and Sparrowhawk Distribution
At the end of March EM.Entertainment reached an agreement with London media house Sparrowhawk Distribution Ltd., a subsidiary of the Sparrowhawk Media Group, that brings together their
distribution units, as well as their extensive program portfolios, as part of a far-reaching mutual
distribution contract. The agreement encompasses all children’s, youth and family content from
the portfolios of EM.Entertainment and Sparrowhawk Distribution. Sparrowhawk’s program portfolio includes a host of high-quality, award-winning programs from the libraries of Crown Media and
Hallmark. The distribution unit of both companies is headed up by John Morris, President of
Distribution EM.Entertainment and Managing Director Sparrowhawk Distribution.
TV Sales
During the first quarter, EM.Entertainment licensed the exclusive German free-TV rights to internationally acclaimed series Strawberry Shortcake (26x26’), as well as those to animated feature
film Pippi Longstocking (1x75’) to ZDF. Furthermore, Buena Vista International acquired exclusive
German pay-TV rights to the first two seasons of F.T.P.D – Fairy Tale Police Department (13x26’
each) and to animation series Pippi Longstocking (26x26’) for broadcast on the DISNEY CHANNEL.
Finnish pay-TV channel MTV3 acquired a total of 286 half hours from the EM.Entertainment program portfolio for its new children’s channel, including, among others, one season each of Tabaluga and Flipper & Lopaka. The appeal of the company’s new productions was clearly demonstrated with the finalization of an agreement with HBO granting exclusive pay-TV and VOD exploitation
rights to sci-fi/comedy series Dogstar (26x26’).
Home Entertainment
In the first quarter, EM.Entertainment intensified its co-operation with Universum Film in the home
entertainment sector. Alongside their existing agreement, the company secured an additional contract for a period of five years, granting Universum Film exclusive DVD/video exploitation rights to
a host of children’s and youth programs within Germany, Austria, Luxembourg and South Tyrol.
TV
11
Merchandising
Within the national and international licensing sector no long-ranging new licensing topics were
established during the first quarter of 2007. In fact, it was new sequels to well-known feature
films such as “Shrek”, “Spiderman” and, within the German-speaking region, “Die Wilden Kerle”
that injected impetus into the market.
As far as EM.Entertainment is concerned, this year marks the 10th TV anniversary of Tabaluga;
with the “2007 Tabaluga Happiness Tour”, conceived especially for the occasion, being a dominant
license topic. Since April, the roadshow will make its way through a total of 30 event locations in
Germany and Austria on around 70 event days. The first quarter saw EM.Entertainment secure
numerous promotional partners for the “Tabaluga Happiness Tour”, reaching co-operation agreements with companies such as Henkel (Pritt), edding, Center Parcs, Noris Spiele and the charity
WORLD VISION.
Also in celebration of the TV anniversary, EM.Entertainment secured a restaurant promotion contract with Tank & Rast GmbH spanning the entire year. Besides Tabaluga, 2007 also sees Heidi
celebrate her 30th TV anniversary: With this enduringly popular license topic, EM.Entertainment
arranged a further extensive restaurant promotion in the first quarter with McDonald’s Switzerland
covering all 143 McDonald’s restaurants in Switzerland.
Junior Channel
Junior.TV GmbH & Co. KG manages children and family oriented pay-TV channel Junior. In Germany,
Junior is available exclusively via pay-TV provider Premiere. Junior is available via individual subscription, as part of the “PREMIERE KINDER” and “PREMIERE THEMA” packages, and moreover
with the all-inclusive packages “5er-Kombi” and “7er-Kombi”. Since March 2007, the program
packages are also available via the newly introduced pre-paid offer “PREMIERE FLEX”.
Tabaluga celebrates his Junior premiere
Since the beginning of 2007, Junior features the little green dragon Tabaluga. In January and
February, all three seasons of the cartoon series bearing the same name, totaling 78 half-hour
episodes, premiered. For the first season, it was a channel premiere, while seasons 2 and 3 celebrated their platform premieres. Furthermore, the first quarter saw the internationally acclaimed
pre-school series Strawberry Shortcake and Golo the Garden Gnome, as well as animation series
Duckman debuting as channel and platform premieres on Junior.
Special programming in celebration of Astrid Lindgren’s 100th birthday
Junior is celebrating the 100th birthday of renowned Swedish children’s author Astrid Lindgren
since January 2007 and year long with a host of special programming from feature film and series
classics.
12
The EM.TV AG Share
The EM.TV AG Share
Share structure as at March 31, 2007
Voting Rights1)
64.0 Mio. Shares
Subscribed Capital
70.9 Mio. Shares
Treasury shares
9.8%
Highlight Communications AG2) 4.9%
Constant Ventures B.V.2)
8.0%
Highlight
14.4% Communications
AG2)
Erwin Conradi
7.4%
8.1%
Free Float
69.9%
77.5%
Erwin Conradi
Free Float
1) Based on voting shares.
2) On November 16, 2006, Highlight Communications AG informed EM.TV AG
that the voting rights of Constant Ventures B.V. were attributable to it with
effect from December 1, 2006 based on an option agreement.
Development of the EM.TV share
With a high level of volatility over the whole of the first quarter of
2007, the market price of the EM.TV share listed on the SDAX rose
by 26.0 percent in comparison with the closing rate at December
31, 2006. The EM.TV share developed much better than its comparative index therefore (SDAX + 9.9 percent) and the Prime Media
Index (+ 9.7 percent). The share reached its new 52 week high of
Euro 4.77 at the end of February. After slight downturns, the price
recovered consistently with effect from the middle of March and
closed at Euro 4.65 on balance sheet day. In subsequent trading,
the 52-week high up to the middle of May 2007 rose to Euro 4.78,
with the rate being Euro 4.29 on May 15.
In the first quarter of 2007, approximately 25.1 million EM.TV shares were traded on German stock exchanges (daily average of 0.39
million). The trading volumes of the shares outstanding therefore
corresponded to a factor of approximately 1.21 over a period of 12
months, with this reflecting the comparatively high liquidity of the
EM.TV share in the SDAX. In the ranking of German stock exchange,
the EM.TV share reached at the end of the quarter position 78
(December 31, 2006: 69) amongst all the MDAX and SDAX shares
based on trading volume and position 96 (December 31, 2006: 99)
on the basis of the free float capitalization.
Xetra closing rate of the EM.TV share in comparison with SDAX and Prime Media
Comparative indices indexed to EM.TV’s closing rate as at December 31, 2006.
EM.TV AG
SDAX
Prime Media
5,50
5.50
5,00
5.00
4,50
4.50
4.00
4,00
3.50
3,50
3.00
3,00
12/31/06
1/31/07
2/28/07
3/31/07
13
Subscribed capital and shareholder structure
The subscribed capital of EM.TV AG amounted to approximately Euro 70.9 million at March 31,
2007. In compliance with the legal requirements under § 71 c, para. 2 of the German Companies
Act (AktG), the Company reduced its position of treasury shares to less than the threshold level of
10 percent on March 21, 2007. On March 31, 2007, its holding of own non-voting shares was equivalent to 9.8 percent of the share capital which is completely reserved for servicing the Certificates
Series 2. After deducting the number of treasury shares, there were 64.0 million shares outstanding on March 31, 2007
Investor-Relations activities
The Company aims to justify the confidence and trust of investors and the public by means of
timely and transparent publications of its financial figures, business transactions, corporate
strategies and opportunities and risks and to maintain open and ongoing exchanges of information with capital market participants. Extensive information on EM.TV AG is available on our
homepage under www.em.tv.
As far as 2007 is concerned, it is our objective to extend the analyst coverage and to increase
the number of long-term oriented institutional investors. The EM.TV share is presently subject
to regular coverage by the following institutes:
> CA Cheuvreux
> Independent Research
> Commerzbank
> Viscardi
> Deutsche Bank
> WestLB
> DZ Bank
Additional capital market securities of EM.TV AG
In line with the development of the EM.TV share the price of the 5.25% convertible bond 2006/
2013 rose in the first quarter of 2007 and reached a new 52-week high of Euro 6.27 in March.
The price on March 31, 2007 closed at Euro 6.27 and was traded at Euro 5.97 on May 15.
The price of the Certificate Series 2 increased after a period of extreme volatility in the first quarter
and closed at Euro 0.47 on March 31, 2007. The certificates were traded at Euro 0.42 on May 15.
In the first quarter of 2007, there were no major exercises or conversions with the Certificates
Series 2 and the 5.25% convertible bond 2006/2013.
The 4% convertible bond 2000/2005 was fully repaid on January 9, 2007 at a rate of 117.251
percent plus accumulated interest in compliance with the amended repayment date.
14
The EM.TV AG Share
Information on the EM.TV’s share as of March 31, 2006
ISIN/Exchange abbreviation
> Ordinary share (Prime Standard Segment)
> Certificates Series 2 (Regulated unofficial market)
> Convertible bond 2006/2013 (Regulated market)
Indices
Closing rate 3/31/2007 / 52-week high / 52-week low
> Ordinary share
> Certificates Series 2
> Convertible bond 2006/2013
Subscribed capital (incl. conversion shares)
Outstanding shares
Potential shares in connection with options/conversions
(Subscribed price EUR 3.50 until 4/18/2008)
> Convertible bond 2006/2013
(Conversion price EUR 5.85 until 5/08/2013)
> Others
(Employee participation programs)
Market capitalization
> Market capitalization (based on outstanding shares)
Convertible bond 2006/2013
DE0009147207 / EV4
DE000A0A7RR7 / ZET5
DE000A0GQKR4 / VGQKR
SDAX, Prime Media Index
EUR
EUR
EUR
4.65 / 4.77 / 2.72
0.47 / 0.83 / 0.26
6.27 / 6.27 / 5.00
70.9 million shares
64.0 million shares
7.7 million shares
15.0 million shares
0.3 million shares
EUR
EUR
EUR
297.6 million
9.2 million
93.9 million
Shareholdings of Executives
No member of an executive board had a direct or indirect holding in shares or share entitlements
in excess of 1 % of the share capital. The number of shares and share entitlements under option
rights of the executive members were as follows at March 31, 2007:
Number of
shares
Management Board
Werner E. Klatten
Rainer Hüther
Dr. Andreas Pres
33,000
10,000
40,000
Shares
from
stockoptions
27,397
27,397
27,396
Number of
shares
Supervisory Board
Dr. Bernd Thiemann
Dr. Hans-Holger Albrecht
Arthur Bastings
0
0
0
Shares
from
stockoptions
0
0
0
15
Overall assessment of the report period
The development of the EM.TV Group’s business in the first three months of the 2007 exceeded
the Board’s expectations. This was mainly attributable to the development of the Sports Segment,
both on account of the additional sales revenues and also on account of cost savings and cost
postponements. Group sales were stabilized as planned, whereas the earnings situation was
significantly improved.
Sales and earnings situation
Consolidated sales amounted to Euro 60.3 million in the first quarter of 2007, thereby achieving
the level of the previous year (Euro 60.1 million). It should be kept in mind that sales in the Entertainment Segment in the previous year’s period were very high on account a one-off effect in connection with the extensive program delivery contract with ZDF. The absence of the aforesaid positive effect was compensated by increases achieved by the sports companies.
The sales split between the segments thereby changed in favour of the Sports Segment which
accounted for almost 91 percent of Group sales (same period in the previous year: 77 percent).
9 percent was attributable to the Entertainment Segment (first quarter 2006: 23 percent.)
Other operating income amounted to Euro 5.7 million compared with Euro 6.3 million in the first
quarter of 2006 (equivalent to -9.5 percent). The aforesaid decrease was mainly attributable to
lower foreign currency gains and to a lower release of accruals.
Cost of materials, the largest expense item, was 3.7 percent lower at Euro 31.0 million (first quarter
2006: Euro 32.3 million). Personnel expenses rose from Euro 14.2 million to Euro 15.0 million.
On the other hand, other operating expenses at Euro 9.9 million were much lower (first quarter
2006: Euro 12.8 million; -22.7 percent). The reduction of the cost basis is attributable to a large
number of individual factors. Savings were made in particular with advertising and travelling
expenses, legal and consultancy costs and administration costs. There was also a reduced level
of expenses for bad debt provisions and lower exchange losses.
The EM.TV Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to Euro 10.3 million, equivalent to an increase of 41.1 percent in comparison with the same
amount in the previous year (Euro 7.3 million).
After taking account of depreciation charges which rose by 9.3 percent to Euro 4.7 million (first
quarter of 2006: Euro 4.3 million), the consolidated earnings before interest and taxes (EBIT)
reached Euro 5.6 million. This was therefore 86.7 percent higher than the equivalent amount for
the first quarter of 2006 (Euro 3.0 million).
At Euro 5.3 million, earnings before taxes (EBT) were significantly higher than in the previous year
(Euro 0.3 million). The following factors were mainly responsible for the increase in earnings:
> the improvement in operating earnings as shown in the increase in the EBITDA and EBIT;
> the lapse of the complete write-off of the minority holding in arena media GmbH in insolvency
which was made in the first quarter of the previous year (shown under “Income from investments in associated companies”)
16
The Group incurred a tax expense of Euro 2.2 million in the first three months compared with Euro
0.8 million in the same period in the previous year, thereby giving rise to a tax ratio of 41.7 percent.
The slightly increased tax ratio in comparison with the Group tax rate of 37.5 percent is mainly
attributable to the fact some Group companies can not make use of their taxable losses of the
quarter in the short run and thus no deferred taxes have been accounted for.
After tax and after minority interest, the Group shows a quarterly surplus of Euro 3.1 million compared with a loss of Euro 0.5 million in the same period of the previous year. This corresponds to
an earnings per share of Euro 0.05 on an undiluted basis (on an average of 60.6 million outstanding shares). In the same period in the previous year, earnings per share amounted to Euro -0.01
(based on an average of 53.7 million outstanding shares).
Development of the Segments
The Sports Segment developed very dynamically in the first three months of the financial year.
Against the background of a positive economic environment, sales rose by 18.7 percent from
Euro 46.1 million in the same period of the previous year to Euro 54.7 million. All essential sports
companies were able to increase their total revenues. The Sports Segment earnings amounted to
Euro 7.3 million, with this being equivalent to a return of 13.3 percent on sales. In addition to the
increase in sales, costs savings also had a positive effect, partially on account of the postponement of projects, especially with DSF and Sport1. In the same period of the previous year, there
was a segment loss of Euro 2.6 million.
At Euro 5.6 million, sales in the Entertainment Segment were well below the level of the first
quarter of 2006 (Euro 13.9 million). Sales in the previous year were, however, marked by the
extensive program delivery contract with ZDF which was booked in the aforesaid period and were
exceptionally high therefore. The postponement of productions also had a dampening effect on
sales in the report year. The results in the Entertainment Segment amounted to a loss of Euro 0.2
million compared with Euro 8.1 million in the first quarter of 2006.
The results achieved by the “Others” Segment amounted to a loss of Euro 1.5 million after the
first three months and were therefore significantly better in comparison to the corresponding
amount in the previous year (Euro -2.5 million), especially as a result of cost savings.
Net asset and financial position
The balance sheet total of the EM.TV Group amounted to Euro 355.6 million at March 31, 2007
and was therefore Euro 25.6 million below the equivalent amount at the end of 2006 (Euro 381.2
million).
The balance sheet contraction is attributable to the repayment of the outstanding amount for the
4% convertible bond 2000/2005 made in the report quarter which amounted to Euro 27.7 million
including accumulated interest. Liquid assets, including short-term securities, fell by a total of Euro
26.9 million to Euro 105.4 million.
17
There were no major changes in long-term assets amounting to Euro 175.7 million (December 31,
2006: Euro 178.5 million).
On the liabilities side of the consolidated balance sheet, equity amounted to Euro 192.8 million
compared with Euro 189.8 million at the end of the 2006 financial year. As a result the equity
ratio increased to 54.2 percent (December 31, 2006: 49.8 percent).
In comparison with the previous year the long-term liabilities fell from Euro 111.7 million to Euro
85.1 million. The aforesaid downturn was attributable to the above-mentioned repayment. They
mainly consist of the 5.25% convertible bond 2006/2013 which was issued in 2006.
At the end of the first quarter in 2007 the short-term liabilities amounted to Euro 80.9 million and
were therefore slightly above the equivalent amount at the end of 2006 (Euro 79.7 million). Trade
accounts payable receded by Euro 3.7 million. Bank liabilities of Euro 3.5 million (at December 31,
2006: Euro 0) were attributable to a short-term usage of credit lines raised by PLAZAMEDIA.
Cash flow
The cash flow from operating activities amounted to Euro 1.5 million in the first three months of
2007 and were therefore slightly below the equivalent amount in the previous year’s period (Euro
6.9 million). The reason for this downturn was mainly attributable to the increase in trade accounts
receivable.
Investment activities gave rise of an outflow of funds in the amount of Euro 4.2 million (2006: Euro
11.3 million), inter alia on account of the financial investments in a minority holding in video-ondemand plattform Kabillion LLC. The substantial amount in the previous year was mainly marked
by acquisition of stakes in Creation Club (CC) GmbH and Flying Bark Productions PTY. Ltd.
Financing activities resulted in an outflow of funds in the amount of Euro 27.7 million compared
with a funds inflow of Euro 1.1 million in the previous year. This was brought about by the full repayment of the 4% convertible bond 2000/2005 which became due on January 9, 2007.
The cash flow in the report period amounted to Euro -30.4 million for financing reasons compared
with Euro -3.2 million in the same period in the previous year.
Employees/Personnel matters
From January 1 to March 31, 2007, the EM.TV Group had an average of 792 employees compared
with 787 employees in the same period of the previous year. Thus the number of employees has
remained constant to a very large extent.
With effect from January 24, 2007, the Supervisory Board of the Company extended the contract
with the Chairman of the Mangement Board Werner E. Klatten by a further three years to December 31, 2010.
18
Financial position of the Group parent company EM.TV AG
EM.TV AG which has to draw up financial statements in accordance with the German Commercial
Code (HGB) showed a balance sheet total of Euro 318.4 million as at March 31, 2007 (December
31, 2006: Euro 349.4 million). Liquid assets fell to Euro 49.5 million (December 31, 2006: Euro
73.7 million) on account of the repayment of the outstanding amount of the 4% convertible bond
2000/2005.
The equity of the AG amounted to Euro 198.7 million at the end of the first quarter of 2007 (December 31, 2006: Euro 200.6 million). This gave rise to an extremely sound equity ratio of 62.4 percent
compared with 57.4 percent at the end of 2006.
Addendum report
On May 22, 2007, EM.TV AG announced the resolution of the Management Board and the Supervisory Board that the Company will in future concentrate on the Sports sector and that it is planned to sell activities of the Children and Youth Entertainment sector. For this purpose a structured
selling process of EM.Entertainment GmbH and Junior.TV GmbH & Co. KG will briefly be started.
Based on careful analysis of the market perspectives of both operating sectors, the Management
Board and the Supervisory Board were convinced that focussing on the already successfully positioned and profitable Sports Segment with a strong upward growth promises a greater valueincrease for the EM.TV Group. The necessary further development of the comprehensively reorganized Entertainment sector would commit a high level of financial and personnel resources within
the Group.
Major opportunities and risks
With regard to the basic opportunities and risks profile of the EM.TV Group for the next six months
after the end of the first quarter of 2007, there were no major estimates up to the final preparation
of this interim management report as stated in the consolidated financial statements at December
31, 2006. A detailed presentation of the operational risks and the risk management system in the
EM.TV Group is to be found in the 2006 business report therefore. In addition, reference is made
to the following changes with regard to the opportunities and risks during the course of the financial year to date:
The general economy is of major importance for the development of the advertising markets, with
this in turn representing a major source of income for free TV stations such as DSF. The economic
framework conditions have improved further during the course of 2007 to date. In the middle of
April, the leading economic research institutes issued a forecast with an economic growth of 2.4
percent for Germany in both 2007 and 2008. The experts therefore corrected their reserved estimate in the autumn of last year. In addition, the economic research institutes are anticipating a
reduction of unemployment in 2008 by one million in comparison with 2006 (spring report 2007).
In 2006 the German economy grew at a rate of 2.7 percent.
19
The gross advertising market for classical media in Germany grew by 6.6 percent to Euro 4.8 billion
in the first three months of the year. The TV market benefited from this upward trend at an aboveaverage rate and achieved a growth rate of 9.6 percent. Facing the improving market conditions,
the economic risks have reduced for the EM.TV Group and especially for DSF.
The resolution by the Management Board and the Supervisory Board to initiate a structured selling
process for the Group’s activities in the Entertainment sector may lead to the transaction risk that
the interests of the market for the aforesaid activities will remain below the expectations of the
Company and that the selling price which can be achieved will not satisfy the expectations of the
Company. In this case, it is not out of the question that accounting charges will be established in
the financial statements of the AG and the Group of EM.TV AG.
Prospects and outlook
The EM.TV Group has made a successful start in 2007. The results achieved in the first quarter
which were in certain cases well above expectations especially as far as the level of earnings is
concerned have established a sound basis for the further development of the Group’s business.
In the Sports Segment, new sales sources are still in the foreground of its concept and activities.
The relevant agenda includes the establishment of network effects between the sports companies
and the increasing orientation towards new technologies such as video-on-demand, mobile and
games. In addition, EM.TV is addressing its attention to new products and services as part of the
digitalization process. The internationalization of sporting activities still has a high priority. Growth
will also be striven by targeted acquisition of relevant businesses.
In accordance with IFRS the resolution to sell the activities of the Entertainment Segment necessitates a reclassification of the Entertainment Segment into a separate item, namely “Earnings
from discontinued operations” in the consolidated financial statements as to future periods and
thereby to a changed disclosure of the aforesaid activities in the balance sheet, profit and loss
account and the cash flow statement.
After deducting the Entertainment contributions, the present financial objectives for the Group in
2007 – consisting in future of the Sports Segment and the Holding Segment – are established as
follows: Group sales of approximately Euro 215 million (previous target: Euro 250 million), earnings
before interest, taxes, amortization and depreciation (EBITDA) of between Euro 25 and 29 million
(previously: Euro 36 to 40 million) and earnings before interest and taxes (EBIT) of between Euro
12 and 14 million (previously Euro 14 to 16 million). If business, which was above expectations in
the first quarter, develops in the same way in the second quarter of 2007, an upward adjustment
of the new objectives would be made.
Unterföhring, May 2007
EM.TV AG
The Management Board
20
Balance Sheet
Assets
Balance Sheet at March 31, 2007 in EUR ‘000
3/31/2007
12/31/2006
Non-current assets
Intangible assets
80,801
83,018
Goodwill
52,505
52,500
Land, property rights and buildings
Technical equipment and machinery
Other equipment, factory and office equipment
3,760
3,816
18,244
18,533
3,165
3,263
111
44
Investments in associated companies
3,784
3,520
Other investments
3,223
1,290
Long-term receivables
3,633
5,116
Deferred tax assets
6,450
7,430
175,676
178,530
Advance payments and assets under construction
Current assets
Inventories
Trade receivables
Receivables due from associated companies
675
388
56,174
50,660
1,352
2,965
Receivables due from joint ventures
91
126
Receivables due from income taxes
3,184
3,098
Other assets
13,070
13,087
Other securities
24,950
0
Cash and cash equivalents
Assets
80,432
132,313
179,928
202,637
355,604
381,167
21
Equity /Liabilities
Balance Sheet at March 31, 2007 in EUR ‘000
3/31/2007
12/31/2006
Equity
Subscribed capital
70,933
70,907
Own shares
-10,326
-10,332
Contributions made to execute the resolved capital increase
Capital reserves
0
27
118,284
118,269
714
654
Accumulated losses carried forward
3,934
-5,948
3,144
9,882
Minority interests
6,117
6,292
192,800
189,751
1
0
Other reserves
Contribution in connection with share-issues which have not been yet registered
Long-term liabilities
Long-term accruals
149
216
Financial liabilities
78,126
105,379
250
243
Pension accruals
Deferred tax liabilities
6,570
5,829
85,095
111,667
30
30
Short-term liabilities
Bonds
Liabilities to banks
3,536
0
Advance payments
5,854
5,180
38,364
42,082
Trade accounts payable
41
507
1,507
1,552
Other liabilities
20,961
22,860
Other accruals
6,623
6,840
Liabilities due to associated companies
Liabilities due to joint ventures
Tax accruals
Equity/Liabilities
792
698
77,708
79,749
355,604
381,167
22
Consolidated Profit and Loss Account
Consolidated Profit and Loss Account
January 1 to March 31, 2007 in EUR ‘000
Sales
Own work capitalized
Total output
1/1 to
3/31/2007
1/1 to
3/31/2006
60,284
60,124
223
202
60,507
60,326
5,667
6,303
Cost of materials
-31,029
-32,283
Personnel expenses
Other operating income
-15,007
-14,232
Amortization and depreciation
-4,677
-4,316
Other operating expenses
-9,874
-12,782
Earnigns before interest and taxes
5,587
3,016
Earnings from investments in associated companies
264
-1,978
Financial results
-594
-777
Earnings before taxes
5,257
261
Taxes
-2,191
-818
Earnings after taxes
3,066
-557
-78
-12
3,144
-545
Total output
60,507
60,326
EBITDA
10,264
7,332
EBIT
5,587
3,016
EBT
5,257
261
Shareholders’ interests per share (undiluted) in Euro
0.05
-0.01
Shareholders’ interests per share (diluted)* in Euro
0.05
-0.01
Minority interests
Average number of outstanding shares (undiluted)
60,604,243
53,747,873
Average number of outstanding shares (diluted)
68,360,762
69,260,572
*The consideration of the dilution may not reduce the loss per share according to IAS 33.41
Consolidated Cash Flow Statements
23
Consolidated Cash Flow Statements
Minority interests
Deferred taxes
Income from associated companies
Cost of materials through use of fixed assets disposal
Amortization depreciation of fixed assets
1/1 to
3/31/2007
1/1 to
3/31/2006
3,144
-545
-78
-12
1,712
-143
-264
1,978
239
328
4,681
6,487
-16
-13
-321
-2,337
-2,554
6,639
which are not allocable to investment or financing activities
-5,091
-5,473
Cash flow from operating activities
1,452
6,909
Earnings/losses on disposal of fixed assets
Other non-cash items
Changes in inventories, trade receivables and other assets
which are not allocable to investment or financing activities
Changes in trade payables and other liability
Addition for acquisition of companies
3
-9,490
-717
-1,008
Addition for tangible assets
-1,544
-877
Addition for financial assets
-3,136
-10
Proceeds from disposals of intangible assets
5
73
Proceeds from disposals of tangible assets
8
27
Addition for intangible assets
Proceeds from disposals of financial assets
1,200
0
Cash flow from investment activities
-4,181
-11,285
24
1,149
-104
0
-27,719
0
Proceeds from capital increases and allowances by shareholders
Payments of dividends
Repayment of long-term liabilities
Proceeds from receipt of long-term liabilities
80
0
Cash flow from financing activities
-27,719
1,149
Cash flow for the reporting period
-30,448
-3,227
Net funds at the beginning of the reporting period
132,313
40,229
Net funds at the end of the reporting period
101,846
37,009
Effects of foreign currency differences
Changes in net funds
-19
7
-30,448
-3,227
24
Changes in Consolidated Equity
Changes in Consolidated Equity
Subscribed
capital
Balance 1/1/2006
66,601
Resolved
Own capital
shares increase
-16,726
3,274
Capital
reserves
Other
reserves
Accumulated loss
carried
forward
101,600
316
-7,937
229
229
-229
Shareholders- Minority
interests interests
6,242
Total
153,599
Reclassification of earnings brought
forward from the previous year
8
Employee shared-based payment
Entry of shares from option rights
0
3,274
8
0
-3,274
Withdrawl from capital reserve for end
-1,760
of conersion right for the convertible bond
Capital increase from certificates
1,760
0
2,897
1,915
4,812
Currency conversion differences
-382
Revaluation of assets
491
-382
491
Net profit for the year
-545
-12
-557
Balance 3/31/2006
69,875
-14,811
0
102,737
433
-5,948
-545
6,229
157,970
Balance 1/1/2007
70,907
-10,332
27
118,269
654
-5,948
9,882
6,292
189,751
9,882
-9,882
Reclassification of earnings brought
forward from the previous year
Entry of shares from conversion rights
27
Capital increase from certificates
0
15
6
21
3
3
Employee shared-based payment
Disrtribution to minority shareholders
-103
Net profit for the year
70,933
-10,326
0
118,284
714
3,934
-103
6
63
3,144
-78
3,066
3,144
6,117
192,800
57
Currency conversion differences
Balance 3/31/2007
0
-27
Notes
25
Notes on the Consolidated Financial
Statements
1. Accounting and valuation principles
According to the regulations of the Prime Standard of the German Stock Exchange, quarterly financial statements have to be prepared in compliance with international reporting standards – IFRS
or US-GAAP.
These quarterly reports have been prepared in accordance with International Financial Reporting
Standards (IFRS) and the related interpretations (SIC/IFRIC Interpretations) as they are to be applied
in the European Union (EU). The interim management report is in compliance with IAS 34 („Interim
Financial Reporting“).
In the enclosed interim financial statements at March 31, 2007, there were no major changes in
accounting or valuation principles in comparison with the consolidated financial statements of
EM.TV AG at December 31, 2006.
Contrary to the previous year, liabilities for outstanding invoices are no longer shown under other
liabilities as from the 2007 financial year but are now shown as a part of trade accounts payable.
The corresponding figures relating to the previous year have therefore been reclassified for comparison purposes accordingly.
The operating business of the EM.TV Group is divided into the “Sport Segment” (mainly DSF, the
PLAZAMEDIA-Group including Creation Club and Sport1) and „Entertainment“ (mainly EM.Entertainment GmbH, Junior.TV GmbH & Co. KG, Junior Produktions GmbH and Flying Bark Productions
PTY. Ltd.). The “Others” Segment is also shown which mainly includes income and expenses relating to EM.TV AG as the holding company of the Group.
2. Changes in the companies to be consolidated
Life On Stage Entertainment GmbH
With contract dated January 11, 2007, EM.Entertainment GmbH, a wholly-owed subsidiary of
EM.TV AG, acquired 76 percent of the shell company RM 2699 Vermögensverwaltungs GmbH. The
purchase price for the shares amounted to EUR 21,500. The company was subsequently renamed
to Life On Stage Entertainment GmbH which operates in the musicals sector. As from the aforesaid
date the Company is included in the consolidated financial statements on a full consolidation basis.
The Company has a share capital of EUR 25,000.
As a result of the acquisition of the company, net assets of EUR 19,000 were acquired, thereby
leading to a goodwill of EUR 2,500. In view of the fact that purchase price was exceeded by available
liquid assets, an inflow of funds equivalent to EUR 3,500 was generated as part of the acquisition.
Effects of first consolidations in EUR ‘000
Sales
Earnings
after tax
Long-term
assets
Short-term
assets
Long-term
liabilities
Short-term
liabilities
0
-69
4
128
0
13
2007
Life on Stage Entertainment GmbH
26
Notes
3. Explanatory comments on the equity capital and earnings per share
In compliance with the legal requirements under § 71 c, para. 2 of the German Companies Act
(AktG), the treasury shares were lowered below the threshold of 10 percent on March 21, 2007
as part of a long-term security loan. A corresponding notification was published on March 23, 2007.
On March 31, 2007, the Company held a total of 6,926,013 non-voting treasury shares which are
completely reserved for servicing the Certificates Series 2.
In accordance with the regulations of IFRS 39, the special items “Treasury Shares” also includes
shares which are held as part of this atypical security loan from a third party in addition to the
Company’s treasury shares. According to IFRS 39, the aforesaid transfer is not treated as an asset
disposal even though the ownership of the shares, together with voting rights and dividend entitlements for the term of the security loan, has been transferred to a third party.
The information of the average number of outstanding shares (undiluted and fully diluted) together
with the earnings per share (undiluted and diluted) are shown without taking account of the transfer of shares as part of the security loan. If the security loan were included, this would give rise to
the following data:
January 1 to March 31, 2007 in EUR
1/1 to
3/31/2007
Shareholders’ interests per share (undiluted)
0.05
Shareholders’ interests per share (diluted)*
0.05
Average number of outstanding shares (undiluted)
60,944,243
Average number of outstanding shares (diluted)
68,626,083
*The consideration of the dilution may not reduce the loss per share according to IAS 33.41
As a result of the high number of shares and short consideration period there are currently just
least differences in comparison to figures on page 22 of the consolidated financial statements.
4. Net funds
Information in TEUR
Short-term liquid funds
Short-term liabilities to banks
Short-term net funds at the end of the financial period
Changes in liquid funds (cash on hand and at banks)
Changes in short-term bank liabilities
3/31/2007
3/31/2006
105,382
44,293
-3,536
-7,284
101,846
37,009
1/1 to
3/31/2007
1/1 to
3/31/2006
-26,931
-1,513
3,536
1,707
27
5. Segment reporting
Information based on operating sectors as of 1/1 to 3/31/2007 in EUR ‘000
Entertainment
Sports
Others
5,608
54,662
14
47
60
223
0
0
0
Third party sales
Internal Group sales
Other segment income
Segment expenses
> thereof amortization and depreciation
Segment result
Transition
Group
0
60,284
-107
0
0
0
223
0
0
0
1,267
3,908
1,547
-1,055
5,667
-7,298
-51,309
-3,035
1,055
-60,587
-2,335
-2,219
-123
0
-4,677
-153
7,321
-1,474
-107
5,587
264
0
0
Period result of associated companies
264
Non-allocated operational elements:
-3
Write-down of financial assets and securities
Interest expenses
-1,748
Interest income
1,157
5,257
Other segment informations
Segment assets
> thereof shares of associated companies
129,992
152,849
59,908
3,784
0
0
342,749
3,784
12,855
Non-allocated elements
355,604
Assets of the Group
Segment liabilities
16,160
49,273
80,486
15,053
82,317
Liabilities of the Group
162,803
Segment investments
3,805
5,397
1,574
18
German speaking
Rest of
Europe
Rest of
the world
Total
57,408
1,981
895
60,284
Information based on regions in EUR ‘000
External sales
Period results of associated companies and income
receipts from Joint Ventures
> allocated segment assets
Segment investments
0
264
0
264
321,119
11,504
10,126
342,749
0
3,784
0
3,784
5,165
62
170
5,397
28
Notes
Information based on operating sectors as of 1/1 to 3/31/2006 in EUR ‘000
Entertainment
Sports
Others
Transition
Group
13,931
46,106
87
0
60,124
8
44
0
-52
0
202
0
0
0
202
External sales
Internal Group sales
Remaining segment income
2,135
2,922
1,951
-705
6,303
Segment expenses
-8,165
-51,687
-4,518
757
-63,613
-2,545
-1,515
-256
0
-4,316
0
0
0
0
0
8,111
-2,615
-2,480
0
3,016
178
-2,156
0
> thereof amortization and depreciation
> thereof non-scheduled
Segment result
Period result of associated companies
-1,978
Non-allocated operational elements:
-3
Write-down of financial assets and securities
-1,561
Interest expenses
Interest income
787
261
Other segment informations
Segment assets
141,935
122,955
42,583
307,473
3,422
0
0
3,422
6,524
313,997
Assets of the Group
Segment liabilities
15,947
33,997
68,135
18,191
86,860
154,995
Liabilities of the Group
Segment investments
856
1,895
992
47
Germanspeaking
Rest of
Europe
Rest of
the world
Total
58,908
41
802
59,751
Information based on regions in EUR ‘000
External sales
Period results of associated companies and income
receipts from Joint Ventures
> allocated segment assets
Segment investments
-2,156
190
-12
-1,978
283,445
12,475
11,553
307,473
15
3,272
135
3,422
1,669
3
223
1,895
29
6. Contingent liabilities and other financial obligations
Contingent liabilities and other financial obligations have not materially changed in comparison
with the annual financial statements at December 31, 2006. Obligations have only been reduced
by the passage of time.
7. Information on occurrences after the balance sheet date
On May 22, 2007, EM.TV AG announced the resolution of the Management Board and Supervisory
Board that the Company will concentrate in future on the Sports Segment and that it is planned
to sell the activities of the Children and Youth Entertainment Segment. A structured selling process
for the companies EM.Entertainment GmbH and Junior.TV GmbH & Co. KG will brievly be started.
Based on careful analysis of the market perspectives of both operating sectors, the Management
Board and the Supervisory Board were convinced that focussing on the already successfully positioned and profitable Sports Segment with a strong upward growth promises a greater valueincrease for the EM.TV Group. The necessary further development of the comprehensively reorganized Entertainment sector would commit a high level of financial and personnel resources within
the Group.
8. Relationships with associated persons
Associated persons within the Group are regarded as the members of the Management Board
and Supervisory Board and their relatives. peekaboo productions GmbH which is controlled by the
wife of a member of the Management Board performed intermediation and production services in
the report period in the amount of EUR 182,076. The relevant invoices have been paid in full.
30
Finance calendar
Finance Calendar 2007
March 27, 2007
Annual Report 2006/Annual Press Conference
May 22, 2007
Report for the first quarter of 2007
June 27, 2007
Annual General Meeting (AGM) for the 2006 business year
August 21, 2007
Report for the second quarter of 2007
November 20, 2007 Report for the third quarter of 2007
Note: Analysts conference calls will usually be on the release day of the annual report and the quarterly reports respectively.
Imprint
Published by
EM.TV AG
Beta-Straße 11, 85774 Unterföhring, Germany
Tel. +49 (0) 89 99 500-0, Fax +49 (0) 89 99 500-111
E-Mail [email protected], www.em.tv, HRB 148 760 AG München
Edited by
EM.TV AG Kommunikation/Investor Relations
Frank Elsner Kommunikation für Unternehmen GmbH, Westerkappeln
Designed by
EM.TV AG
Creation Club (CC) GmbH
Q1_2007-E
04.05.2007
15:34 Uhr
EM.TV AG
Beta-Straße 11
85774 Unterföhring, Germany
Tel. +49 (0) 89 99 500 -0
Fax +49 (0) 89 99 500 -111
E-Mail [email protected]
Internet www.em.tv
HRB 148 760 AG Munich
Seite 1

q1quarterly report 2007

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