week 19 the RTL Group intranet

Newsletter 8 May 2008 Maintaining Momentum Mark White takes over as Interim-CEO of Five

Luxembourg RTL Group with solid EBITA growth in the first quarter of 2008 Germany Acts, chartbreakers and a party atmosphere France M6 purchases a 100 per cent stake in the Cyréalis Group North America Virtual auditions for America’s Got Talent the Mo

COVER: Mark White, interim CEO of Five.

Luxembourg 2 week 19 the RTL Group intranet

“Positive people are the most creative” Mark White is up to maintain Five’s recent progress. In Backstage he gives a brief outlook. United Kingdom - 30 April 2008

Mark White, a man who has been with the were around 6 million enabled homes receiving channel from the very beginning, is Interim- a maximum of 60 channels. Today the figures CEO of Five. White joined Five in 1996, long have increased to almost 22 million homes, before the channel went on-air in March 1997. with up to 400 stations to watch. Holding share He was a key member of the launch team is a massive achievement for a terrestrial which ensured that Five was fully sold from Day broadcaster, hence the growth of the ‘channel One. So Mark White knows the channel like the families’. We need to keep our core channel back of his hand and has witnessed all its ups front-of-mind, while generating growth through and downs. targeted digital extensions.

Since February, Five’s audience is up 1.8 per Will there be any strategic changes within cent year on year – the only terrestrial channel the next few weeks? to increase its audience during this time. I think a period of comparative stability might Including its digital channels, Five is up 3.3 per be a good idea! Naturally I’ll be talking at length cent year on year. Mark White’s task will be to to my fellow directors but to answer the ques- maintain this development for Five until Dawn tion, I don’t foresee any major structural chan- Airey, the broadcaster’s new CEO and ges in the immediate future and it’ll be very Chairman, arrives. In Backstage, Mark White much ‘business as usual’ at Long Acre. Having gives a brief recap of the channel’s history and said that, there are a number of key strategic an outlook on its future. initiatives already in place and I will ensure that these are implemented. You joined Five back in 1996, and were part of the team from the very beginning. In How would you describe your personal retrospect, how would you describe the management style? development of the channel? Collaborative and consultative, I hope. I listen I actually joined in April 1996, a full year before and I talk. My core sales management team we went on air. In fact I was the 18th Channel 5 has been together for well over a decade. I employee. In many ways today’s Five bears lit- encourage continuity, totally embrace the tle resemblance to the station that launched ‘team’ concept and believe in playing to indivi- with the Spice Girls (remember them?) perfor- dual strengths. People are the heart and soul of ming Give Me 5 on Easter Sunday 1997. And any business. If you trust and believe in them, yet I’d like to think that the spirit which under- they’ll trust and believe in you. Happy, positive pinned the channel then is still very much alive people are the most creative and productive. I today. This remains a great place to work, wit- see it as my job to create a working environ- ness the numbers who have returned to Five ment in which everyone is able and equipped following spells with other broadcasters, or to perform to their optimum level. those who simply speak positively about the channel from the outside. It goes without saying that I’m enormously proud of what we’ve created at Five. Nobody will ever again Mark White launch a UK channel which, from a standing Prior to joining Five, Mark White worked start, takes 5 per cent of all national viewing - for Thames Television and the satellite within two years. broadcaster UK Gold, where he held the position of Sales Controller. He was Now, in 2008, what are the challenges the appointed Deputy Sales Director at Five channel faces? in 2000. In March 2004 he became When we launched, the multi-channel proposi- Executive Director of Sales. tion was just beginning to gain strength. There

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Changes on Five’s management team On 1 May, RTL Group announced that Dawn broadcasting career as a management trainee Airey (47), currently Director of Global Content for Central TV in 1985. In 1989 she became at ITV, has been appointed Chairman and Chief Director of Programme Planning at Central and Executive Officer (CEO) of Five, effective 1 May was appointed to the Central broadcasting 2009 at latest. Dawn will take over from Jane board. In 1993 she moved to the ITV Network Lighting who resigned with effect from 2 May Centre as Controller of Children’s and Daytime 2008, due to differing views on the strategic Programmes and in 1994 moved to Channel 4 direction of the company. In the meantime to become Controller of Arts and Mark White, Executive Director of Sales so far, Entertainment. In 1996 she was appointed will lead the channel as Interim-CEO. On 2 May, Director of Programmes for Channel Five and the Board of Five announced that Lisa Opie was promoted to Chief Executive in 2000. In had also resigned as managing director 2003 she was appointed Managing Director content with immediate effect. Sky Networks and was responsible for all of Sky’s wholly owned channels (excluding sport). Gerhard Zeiler, CEO of RTL Group, said: “Dawn In 2006 she was made Managing Director Airey is one of the most experienced TV execu- Channels and Services with responsibility for all tives of her generation. She has held senior third party channels, joint ventures and networ- roles in all the commercial terrestrial broadcas- ked media. In 2007 she joined ITV as Director of ters as well as BSkyB. She has a perfect Global Content and in 2008 she became mem- understanding of programmes, audiences, ber of the Board of ITV. advertisers, the international market and plat- forms.” Zeiler continued: “Dawn Airey will lead On 2 May, Mark White, who was Executive Five into the next phase of its development. Director of Sales so far, has been appointed She will guarantee that Five will be a vitalised, Interim-CEO of Five. His task will be to keep the entertaining and raucous broadcaster that can- performance of Five and increase the market not be ignored, also in the period after digital share of the digital channels until Dawn Airey switchover. I am delighted that we could per- arrives. suade her to take the helm at Five and that she will be part of our management team of RTL Gerhard Zeiler said: “We have a great program- Group.” me team and they have delivered good results during the first part of the year. During the tran- Dawn Airey is to return to Five as Chairman and sition period, I will be working closely with them CEO of the broadcaster she joined in 1997 as and with Mark White to ensure that we move launch Director of Programmes. She began her forward.”

Jane Lighting Dawn Airey 4 week 19 the RTL Group intranet

RTL Group with solid EBITA growth in the first quarter of 2008 RTL Group had a good start to the year as reported EBITA was up 8.7 per cent to EUR 188 million in the first quarter. Luxembourg - 7 May 2008

The increase of the reported EBITA is mainly • FremantleMedia had No. 1 shows on all major driven by the performance of Mediengruppe UK channels. American Idol (Fox) was again the RTL Deutschland. Reported Group revenue most watched primetime show in the US and was down 2.0 per cent compared to the first reaches 7.5 million viewers more than its clo- quarter last year to EUR 1,336 million mainly sest competitor. due to lower revenues in the UK and France and also due to the strong Euro. The reported • Five in the UK reports growing audience EBITA margin improved to 14.1 per cent main- share since mid February 2008 with a signifi- ly due to continued cost discipline. The net cant contribution from popular Australian cash position amounted to EUR 1,240 million drama Neighbours. with an operating cash conversion of 101 per cent. • The French radio family goes from strength to strength: the flagship station RTL Radio was The net TV advertising markets in Germany, again the clear market leader in all ratings crite- Belgium and the Netherlands all grew in the ria in the first 2008 Médiamétrie survey first quarter of 2008 whilst the French and the (January to March) UK TV advertising markets were down. • RTL Group increased its stake in Grupo The outlook for the full year 2008 remains Antena 3 to just over 20 per cent. unchanged: with regard to advertising sales, RTL Group has – despite the current economic • On the Internet RTL Group has comprehensi- climate – no reason to be pessimistic. ve and rapidly growing catch-up TV services in Germany (RTLnow.de), France (M6replay.fr) The main developments in the operational busi- and the Netherlands (RTLgemist.nl). Five in the nesses of RTL Group in the first quarter of 2008 UK is going to launch a revamped video on were: demand service in the course of 2008.

• Mediengruppe RTL Deutschland maintains its • With the re-launch of UFA Sports RTL Group clear leadership among young viewers. RTL will invest again in attractive segments of Television’s show highlights Ich bin ein Star - sports rights marketing. Holt mich hier raus! (I’m A Celebrity… Get Me Out Of Here!) and Deutschland sucht den Superstar (Idols) had a strong performance. Please find the RTL Group press release regarding the interim • M6 in France successfully launched a new management statement at access primetime lineup with the factual enter- the right-handed panel on tainment show Un dîner presque parfait (Come Backstage. visit Backstage to Dine With Me) and the newsshow 100% mag read the full scoring high ratings. Meanwhile the digital channel W9 continues to grow its audience press release figures.

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Bertelsmann significantly improves operating results Bertelsmann reported strong first-quarter results for fiscal 2008. First-quarter operating profits (Operating EBIT) were up by 9.6 percent compared with the previous year. Hartmut Ostrowski, CEO of Bertelsmann Germany - 8 May 2008

Operating EBIT for the period under review amounted to EUR 217 million (Q1/2007: EUR 198 million). These developments were driven by the continuing positive performance of the major core businesses. Group net income improved to EUR 35 million (Q1/2007: EUR -70 million).

Meanwhile, revenues declined by 3.9 percent year-over-year to EUR 4.2 billion. Adjusted for portfolio changes and foreign-exchange effects, revenue decreased 1.7 percent year- over-year. The revenue performance reflected negative foreign-exchange effects due to the euro’s strength relative to the U.S. dollar and British pound. Revenues were also impacted by declines in sales of physical recordings and revenues at visit Backstage to Direct Group in North America. read the full press release

Bertelsmann headquarters in Gütersloh 6 week 19 the RTL Group intranet

Acts, chartbreakers and a party atmosphere On Friday, 2 May, RTL Television aired the 50th episode of Die Ultimative Chartshow (The Ultimate Chart Show). Five new episodes have already been commissioned. Oliver Geissen Germany - 2 May 2008

The Chart Show was originally planned as a Jürgens who’s visiting the show. Our concept is one-time event and has instead become simple and compelling: viewers want to know Germany’s most popular pop show. On Friday who is number one. And our ranking is statisti- 2 May at 20.15, Oliver Geissen celebrated its cal: we calculate the placements, ensuring that 50th episode. This time, the theme of the show really only the ones who were actually at the is ‘The 50 Most Popular Rock Classics of All top of the charts win.” Time.’ Birthday guests included the comedian Michael Mittermeier, music executive Thomas RTL Television has commissioned the produc- M. Stein and German politician Claudia Roth. tion of five new episodes of the Ultimative Chart Viewers were treated to on-stage performances Show. The new episodes will to be aired star- by Bryan Adams, Suzi Quatro, The Sweet, Alice ting in autumn. “As long as we can keep finding Cooper, Nazareth, Uriah Heep and The Troggs. new, exciting topics to entertain viewers, we’re Geissen presented the first Chartshow on 21 nowhere near the end,” said Oliver Geissen. May 2003, and its market shares have nearly The show’s producer is Günther Jauch with his always exceeded the channel’s target of 17 company I & U Information and Entertainment. percent in the 14- to 49-year-old demographic.

An elated Oliver Geissen commented: “The show is fun, is as colourful and varied as music. And it is enjoyed across the genera- tions. The whole family comes together in front of the TV and enjoys the music of their lives, whe- ther it’s Tokio Hotel or Udo

The Ultimate Chartshow 7 week 19 the RTL Group intranet

Fit for the Championships The German Football Association and Super RTL have joined forces to fuel the exci- tement in the lead-up to the EURO 2008 by keeping young fans well-informed about the mega-event and getting them eager to get kick the ball around themselves. Germany - 7 May 2008

Super RTL and the German Football the international top event for 10- to 12-year- Association (DFB) have a lot planned for the old football hopefuls. We also introduced time leading up to and during the European Toggo United – Die Fußball-Show, the first-ever championships. Since 5 May, 2008, the football football magazine for children. Our collabora- association and Super RTL have been calling tion with the German Football Association was on school classes to kick up a storm. The trai- outstanding even then. We look forward to this ning programme in Paules Fußballstunde zur new cooperation and to working with Philipp Europameisterschaft (Paule’s European Lahm. Together, we will take the European Championship Football Session) was specifi- championships as an opportunity to motivate cally developed for school classes by the DFB. children, on several levels of media, to become The classes are invited to submit photos and active themselves. School football is an excel- videos to Super RTL showing how they are put- lent way for them to do so.” ting the training programme into practice. The class with the most compelling application wins a day with Renate Lingor, a player on the German national women’s football team. Lingor will visit the winning school, hold a football coa- ching session for the children, and talk to them about the life of a professional football player. For the runner-up, RTL’s own football expert Florian Ambrosius will organise a lavish football party to accompany the broadcast of a EURO qualifying match played by the German natio- nal team. Other prizes include two classroom sets of Uno Kick games and 20 DFB packages containing everything a football fan’s heart des- ires: miniature footballs, merchandising items, stuffed Paule dolls and many other items.

Starting 1 June 2008, Super RTL will run ten TV spots to augment its viewers’ football expertise while also providing them with key information about the European championships in Austria and Switzerland. National team player Philipp Lahm will play a major part as he shares his insider knowledge with teenage football fans and joins Florian Ambrosius in ensuring that the football extravaganza will be even more exci- ting for audiences.

Claude Schmit, CEO of Super RTL, said: “Super RTL has a soft spot for football in gene- ral and for youth football in particular, witness our sponsorship of the Danone Nations Cup,

Florean Ambrosius and Philipp Lahm 8 week 19 the RTL Group intranet

M6 purchases a 100 per cent stake in the Cyréalis group On 30 April, Groupe M6, through its subsidiary M6 Web, completed the acquisition of a 100 per cent stake in Cyréalis. This deal makes M6 one of the top 15 most visited sites in France with a total of 8.9 million unique visitors per month. France - 2 May 2008

In buying over the Cyréalis group, M6 Web, the Jerry Nieuviarts, Managing Director of Cyréalis, subsidiary for developments in new technolo- said: “We’ve made Cyréalis one of the top inde- gy, is showing its determination to build up a pendent Internet players in France. We’re top-notch Internet platform in France. Cyréalis’ proud to be joining the Groupe M6, a media Internet expertise will help M6 Web to continue leader with a real policy of diversification, developing the websites for its channels and whose additional experience and know-how in programmes (M6.fr, M6Replay.fr, etc.) and the domain of media content will help us boost expand its range of themed portals. To encou- the monetisation of our audience and our brand rage the integration of the two teams, Cyréalis’ portfolio”. founders Jerry Nieuviarts and Nicolas Rosset- Lanchet will join M6 Web’s Executive The Cyréalis group’s main activity was the ope- Committee, though Cyréalis’ Lyon office will ration of three editorial websites on high tech- still be operational. nology (clubic.com) video games (jeuxvideo.fr) and e-business (neteco.com). It also ran a price The Groupe M6’s Managing Director Nicolas de comparison site (achetezfacile.com). Cyréalis Tavernost commented: “Our acquisition of sites received a total of 5.3 million unique visi- Cyréalis is another step in M6’s strategy of pro- tors per month, mainly men aged 15 to 35 and fitable growth, giving us the means to streng- over. The company’s turnover for 2007 was 6.9 then our Internet offer and become one of the million euro, and its result from operations was leading players on the Web with a strong and 3.0 million euro. diverse range of content and services. The Group is delighted to welcome Cyréalis’ two founders, whose experience will no doubt prove valuable to M6 Web”.

This move also allows M6 Web to diversify its Internet-based income sources. Thanks to the takeover, M6 Publicité has a bigger target group and a stronger position. M6 Web will assume control of sites managed by Cyréalis and expand its range of targeted offers. Now almost one in three Internet users will use web- sites managed for M6 Publicité for information, entertainment, communication or even shop- ping.

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M6 attracts millions of viewers The French channel M6 started the week well – its excellent selection of programmes attracted millions of viewers. Melissa Theuriau (right) celebrating 15 years of Zone Interdite France - 7 May 2008

4.5 million viewers tuned in to the magazine This made M6 France’s most-watched channel Zone interdite (Forbidden Zone), 2.2 million among under-50s on Monday evening, with an watched the instalment of Un dîner presque audience share of 29.8 per cent. parfait (An Almost Perfect Dinner) and the film Indiana Jones et le temple maudit (Indiana Jones and the Temple of Doom) drew an audience of 4.9 mil- lion.

Zone interdite attained an audience share of 18.5 per cent across the vie- wing public. Mélissa Theuriau presen- ted the programme, which aired at 20.50 on Sunday evening. This week’s theme was ‘The police on the trail of crooks, traffickers and dealers’. M6 was France’s second most-wat- ched channel that Sunday evening.

At 18.00 on Monday, the last dinner ‘Chez Muriel’, one of the hosts of Un dîner presque parfait prepared by one of the contestants on Un dîner presque parfait achieved an audience share of 20.9 per cent across the viewing public. This performance made M6 the French public’s number-one channel. Ratings among housewives aged under 50 were also excellent – the pro- gramme’s audience share for this group was 38.9 per cent.

The second film in the Indiana Jones series was broadcast on M6 at 20.50 on Monday evening and attracted an audience share of 20.0 per cent of the 4-plus age group.

Harisson Ford as the famous Indiana Jones 10 week 19 the RTL Group intranet

Virtual auditions for America’s Got Talent For the first time ever, America’s Got Talent will team up with MySpace for a virtual audition city episode as part of a nationwide search for the hottest performers in the country to compete in the blockbuster reality show's third season. North America - 6 May 2008

A Virtual America’s Got Talent Audition City for judges David Hasselhoff, Piers Morgan and MySpace users went live on Tuesday 29 April. Sharon Osbourne, has brought the variety for- Individuals could simply go to MySpace and mat back to the forefront of American culture upload a video of their talents. The show’s pro- by showcasing performers from across the ducers will review submissions and the selec- country. The third season premieres on ted participants will be flown to Las Vegas to Tuesday 17 June. The acts that make it through participate in an audition show. The Virtual the “Vegas Callbacks” will then move on to the Audition City episode will feature the selected live semi-final performance episodes. At this MySpace acts. This show will be treated as any stage, the judging will be turned over to the other audition city show and the acts will be eli- American viewing audience who will vote each gible for the million-dollar grand prize. week for their favourites. The series culminates in a live finale where one act will be crowned “I think this is an incredible idea and it gives the most talented new act in America, and walk everyone an unprecedented opportunity away with a million-dollar prize. through MySpace to showcase their amazing talents and have a shot at winning a million dol- Terry Fator, a ventriloquist from Dallas, Texas, lars and hopefully becoming a big star,” com- had his life changed forever last August when mented Simon Cowell. he was crowned the second season champion. Not only did he win the million-dollar grand “MySpace has always served as an online plat- prize, but his lifelong dream to headline on form for our community to showcase its talent,” the Las Vegas strip came true when he said Josh Brooks, VP of Marketing and Content signed a contract with The Las for MySpace. “Our partnership with America’s Vegas Hilton in a deal worth more Got Talent is a natural extension of that plat- than USD1.5 million dollars. form into the television arena. We’re thrilled to be able to offer this opportunity to our users and can’t wait to see their personal videos – check out talented or not!” myspace.com/ David Luner, SVP Interactive & Consumer americasgottalent Products for FremantleMedia Enterprises in North America added, “We’re creating a bridge between viewers, contestants and the MySpace community, providing an integrated experience unlike anything else out there”.

With the talent search open to competition acts of all ages, America’s Got Talent, hosted by Jerry Springer and presided over by celebrity

Simon Cowell and David Hasselhoff 11 week 19 the RTL Group intranet

Special overview of a TV sensation Starting on 8 May, RTL 5 is broadcasting a one- hour special De Gouden Kooi: Op Weg Naar De Finale (The Golden Cage: The Road to the Final) prior to the final. This programme will give vie- wers a full overview of more than a year and half of sensational television. ‘King-Terror’ Jaap, one of the participants The Netherlands - 8 May 2008

After twenty eventful months, the spectacular per cent (2008) of the 20 to 34-year-old target final of De Gouden Kooi (The Golden Cage), group. The programme has played a key role in which is presented by Bridget Maasland and is RTL 5’s success, helping it to increase its ave- the world’s longest-running daily reality show, rage market share for the 20-34 age group to will be broadcast live on Thursday 22 May. 14.7 per cent. Recently, the channel has even Before this exciting event, De Gouden Kooi: Op boasted a market share regularly exceeding 20 Weg Naar De Finale will give viewers the chan- per cent. The final of De Gouden Kooi will be a ce to relive, among others, the romance bet- fantastic end to the show and a wonderful way ween Dennis and Nadia, resulting in the first for its legions of fans to relive some happy Gouden Kooi baby (who will be born very memories. soon), the voluntary departure of ex-millionaire Lieke and the arrival of Mike, a tramp who The Show will be broadcast on RTL 5 on 8 May eventually left the villa to start a new life with a at 23.15. new house and job. Brian’s boxing match will be shown again, and viewers can once more see how Terror Jaap slowly became King Jaap. Fans can also review footage of Huub and Claire’s sumptuous wedding. In brief, this will be a sensational overview with countless fabu- lous images.

Since its launch in October 2006, De Gouden Kooi has achieved great ratings – in its second year, viewing figures even increased, rising from an average of 3.9 per cent (2007) to 4.9

Huub and Claire’s sumptuous wedding

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“A case study for geographical expansion” On 3 May the Croatian newspaper Vecernji List published an interview with our CEO Gerhard Zeiler about RTL Group’s strategy, its position in Eastern Europe – and about the success of RTL Televizija in Croatia. Croatia - 6 May 2008

The focus of the interview was on RTL Group’s European markets.” The newspaper said that activities in Eastern Europe and especially in there have been rumors in Croatia that RTL Croatia. “RTL Group is very happy with its Group might withdraw from the country. Zeiler investments in Eastern Europe”, Gerhard Zeiler explained that these rumors have no basis: said and mentioned the activities in Hungary, “There are very few countries, where a newco- where RTL Klub has been market leader for mer-channel became market leader in such a years, Russia, where RTL Group has a foothold short period of time. RTL Televizija is not only via a 30 per cent minority stake in Ren TV and the market leader among young viewers, it is a participation in a joint venture for non-terres- also relevant and its operations are already pro- trial channels, and of course Croatia. With RTL fitable. These successes are clearly linked with Televizija being the most-watched channel in RTL Televizija’s CEO Christoph Mainusch.” the key age-group of 14- to 49-year-olds, Zeiler left no doubt that the channel is in a much bet- Gerhard Zeiler also explained the importance of ter shape compared to its main commercial attractive content and strong brands, especial- competitor. ly in the hyper fragmented digital world. “In the digital world, there will be more television than Being asked on Croatia’s role in the circle of ever in future. Television will have more distri- countries of RTL Group Gerhard Zeiler pointed bution platforms than ever and it really will be out that “RTL Televizija has become a case television for everyone – for mass audiences as study for geographical expansion which is one well as for smaller target groups. As a content of our stated strategic goals. In the past four and brand company, RTL Group is in excellent years, we have shown RTL Group can expand position to continue strengthening its position into new markets by leveraging our strong RTL as the leading European entertainment net- brand and our TV expertise gained in many work.”

Opening pages of the interview published in the Croatian newspaper Vecernji List 13 week 19 the RTL Group intranet

Superstars returns Superstars, one of the most iconic sporting series ever, returns on Five. The show, which pits top athletes from different sports against each other, will start this summer. United Kingdom - 2 May 2008

Widenning its lead The channels that make up Mediengruppe RTL Deutschland averaged 34.4 percent of Germany’s 14- to 49-year-old viewers in April, 1.2 percentage points above March and well ahead, yet again, of the channels in the ProSiebenSat.1 group, which scored 30.5 percent. Germany - 5 May 2008

New crime series from UFA Film- & Medienproduktion ZDF will begin airing a new prime time series called Ihr Auftrag, Pater Castell (Your Assignment, Father Castell) on 8 May. Germany - 5 May 2008

New highs, new look, new formats In April, viewers accessed 35 million videos online at RTLnow.de. From this week on the video-on-demand (VoD) platform presents a new look and new formats. Germany - 6 May 2008

Teamworx to produce Der Vulkan After over two years of research and development, the preparations for Der Vulkan are in full swing. Following the success of Die Sturmflut, Teamworx is teaming up with RTL Television on their next joint project, an event movie with an all-star cast and a budget of nearly 9 million euros. Germany - 7 May 2008

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Rocketing audience figures The French-speaking Belgian channel's evening schedule proved extremely popular with viewers on Tuesday 6 May. Its evening news programme attained a market share of almost 50 per cent, and the evening ended well with a market share of over 30 per cent. Belgium - 8 May 2008

Super RTL co-production wins an award Hairy Scary, a 26-part series to be aired on Super RTL this summer as Max & Maggie, won an award at the Stuttgart International Festival of Animated Film on 6 May. Germany - 7 May 2008

A revolution in real-time strategy games Black Inc., an RTL Games label, and the Bulgarian developer Black Sea Studios present WorldShift, a game that combines the best elements from real-time strategy and online games. Germany - 8 May 2008

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