26 August 2009

week 35

Interim results 2009 Strong ratings despite significant cost reduction

plus all the major from the last four weeks

Germany Covering the German elections Five enters Canvas partnership

United States America’s Got Talent RTL Nederland launches heading to Vegas digital channel Interim results COVER: Strong ratings despite significant cost red Interim Results 2009

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RTL Group delivers strong ratings despite significant cost reduction On 26 August, RTL Group announced its interim results to 30 June 2009. Backstage asked RTL Group CEO Gerhard Zeiler about the current status of the company.

Luxembourg - 26 August 2009

How did RTL Group hold up so far in these with TV, radio, production and diversification difficult economic times? businesses, which gives us the ability to overcome the current market downturn The first half of 2009 was heavily impacted by successfully. Despite the net loss in the first the weak state of the advertising markets. half of the year, we are confident that we will Everywhere in Europe, we faced the same have a positive net result for the full year 2009. picture: during the first six months of the year, the TV advertising markets were down by at What about the audience performance in the least 10 per cent, in some countries even first six months of 2009? above 20 per cent. In short: we operated in a tough economic environment? and the results From an audience ratings perspective, we have reflect that. had an excellent first half year. Despite significant programme cost savings, RTL Having said that, I also want to make clear that Group’s families of channels in the major RTL Group is a healthy company. We have a markets , France, the Netherlands and double-digit operating profit margin, and this Belgium all achieved higher audience shares. despite the economic downturn and significant Especially our market-leading flagship special items which impacted our EBITA in the channels RTL Television in Germany, RTL 4 in first half of 2009. We are cash generative and the Netherlands and RTL-TVI in Belgium were debt free. And we have a broad-based portfolio significantly up year on year.

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You just mentioned cost savings. Already Secondly, new online video and catch-up TV early in the year, you talked about the need services. Professional TV content is a major to re-calibrate the cost structure in the free- growth driver of the internet. In total, RTL to-air broadcasting industry. Could you give Group’s online platforms across Europe us some details on the measures taken at registered more than 470 million video streams, RTL Group? which delivered professionally produced content to our viewers – an increase of 97 per To compensate for the advertising revenue, all cent compared to the first half of 2008. So we of our profit centres and the Corporate Centre will continue to invest in our online video have implemented varying degrees of cost platforms, making them also available on TV cutting measures. These include savings in the screens and on mobile phones. In Germany, we programme grid, overheads and also personnel just launched a new catch-up TV service for our costs. On an underlying basis – that means Vox channel. And M6 Replay is already stripping out portfolio effects and restructuring- expected to break even in 2009. related costs – the Group’s operating cost base has fallen EUR 198 million compared to last Thirdly, we are extending our online portfolio by year. This represents a compensation of 68 per increasing scale and quality. For example, we cent of the Group’s underlying revenue continue to grow Wer-kennt-wen.de, which has decrease – a result of a significant effort made become the number one social network in by all of our business units. Germany. In France, M6 Web has successfully integrated the Cyréalis group. As a result, the In Germany, France, the Netherlands and in the number of unique users per month grew by 70 UK our core broadcasting operations have all per cent to 12 million, compared to a year ago. made substantial, double-digit percentage savings of between 11 and 17 per cent in And finally an expansion in our content operating costs. activities, through a mix of acquisitions, such as Original Productions, and through organic Our goal is to achieve these savings while growth such as the recently announced maintaining our leading audience market opening of an office in India. positions. This is very challenging, but achievable. In the first half of 2009, we already In a nutshell: despite the tough economic managed to significantly reduce costs while climate we will continue to explore and secure simultaneously increasing our audience share future growth opportunities for RTL Group. in many markets. What is your outlook for the rest of 2009? Does this also mean that all investments are on hold for the time being? Given the very low visibility it is not possible to give clear full-year guidance. However, we are No, not at all. Given the difficult market not expecting a significant change for the environment, we have clear operational goals. second half of 2009. Therefore it has to be Yes, our focus on cost savings will continue. expected that the profitability level will be But while we work hard to optimise the considerably down compared to 2008, as we efficiency of our core business, we’ll also already announced in March at our 2008 results further invest in promising new opportunities. presentation.

There are four main areas on which RTL Group is concentrating its growth strategy: Firstly, the development of digital channels to counter audience fragmentation. We already have a number of profitable digital channels within our families of channels – for example W9 in France or the German pay channels RTL Crime, RTL Living and Passion. More will come – RTL Nederland has just announced the launch of its new digital channel RTL Lounge in October.

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RTL Group Results

• Reported Group revenue down 9.6 per cent • Reported EBITA margin of 12.3 per cent to EUR 2,588 million as TV advertising (2008: 17.5 per cent) markets across Europe declined by double- digit rates; RTL Group’s investments in • Net loss attributable to RTL Group content production and diversification shareholders of EUR 105 million mainly due businesses helped to better balance its to goodwill impairments for Five Group in financial position the UK and Alpha Media Group in Greece

• Reported EBITA down 36.7 per cent to • Net cash from operating activities of EUR 318 million due to EUR 237 million resulting in an operating o lower profit contributions from most profit cash conversion of 98 per cent centres, o higher start-up losses (EUR 35 million) • Outlook for 2009 remains unchanged: which mainly resulted from the first-time RTL Group currently sees no significant full consolidation of Alpha Media Group in change to the European TV advertising Greece, and market conditions in the second half of o significant one-time charges including 2009, therefore it has to be expected that restructuring costs in the UK, Germany the profitability level will be considerably and Greece totalling EUR 20 million and a down compared to 2008, as already significant programme write-down at Five announced amounting to EUR 22 million

Steady increase in cost savings combined with strong audience ratings

• Since the fourth quarter of 2008, RTL Group points. However, EBITA of the German profit has placed a strong focus on cost cutting in centre down 25.5 per cent due to response to the substantial slowdown in significantly lower advertising revenue advertising bookings: on a constant scope basis, excluding restructuring costs and • Despite considerably lower TV advertising other one-off effects, operating costs fell revenue, increased its EBITA EUR 198 million compared to the first half of 3.7 per cent, driven by significantly lower 2008 programme costs at the M6 main channel and higher profit contributions from its digital • Many operations have already reduced their channels and diversification activities costs by more than 10 per cent in the core TV business in the reporting period: • Worldwide production arm FremantleMedia o Germany – RTL Television, Vox, N-TV: continues to produce the most watched EUR 97 million (minus 15 per cent) entertainment shows in key markets such as o France – M6 main channel: the US, the UK and Germany; EBITA down EUR 48 million (minus 17 per cent) 10.3 per cent mainly due to general pressure o The Netherlands – RTL 4, 5, 7, 8: on profit margins EUR 17 million (minus 11 per cent) o UK – Five Group: • With the UK TV market strongly affected by EUR 22 million (minus 13 per cent) the economic downturn, Five Group registered an operating loss of EUR 19 • Despite significant programme cost savings, million, excluding a significant programme RTL Group’s families of channels in the write-down of EUR 22 million and major markets Germany, France, the restructuring charges of EUR 8 million Netherlands and Belgium all achieved higher audience shares; the Group’s market-leading • Newly acquired Alpha Media Group initiated flagship channels RTL Television (Germany), comprehensive restructuring and cost RTL 4 (the Netherlands) and RTL-TVI reduction measures in reaction to the (Belgium) were significantly up year on year substantial downturn of the Greek market; despite these savings, Alpha TV’s audience • Mediengruppe RTL Deutschland increased share increased each month from January to its clear audience leadership over main June 2009, proving that the new competitor ProSiebenSat1 to 4.5 percentage programming strategy is working

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RTL Group’s corporate strategy remains in place – further investments in content production, digital activities and diversification businesses

• In total, RTL Group’s online platforms • RTL Group is investing in High Definition across Europe registered more than 470 TV (HDTV) services in Germany, million video streams, which delivered the Netherlands and France professionally produced content to our viewers – an increase of 97 per cent • In a unique extension of the Idols brand, compared to the first half of 2008 FremantleMedia created a TV programme- based attraction, The American Idol • On-going improvement and extensions of Experience, at Walt Disney World Resort, RTL Group’s popular catch-up TV services Florida. Since opening in February 2009, o Selected programmes from M6 Replay the attraction has drawn over 5,000 and RTL Now are now available on visitors daily mobile phones o Launch of Vox Now in Germany • In February 2009, FremantleMedia o RTL Gemist will soon be available on TV acquired a 75 per cent stake in Original screens in the Netherlands Productions, the US-based creator of hit TV shows such as Ice Road Truckers • RTL Interactive acquired the remaining shares of Wer-kennt-wen.de; with 6.6 million members at the end of June 2009, and 6.21 million unique users per month, the site has become the leading social network in Germany

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M6 publishes financial results Revenues decreased slightly (by 4.3 per cent), while EBITA remained stable (up 0.9 per cent). M6 Headquarters in Paris France - 29 July 2009

In the first half of 2009, Groupe M6 recorded TV ad spendings continued to decline during consolidated revenues of EUR 678.3 million. the first half of the year, with the market facing This represented a slight decline of 4.3 per low visibility, unfavourable volume and the cent, reflecting the group’s resilience in a resultant price effects. Despite the decline in its deteriorating economic environment, despite a advertising revenue (down 14.1 per cent), the second quarter penalised by unfavourable channel M6 outperformed the overall TV ad base effects. sales market. In the first six months of 2009, M6 was the only major channel that managed Consolidated current operating income (EBITA) to withstand the rise of DTT channels, reached EUR 107.5 million, up slightly (by 0.9 maintaining a stable audience share of 11.8 per per cent). This was due mainly to a 23.7-per cent in the target demographic of viewers aged cent decrease in the cost of M6 channel’s 4 and above (noon to midnight timeslot). programming (largely the non-reinvestment in the rights to the European football Net profit stabilised at EUR 80.1 million (an championship broadcast in June 2008 – increase of 1.0 per cent), for a net margin of excluding the Euro 2008, programme cost was 11.8 per cent compared to 11.2 per cent in the stable), as well as to initial results of the cost- first half of 2008. reduction plan, a stable contribution from diversification activities, and a strong increase Groupe M6 emphasised that, due to in the digital channels’ earnings. uncertainties in the current economic environment, the usual seasonal fluctuations of The group’s multimedia advertising revenues its businesses, and the savings on M6’s (M6 channel, digital channels, publishing and programming costs implemented during the Internet) came to EUR 370.8 million, down 10.4 first six months of the year 2009, the per cent, whereas non-advertising revenues consolidated EBITA achieved during the first amounted to EUR 307.5 million, up 4.2 per half of 2009 cannot be used to as an indicator cent. for the full-year level.

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Grupo Antena 3 publishes half-year results The company managed to outperform a sharply declining TV advertising market. However, profits decreased significantly. - 30 July 2009

For the first six months of 2009, Grupo Antena the commercial target group of viewers aged 3 reported total revenue of EUR 365 million, 16 to 54 with an audience share of 16.1 per down by 23.4 per cent, while costs were cent, as Telecinco’s audience share had reduced by 2.8 per cent. The operating profit dropped by 5 percentage points to 15.4 per (EBITDA) amounted to EUR 46 million (down cent. 69.0 per cent) and net profit fell to EUR 23 million (down 71.6 per cent). With its digital channels Antena Neox and Antena Nova, Grupo Antena 3 still leads the While the TV advertising market in Spain Spanish DTT market. Since May 2009, the declined by 30 per cent, Antena 3 managed to same adverts run simultaneously on all three outperform the market, with net advertising channels – Antena 3, Antena Neox and Antena sales down by 25.8 per cent, and increased its Nova. Accordingly, airtime sales are bundled advertising market share by 1 percentage point for the three channels, thus Grupo Antena 3 to 25 per cent. In terms of audience shares, was the only player to monetise audience Antena 3 managed to become market leader in shares in the digital segment.

Move postponed again After the move was scheduled to start in September following several delays, the date has been moved back again due to a number of problems with the project partners. Germany - 29 July 2009

The delay has been caused by the slow As things stand today, it looks like the move progress of the construction under the won’t take place until 2010, and it will take supervision of Hochtief, the general contractor. about 6 months for all companies in the Group The schedule was tight to begin with, says the to complete the move. The estimates are vague company, and it was impossible to rule out because the remaining work and removal of delays for technical or construction reasons. defects also need to be carried out by third However, the delays have now taken on a parties for risk and warranty reasons. dimension that is unacceptable for Mediengruppe RTL Deutschland.

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Extensive Election Coverage As the German parliamentary election campaign heats up, RTL Television presents election specials and cooperates with Stern magazine. Peter Kloeppel Germany - 2 August 2009

On 10 August, Peter Kloeppel presented the job or of tax increases, matters of education, residents of RTL Television’s Election Street health reform or environmental policy: RTL (Berger Straße) in , who represented election reporters will discuss a colourful mix of the concerns and wishes of people all over topics with voters and politicians on the Germany. On a street three kilometres long, in ground. 458 houses of all shapes and sizes, 6000 people live together. First-time voters, young Since 12 August, RTL Television and Stern and old, rich and poor, immigrants, new and magazine team up to regularly present Election veteran Frankfurters. “We’re attempting a Trends 09: this involves stepping up their years cross-section of Germany in this street. We of successful collaboration with the renowned want to use these selected residents as a case Forsa opinion-research institute, which surveys in point for explaining the important political 500 selected representative electors every day issues, in the process holding up a kind of until Election Day on 27 September. mirror to our viewers,” explains RTL Television’s Editor-in-chief Peter Kloeppel. Throughout RTL Peter Kloeppel says: “Because it takes into Television’s election coverage, right through to account the daily events and campaign the Bundestag parliamentary elections, appearances, opinion research at these individual residents of the Election Street will uniquely frequent intervals will give us be surveyed on the latest political issues. maximum precision in gauging the current political mood in the country.” And RTL Television has another election innovation for its viewers: also on 10 August, In each case the interviewees are asked their RTL Aktuell Weekend anchor Lothar Keller party preferences (the “Sunday Question”), joined Peter Kloeppel on the RTL Election Bus how they rate the economy, the political in RTL’s Election Street for the first time. As competence of the parties and who they prefer election reporter, Keller will be travelling across as Chancellor. The Forsa results are presented Germany in this bus until the Bundestag every Wednesday on the RTL Aktuell news elections, to capture the people’s voices and programme and on the Internet at Stern.de and moods. “We will tackle the issues that play a RTL.de, as well as on Thursdays in Stern. If role in the election, and we will discuss them on there are serious shifts in voter intention a few the spot with those who are affected by them– weeks before the election, the Forsa polls can citizens and politicians alike. Naturally, there is also be presented several times a week as a considerable focus on what people are needed. Forsa CEO Manfred Güllner will also worried about in the financial and economic analyse each week’s figures exclusively for downturn,” says Keller. Whether fear for one’s Stern.

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Lothar Keller (on the left) with Peter Kloeppel on the RTL Election Bus

Stern Editor-in-Chief Thomas Osterkorn: “For this project, Stern and RTL Television The Merkel/Steinmeier TV Duel - are combining the strengths of their live on RTL Television journalistic skills as leading print and TV media, supplemented by the news content On 13 September, RTL Television, together strengths of both the Stern.de and RTL.de with the country’s other major broadcasters sites. ARD, ZDF, and Sat.1, will transmit the great TV duel between (CDU) and the Not quite six weeks before the SPD chancellor candidate, Frank-Walter parliamentary elections, RTL Television and Steinmeier. Stern will begin jointly spotlighting one election issue a week, highlighting the most From 20:30, the two top politicians will answer pressing problems as well as electoral the questions of RTL’s chief editor Peter behaviour in Germany. Stern will provide in- Kloeppel, Frank Plasberg (ARD), depth coverage of the “hot potato” issues (ZDF) and Peter Limbourg (Sat.1) on current presented by RTL Aktuell in its broadcasts. election-campaign issues. In addition, the political editors of Stern, led by chief editorial member Hans-Ulrich RTL Television will begin its preliminary Jörges, will appear as experts on RTL reporting at 20:15, to be followed with further Television programmes. coverage and initial analyses after the 90- minute TV duel, from 22:00. RTL Television will kick off the “spotlight” election specials in its news programmes Kloeppel and presenters from ARD, ZDF and from 17 August, while Stern will begin theirs Sat.1 had also grilled the leading candidate in Issue 35 on 20 August, focusing on the Angela Merkel in a TV duel with the then- pressing issue of “Rich and Poor”. chancellor Gerhard Schröder on the main election issues ahead of the parliamentary elections back in 2005.

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New formats, new discounts At the IP Primetime in Frankfurt, Mediengruppe RTL Deutschland channels presented their programming for the TV season ahead, while IP Deutschland presented a new discount system. Martin Krapf presenting the new structure of offers Germany - 19 August 2009

Each summer IP Deutschland takes its IP announced a new form of measuring Primetime event series on the road to present advertising effectiveness. “The broadcaster the next season’s TV programming to brand influences both the viewer’s experience interested advertising customers in four of the programming and the advertising German cities. This year, the tour began in effectiveness,” said Krapf. “We are developing Frankfurt am Main at the Palais im Zoo. an involvement index which will become an important tool alongside CPM and ‘Cost per At this occasion, Martin Krapf, Managing Gross Rating Point’.” Director of IP Deutschland, explained IP Deutschland’s changed structure of offers. At the beginning of the event, Anke From now on, ‘IP-Angebot’ customers Schäferkordt, President of Mediengruppe RTL negotiate a total volume for all IP channels – Deutschland and CEO of RTL Television had RTL, Vox, Super RTL and N-TV – allowing them given a summary of Mediengruppe’s current to flexibly book airtime on these channels. situation. “Our channels are at the highest level Customers who specify a certain share per we’ve seen in the history of our broadcasting channel in advance are given an additional group,” said Schäferkordt. “All channels ‘channel-booking discount’. Agencies recorded a stable performance or actually negotiate basic agreements for one year based made gains during in the first seven months.” on a budget breakdown rather than on absolute She reiterated her concern that advertisers volume. A ‘Universe discount’ is calculated need to stop thinking in terms of first- and based on the volume placed with IP and second-league channels, an approach which is SevenOne Media. The share placed with no longer in keeping with the times. smaller channels or marketing agents is not Schäferkordt underscored this thesis with included in the calculation. An extra ‘Intermedia several illustrative graphics and urged that discount’ is granted to agencies who increase advertisers should look to tangible values, such the share of TV in their media mix in 2010. as the reach of commercial breaks, rather than “Since the new model has already been cleared to obsolete terms. with the Cartel Office, it offers agencies and customers the greatest possible planning and Afterwards, RTL Interactive Managing Director legal security,” said Krapf, adding that the Cost Marc Schröder presented the strategy for Per Mille (CPM) will develop very moderately Mediengruppe RTL Deutschland’s online over the year ahead. As Martin Krapf portfolio, which is bundled in RTL Interactive – elaborated on IP Deutschland’s strategy, he except for N-TV.de. “We want to be the leading

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Hans Demmel, Martin Krapf, Frank Hoffmann, Anke Schäferkordt, Marc Schröder and Claude Schmit (from left to right) online destination for video,” said Schröder, Road Truckers and Abenteuer Weltreise summing up RTL Interactive’s strategy and (Around The World Adventure). aspiration. He referred to the content of the online screenings, which this year were for the Vox Managing Director Frank Hoffmann began first time held in advance of the actual his presentation with two questions: Are we screenings, including a detailed presentation of successful?, and Are we satisfied? While the RTL Interactive’s online portfolio. Matthias answer to the first question was a clear ‘yes’, Büchs, a member of the RTL Interactive Board borne out among other things by the results of and Head of the Online and Mobile division, a survey, the reply to the second question was had elaborated on the extraordinary a ‘no’. And so, the channel plans to reduce its effectiveness of online video and the daytime line-up of documentary soaps, instead interaction of TV and online. Paul Mudter, Head airing more magazine shows and a new talk of Interactive at IP Deutschland, had show called Frauenzimmer (Dames), while also announced that IP Deutschland would start relying more on its core competencies and marketing third-party websites as well. Mudter taking advantage of the credibility it has built had also explained that the familiar system of up among viewers. The documentary soaps will commercial breaks during TV programmes can be moved mainly to access prime time. also be used for on-demand services such as Hoffmann also announced four new US series RTLnow.de, and is accepted by users. to be shown in prime time: Burn Notice, The Strip, Leverage and Lie to Me. Finally, the N-TV’s Managing Director Hans Demmel was channel has several blockbusters lined up for the first to present his channel’s programming next season’s programming, including Harry for the upcoming TV season. Demmel Potter And The Philosopher’s Stone, Ocean’s explained that N-TV sees itself not merely as a Eleven and 2 Fast 2 Furious. news channel, but as a ‘news unit’, keeping users well informed at all times and wherever Following a short break Claude Schmit, they are, with N-TV.de and the mobile portal. Managing Director of Super RTL, took the floor. The broadcaster plans to step up its prime-time “Children want to laugh, and children want to line-up of reportage and magazine formats, learn,” declared Schmit. “And we provide the such as Die Superreichen (The Super-Rich), full range of programming for children. Our Ratgeber Hightech (High-Tech Companion), Ice genre portfolio is diverse and we’ve got more

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new launches ahead than ever before.” Super Highlights of the coming season include the RTL is still the market leader in children’s TV, ever-popular US series, as well as a new series declared Schmit, who attributes this fact called Countdown, a new season of Alarm for primarily to three series: Hannah Montana, The Cobra 11, which begins in September, the Suite Life Of Zack & Cody and The Wizards of Teamworx-produced two-part event miniseries Waverly Place. Super RTL will introduce the Vulkan (Volcano) and the adventure flick Die new children’s format Kid Detectives in the Jagd nach der Heiligen Lanze (The Quest For coming season. “That’ll expose the kids to The Holy Lance). Viewers will also be treated to forensic skills early on,” Schmit joked, “so they new seasons of the show extravaganzas can easily move on to Vox later.” Super RTL Deutschland sucht den Superstar (Idols) and wants to grow its prime-time viewership in the Das Supertalent (Got Talent). season ahead. In this connection, the channel is adding the new format Ross Antony – Der The screening was followed by a get-together, Geisterjäger, a new version of Upps! Die providing a chance to discuss next year’s Pannenshow (Funniest Home Videos) including programming and other topics in greater detail an attempt at a new world record, and the with the channel bosses, an opportunity that documentary Expedition durch den Körper (The was gladly taken up by numerous guests. Human Body) to its programming.

Finally, Anke Schäferkordt gave a detailed presentation of RTL Television’s programming and emphasised – as she had done at the programme presentation in July – the broadcaster’s strong market position.

Palais im Zoo

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Daily news at 19:45 On 7 September, M6 launches a new news magazine, further strengthening its access prime time programming. Claire Barsacq will present Le 19:45 France - 21 August 2009

The name really says it all: Starting on the successful format of the news 7 September, M6 will broadcast its new news programme Six, launched in 1987, whose magazine Le 19:45 every day at 19:45. The new weekend time slot it will take over. Like Six, the format serves to systematically enrich and new magazine will attract viewers with the strengthen the channel’s access prime time power of pictures, an educational slant on programming. Since undergoing a fundamental issues and the up-to-dateness of a daily news reprogramming in February 2008, the channel format. has been increasingly successful with audiences, especially with 100% Mag and Un In its advance publicity M6 says the new format dîner presque parfait. Now a new player enters is an innovative coupling of the channel’s over the TV stage – Le 19:45. 20 years of news experience with the possibilities opened up by the new media. Le And yet the new player has a familiar face: Le 19:45 will therefore follow the classic structure 19:45 will be presented by Claire Barsacq. The of a news magazine, both in its mix of local, journalist began her career at M6 a few years national and international issues and in the way ago as a reporter for 100% Mag before taking it is presented. Items will be introduced, put in over as the presenter of the TV magazine Zone context and explained by the presenter in the Interdite in November 2008. The programme’s studio before the actual film footage of viewership most recently settled at around four reporters and correspondents begins. million. Barsacq will present Le 19:45 on weekdays. On the weekends she hands over to her colleague Nathalie Renoux, familiar to M6 viewers since 2006 from the lunchtime magazine Le 12:50.

Each 18-minute edition of the new news magazine brings viewers the latest news plus background information from all over the world. The Le 19:45 concept is deliberately modeled

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America’s Got Talent heading to Vegas FremantleMedia Enterprises and Planet Hollywood Resort & Casino will launch a live version of America’s Got Talent in Las Vegas. North America - 18 August 2009

Produced by FremantleMedia Enterprises Now in its fourth season, America’s Got Talent (FME) and Simon Cowell’s Syco TV in is one of the highest-rated television shows. conjunction with Planet Hollywood, America’s Since its debut in 2006, its ratings have Got Talent Live will begin on 7 October at regularly outpaced every other broadcast of the Planet Hollywood’s CHI Showroom in Las night, and occasionally of the week. This Vegas with shows every Wednesday through summer, the show once again rated number Sunday for 10 weeks. one in both overall viewers and the key demographic of viewers aged 18 to 49. Andy Felsher, SVP, Games, Entertainment and Live Events for FME, commented: “America’s America’s Got Talent Live underscores FME’s Got Talent is ideal for a live show extension, reputation in building brands beyond television offering fans another means of engaging with and follows on the heels of similar live their favourite performers. The show offers all extensions with The Price is Right in the US the excitement of being in the TV studio in and Australia, in the UK, and Hollywood and will allow guests to get up close The American Idol Experience at Walt Disney with a special celebrity host. Further, America’s World Resort in Florida. Got Talent Live will offer family fun for people of all ages.”

America’s Got Talent

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30 years of Universum Film This year, Universum Film’s rooftop party revolved around the company’s anniversary. Universum Films rooftop party Germany - 24 July 2009

Numerous guests accepted Universum Film’s negotiations regarding new projects, as do the invitation to its traditional annual rooftop party on company’s partnerships in the Home 16 July. This year, the festivities naturally centred Entertainment sector, some of which have been on the company’s anniversary. ongoing for many years. Universum’s enormous marketing expertise is evidenced by films such Founded in 1979, Universum Film initially as Around the World in 80 Days, which were concentrated on video distribution. In 1984, much more successful in Germany than in the AG bought up the remaining shares US market. These days, Universum Film itself is from Universum’s co-owner Büscher Film, and behind several high-quality productions, such as the new subsidiary moved from Dusseldorf to Mondbär and Prinzessin Lillifee, where the Munich. From this point on, films were distributed company contributed its family-entertainment under the ‘Ufa-Video’ label. In 1987, the expertise. Each year, it co-produces around three company was renamed BMG/Video Universum new films. Film. Its portfolio at that time already included the classics of German cinema, such as Der blaue Since October 2008, Universum has offered Engel and Münchhausen. In the 1990s, various content on iTunes as well: TV series first, followed cooperations, for example with Tobis Film and by blockbusters like Pan’s Labyrinth. Just a few Telepool ensured a steady supply of high-quality weeks after their digital release, the titles cinematic productions like The Fifth Element and generated steep revenue, without much Apocalypse Now. Add to that an exclusive advertising. In 2009, viewers can look forward to contract with ZDF which continues to this day. titles including an updated of the Oscar-winning The company had one of its biggest successes classic Fame, the action thriller Gamer, the to date with Michael ‘Bully’ Herbig’s Karl May documentary Serengeti and the new German film parody, Der Schuh des Manitu, which sold four Summertime Blues. million DVDs and video cassettes, generating revenue of over 37 million EUR and pushing the All in all, Universum Film is well equipped for the company’s turnover past the 50-million-EUR future and looks forward with confidence and mark for the first time in 2001. excitement to the next 30 years.

In 2003, the ‘UFA Kids’ (now ‘Universum Kids’) label was launched, under which the company commercialises all the children’s programmes it holds the rights to. Universum Film has led the market in the ‘Kids Non Feature’ segment since 2007, with a market share of 16 per cent.

The fact that Universum Film commands the entire commercialisation chain, from cinema to video-on-demand, and that RTL Television often simultaneously acquires the TV rights, facilitates Tania Reichert-Facilides, Managing Director of Universum Film (left), and the German pop star Sasha at the rooftop party 16 week 35 the RTL Group intranet

New joint business unit Talkback Thames and FremantleMedia Enterprises created a jointly controlled new business unit to be named Talkback Thames Digital. United Kingdom - 28 July 2009

The new business unit will be a centre of Talkback Thames Digital will be led by Robert excellence established to pursue digital Marsh, currently the Head of Interactive for opportunities from existing and new content FME UK, reporting into Rupert Brankin-Frisby, brands in the UK. Talkback Thames Digital will Commercial Director, Talkback Thames and be a stand-alone division reporting to both Dominic Burns, SVP Licensing UK, FME. Talkback Thames and FremantleMedia Robert and his team will be based in Stephen Enterprises (FME) UK and will be staffed from Street alongside some of the key UK people within Talkback Thames and FME’s UK production teams. Interactive teams. , CEO of Talkback Thames Its core aims will encompass to create digital said: “Talkback Thames Digital is a vital new brand extensions of Talkback Thames and development for us because digital is playing FME’s key content brands and programmes, an increasingly significant role and through this address the demand from BBC and C4 for venture we can focus on building our skills and public service digital content, fully integrate business in this area”. digital thinking into the TV development process and foster the development and David Ellender, CEO of FME commented: “I am creation of new digital experiences in the UK excited about the future opportunities that that can create value on a multi-platform basis. digital technology brings to our UK business and I believe that the creation of a stand-alone unit is the ideal way to maximise our chances of success.”

Canvas partnership UK public service broadcaster Five confirmed it had become the latest partner in Project Canvas – the proposal to deliver broadband-connected television to the living room. United Kingdom - 31 July 2009

Five joins the BBC and ITV, as well as internet Dawn Airey, Chairman and Chief Executive of service provider BT, in committing to the Five, said: “Project Canvas is an important step project which will, subject to approval by the forward because it will extend choice and BBC Trust, create a next generation platform significantly improve the television experience augmenting the freely-available Freeview and for viewers. Its widespread adoption is central Freesat on digital terrestrial or digital satellite to driving Digital Britain. It’s vital for television. broadcasters and other industry stakeholders to form partnerships such as Canvas if they’re With internet-connected TV set to be a major to open up new commercial opportunities and technological advance in broadcasting, Five thrive in the digital world.” sees Canvas as critical to the long-term future of subscription-free TV, as well as a significant opportunity to provide next-generation services to viewers. 17 week 35 the RTL Group intranet

Gaming deal with MGM FremantleMedia’s gaming division and MGM Interactive agree to develop online casino-style games for operators and players in select countries outside of the US. United Kingdom - 24 August 2009

Under the agreement, FM Gaming will have the generations and we’re looking forward to exclusive right to develop its games based on developing these into great games for online hit MGM titles such as Fame, the Stargate casino operators and their audiences.” franchise, Robocop and the classic “Spaghetti Westerns” including A Fistful of Dollars, For A Launched in September 2008, FM Gaming has Few Dollars More and The Good, the Bad and been created as a partnership between the Ugly. FremantleMedia Enterprises and - Media Ventures to extend and develop Paul Kanareck, Head of Ventures, Fremantle- FremantleMedia’s activities in the global games Media, says: “This deal demonstrates our market. FremantleMedia has licensed its ambition to become a leading publisher of brands across this sector for many years, but is branded games in this exciting market. MGM now taking an increasingly active role, have a fantastic range of movie titles that are publishing games around its own hit shows. known and loved around the world across

New service Users can now register for RTL Group’s new SMS service to ensure they stay on top of the latest important news and press releases. Luxembourg - 25 August 2009

To register, simply complete the form provided RTL Group issues a new press release. If you in the “Press Services – Subscribe to press are already registered, simply add your mobile releases” section on the RTLGroup.com number on the form and update homepage. Once you have done so, you will be your information. notified both by e-mail and by SMS as soon as

Register at RTLGroup.com

18 week 35 the RTL Group intranet

RTL Nederland launches RTL Lounge The fifth channel in RTL Nederland’s portfolio will broadcast the best Dutch and foreign drama and lifestyle programmes 24 hours a day, seven days a week. RTL Lounge The Netherlands - 25 August 2009

On the occasion of RTL Nederland’s programme presentation on 24 August, the company announced the launch of the new digital channel RTL Lounge. It will be RTL Nederland’s first special-interest channel and will target today’s young women. Initially, RTL Lounge will be available via the digital packages of UPC and Ziggo, but RTL Nederland is also holding talks with other distributors.

In addition to popular RTL programmes like Goede Tijden, Slechte Tijden, Gooische Vrouwen, RTL Travel, Nigella Bites and Bouwval Gezocht, the channel will also broadcast exclusive programmes, including RTL’s premiere of the Dutch telenovela Lotte, drama series like Fashion House and Desire and the travel programme Rough Guides. In short, RTL Lounge’s programmes will aim to inform and inspire the young women of today.

RTL Nederland CEO Bert Habets said: “RTL is tracking viewers on all platforms. Digital television is becoming increasingly more important. Our aim is to latch onto this trend as best we can by offering distinctive, high-quality programmes. Consequently, the launch of RTL Lounge is extremely important for our company.”

The programmes broadcast on RTL Lounge will not be interrupted by advertising and will always begin on the hour or half hour. The channel will also give viewers some unique previews. As from 2 October, the channel will be available to UPC subscribers with a ‘Royaal’ package and Ziggo customers with a Film & Entertainment package. 19 week 35 the RTL Group intranet

Strong growth in TV channels and digital offering The Dutch market leader RTL Nederland is ready for the new season and is setting its sights on the future in full confidence. Bert Habets The Netherlands - 27 July 2009

RTL Nederland has grown into an all-round profiles of our channels. We invested in media company, performing more powerfully distinctive programmes that match those profiles than ever in its core businesses of radio and perfectly. In June, our growth was topped off by television and growing strongly in digital media. the overall highest market share in 10 years. Via This makes RTL Nederland a highly effective and our creative unit, RTL Concepts, we can innovative media partner to all of its advertisers. efficiently update our channels, regularly in As RTL Nederland CEO Bert Habets points out, cooperation with our advertisers. The “We made a number of promises to the market programming improvements seen at all our last year. Firstly, enhancing our television core channels created clarity for consumers, resulting business and maintaining our strong position in in sharp growth in market share among our the radio market: innovating and ensuring growth channels. Such growth is high in the summer. In in digital; occupying a position in relevant new the new television season, efforts will be made to markets; and making our organisation more build upon the successful course we are customer-oriented. One year later, I can proudly currently following, but we will also be making say that we have been successful in this effort. upgrades, including the introduction of Let’s We wish to pursue this success by continuing to Dance at RTL 4, Over De Kook at RTL 5 and the operate more cleverly, faster and more efficiently. UEFA Europa League at RTL 7.” That will allow us to continue distinguishing ourselves from the competition. After all, at RTL RTL also saw strong growth in the digital arena. our primary goal is for all advertiser investments Three mobile websites were launched and RTL to be as effective as possible and to truly make a Gemist has been successfully overhauled. difference. This is more important than ever in the Consequently, the number of unique visitors to current economic climate.” the RTL network (among other things) rose explosively over the past year (up 68 per cent). In the first six months of this year, RTL The Eten Vandaag site was launched and RTL Nederland’s television market share grew by 7 rose to the STIR top 10. In addition, the new per cent (to 32.6 per cent) in the Shoppers 20 to RTL.nl site will be launched by August 24. The 49 target group. RTL 4 also saw historic high site sports an improved layout and is more growth of 2.7 per cent (to 17.3 per cent) among accessible and more informative, due in part to Shoppers aged 20 to 49 in the same period. The the use of widgets. continued success of RTL Boulevard and the launch of two new programmes developed in- Talking about the future, Bert Habets said, “We house, BN-ers In Het Park and Ik Kom Bij Je are continuing to focus on operating efficiently, Eten, also ensured consistently high ratings in the investing and having the courage to change. We summer months. are still working hard on our radio and television offerings, on developing our digital offering and As Bert Habets put it, “Thanks to the focus and on increasingly applying our knowledge to new creativity of the programming teams led by markets of interest to consumers and therefore to Erland Galjaard, Remko van Westerloo and Peter our customers.” Lubbers, we were able to further refine the 20 week 35 the RTL Group intranet

Celebs take to the dance floor in Germany, too Grundy Light Entertainment is producing the new dance show Yes We Can Dance with Kai Pflaume for Sat.1. Germany - 27 July 2009

Sweeping everything in its path The football club Girondins de Bordeaux, which is owned by Groupe M6, opened the season by winning the Champions Trophy after defeating En Avant de Guingamp 2-0. This competition traditionally pits the winner of the French championship against the winner of the French Cup. France - 28 July 2009

Strengthening its music business with ‘it’s fun music’ RTL II is pulling together its music expertise in a new business unit called “it’s fun music”, which will be set up as a separate division under the m4e AG umbrella. Germany - 29 July 2009

First look deal with Liquid Comics FremantleMedia Enterprises (FME) signed a first look deal with US company Liquid Comics. The deal gives FME first look rights on new IP created by Liquid Comics for development through FME’s international licensing, distribution and home entertainment operations. United Kingdom - 29 July 2009

High acceptance of advertising on Pay-TV Advertising on Mediengruppe RTL Deutschland’s niche channels is particularly effective thanks to the high degree of subscriber involvement with the programming, and is actually appreciated by pay-TV subscribers. Germany - 30 July 2009

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New media on the rise RTL Nederland’s website RTL.nl recorded an increase in traffic during the first half of 2009. The Netherlands - 30 July 2009

A new daily soap for Sat.1 Grundy UFA and Phoenix Film are producing a new daily soap for Sat.1: Eine wie Keine (Like None Other; working title). The launch is scheduled for autumn 2009. Germany - 31 July 2009

The German TV market in July Mediengruppe RTL Deutschland drew 33.6 per cent of the 14- to 49-year-old viewer market in July 2009, putting it – as ever – well ahead of the ProSiebenSat.1 group, which scored a market share of 30.1 per cent. Germany - 4 August 2009

400,000 more viewers in prime time In July 2009, with a total audience share of 11.5 per cent in the strategic 12:00- 24:00 time slot, M6 is the only major channel whose figures have remained stable from one year to the next. In prime time M6 attracted more viewers than last year. France - 4 August 2009

The latest weather news to go The multi-award-winning weather site Wetter.de presents a new weather application for iPhones and Google Phones. Germany - 4 August 2009

Up 10 per cent RTL Belgium has registered its best month of July since the start of measuring audience figures in 1997. Belgium - 5 August 2009 22 week 35 the RTL Group intranet

Growing its viewership With a cumulative market share of 17.7 per cent in July, Grupo Antena 3 channels grew by one percentage point compared to the previous month. Spain - 5 August 2009

Now on TV Already available on PC and mobile, M6’s catch-up TV service is also available on television, with Orange since last January and through SFR’s neufbox TV service since beginning of August. France - 6 August 2009

Number one on DTT W9 is once again the DTT channel attracting the most viewers in July 2009. France - 6 August 2009

300,000 more viewers than in Season 3 Season 4 of L’amour est dans le pré made it possible for M6 to systematically rate number one with viewers under 50 (a 27 per cent audience share) as well as with housewives under 50 (31 per cent). France - 12 August 2009

A friend for life One rich heiress looking for friendship, 85,000 candidates, 18 finalists and a single, one-of-a-kind best friend – that, in a nutshell, is the documentary show with Paris Hilton which will make its debut on W9 at the beginning of September. France - 13 August 2009

RTL à l’infini – Series galore The users of RTL Belgium’s Video-on-Demand platform have it good indeed: they get to see Season 5 of the US series Lost before its official on-air debut. Belgium - 14 August 2009 23 week 35 the RTL Group intranet

A great recipe With 201,091 recipes in its archives, Vox’s cooking portal Kochbar.de is the biggest recipe database on the German-language Web. Germany - 17 August 2009

Be a part of Gute Zeiten – Schlechte Zeiten Vox has launched a prize draw for a bit part on Germany’s most popular daily soap. Germany - 18 August 2009

Faster. Better. Brighter. Under this slogan the celeb news portal VIP.de now sports new content and features and a fresh new look. Germany - 19 August 2009

A fresh and eye-catching new look Following the overhaul of its on-air design and news studio, and the relaunch of the N-TV.de news portal, the broadcaster’s on-air promotion now sports a new look as well. Germany - 20 August 2009

The X Factor’s back The multi Bafta award winning entertainment show returns to British screens for an explosive sixth season. The first episode attracted 9.9 million viewers, representing a market share of 48 per cent. United Kingdom - 21 August 2009

A different take on diversification In a one-of-a-kind partnership, RTL Nederland, Endemol and Gall & Gall are bringing a white wine to market that was inspired by the popular series Gooische Vrouwen. The Netherlands - 21 August 2009

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Live video streams on iPhone, too RTL Interactive now offers direct access to RTL.de’s live Formula 1 video stream footage with the RTL Pole Position iPhone app. Germany - 24 August 2009

England’s Ashes win means record ratings for Five Sunday’s cricket coverage brought record ratings for Five’s highlights programme Cricket on Five: 2 million viewers tuned in. United Kingdom - 25 August 2009

Take Him Out debuts as Indonesia’s number one show With an audience peak of over 6 million and audience share of 36 per cent, Take Him Out ranked as the number one show of the week in Indonesia across all channels. Indonesia - 25 August 2009

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People New Worldwide Drama team United Kingdom - 3 August 2009

Donna Wiffen has been appointed as Senior Vice VP Programming, and in the US by Jeff Tahler, VP President Production and Network, WWD, Acquisitions, which also works with external, FremantleMedia, reporting to Claire Tavernier, independent producers to fund and develop who has been promoted to Senior Executive Vice drama programming for the international market. President, WWD and FMX, FremantleMedia. Instead, Donna will focus on local drama formats Sarah Hoeflich, former writing producer for produced within the FremantleMedia production Grundy UFA, will fill the newly created senior family. editorial position within the WWD team. Sarah Hoeflich will act as the primary point of Gary Carter, Chief Operating Officer, contact for all head writers and development FremantleMedia says: “We are thrilled to have executives of FremantleMedia’s drama such talented senior team members supporting development network. She will also run drama productions around FremantleMedia. FremantleMedia’s international development We’ve made significant progress in world wide network and will be responsible for the global roll drama and comedy in recent years and I’m out of drama formats developed in house. looking forward to the continued success of this Additionally, Sarah will liaise with new team.” FremantleMedia’s Senior Vice President Acquisitions, Vasha Wallace, to provide feedback In her new role, Donna, who had worked for on acquisition targets from an editorial years as the Head of Drama Production for perspective. Talkback Tames and as Head of Production at Endemol, will play a key part in supporting drama Claire Tavernier commented on the production and all scripted output around appointments: “I’m delighted that Donna and FremantleMedia’s global network, including its Sarah will be joining the Worldwide Drama team. world wide drama production territories. Donna These appointments will ensure that the will not be working within the FremantleMedia Worldwide Drama team is best placed to support Enterprises (FME) drama development our global businesses into the future.” programme, headed up in the UK by Mark Gray,

Donna Wiffen, Claire Tavernier and Sarah Hoeflich (from left to right) 26 week 35 the RTL Group intranet

People Marketing team strengthened Jörg Nommensen Germany - 5 August 2009

Jörg Nommensen is now Deputy Director Sales and integrated cross-media concepts as head & Marketing at Super RTL. of the Sales & Business Relations department.

Nommensen, 37, has worked for the Cologne- In his new role as Deputy Director Sales & based media company since 2003, and is Marketing, the Business Administration responsible for managing the advertising graduate reports to Christoph Ahmadi, Director customer network and marketing customised Sales & Marketing.

People A new addition to the FremantleMedia Licensing Germany team Steffi Neuthor Germany - 6 August 2009

Steffi Neuthor is the new Project Manager, The business administration graduate has Licensing & Merchandising of FremantleMedia worked in the licensing sector since 2005 for Licensing, effective immediately. She joins the the likes of Super RTL, Nickelodeon & Viacom marketing team consisting of Antje Röstel, Consumer Products Germany and the licensing Merchandising & Licensing Manager Eastern, division of MTV Networks GmbH, before Central & Southern Europe and Bettina Arff moving to Paramount Home Entertainment Licensing & Merchandising Sales Manager GmbH two years ago. Since 2006, she has Germany. In her new position as Project carried out many licensing collaborations, DVD Manager, Neuthor is responsible for the releases and cross-media marketing concepts independent project management of on subjects such as SpongeBob Squarepants, FremantleMedia’s TV and non-TV brands in Avatar, Shrek, Kung Fu Panda and Germany. She reports directly to Diana M. Madagascar. Dieckmann, Vice President Licensing, Germany, Eastern, Central & Southern Europe. 27 week 35 the RTL Group intranet

People New Division: UFA Brand Communication Stefan Kastenmüller Germany - 6 August 2009

Stefan Kastenmüller has been appointed to Stefan Kastenmüller brings extensive head the newly created division, UFA Brand experience from his various senior positions at Communication, effective 1 August 2009. media and brand companies, including Philip Morris where he was Product Manager and The new division’s core offering consists of MTV Networks in , where he served as corporate and brand communications for TV, Head of Marketing. Most recently, he was film and the Internet in cooperation with UFA Director of Marketing and Ad Sales at Jetix production companies. It caters to brand-name Europe from 2003 to 2009, serving as the manufacturers, industrial concerns as well as company’s CEO since 2006. He was media companies and other organisations. In responsible for all of the entertainment addition, the unit will be in charge of expanding company’s lines of business in the German- UFA Cinema’s product placement and licensing speaking countries and sat on the local activities. It will be based in Potsdam, with management board of Walt Disney. another office in Munich. The various UFA companies have already implemented a Wolf Bauer: “We are thrilled to have signed number of commercial productions with Stefan Kastenmüller, who is renowned both in advertisers and agencies in the past, for Germany and internationally, as a branding and example, Die Erlkönigin on Floaded.com with media expert for the company.” Mercedes Benz and other brands. This division will eventually be expanded into a standalone business.

“The new UFA Brand Communication unit is significantly expands our portfolio to include sustainable brand communications for brand- name manufacturers and other companies,” says Wolf Bauer, CEO of UFA.

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People FremantleMedia to launch production operations in India Saurindra Kumar Barua Raj Singapore - 14 August 2009

FremantleMedia has announced the appointment of Saurindra Kumar Barua Raj as Managing Director of FremantleMedia India. Raj will be based in Mumbai and report to Patrick Schult, FremantleMedia Asia’s CEO, who is based in Singapore. In his new position, Raj will build a new high calibre team and will work closely with various divisions within the FremantleMedia group to leverage its relationships and its content in order to establish a production operation to service the Indian market.

Patrick Schult, CEO, FremantleMedia Asia said: “We are delighted that Raj will be leading the team to launch FremantleMedia’s on-ground production operations in the Indian market. India continues to be a popular destination for many of our international hit formats and with Raj’s leadership we look forward to offering our clients a complete service from the introduction of these formats to the delivery of the finished product”

Before joining FremantleMedia, Raj was Vice President and Regional Chief Financial Officer (AsiaPac) for Discovery Asia based in Singapore.

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People Mel Alcock appointed CEO for the EMEA region Mel Alcock United Kingdom - 20 August 2009

In his new role, Mel Alcock, who will be based Prior to his new role, Alcock was Chief Client in London, will be responsible for maintaining Officer at iCrossing, the UK’s number one and enhancing the performance of FME’s Search and Social Digital Agency. This follows operations across the core current EMEA on from his work as Senior Vice President, markets of the UK, France and Germany, whilst Commercial Affairs at Jetix Europe Ltd, and developing growth strategies for Turkey, Head of Commerce for Interactive Greece, the Middle East and Sub-Saharan Programming at BSkyB Ltd. African, including South Africa. He will be looking to develop FME’s distribution business This announcement completes a series of in the region, maximizing the potential of titles regional CEO appointments for FME as it shifts from FremantleMedia’s own production towards a more regional focus whilst leveraging network, along with high quality content from its expertise across the larger FremantleMedia third parties. He will also continue to actively global network in order to move the business seek wide-reaching opportunities to extend all forward across its international television brands within the FME portfolio as well as new distribution, home entertainment, and licensing content acquired. businesses, with a concentration on digital technology and new platforms to meet the “Mel comes to FME with a variety of expertise demands of a fast-changing media and and experience in the media sector. We believe entertainment industry. Mel will embrace and excel in the opportunities presented by his new role, and work effectively with our other regional CEOs to successfully drive FME forward as a highly successful and creative business,” commented David Ellender, Global CEO, FME, to whom Mel Alcock will be directly reporting.

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