Television

Endemol's turnover jumps by 5.8 per cent in 2005

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MUMBAI: Bolstered by its scripted television business format, Endemol reported a rise in turnover for calendar year 2005 by 5.8 per cent to 900.1 million euros, delivering a net profit of 87.6 million euros which is a 25.5 per cent gain on 2004.

The scripted television business delivered gains of 21.2 per cent to 126.4 million euros, led by gains at the subsidiaries in Spain, Italy and the Netherlands. Non-scripted TV rose 3.1 per cent to 690.4 million euros, driven by Fear Factor, Deal or no Deal and Big Brother. Digital media was up 8.3 per cent to 83.3 million euros, with viewers worldwide increasingly participating via phone call and text messages.

The UK was Endemols strongest market, generating revenues of 173 million euros, an 18.4 per cent gain. The Netherlands was second with 150.2 million euros, just a 3 per cent gain. Business in the US was up 13.8 per cent to 138.4 million euros, while Spanish revenues increased 7 per cent to 126.3 million euros. Business fell, however, in both Italyby 4.9 per cent to 105.9 million eurosand Germany, where revenues dropped by 2.9 per cent to 82.9 million euros.

Endemol CEO Joaquim Agut said, We are very pleased with the strong results presented. Growth was achieved in all our business lines, and across almost all Endemols markets. On top of having delivered very strong 2005 financials, Endemol also made significant steps towards the development and implementation of the companys strategic priorities.

"Additionally, we have put extra emphasis on further enhancing our structures and processes to support creativity and talent retention. The year 2005 was also another milestone in Endemols history due to the successful IPO. We are convinced that this IPO will assist Endemol in continuing its focus on profitable growth and market leadership.

Non-scripted turnover reached 690.4 million euros in 2005. If the figures are normalised to take into consideration the Fear Factor effect in the USA, growth would have been 5.5. The main contributors to the growth have been the UK, The Netherlands. Endemols main non-scripted formats continued to enjoy a strong performance in Endemols markets and were further deployed around the globe in other territories during 2005.

Deal or no Deal for instance is doing well, being produced in 26 countries in 2005 (16 countries in 2004). This now includes both the USA and the UK market for the first time.
Big Brother is performing strongly as well, and remains Endemols top format. In 2005 it has been produced in 22 countries as against 12 countries in 2004. Fear Factor has also had a very sound performance in 2005, maintaining its second position in Endemols top 10 programmes, and being produced in 8 countries in 2005.

Such has been the success that Extreme Makeover Home Edition has enjoyed in 2005 in the US, that despite being produced in only one additional country (Norway), it has positioned itself as the fourth format in the group in terms of turnover contribution.

Scripted enjoyed strong growth in 2005, with an increase of 21.2 per cent in turnover to a level of 126.4 million euros. A group head of scripted has been appointed to coordinate and concentrate efforts in this business segment. Additionally new scripted divisions have been set up in the UK and in the US.

The main contributors to the scripted growth have been Endemols subsidiaries in Spain, Italy and the Netherlands. Spain enjoyed substantial growth in scripted, with productions like Amar en tiempos revueltos, Arrayan etc. Italy has also enjoyed a strong year in scripted, with projects such as Gente di Mare, La Profia.

In the UK, a scripted division has been set up via Showrunner, which has already 5 paid development deals with Channel 4 and the BBC. In addition, Initial and Zeppotron, two of Endemols branches in the UK, are also contributing scripted series such as Totally Frank and Spoons.

In digital media, the total turnover increased by 8.3 per cent to a 83.3 million euros. Endemol had major developments taking place in each of the three areas within digital media.

Regarding Participation TV where viewers interact with Endemols shows to win prizes and bid for products, Endemol enjoyed growth in all countries, with more than 140 million calls and SMS. New regulation in 2006 will put a limit on Endemols Participation TV revenues in The Netherlands although this is being countered by signing an agreement with RTL for 2006 for other interactive call applications.

Additionally, Participation TV activities will continue in the remaining countries. On top of this, Endemol is already working on additional Participation TV concepts.In the area of brand exploitation where viewers interact with Endemols existing entertainment formats Endemol says that it had a very good overall performance in 43 formats, including Big Brother, Deal or no Deal and Operación Triunfo, attracting more than 300 million calls and SMS.

Regarding tailor made content i.e. content for other platforms not related to TV, Endemol has been building up the base for future growth. It has been setting up specific organisations in Endemols main territories to develop live applications for mobile TV and IPTV. Endemol is involved in negotiations with KPN in the Netherlands and BT in the UK for the exploitation of IPTV concepts.

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