EM.TV AG - Constantin Medien AG

EM.TV AG
Q3 2005
Quarterly report 2005
Content
Q3 2005
2
Key Figures
3
Third quarter highlights
4
Business unit report
4
9
Sports
Entertainment
12
The EM.TV Share
14
Economic Development
19
Outlook
20
Consolidated financial statements
30
Corporate calendar
30
Production credits
Forward-looking statements.
This quarterly report contains statements relating to future events that are based on management’s assessments of future developments. A series of factors beyond the control of
the company, such as changes in the general economic and business environment and the incidence of individual risks or occurrence of uncertain events, can result in the actual
results differing substantially from those forecast. EM.TV does not intend to continually update the forward-looking statements contained in the quarterly report.
2 Key Figures
Q3 2005
EM.TV Group (based on IFRS)
In million Euro
30/9/2005
31/12/2004
86.6
164.2
308.7
66.6
145.2
47.0%
59.7
3.2
93.9
131.1
426.6
65.6
153.1
35.9%
181.9
0.0
1/1/ to
30/9/2005
1/1/ to
30/9/2004
Sales
> Sports
> Entertainment
> Others
Earnings before interest, taxes, depreciation
and amortization (EBITDA)
Depreciation and amortization
Earnings before interest and taxes (EBIT)
Earnings before taxes (EBT)
Consolidated net profit/loss for the year
146.5
128.1
17.3
1.1
151.6
130.3
21.4
0.0
8.8
-11.2
-2.4
-6.4
-4.5
62.1
-11.7
50.4
140.1
133.3
Cash flow from operational activities
Cash flow from investment activities
Cash flow from financing activities
-3.9
67.3
-114.6
20.2
-16.0
-15.6
30/9/2005
30/9/2004
52.5
51.0
5.13
-0.09
269.5
48.6
39.2
2.32
3.40
112.8
630
614
Film rights, EDP programs
Non-current assets
Total assets
Subscribed capital
Equity
Equity ratio (in percent)
Long-term financial liabilities
Short-term financial liabilities
Outstanding shares in million*
Average number of outstanding shares (undiluted) in million
Share price in Euro
Earnings per share (undiluted) in Euro
Market capitalization (based on outstanding shares)
Employees (nine months average)
Third Quarter Highlights
Third quarter highlights
Business development in line with expectations after nine months
of 2005
Slight increase in sales in the anticipated weak third quarter
Third quarter result impacted by preliminary costs and by bad
debt provision
Third quarter sees DSF achieve five-year high in market share
Launch of arena auction channel, a PLAZAMEDIA shareholding
Positive outlook confirmed for whole year 2005
3
4 Business Unit Report
Business unit report – Sports
DSF
In terms of gross advertising volume within the TV sector, the overall market demonstrated a slight
increase in the third quarter, too. Nevertheless, the net advertising sales achieved by classic TV advertising remained down.
In this consistently difficult TV market DSF’s classical net advertising sales were slightly below expectations in the third quarter of 2005. There was a downturn in sales in the T-Commerce sector due to an
increased competition with other TV stations in the third quarter.
With regards to advertising clients, notable achievements included the extension during the reporting
period of Telekom’s involvement in Bundesliga – Der Sonntag. Suzuki was also attracted as a new partner for coverage of the 2nd German Soccer League, alongside Hasseröder.
Third quarter sees DSF achieve a five year high in market share
With 2.1 percent within the core target group of males aged 14 to 49, DSF achieved its best market
share in five years during the third quarter. Furthermore, with this result, as well as with 1.2 percent of
overall viewers, DSF succeeded in improving its figures against the same period the previous year by 30
percent. By way of comparison, the third quarter 2004 saw DSF achieve 0.9 percent of viewers overall
and 1.6 percent within the core target group of males aged 14 to 49. In total, DSF made significant
improvements in market share in all relevant target groups compared with the previous year. In keeping
with this, DSF demonstrated an increase from 1.0 to 1.3 percent market share against the third quarter
2004 within the target group adults aged 14 to 49.
DSF sticks to its “Mehr Sport, mehr Live” motto
The third quarter, too, saw DSF continue to stand by the motto it announced at the start of the year,
“Mehr Sport, mehr Live” (more sports, more live). Alongside the successful formats of the German
Soccer League and the UEFA Cup, DSF’s program roster during the reporting period included lots of
further live highlights such as the UI Cup, premium test matches, the U 20 World Cup and the UEFA
Supercup between Liverpool FC and ZSKA Moscow. Aside from soccer, the reporting period was dominated by the European Basketball Championship, top tennis from Wimbledon and the Davis Cup, the
opening of the new season of the German Handball League and live boxing.
Second best one-day record in station’s history for DSF core target group
DSF celebrated a historical milestone on September 29. The lengthy UEFA Cup marathon, with five live
matches, brought DSF a one-day market share of 9.9 percent in the DSF core target group of males aged
14 to 49. For DSF, this marks the achievement of the second best result in the station’s history so far.
Q3 2005
5
With a one-day market share of 6.0 percent among overall viewers, DSF achieved another historic result and
the fourth best in the station’s history. For DSF, the entire UEFA Cup day brought strong viewer ratings. An average
of 960,000 viewers was already tuned in to DSF by early afternoon to watch VfB Stuttgart play live in Domzale.
The other matches played by German teams also achieved first class ratings. Viewer averages of 1.49 million
for Sofia vs Leverkusen, 1.46 for Hertha vs Nikosia, 2.19 million for Mainz vs Seville and 2.77 million viewers
for Copenhagen vs HSV underscore the outstanding one-day result for DSF. At its peak, 3.1 million viewers were
following the matches live.
DSF’s German Soccer League formats continue to thrive
DSF achieved its top ratings during the third quarter 2005 on September 11. An average of 2.7 million viewers,
peaking at 3.2 million, followed the highlights of the Sunday matches Dortmund vs Cologne and Berlin vs
Wolfsburg in Bundesliga – Der Sonntag. This resulted in a market share for DSF of 9.6 percent of viewers overall, and 11.4 percent of the target group males aged 14 to 49. By way of comparison, DSF reached its top
ratings for the third quarter 2004 on September 26 with an average of 2.53 million viewers. Overall during the
reporting period, DSF succeeded in further strengthening the excellent ratings of the German Soccer League
formats on DSF. For example, by the seventh match day of the 2005/2006 season on September 24/25, the
market shares enjoyed by formats Viererkette and Bundesliga Mittendrin among the target group males aged
14 to 49 had each increased by 86 percent against the same period the previous year. Bundesliga Aktuell also
demonstrated notable growth with an increase in market share of 78 percent, while Friday magazine program
Hattrick jumped by 73 percent.
DSF achieves top ratings with basketball and tennis
DSF achieved further excellent ratings in the third quarter with the European Basketball Championship in Serbia
and Montenegro. Up to 2.1 million viewers watched the final between Germany and Greece live on DSF on
September 25 (market share among males aged 14 to 49 – 7.8 percent). Overall an average of approximately
600,000 viewers followed the European Championship matches played by the German Basketball team on
DSF. The station also achieved excellent ratings with the Davis Cup. An average of 710,000 viewers tuned in to
the stand off between the Czech Republic and Germany.
Sport1
During the third quarter 2005, Germany’s largest sports portal Sport1 succeeded in maintaining the positive
trend set in the first half of the year. Its market leadership was further expanded due to significant growth in
site ratings. Despite the absence in 2005 of major sporting events of the calibre of the previous year's Olympic
Games and UEFA Euro 2004TM, the financial contribution made by Sport1 to the EM.TV Group remained well
within positive territory.
6
New ratings records in September 2005
The third quarter 2005 is distinguished through new ratings records achieved by Sport1.de in September,
with over 17 million visits and 148 million page impressions. As a result, Sport1 reports continued growth
in ratings, reaching 355 million page impressions and almost 48 million visits, in spite of the break in
the German Soccer League. This equates to an increase in visits of over 31 percent against the third
quarter 2004.
Sport1 launches its own sports database
The third quarter 2005 bore witness to the implementation of an in-house Sport1 sports database, in cooperation with Norwegian sports data supplier “Betradar.com-Market Monitor AS”.
Also in September, Sport1 launched its new product “DSF-Mobile-TV” on behalf of its partner T-mobile.
Sport1 functions as service provider for this innovative new product and is, in addition, responsible for
conception as well as for production.
In marketing, Sport1 succeeded in attracting “T-com” as an exclusive partner for the German Soccer
League. The German Soccer League pages on www.sport1.de have been presented by “T-com” since the
start of the 2005/2006 season.
Sports Betting
As already mentioned on several occasions, EM.TV is intending to enter the sports betting sector in view
of the fact that this offers a substantial sales and earnings potential in the opinion of the company.
Nevertheless, the market for sports betting in Germany remains regulated. Liberalization is, however,
expected by many to take place in the near future, due to a European ruling specifying important requirements with regards to the reliability of sports betting. Central to this is the decision of the German
Supreme Court in an associated claims process.
Prior to such liberalization, neither EM.TV nor any of its subsidiaries will offer or mediate in sports betting within Germany.
In advance of the expected liberalization of sports betting in Germany, EM.TV has conducted intensive
preparations during recent months in order to be able to enter the betting business at short notice. In
particular, this has involved the conception and development of a technical infrastructure. These preparations incurred associated consultancy, planning and development costs that impact the segment’s
results for the first nine months. This implies in no way, however, that a final decision regarding entry
into the sports betting business has been made. The company intends to reach its decision by the end
of 2005.
Business Unit Report
PLAZAMEDIA
During the third quarter, the German television market witnessed an increase in specialist TV stations
in search of lean production solutions and, in some cases, short-term implementation timescales. This
resulted in greater demand for the studio production and program management business units. In parallel
to this, TV stations are seeking to secure their market positions with high quality formats at low pricing.
Premium productions made in the current TV standard “SDTV” (Standard Definition Television) are being
sought at low price levels. As the successor to SDTV, High Definition Television (HDTV) is attracting particular interest.
This highly satisfactory market development resulted in good capacity utilization at PLAZAMEDIA during
the third quarter, in both the in-house production and outside production business units. This in turn
had a positive impact on sales and earnings.
Expansion of new media production and entry into international markets
PLAZAMEDIA continued to expand its international business within the new media business unit. The First
and Second German Soccer League are being produced in video stream format for US internet company
Bluelake Media. Japanese licensor Softbank is receiving video clips from PLAZAMEDIA of all matches prepared for cell phone reception. Alongside market entry into North America and Asia, PLAZAMEDIA developed its existing co-operation with Brazilian telecommunications company Terra Networks.
Premiere renewed its contract with PLAZAMEDIA for the production of all 125 UEFA Champions League
matches, including the final on May 17, 2006 in Paris. Under contract to DSF, PLAZAMEDIA is also realizing the UEFA Cup for the first time. Furthermore, production began on the German Handball League –
likewise for DSF.
Germany’s leading producer of interactive live television
PLAZAMEDIA won the contract for production and handling of the arena auction channel, which has
been broadcasting live 17 hours a day since September. Viewers are currently able to place bids per
telephone, and will soon also be able to do so online and via SMS. The arena concept is based on elements of entertainment combined with conventional TV shopping. PLAZAMEDIA has a 25 percent stake
in arena media GmbH. Its participation in this innovative TV concept is part of a systematic expansion of
the company’s business interests. PLAZAMEDIA has increased its studio capacity for production of the
interactive TV station.
PLAZAMEDIA positions itself on premium production and innovative technology
PLAZAMEDIA is the only German production company equipped for, and already offering, the new HDTV
broadcast technology throughout its entire production chain, from outside production, through studio
and post production, to program management. Thus, the company is very well positioned across the
board to take on the increasing production demands associated with innovative technology – also in
respect of camera systems.
7
8
© The Official Emblem, the Official Mascot of the 2006 FIFA World Cup GermanyTM and the FIFA World Cup Trophy are copyrights and trademarks of FIFA. All rights reserved.
At the International Broadcast Convention (IBC), which took place in September in Amsterdam, PLAZAMEDIA presented “Camera Moving Systems” in co-operation with its technology partner TV Skyline GmbH.
The presentation encompassed numerous individual camera systems for sports production. The focal
point was the third generation SportsCam, the first HD-capable camera system of its kind on the market. A further specialist camera, the PylonCam, was also presented for the first time. Designed for vertical camera travel, it combines with the new SportsCam III HD to create a unique system. There is a substantial domestic and international demand for both of these systems.
2006 FIFA World CupTM
A number of successful negotiations were managed in respect of the 2006 FIFA World CupTM, firming up
the planning activities on the part of domestic and international TV stations. In addition, Host Broadcast
Services AG (HBS) has contracted PLAZAMEDIA to generate the global signal using two venue production teams. The terms of the contract include, among others, the final of the 2006 FIFA World CupTM in
Berlin. Furthermore, also under contract to HBS, PLAZAMEDIA is generating the city profiles for all the
2006 FIFA World CupTM host cities, introducing the individual host cities to the global audience. The city
profiles will be produced in HDTV.
European merchandising rights to the 2006
FIFA World Cup™
The intense media interest in the 2006 FIFA World CupTM and the now very broad array of Official Licensed
Products for the 2006 FIFA World CupTM on the European market have ensured that interest in licenses
continues uninterrupted. Therefore, the third quarter, too, saw EM.TV perform well ahead of expectations
in marketing merchandising rights to the 2006 FIFA World CupTM.
Within the reporting period, EM.TV AG attracted five further licensees for the 2006 FIFA World CupTM.
These included VIP Merchandise GmbH, with an exclusive license for non-branded flags and illuminated
pins; ars Parfum Creation & Consulting GmbH, with an exclusive license for non-branded eau de toilette
and eau de parfum; and Xtrem Toys & Sports GmbH with exclusive rights to miniature trucks and soccer
goals (non-branded). Furthermore, Kryolan GmbH secured exclusive rights to non-branded professional
make-up, while Kid Galaxy Corp. signed a contract granting an exclusive license for bendable soccer
player figurines with accessories (non-branded). By the end of the reporting period, the number of contracts held with licensees had been expanded to 43.
Business Unit Report
Entertainment
Production
During the third quarter 2005, too, both domestic and international TV stations were seeking high quality, creative programming with a strong storyline and well-defined characters. Demand focused, above
all, on programs offering broad exploitation opportunities and a high marketing potential, specifically
within the home entertainment, publishing and merchandising sectors.
Programs for young children up to three years old, and language programs for pre-school children emerged
as new trends within the production market during the third quarter. In addition, there was an increase
in the volume of interactive TV formats, offering children the option to, for example, get in on the action
via cell phone.
The reporting period saw completion of the third season of animation series Flipper & Lopaka as well
as of the feature film. Alongside comedy-action series Staines Down Drains, which is currently in production, work progressed on two further co-productions and five program development projects, including pre-school series Zigby and educational program Croco Loco.
With the appointment of Dominique Christina Neudecker in the third quarter, EM.Entertainment gained
a proven program expert and experienced producer for the production business unit. Ms. Neudecker,
who was responsible for international co-productions at TV-Loonland AG for many years, is Head of
Productions at EM.Entertainment GmbH since October 1, 2005.
TV Sales
Market conditions evident during the previous quarter continued into the third quarter 2005. Both
domestic and international TV broadcasters maintained their interest in children’s and youth programs
from the EM.TV rights portfolio. Demand extended to new co-productions and program purchases, as
well as existing library products.
Key agreements reached within the free-TV sector included a contract with Nickelodeon Germany. In
addition to licensing 22 episodes of the Farscape series, the TV provider also acquired rights during the
reporting period to three seasons of live action series Clueless. The 62 half-hour episodes are due to be
screened on NICK, the new children’s station launched by the Viacom Group in September 2005.
9
10
Following the huge TV success of the first two seasons, ZDF opted in the third quarter to take the next
season of Flipper & Lopaka. Under the terms of its existing volume contract, ORF took seven animation
series amounting to a total of 156 half hours. Italian media group Mediaset extended the license period
for the Pippi Longstocking cartoon series by a further six years, while Ukranian broadcaster K1 selected
402 half-hour episodes for its volume contract.
In the pay-TV sector, EM.Entertainment succeeded in selling all 50 half-hour episodes of the classic
Anne of Green Gables to Asian media group Power International Multimedia (PIM). In addition, French
satellite operator TPS Jeunesse selected 65 episodes of the Bambaloo series, as well as the third and
fourth seasons of The Secret World of Alex Mack for its Teletoon children’s channel.
Merchandising
Within the merchandising business unit, there was no dominant theme evident during the third quarter
2005 that had a decisive impact on the license market for children and young people. Once again,
licensees demonstrated intense interest in the acquisition of licenses from the promotion sector.
For EM.Entertainment GmbH, licensing.forum 2005 on September 21 and 22 was one of the highlights
of the third quarter. Primarily, it was the 30-year TV anniversary of Maya the Bee in 2006 that attracted
keen interest at the Munich licensing trade fair. Furthermore, together with Autobahn Tank & Rast GmbH,
EM.Entertainment won the LIMA Award in the “Promotion 2005” category. The licensing industry organization LIMA voted the three-part Vicky promotion, which took place in selected Autobahn Tank & Rast
outlets in celebration of the 30th TV anniversary of the series Vicky the Viking, best promotion of the
year.
One of the most important agreements of the third quarter was a contract with Flötotto GmbH. The
furniture manufacturer from Gütersloh secured rights to children’s furniture in Maya the Bee designs.
EM.Entertainment won a further new licensee in FUN LITES Handels- und Vertriebs GmbH. The Hamburg
company acquired a license for lamps and lights featuring popular children’s characters Maya the Bee,
Heidi and Tabaluga. In addition, SIGG Switzerland AG extended its contract for Maya the Bee aluminum
beverage bottles.
Further Maya the Bee licenses were granted to Dinico GmbH (children’s melanine tableware) and PaniniVerlag (Maya the Bee magazine). Finally, the company Herding secured a product license for bedding
featuring Vicky the Viking motifs.
11 Business Unit Report
Q3 2005
Home Entertainment
Within the Home Entertainment business unit (video/DVD), EM.Entertainment GmbH achieved during
the third quarter, too, a series of international agreements with video production and distribution companies.
Key agreements included the sale of the third season of Tabaluga to L.C.J. Editions, Paris, which had
previously licensed the first two seasons of the animated series. Since the beginning of 2001, the French
distributor has enjoyed huge success marketing a variety of classics from the EM.Entertainment program library, including Black Beauty, Lassie and Adventures of Sinbad.
For Latin American, the Tycoon Entertainment Group acquired exclusive video and DVD rights to all 52
episodes of the Heidi cartoon series, as well as to the Heidi in the Mountains TV special. In the wake of
titles such as Flipper & Lopaka, Tabaluga and Rainbowfish, EM.Entertainment also succeeded in licensing animation classics Maya the Bee and Tao Tao to Finnish video production company Panvision.
Junior Channel
EM.TV subsidiary Junior.TV GmbH & Co. KG is the program supplier for children and family oriented
pay-TV channel Junior, which is available in Germany via pay-TV provider Premiere. The channel can be
subscribed to on an individual basis, or via the “Premiere Kinder” and “Premiere Thema” program packages, as well as via the total package “Premiere Komplett”.
During the third quarter, broadcast debuts on both Junior and pay-TV station Premiere included EM.TV
co-production The World of Tosh, as well as animation series Timothy Goes to School and Birdz from the
RTV Family Entertainment AG program library. In addition, feature film Sinbad celebrated its TV premiere
in July 2005, while cartoon film production Peter in Magicland enjoyed its first showing on pay-TV station
Premiere in September.
12 The EM.TV Share
The EM.TV share
Development of the German capital markets
German capital markets developed positively in the third quarter. The SDAX rose by 12.7 percent in the
third quarter to 4,285 points. The Prime Media Index fell by 6.0 percent to 172 points.
Development of the EM.TV share
The share price initially rose to 6.21 Euro at the beginning of July. A marked consolidation then commenced until the end of August with the share price falling to a low of 4.74 Euro. The price then rose
again to 5.53 Euro before a sideways movement in the range of 5.00 Euro to 5.35 Euro started. The
EM.TV share closed at 5.13 Euro on September 30, 2005. This was equivalent to a price reduction of
0.71 Euro (-12.2 percent) in comparison with June 30, 2005. In comparison with December 31, 2004
the share price increased significantly by 2.26 Euro (+179 percent).
The trading volume receded in the third quarter of 2005 but the EM.TV AG share continued to be the
most traded share in the SDAX.
The subscribed capital of EM.TV AG amounted to approximately 69.3 million Euro as of September 30,
2005 including new shares from exercised warrants of the bond with warrants attached, the entry of
which in the Commercial Register is still outstanding. Thereof, EM.TV AG held approximately 16.8 million as non-voting shares, with 15.1 million shares being reserved to service the certificate series. After
deducting the company’s own non-voting shares, there were approximately 52.5 million outstanding
shares as of September 30, 2005.
Xetra-closing prices of the EM.TV share in comparison with SDAX and Prime Media
77
66
55
44
33
22
11
00
01/01/05
= SDAX
28/02/05
= Prime Media
30/04/05
30/06/05
= EM.TV AG
Indices indexed to the EM.TV closing rate on December 31, 2004 for comparison purposes.
31/08/05
30/09/05
Q3 2005
13
Shareholder structure as of September 30, 2005
Distribution of subscribed capital
Distribution of voting rights
7.0%
9.2%
Constant Ventures B.V.*
Treasury Shares
Free Float
Constant Ventures B.V.
24.2%
68.8%
90.8%
Free Float
*Status: Holding as of July 2005
Information on the EM.TV share as of September 30, 2005
ISIN
DE000 914720 7
Segment
Prime Standard
Indices
SDAX, Prime Media Index
Bloomberg/Reuters
EV4 GR/EV4G.DE
Share price
EUR 5.13
52-week high/52-week low
EUR 6.37/EUR 2.18
Subscribed capital
EUR 69.3 million
Outstanding shares
52.5 million shares
Potential shares from warrants outstanding
> Certificates Series 1 (Subscription price EUR 2.50 until April 18, 2006)
> Certificates Series 2 (Subscription price EUR 3.50 until April 18, 2008)
> Warrants from bond (Subscription price EUR 1.00 until March 30, 2006)
> Others (Employee participation programms and convertible bond)
7.4
7.7
1.6
0.4
million shares
million shares
million shares
million shares
Market capitalization (based on outstanding shares)
EUR 269.5 million
Market evaluation for own issues of outstanding derivatives
EUR 42.3 million
Shares and stock options held by the Management and the Supervisory Board as of
September 30, 2005
Werner E. Klatten
Rainer Hüther
Dr. Andreas Pres
Members of the Supervisory Board
Shares
Stock options*
0
0
6,000
0
23,397
23,397
23,396
0
* Within the scope of the restructuring of EM.TV & Merchandising AG into EM.TV AG, the EM.TV AG AGM voted on March 19, 2004 to grant the
merger ratio (73:10) 10/73 to EM.TV AG ordinary shareholders entitled to options under the terms of previously existing options programs.
14 Economic Development
Economic development
General, accounting and valuation principles
According to the provisions of the Prime Standard of the German Stock Exchange (Deutsche Börse),
quarter financial statements have to be drawn up in accordance with IFRS (International Financial Reporting Standards) or US-GAAP (United States Generally Accepted Accounting Principles). EM.TV issues its
consolidated financial statements in accordance with IFRS.
In the accompanying financial statements at June 30, 2005, IRFS 2 (share-based compensation) has
been newly applied in comparison with the annual financial statements of EM.TV AG at December 31,
2004, with this also resulting in adjustments to the figures for the previous year.
EM.TV changed its segment reporting at the beginning of 2005. For greater transparency purposes, the
“Others” segment is being shown which includes income and expenses of EM.TV AG as the holding company of the Group. The Holding Company was previously attributed to the “Entertainment Segment”. In
addition, the former “Consumer Products” Segment has been transferred to the “Others” Segment.
Previous year details relating to this segment have been adjusted accordingly in order to ensure comparability.
Sales and earnings
The development of the EM.TV Group in the first nine months of 2005 are in line with its expectations.
As anticipated, earnings in the third quarter were adversely affected by weak operating earnings and
the costs for the UEFA Cup. The results were also adversely affeceted by the preparatory expenses for
sports betting and by a bad debt provision which had to be made by the TV station DSF.
Group sales in the first nine months of 2005 amounted to EUR 146.5 million compared with EUR 151.6
million in the first three quarters of 2004. As already explained in the report on the second quarter, the
difference of 3.4 percent was, inter alia, attributable to the one-off sales occurring in the previous year
in connection with the reorganization of the Planeta Junior joint venture company and to the discontinuation of production for the base signal of the Premier and Second Soccer League with effect from the
2004/2005 season. Group sales in the third quarter of 2005 rose by 2.4 percent from EUR 45.0 million
to EUR 46.1 million.
Other operating income amounted to EUR 12.6 million in the first nine months and was attributable to
the three individual quarters in almost equal shares. The corresponding figure of EUR 62.4 million in
the previous year was highly influenced by the one-off income of EUR 48.2 million from the final settlement of business relationships between KirchMedia, Junior.TV and EM.TV (“Kirch Settlement“).
Q3 2005
15
Material costs, the largest expense item, amounted to EUR 81.8 million in the first nine months of the
year and were therefore 4.1 percent lower than the equivalent amount in the previous year (EUR 85.3
million). In the third quarter, there was, however, an increase of 29.4 percent from EUR 23.1 million to
EUR 29.9 million which was mainly caused by the announced costs for the UEFA Cup for which DSF had
acquired the TV exploitation rights in May 2005 for a period of three years as from the 2005/06 season.
At EUR 37.2 million, personnel expenses in the nine month period were 3.1 percent higher than the
equivalent amount in the previous year (EUR 36.1 million). At EUR 31.8 million, other operating expenses were almost on the same level as in the first nine months of 2004 (EUR 31.1 million). In the third
quarter, this item rose from EUR 7.6 million in the same quarter of the previous year to EUR 12.1 million. The increase was, inter alia, attributable to a bad debt provision by DSF of EUR 2.4 million on a
receivable due from a service partner.
Group earnings before interest, taxation, depreciation and amortization (EBITDA) amounted to EUR 8.8
million in the first nine months of the year. The comparable EBITDA in the previous year adjusted for the
one-off income from the Kirch Settlement amounted to EUR 13.9 million (unadjusted: EUR 62.1 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter amounted to
EUR -3.5 million compared with EUR 5.7 million in the same period in 2004. In this respect, it should,
however, be considered that the budget for the quarter under review envisaged a weak contribution of
operating earnings from the very beginning on account of the seasonal course of EM.TV’s business.
The costs for the UEFA Cup and the bad debt provision by DSF also had an adverse effect. Regardless
of the aforesaid, earnings before interest, taxes, depreciation and amortization were in line with expectations in the first nine months of the year.
After including depreciation, the nine months’ earnings before interest and taxes (EBIT) amounted to
EUR -2.4 million (compared with EUR 50.4 million in the previous year; after adjustment for the Kirch
Settlement 2.2 EUR million). The EBIT in the third quarter was equivalent to EUR -7.4 million (compared
with EUR 0.5 million in the previous year).
Financial results improved in the nine month period from EUR -4.7 million to EUR -4.0 million. This included the exceptional expense of approximately EUR 1 million in the second quarter resulting from the
premature partial repayment of Euro 10 million for the 8% bond with warrants attached of 2004/2009.
EM.TV achieved pre-tax consolidated earnings of EUR -6.4 million in the first nine months of the year.
The comparable figure in the previous year adjusted for the Kirch Settlement and a substantial restructuring gain amounted to EUR -2.5 million (unadjusted: EUR 140.1 million).
16 Economic Development
After taxation and before minority interests, Group earnings of EUR -3.7 million were achieved in the nine
month period (compared with in the previous year: adjusted for the Kirch Settlement and the restructuring gain of EUR -6.4 million; unadjusted EUR 136.2 million). The gain of EUR 0.8 million attributable to
minority interests (EUR 2.9 million in the same period of the previous year) mainly relates to the former
owners of sports companies DSF and Sport1. As a result of the increase in EM.TV’s holdings in these
companies to 100 percent effected in May, there were no minority interests in this area of activity in the
third quarter of 2005.
After taxation and minority interests, Group earnings of EUR -4.5 million are shown for the period from
January to September (comparable period in 2004: EUR 133.3 million, adjusted for the Kirch settlement and restructuring gain: EUR -9.3 million). Earnings after taxation and minority interests separately
for the third quarter amounted to EUR -4.6 million (third quarter 2004: EUR -2.5 million).
In the Sports Segment, EM.TV achieved sales of EUR 128.1 million in the first nine months compared
with EUR 130.3 million in the same period in the previous year. Segment earnings amounted to EUR
6.3 million (comparable period in 2004: EUR 16.8 million). The downturn is mainly attributable to the
discontinuation of the base signal production of PLAZAMEDIA for the Premier and Second Soccer
League, costs for the UEFA Cup and the bad debt provision by DSF.
The intense preparations for the scheduled entry into the betting business by September 30 also gave
rise to a low single-digit million Euro amount which reduced the Segment earnings even further.
The Entertainment Segment reached a sales level of EUR 17.3 million from January to September
2005. The previous year’s figure of EUR 21.4 million had been affected by the one-off sales in connection with the reorganization of Planeta Junior. The Segment earnings in the nine month period amounted to EUR -1.7 million compared with EUR 43.5 million in the previous year (EUR -4.7 million adjusted
for the Kirch Settlement).
The segment results from “Others” for the first nine months amounted to EUR -6.9 million and were
therefore EUR 3.0 million better than the results in the previous year (EUR -9.9 million).
Financial and liquidity position of the Group
The balance sheet total of the EM.TV Group at September 30, 2005 amounted to EUR 308.7 million
and was therefore EUR 117.9 million lower than the position at the end of 2004 (EUR 426.6 million).
This downturn was mainly attributable to execution of the sale of the 45 percent holding in Tele
München Gruppe (TMG) which was agreed in December 2004.
Q3 2005
17
On the assets side of the balance sheet, long-term assets rose at EUR 33.1 million and amounted to
EUR 164.2 million. The standard amortization charge on film assets was offset by the substantial
increase in goodwill due to the additional shareholding investments in the Sports Segment.
Short-term assets were lower, falling from EUR 295.6 million to EUR 144.5 million on a balance sheet
date comparison basis. This was mainly attributable to the receipt of the purchase price for the stake in
TMG and the corresponding reduction in other assets. Liquid assets fell from EUR 106.6 million at the
end of 2004 to EUR 58.5 million at September 30, 2005, mainly attributable to the additional investments in the Sports Segment and the premature partial repayment of the 8% bond with warrants attached of 2004/2009.
On the equity and liabilities side of the balance sheet, Group equity capital amounted to EUR 145.2 million at the end of September 2005, thereby achieving an equity ratio of 47.0 percent (compared with
35.9 percent at December 31, 2004). The downturn compared with the position at December 31, 2004
(EUR 153.1 million) was mainly attributable to lower equity holdings of other shareholders (minority
interests) following the acquisition of shares in the Sports Segment.
At EUR 59.7 million, long-term interest-bearing liabilities at September 30, 2005 were EUR 8.8 million
lower than the position at the end of 2004 as a result of the partial repayment of the 8% bond with
warrants attached of 2004/2009. The outstanding balance of the convertible bond 2000/2005 which
was restructured in 2004 is also included under this heading. At September 30, 2005, the Group had
short-term liabilities to banks in the amount of EUR 3.2 million on account of valuta date overlappings
in the money trading sector.
Cash flow
The operating cash-flow of the Group amounted to EUR -3.9 million in the first nine months of 2005
compared with EUR 20.2 million in the same period of the previous year. Investment activities resulted
in a positive cash-flow of EUR 67.3 million (EUR -16.0 million in the comparable period of the previous
year) with the inflow of funds arising from the sold TMG shares being offset by the outflow of funds for
the increase in investments in the Sports Segment. The cash-flow from financing activities (Euro -114.6
million compared with EUR -15.6 million in the previous year) reflects the repayment of financial liabilities.
The cash-flow in the reporting period amounted to EUR -51.2 million which was mainly caused by the
investment acquisitions in the Sports Segment. The positive amount in the previous year (EUR 55.8 million) was marked by the effect of the de-consolidation, mainly relating to the TMG shares.
18 Economic Development
Personnel
During the period from January to September 2005, the EM.TV Group had an average of 630 employees
compared with 614 in the same period in the previous year. The number of employees in the Group has
slightly increased therefore. Personnel expenses for the first nine months amounted to EUR 37.2 million
compared with EUR 36.1 million in the same period of the previous year (+3.0 percent).
Financial position of EM.TV AG
EM.TV AG which issues financial statements in accordance with the provisions of the German
Commercial Code (HGB) showed a balance sheet total of EUR 286.5 million compared with EUR 295.1
million at the end of the previous year. Liquid assets amounted to EUR 35.2 million (December 31,
2004: EUR 74.6 million). The downturn was mainly attributable to the investment acquisitions in the
Sports Segment and the partial repayment of the 8% bond with warrants attached of 2004/2009.
The shareholders’ equity of the AG amounted to EUR 158.8 million at the end of September (December
31, 2004: EUR 162.1 million). This was equivalent to an equity ratio of 55.4 percent (December 31,
2004: 54.9 percent).
Development of claims for damages against
former Board Members and shareholder claims
Claims for damages against former Board Members
In addition to the proceedings already announced regarding the Formula 1 acquisition, the Company
has also lodged further legal actions in the Munich I Regional Court against a number of former members
of the Management Board and Supervisory Board on account of possible breaches of duty in connection
with TheatroCentro GmbH, the investment in Tabaluga GmbH and a large donation to a charitable organization. The damage compensation claim amounts to EUR 16.8 million.
In addition, EM.TV instituted and continued three further proceedings against former executives for breaches of duty in view of the fact that the necessary approvals of the relevant executive bodies had not
been obtained with various co-productions and license contracts and that the economic bases had not
been sufficiently investigated when a decision was made. The damage compensation amounts to EUR
18.2 million.
Q3 2005
Outlook
19
Shareholder claims
After the announcement of the ruling by the Federal Supreme Court rescinding a verdict of the Munich
Higher Regional Court (Oberlandesgericht München), the Munich Higher Regional Court also dismissed
shareholders’ claims in other proceedings because the causality of the ad-hoc notification could not be
sufficiently proven for the investment decision.
More than 100 claims have been entered against EM.TV to date. All judgements have been given in
favour of the Company up to now. More than 40 judgements have become final in the meantime.
Outlook
In line with its expectations, EM.TV is anticipating a substantial sales and earnings contribution in the
fourth quarter. The Management Board is therefore still anticipating a single-digit growth rate in Group
sales and slightly positive earnings before taxes for the whole of 2005, subject to expenses in the
sports betting sector.
Unterföhring, November 2005
The Management Board
20 Consolidated Financial Statements
Consolidated balance sheet Assets
Assets at September 30, 2005 in EUR ‘000
Non-current assets
Film and merchandising rights, EDP-programs
Goodwill
Advance payments
Land, property rights and buildings
Technical equipment and machinery
Other equipment, factory and office equipment
Advance payments and assets under construction
Investments in associated companies
Other investments
Other loans
Long-term receivables
Deferred taxes
Current assets
Finished goods and merchanside/work in process
Trade receivables
Receivables due from associated companies
Receivables due from joint ventures
Other assets
Deferred charges and prepaid expenses
Marketable securities
Cash on hand and at bank
Total Assets
30/9/2005
31/12/2004
86,563
42,777
620
1,270
5,953
1,913
1,066
5,187
260
71
11,195
7,341
164,216
93,915
8,906
141
1,617
3,965
1,702
73
2,768
258
64
12,761
4,895
131,065
96
60,246
3,574
172
16,796
5,135
21,984
36,490
144,493
66
46,991
4,346
0
136,991
1,203
0
105,961
295,558
308,709
426,623
Q3 2005
21
Consolidated balance sheet Equity and liabilities
Equity and liabilities at September 30, 2005 in EUR ‘000
Equity
Subscribed capital
Deposit paid in respect of approved capital increase
Capital reserves
Special reserves
Reserves for share based payment plans
Other reserves
Consolidated accumulated loss
Own shares
Minority interests
Contribution in connection with share-issues
which have not yet been registered
Long-term liabilities
Long-term accruals and provisions
Non-interest bearing liabilities
Interest bearing liabilities
Long-term other liabilities
Deferred taxation
Short-term liabilities
Bonds
Liabilities to banks
Payments received on account of orders
Trade accounts payable
Liabilities due to associated companies
Liabilities due to joint ventures
Other liabilities
Deferred income and accrued charges
Other accruals and provisions
Tax provisions
Total equity and liabilities
30/9/2005
31/12/2004
66,601
0
101,467
50
140
162
-12,427
-16,813
6,066
145,246
65,617
983
100,631
50
87
-104
-7.937
-17,317
11,090
153,100
2,750
0
2,015
0
59,721
4,200
7,161
73,097
3,100
113,439
68,496
0
7,316
192,351
30
-3,163
4,167
18,589
1,416
1,977
38,161
1,052
14,978
4,083
87,616
30
0
3,100
18,759
0
1,675
35,915
596
16,871
4,226
81,172
308,709
426,623
22 Consolidated Financial Statements
Consolidated profit and loss account
January 1 to September 30, 2005 in EUR ‘000
1/1 to
30/9/2005
1/7 to
30/9/2005
1/1 to
30/9/2004
1/7 to
30/9/2004
146,526
496
147,022
46,078
116
46,194
151,630
682
152,312
45,025
264
45,289
Other operating income
Cost of materials
Personnel expenses
Amortization and depreciation
Other operating expenses
Earnings before interest and taxes
12,594
-81,842
-37,186
-11,174
-31,783
-2,369
4,171
-29,911
-11,853
-3,852
-12,111
-7.362
62,363
-85,303
-36,086
-11,703
-31,148
50,435
2,323
-23,074
-11,273
-5,163
-7,592
510
Financial result
Result from restructuring activities
-4,005
0
-1,144
0
-4,714
94,366
-1,052
0
Earnings before taxes
Taxes
-6,374
2,713
-8,506
3,937
140,087
-3,867
-542
-1,131
Earnings before minority interests
Profit/loss of minority interests
-3,661
-829
-4,569
0
136,220
-2,919
-1,673
-834
Consolidated profit
-4,490
-4,569
133,301
-2,507
Sales
Own work capitalized
Total output
Consolidated loss brought forward
Withdrawal from special reserves
Withdrawal from capital reserves
Consolidated accumulated loss
-7,937
0
0
-12,427
Total output
EBITDA
EBIT
EBT
147,022
8,805
-2,369
-6,374
Earnings per share (undiluted), in EUR
Earnings per share (diluted), in EUR*
-2,139,987
24
1,997,187
-9,475
46,194
-3,510
-7,362
-8,506
152,312
62,138
50,435
140,087
-0.09
-0.09
3.40
3.12
Average number of shares in circulation (undiluted) 51,041,099
Average number of shares in circulation (diluted)
69,262,199
39,220,407
42,682,411
*The consideration of the dilution may not reduce the loss per share according to IAS 33.40
45,289
5,673
510
-542
Q3 2005
23
Consolidated cash flow statements
January 1 to September 30, 2005 in EUR ‘000 according to IFRS
1/1/ to
30/9/2005
1/1 to
30/9/2004
-4,490
133,301
1,552
11,306
-55
-2,691
0
-743
8,295
12,710
-887
2,354
-94,366
-29,779
-10,806
-3,150
11,090
-7,903
4,326
829
-3,922
-17,552
2,919
20,182
-39,768
-3,230
-5,229
-2,552
0
74
118,000
67,295
-1,828
-12,886
-2,276
-83
922
105
63
-15,983
0
67,220
4,090
0
-124,986
6,300
338
-3
-20,224
4,264
-114,596
-15,625
Free cash flow for the financial period
-51,223
55,794
Net funds at the beginning of the financial year
Net funds at the end of the financial period
Effects of foreign currency differences
Changes in net funds
105,961
55,311
573
-51,223
47,573
102,559
-808
55,794
Consolidated result for the period under review
Cost of materials due to utilisation-related disposal of assets
Write-down of fixed assets
Gains/losses on disposals of fixed assets
Deferred taxes
Restructuring result
Other non cash items
Net change in stock, receivables and all other assets which are not
investing activities or financing activities
Net change in provisions and accruals
Net change in liabilities and all other liabilities which are not
investing activities or financing activities
Minority interest
Operating cash flow
Investments in acquisition of companies/company shares
Investments to intangible assets
Investments to tangible assets
Investments to financial assets
Proceeds from disposals of intangible assets
Proceeds from disposals of tangible assets
Proceeds from disposal of financial assets
Cash flow from investing activities
Cash flow from changes in liquid funds through deconsolidation
Proceeds from capital increases and allowances by shareholders
Dividends paid
Repayment of long-term liabilities
Proceeds from receipt of financing liabilities
Cash flow from financing activities
Short-term bank liabilities
Short-term liabilities to banks
Short-term net funds at the end of the financial period
58,474*
-3,163
55,311
102,559 *
0
102,559
Changes in liquity funds
Changes in short-term bank liabilities
-47,487
3,163
-25,793
-80,769
*thereof EUR 9,590 thousand bound for security reasons (Y 2004: EUR 7,603 thousand).
24 Consolidated Financial Statements
Segment reporting Third quarter 2005
Segment information by business sectors January 1 to September 30, 2005 in EUR ’000
Sales
Own work capitalized
Other segment income
Segment expenses
thereof amortization and depreciation
Segment results
Period result of associated companies
Entertainment
Sports
Others
Reconciliation
Group
17,303
496
2,611
-22,134
-8,310
128,119
0
6,624
-128,484
-2,228
1,104
0
5,326
-13,334
-636
0
0
-1,970
1,970
0
146,526
496
12,591
-161,982
-11,174
-1,724
6,259
-6,904
0
-2,369
42
-124
0
0
-82
Non-allocated operational elements:
Depreciation on financial fixed
and current assets
Interest expenses
Interest income
-8
-6,142
2,227
Operating income
-6,374
Additional segment information
Segment assets
Segment liabilities
Segment investments
127,599
17,418
2,262
123,004
32,424
8,671
45,247
31,513
78
0
0
0
295,850
82,355
11,011
Segment information by region January 1 to September 30, 2005 in EUR ’000
Sales
Period results of associated companies
Segment assets
Segment investments
Germanspeaking
Rest of
Europe
Rest of
World
Group
143,473
937
2,116
146,526
-124
283,861
9,070
61
7,316
803
-19
4,673
1,138
-82
295,850
11,011
Q3 2005
25
Segment reporting Third quarter 2004
Segment information by business sectors January 1 to September 30, 2004 in EUR ’000
Entertainment
Sports
Others
Reconciliation
Group
Sales
Own work capitalized
Other segment income
Segment expenses
thereof amortization and depreciation
21,366
682
53,844
-32,439
-8,961
130,264
0
5,005
-118,429
-1,910
0
0
3,514
-13,372
-832
0
0
0
0
0
151,630
682
62,363
-164,240
-11,703
Segment results
43,453
16,840
-9,858
0
50,435
-191
0
0
0
-191
Period result of associated companies
Non-allocated operational elements:
Depreciation on financial fixed
and current assets
Interest expenses
Interest income
-3,536
-2,992
2,005
Result from restructuring activities
94,366
140,087
Operating income
Additional segment information
Segment assets
Segment liabilities
Segment investments
216,932
49,332
12,787
83,816
28,839
2,458
496
334
0
0
0
0
301,244
78,505
15,245
Segment information by region January 1 to September 30, 2004 in EUR ’000
Sales
Period results of associated companies
Segment assets
Segment investments
Germanspeaking
Rest of
Europe
Rest of
World
Group
146,431
2,851
2,348
151,630
-185
289,323
11,711
31
7,472
99
-37
4,449
1,435
-191
301,244
15,245
26 Consolidated Financial Statements
Changes in consolidated equity
in TEUR
Subscribed
capital
Solved
capital
increase
Capital
reserves
Special
reserves
Reserves
for stock
option
plans
146,054
0
1,968,527
581
30
As of 1/1/2004
Cash increase from convertible bonds
Own Minority
shares interests
0
0
7,202
17
Total
-17,553
17
43
Employee benefit expenses according to IFRS 2
Withdrawal from special reserve
for repayment of convertible loan
43
-24
Withdrawal from capital reserve for end
of conversion right for the convertible bond
Capital reduction as a result
of the merger (73 : 10)
Accumulated
losses
brought
Other
reserves
forward
-2.139.987
40 -2,139,987
-28,660
24
0
28,660
0
0
126,062
-126,062
Capital increase from issueing
of shares to the former bondholders
28,265
Transfer of own shares
17,343
0
0
28,265
-17,343
0
3,184
Capital increase from bonds
3,184
40
Capital increase from options
Offsetting of capital reserve with
consolidated accumulated loss
1,968,527
-1,968,527
0
22
62
0
0
Changes in consolidated entities
Adjustments in equity
-2
-2
-84
-84
-105
Currency conversion differences
-105
2.069.11
Dividends paid
133,301
Consolidated net profit for the period
-3
-3
2,919
136,220
557
As of 30/9/2004
65,617
0
100,626
5
73
-65
-9,475
-17,321
10,032
150,044
87
-104
-737
-7,937
-17,317
11,090
153,100
50
As of 1/1/2005
Cash increase from options
65,617
983
983
-983
100,631
0
836
Capital increase from options
504
53
Employee benefit expenses according to IFRS 2
53
Changes in consolidated entities
Acquisition of minority interests
25
25
-5,878
-5,878
266
Currency conversion differences
50
66,601
0
101,467
266
-4,490
-
Consolidated net profit for the period
As of 30/9/2005
1,340
140
162
-12,427
-16,076
829
-3,661
6,066
145,246
Q3 2005
27
Information on the Initial Application of IFRS 2
(Share based Compensation)
1. Share-Based Compensation
On the strength of the resolution of the annual general meeting of the former EM.TV & Merchandising
AG held on July 22, 1999, which was amended by the resolution passed by the annual general meeting
held on July 26, 2000, the Management Board was empowered to issue a stock option program for the
employees and the members of the Management Board of the Group companies with the approval of
the Supervisory Board. In connection with the merger of EM.TV & Merchandising AG into EM.TV AG, the
options were transferred to EM.TV AG in an adjusted form.
The terms and conditions of the option program envisage, inter alia, that a maximum of 50 percent of
the option right may be granted at the earliest two years after their issue (Tranche 1) and the remaining
50 percent at the earliest four years after their issue (Tranche 2). Non-exercised option rights lapse ten
years after their issue.
For all options granted as from 2000, there is an exercise price per share plus an uplift of 10 percent
on the reference price as a performance goal for option rights in Tranche 1 and a 20 percent uplift for
option rights in Tranche 2 (reference price method), whereby the reference price after the merger has
been adjusted on the basis of the merger ratio of 73:10. In addition, a contrary adjustment would apply
in accordance with the dilution protection ruling at the time of execution.
Based on the obligatory application of IFRS 2, No. 53, all share options which were granted after
November 7, 2002 and which had not been vested on January 1, 2005 have been included in the
balance sheet in accordance with IFRS 2.
There is only a disclosure obligation for options which were issued prior to November 7, 2002 or for
which the vesting period is already expoired.
Issued Options
Date
Reference price
after the merger
in EUR
Number of
authorized
options
Number of
shares
Outstanding at Outstanding at
the beginning
the end
of the period
of the period
Options accounted for in accordance with IFRS
December 20, 2002
June 30, 2003
September 19, 2003
6.64
11.68
11.02
58,000
137,500
27,000
7,945
18,835
3,698
58,000
137,500
27,000
58,000
137,500
27,000
47,671
342
25,273
142,876
16,301
7,945
348,000
2,500
184,500
1,043,000
119,000
58,000
348,000
2,500
184,500
1,043,000
119,000
58,000
Options not accounted for in accordance with IFRS
November 15, 1999
August 3, 2000
March 1, 2001
January 31, 2002
June 7, 2002
December 20, 2002
357.55
381.43
47.45
16.64
9.42
6.64
348,000
2,500
184,500
1,043,000
119,000
58,000
28 Consolidated Financial Statements
2. Effects of the initial application
In Accordance with IFRS 2, No. 55, an adjustment has to be made in the comparative information and,
if appropriate, the opening balance sheet values for revenue reserves for the earliest reporting period
shown. The following adjustments have therefore been made in the profit and loss account and also in
the balance sheet of the previous year.
Effects of the initial application in EUR ‘000
Balance sheet-effects at December 31, 2004
P&L-effects
Q3/2005
Q3/2004
Personnel
expenses
Deferred
taxes
Adjustment
Reserve
Accumulated
loss
Deferred
taxes
53
43
20
16
87
-54
33
Information on the Consolidated Companies
The following companies have been included and fully consolidated for the first time in the consolidated
financial statements for the current financial year:
EM.TV Sport Management GmbH, Ismaning
This company was included in the consolidated financial statements with effect from January 1, 2005.
The company is developing new business models in the Sports Segment. It was not included in the consolidated financial statements at December 31, 2004 for immateriality reasons. The share capital of the
company amounts to EUR 25,000.
A net loss for the year of TEUR 789 was incurred in the current reporting period with sales of EUR 0.
Long-term assets amount to TEUR 1,190 and short-term assets to TEUR 849 constitute the total group
assets. The Company had short-term liabilities of TEUR 148.
EM.TV sustained no outflow of funds as a result of the initial consolidation The Company had other
assets of TEUR 50 and liquid funds of TEUR 61. Minority interests of TEUR 25 and other liabilities of
TEUR 86 were acquired in this process.
Q3 2005
DSF Deutsches SportFernsehen GmbH, Ismaning – Sport1 GmbH, Ismaning
The post-acquisition of the 49.9 percent holding in Sport Media Holding and 18.87 percent in DSF and
Sport1 was effected upon receipt of the approval by the cartel and media law authorities. The basis for
the aforesaid were the agreements reached on February 1, 2005 and February 10, 2005 with the former
co-shareholders KarstadtQuelle New Media AG and Dr. h.c. Hans-Dieter Cleven regarding the sale of the
shares held by them. EM has a direct or indirect 100 percent holding in DSF and Sport1 therefore.
The post-acquisition have rise to a goodwill of TEUR 33,891 with the simultaneously acquisition of
minority interests in the amount of TEUR 5,878.
arena media GmbH
PLAZAMEDIA GmbH Film & TV-Produktion, an indirect subsidiary of EM.TV AG, acquired a 33.33 percent
holding in arena media GmbH with effect from July 12, 2005. The aforesaid company operates an interactive auction channel. PLAZAMEDIA’s holding was reduced to 25 percent by the entry of an additional
shareholder with effect from September 27, 2005. The Company is included in the Group at equity. The
holding gave rise to a joint venture expense of TEUR 124 in the report period.
29
Q3 2005
Corporate calendar
Finance calendar
March 28, 2006 Annual Report 2005/Annual Press Conference
May 23, 2006 Report for the first quarter of 2006
June / July 2006 Annual General Meeting fiscal year 2005
August 22, 2006 Report for the second quarter of 2006
November 21, 2006 Report for the third quarter of 2006
Note: Analysts conference calls will usually be on the release day of the annual report and
the quarterly reports respectively.
Event calendar
November 30 – December 2, 2005 Asia Television Forum, Singapore
January 24 – 26, 2006 NATPE, Las Vegas
January 29 – February 1, 2006 ISPO winter, Munich
February 2 – 7, 2006 International Toy Fair, Nuremberg
March 15, 2006 Tag der Lizenzen, Cologne
April 3 – 7, 2006 MIPTV, Cannes
April 5 – 6, 2006 12. Deutsche Sponsoring-Tage, Frankfurt
June 2006 Shanghai TV Festival
June 20 – 22, 2006 Licensing International, New York
June 22 – 24, 2006 DISCOP, Budapest
July 16 – 18, 2006 ISPO summer, Munich
September 2006 Online Marketing Day, Düsseldorf
September 20 – 24, 2006 Cartoon Forum, Pau/France
September 21 – 22, 2006 licensing.forum, Munich
October 4 – 8, 2006 Book Fair, Frankfurt
October 7 – 8, 2006 MIPCOM Junior, Cannes
October 9 – 13, 2006 MIPCOM, Cannes
October 2006 Medientage, Munich
Production Credits
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EM.TV AG
Beta-Straße 11
85774 Unterföhring, Germany
Tel. +49 (0) 89 99 500 -0
Fax +49 (0) 89 99 500 -111
E-Mail info@em.tv
Internet www.em.tv
HRB 148 760 AG München