RTL cuts Channel Five’s value by half

Channel Five’s owner, RTL, has cut the value of the channel by over half as the UK broadcaster reported losses of £37m last year

RTL announced an impairment loss of £127m against the value of Channel Five's assets, attributing the loss to the economic downturn. The writedown values Channel Five group, which includes Five USA and Fiver, at £102m. RTL made a £278m writedown in the value of Channel Five to £229m in its full-year results for 2008. As a result, the pan-Eurpean broadcaster said that it aims to expand into digital pay channels to reduce reliance on TV advertising.

The RTL Group chief executive, Gerhard Zeiler said: "We don't see a major acquisition target in the short term, the board has decided to recommend a gross dividend payout of €3.50 per share (£3.20), on par with the 2008 fiscal year."

As revenues plunged 21% year on year to £275m, Five’s losses were £37m last year. Channel Five group's operating earnings before interest tax declined from a £1.8m profit in 2008 to a loss of £9.1m last year, which is half the £17m loss that the group was running at in the first six months of last year.

Source: Guardian

Published on: 11/03/2010 14:52:00