Telegraaf Media Groep : TMG realises small profit despite decreasing revenues over 2016

Statement Telegraaf Media Groep
The events of the past few days have created an unusual situation for TMG. Given that situation, we have decided to publish the audited financial statements and the annual report within several weeks. In view of this, the General Meeting of Shareholders (AGM) scheduled for 19 April 2017 will also be postponed.

TMG will announce a new date for the AGM, taking the legal term for convocation into account. All information in this release refers to the unaudited results.

Financial highlights

• Net profit of EUR 1.6 million, compared to a loss of EUR 23.6 million in 2015.
• Revenues down by 6.9% to EUR 421.0 million, mainly due to lower advertising revenues from print media (2015: -6.8%).
• Envisaged cost measures on schedule.
• EBITDA improved to EUR 9.0 million (2015: EUR 7.7 million).
• EBITDA excluding restructuring charges falls to EUR 22.0 million (2015: EUR 34.7 million).
• The strategic partnership with Talpa (Sky Radio Group) results in book profit of EUR 4.3 million.

Operational highlights

• Realisation 24/7 strategy progresses in the areas of organisational efficiency and brand development.
• Outsourcing of print activities completed, activities concentrated in Amsterdam: Holland Media Combinatie and Relatieplanet moved to Amsterdam.
• VROUW, Telesport, DFT, Privé, De Gooi- en Eemlander, among others, launched new digital initiatives. VROUW's brand reach is currently 2.6 million per month.
• The strong combination of word and image at the brands resulted in a sharp increase of the number of video views. De Telegraaf achieved a 32% increase in the number of video views per month to 24.4 million. Dumpert achieved a 40% increase in the number of video views per month to 150.8 million.
• Print editions improved: De Telegraaf developed the new Saturday special VRIJ, Metro renewed the monthly special Metro Lifestyle and Privé launched the royal family special Privé Royal.
• Earn-out agreement with Talpa results in an increase of 1% in TMG's stake in the joint radio company to 23%.

Notes to the full-year results 2016

EBITDA came in at EUR 9.0 million, up from EUR 7.7 million in the previous year, on the back of the aforementioned cost savings and reduced restructuring charges. Excluding restructuring charges, EBITDA declined to EUR 22.0 million. TMG was able to turn the net loss of EUR 23.6 million recorded in 2015 into a net profit of EUR 1.6 million in 2016, thanks to reduced one-off write-downs, a book profit on the sale of Sky Radio Group and a tax gain.Revenues declined to EUR 421.0 million, a drop of 6.9% from the EUR 452.4 million recorded in 2015. Advertising revenues (excluding normalisations) fell by 14.6% to EUR 97.2 million, from EUR 113.8 million the previous year, largely as a result of the negative developments in the Dutch print advertising market. Revenues from subscriptions fell by 2.9% to EUR 179.7 million, from EUR 185.1 million a year earlier.

The cash position per year-end 2016 is EUR 19.5 million, compared to EUR 42.9 million a year earlier. The decrease is mainly due to EUR 29.9 million reorganisation costs paid and the high negative cash flow from financing activities, among others as a result of the payment of dividends and the acquisition of the remaining 10% stake in Sky Radio Group from V-Ventures. Included in the cash position per year-end 2016 is the reimbursement from the Ministry of the instalments that were paid for the license of Radio Veronica totalling EUR 15.0 million (including interest). At the end of December, an invoice was received for the new amount of the license (EUR 14.7 million including interest), which has been paid in the beginning of 2017. TMG has appealed to the new value set by the Minister and will also appeal to the interest decree.

The final 2016 annual results will be published in a couple of weeks. The annual results in this press release are unaudited.

Addenda :

• Consolidated profit and loss statement 2016.
• Consolidated statement of comprehensive income 2016.
• Consolidated statement of the financial position as at 31 December 2016.
• Consolidated cash flow statement 2016.

Please download de Addenda here.

All information in this press release refers to the unaudited figures

Disclaimer
This press release is a translation of the original text in Dutch. In the event of a discrepancy between the two versions, the Dutch version prevails.

About Telegraaf Media Groep
Telegraaf Media Groep N.V. (TMG) is one of the largest media companies in the Netherlands, with strong brands such as De Telegraaf, DFT, Telesport, Metro, Autovisie, Privé and VROUW; regional dailies such as Noordhollands Dagblad and de Gooi- en Eemlander; digital brands such as GeenStijl, Dumpert and Gaspedaal; Classic FM and - through a strategic collaboration with Talpa - national radio stations Sky Radio, Radio Veronica, Radio 538 and Radio 10. We also have dozens of other brands and titles that focus on providing local news, entertainment or e-commerce (e.g., GroupDeal). Through Keesing Media Group, we are market leader in Europe in the field of puzzle magazines and digital puzzles. It is TMG's mission to provide consumers with high-quality, personalised and relevant news, sport and entertainment 24 hours a day, 7 days a week, via any available form of distribution. For more information about TMG, go towww.tmg.nl.