Guardian
Julia Day
Thursday February 23, 2006
Big Brother producer Endemol has revealed its profits shot up 30% to £57m in 2005 and said revenue growth is set to continue throughout 2006.
Shares in the Dutch company rose more than 3% on this morning's report of a 2005 net profit of 83.5m euros (£57m), up from 64.5m euros in the previous year.
Turnover rose 5.8% to 900.1m euros and earnings before interest, tax, depreciation and amortisation (EBITDA) stood at 152.8m euros.
"We are very pleased with the strong results presented today. Growth was achieved in all our business lines, and across almost all Endemol's markets," said the chief executive, Joaquim Agut.
Sales in the UK were up 18.4% to 173m euros, showing the strongest growth in the group due to the continuing success of Big Brother on Channel 4, now in its sixth season.
A new two-year deal has been agreed for Big Brother with Channel 4, taking the show up to the end of 2007. Celebrity Big Brother and Noel Edmonds' Deal or no Deal are also performing well, said Endemol, while sports reality programmes The Games and The Match have had their fourth and third series respectively commissioned for 2006.
Endemol said it expects sales to grow by 5-6% and forecasts an EBITDA margin of 15-17% in 2006. Both the annual results and the outlook were slightly better than analysts had predicted.
The results follow Endemol's IPO in November of last year, after its owner Spain's Telefónica sold 22.3% of its shares to the public. At the time it said it intended to focus on organic growth, expanding into script programmes such as TV soap operas and telenovellas.
The company also announced the appointment of Jan Peter Kerstens as its chief financial officer.
