Annual Report 2019

Financial Statements

Consolidated Income statement

For the year ended 31 december

Notes2019
€m
2018
€m
Revenue5.7.1.6,6516,505
Other operating income 4874
Consumption of current programme rights (2,244)(2,103)
Depreciation, amortisation, impairment and valuation allowance (267)(211)
Other operating expenses7.2.(3,112)(3,150)
Impairment of goodwill and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries (15)(120)
Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree7.3.8625
Profit from operating activities 1,1471,020
  
Share of results of investments accounted for using the equity method8.5.1456
Earnings before interest and taxes ("EBIT") 3.1,1611,076
  
Interest income7.4.59
Interest expense7.4.(37)(29)
Financial results other than interest7.5.277
Profit before taxes 1,1561,063
  
Income tax expense7.6.(292)(278)
Profit for the year 864785
  
Attributable to: 
RTL Group shareholders 754668
Non-controlling interests 110117
Profit for the year 864785
  
EBITA3.1,1391,171
Impairment of goodwill of subsidiaries8.2.(105)
Impairment of investments accounted for using the equity method8.5.1.(50)(2)
Amortisation and impairment of fair value adjustments on acquisitions of subsidiaries (15)(15)
Re-measurement of earn-out arrangements 12
Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree7.3.8625
Earnings before interest and taxes ("EBIT")3.1,1611,076
  
EBITDA3.1,4051,380
Depreciation, amortisation and impairment (281)(224)
Impairment of goodwill of subsidiaries8.2.(105)
Impairment of investments accounted for using the equity method8.5.1.(50)(2)
Re-measurement of earn-out arrangements 12
Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree7.3.8625
Earnings before interest and taxes ("EBIT")3.1,1611,076
  
Earnings per share (in € ) 
Basic7.7.4.914.35
Diluted7.7.4.914.35

Consolidated statement of comprehensive Income

For the year ended 31 december


Notes
2019
€m
2018
€m
Profit for the year864785
  
Other comprehensive income ("OCI"):
Items that will not be reclassified to profit or loss:
Re-measurement of post-employment benefit obligations8.15.(21)5
Income tax8.7.4(1)
 (17)4
 
Equity investments at fair value through OCI – change in fair value8.6.(2)2
Income tax8.7.1
 (2)3
 (19)7
 
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences68
Effective portion of changes in fair value of cash flow hedges8.16.4.1232
Income tax8.7.(4)(10)
 822
 
Recycling of cash flow hedge reserve8.16.4.(6)2
Income tax8.7.2(1)
  (4)1
  1031
    
Other comprehensive income/(loss) for the year, net of income tax(9)38
  
Total comprehensive income for the year855823
  
Attributable to:   
RTL Group shareholders748707
Non-controlling interests107116
Total comprehensive income for the year855823

Consolidated statement of financial position



Notes
31 December
2019
€m
31 December
2018
€m
Non-current assets 
Programme and other rights8.1.9291
Goodwill8.1. 8.2.3,0932,919
Other intangible assets8.1.233213
Property, plant and equipment8.3.315332
Right-of-use assets8.4.380-
Investments accounted for using the equity method8.5.352395
Loans and other financial assets8.6. 8.9.148133
Deferred tax assets8.7.332333
 4,9454,416
 
Current assets
Programme rights8.8.1,2261,236
Other inventories1311
Income tax receivable3324
Accounts receivable and other financial assets8.9.2,2752,133
Cash and cash equivalents8.10.377422
 3,9243,826
  
Assets classified as held for sale8.11.8882
   
Current liabilities
Loans and bank overdrafts8.12.157333
Lease liabilities8.12.59-
Income tax payable2440
Accounts payable8.13.2,7782,626
Contract liabilities7.1.299295
Provisions8.14.97126
3,4143,420
  
Liabilities directly associated with non-current assets classified as held for sale8.11.4363
 
Net current assets555425
 
Non-current liabilities 
Loans8.12.631561
Lease liabilities8.12.373-
Accounts payable8.13.388462
Contract liabilities7.1.67
Provisions8.14.257229
Deferred tax liabilities8.7.2029
 1,6751,288
 
Net assets3,8253,553
 
Equity attributable to RTL Group shareholders3,2923,047
 
Equity attributable to non-controlling interests8.16.8.533506
 
Equity8.16.3,8253,553

Consolidated statement of changes in equity







Notes





Share capital
€m





Treasury
shares
€m




Currency
translation
reserve
€m





Hedging
reserve
€m




Revaluation
reserve
€m



Reserves and
retained
earnings
€m



Equity
attributable
to RTL Group
shareholders
€m

Equity
attributable
to non-
controlling
interests
€m




Total
equity
€m
Balance at 1 January 2018 
192

(47)

(145)

(20)
692,9082,9574673,424
  
Total comprehensive income:
Profit for the year668668117785
Re-measurement of post-employment
benefit obligations, net of tax
3314
Equity investments at fair value through OCI – change in fair value, net of tax8.16.5.(1)433
Foreign currency translation differences8.16.3.1010(2)8
Effective portion of changes in fair value of cash flow hedges, net of tax8.16.4.222222
Recycling of cash flow hedge reserve, net of tax8.16.4.111
 1023(1)675707116823
 
Capital transactions with owners:    
Dividends8.16.6.(614)(614)(73)(687)
Equity-settled transactions, net of tax8.16.7.55510
(Acquisition)/disposal of treasury shares8.16.2.3(4)(1)(1)
Transactions on non-controlling interests without a change in control8.16.8.(5)(5)(7)(12)
Transactions on non-controlling interests with a change in control8.16.8.(4)(4)(4)(8)
Derivatives on equity instruments8.16.9.2224
3(620)(617)(77)(694)
Balance at 31 December 2018
192

(44)

(135)

3
682,9633,0475063,553
        
Adjustment on initial application of IFRS 16 (net of tax)1.30.   (33)(33)(1)(34)
Adjusted balance at 1 January 2019
192

(44)

(135)

3
682,9303,0145053,519
       
Total comprehensive income:        
Profit for the year754754110864
Re-measurement of post-employment benefit obligations, net of tax(14)(14)(3)(17)
Equity investments at fair value through OCI – change in fair value, net of tax8.16.5.(2)(2)(2)
Foreign currency translation differences8.16.3.666
Effective portion of changes in fair value of cash flow hedges, net of tax8.16.4.888
Recycling of cash flow hedge reserve, net of tax8.16.4.(4)(4)(4)
64(2)740748107855
 
Capital transactions with owners:       
Dividends8.16.6.(461)(461)(75)(536)
Equity-settled transactions, net of tax8.16.7.4448
(Acquisition)/disposal of treasury shares8.16.2.3(1)22
Transactions on non-controlling interests without a change in control8.16.8.(14)(14)(7)(21)
Derivatives on equity instruments8.16.9.(1)(1)(1)(2)
 3(473)(470)(79)(549)
  
Balance at 31 December 2019 
192

(41)

(129)

7
663,1973,2925333,825

Consolidated cash flow statement

For the year ended 31 december


Notes
2019
€m
2018
€m
Cash flows from operating activities
Profit before taxes 1,1561,063
 
Adjustments for:
Depreciation and amortisation278224
Value adjustments and impairment26157
Share-based payments expenses 810
Re-measurement of earn-out arrangements (1)(2)
Gain on disposal of assets(84)(60)
Financial results including net interest expense and share of results of investments accounted for using the equity method6230
Change of provisions8.14.(20)(52)
Working capital changes(6)(143)
Income taxes paid(334)(354)
Net cash from operating activities1,085873
 
Cash flows from investing activities
Acquisitions of:
Programme and other rights(117)(104)
Subsidiaries, net of cash acquired6.4.(235)(18)
Other intangible and tangible assets(107)(121)
Other investments and financial assets(23)(19)
Current deposit with shareholder10.1.(27)-
(509)(262)
 
Proceeds from the sale of intangible and tangible assets8.1. 8.3.447
Disposal of other subsidiaries, net of cash disposed of6.5.102106
Proceeds from the sale of investments accounted for using the equity method, other investments and financial assets8.5. 8.6. 8.9.4430
Interest received47
154190
 
Net cash used in investing activities(355)(72)
 
Cash flows from financing activities
Interest paid(27)(19)
Transactions on non-controlling interests8.16.8.(44)(24)
Acquisition of treasury shares8.16.2.2(1)
Term loan facility due to shareholder8.13. 10.1.(232)94
Proceeds from loans8.5.2. 8.12.13433
Repayment of loans8.5.2. 8.12.(7)(34)
Payment of lease liabilities(59)-
Dividends paid(538)(686)
Net cash used in financing activities(771)(637)
 
Net increase/(decrease) in cash and cash equivalents(41)164
 
Cash and cash equivalents and bank overdrafts at beginning of year8.10.422258
Effect of exchange rate fluctuation on cash held1-
Effect of cash in disposal group held for sale8.11.(6)-
Cash and cash equivalents and bank overdrafts at end of year8.10.376422

FIVE-YEAR SUMMARY

Year to
December
2019
€m
Year to
December
2018
€m
Year to
December
2017
€m
Year to
December
2016
€m
Year to
December
2015
€m
Revenue6,6516,5056,3736,2376,029
of which net advertising sales3,6593,6553,6573,5943,510
Other operating income487414811155
Consumption of current programme rights(2,244)(2,103)(2,036)(2,070)(2,015)
Depreciation, amortisation, impairment and valuation allowance(267)(211)(223)(215)(199)
Other operating expenses(3,112)(3,150)(3,083)(2,924)(2,750)
Impairment of goodwill and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries(15)(120)(17)(15)(6)
Gain/ (loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree86252164
Profit from operating activities1,1471,0201,1831,1301,118
 
Share of results of investments accounted for using the equity method1456636757
Earnings before interest and taxes ("EBIT")1,1611,0761,2461,1971,175
 
Net interest expense(32)(20)(22)(21)(25)
Financial results other than interest277(2)313
Profit before taxes1,1561,0631,2221,1791,163
 
Income tax expense(292)(278)(385)(363)(300)
Profit for the year864785837816863
 
Attributable to:
RTL Group shareholders754668739720789
Non-controlling interests110117989674
 
EBITA1,1391,1711,2481,2051,167
Impairment of goodwill of subsidiaries(105)
Amortisation and impairment of fair value adjustments on acquisitions of subsidiaries(15)(15)(17)(15)(6)
Impairment of investments accounted for using the equity method(50)(2)(6)
Re-measurement of earn-out arrangements12110
Gain/ (loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree86252164
Earnings before interest and taxes ("EBIT")1,1611,0761,2461,1971,175
 
EBITDA1,4051,3801,4641,4111,360
Basic earnings per share (in €)4.914.354.814.695.14
 
Final dividend per share (in €)3.003.003.003.00
Interim dividend per share (in €)1.001.001.001.00
Dividends paid (€million)461614614614691
Average number of full-time equivalent employees10,74710,80911,01110,69910,325
Net assets (€million)3,8253,5533,4323,5523,409
Net (debt)/cash (€million)(384)(470)(545)(576)(671)

RTL Group Value Added

2019
€m
2018
€m
EBITA1,1391,171
 
Deduction of shares of results of investments accounted for using the equity method and already taxed(26)(21)
 1,1131,150
 
Net basis after deduction of uniform tax rate746771
 
Shares of results of investments accounted for using the equity method and already taxed2621
NOPAT772792
 
Invested capital at beginning of yearN/A4,123
Invested capital at 31 March 20194,405N/A
Invested capital at 30 June 20194,488N/A
Invested capital at 30 September 20194,756N/A
Invested capital at end of year4,6074,075
66 per cent of the net present value of operating leases and satellite transponder service agreements at beginning of yearN/A302
66 per cent of the net present value of operating leases and satellite transponder service agreements at end of yearN/A226
Adjusted average invested capital4,5644,363
Cost of capital365349
RVA407442

Segment Information

Zoom table
  Mediengruppe
RTL Deutschland1
Groupe
M6
FremantleRTL Nederland1RTL
Belgium
Other
segments1,3
Eliminations1Total
Group 

Note
2019
€m
2018
€m
2019
€m
2018
€m
2019
€m
2018
€m
2019
€m
2018
€m
2019
€m
2018
€m
2019
€m
2018
€m
2019
€m
2018
€m
2019
€m
2018
€m
Revenue from external customers2,2582,3001,4451,4761,5911,4144975051841856766256,6516,505
Inter-segment revenue 44117202178(1)(1)114845(265)(234)
Total revenue2,2622,3041,4561,4831,7931,592496504185186724670(265)(234)6,6516,505
 
Profit/(loss) from operating activities68367827628314012856783637(44)(184)1,1471,020
Share of results of investments accounted for using the equity method42434(1)21(34)131456
EBIT72572128028214212956783637(78)(171)1,1611,076
 
EBITDA70173939640018414786914541(7)(38)1,4051,380
Depreciation and amortisation (amortisation and impairment of fair value adjustments on acquisitions of subsidiaries excluded)(38)(16)(109)(125)(42)(20)(32)(20)(9)(4)(36)(24)(266)(209)
EBITA66372328727514212754713637(43)(62)1,1391,171
Impairment of goodwill of subsidiaries(105)(105)
Impairment of investments accounted for using the equity method2(2)(52)(50)(2)
Amortisation and impairment of fair value adjustments on acquisitions of subsidiaries(1)(1)(11)(6)(1)(1)(1)(2)(6)(15)(15)
Re-measurement of earn-out arrangements1212
Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree63(1)11511281928625
EBIT72572128028214212956783637(78)(171)1,1611,076
        
Interest income       59
Interest expense       (37)(29)
Financial results other than interest        277
Income tax expense          (292)(278)
Profit for the year           864785
       
Segment assets (assets classified as held for sale and investments accounted for using the equity method excluded)1,8231,6581,9101,7072,2132,074466393177163801729(230)(213)7,1606,511
Investments accounted for using the equity method109107141111977211261352395
Assets classified as held for sale8.11.6670118166
Segment assets1,9321,8311,9941,7182,2352,0834734001771631,012990(230)(213)7,5936,972
Segment liabilities (liabilities directly associated with non-current assets classified as held for sale excluded)1,0221,0046306377036771941678695535476(226)(209)2,9442,847
Liabilities directly associated with non-current assets classified as held for sale5028144250
Segment liabilities1,0221,0546586377176771941678695535476(226)(209)2,9862,897
Invested capital9107771,3361,0811,5181,4062792339168477514(4)(4)4,6074,075
       
Segment assets       7,5936,972
Deferred tax assets       332333
Income tax receivable       3324
Other assets       622573
Cash and cash equivalents       377422
Total assets       8,9578,324
       
Segment liabilities       2,9862,897
Deferred tax liabilities       2029
Income tax payable       2440
Other liabilities          2,1021,805
Total liabilities           5,1324,771
             
Capital expenditure22717297136342441222075634475240
Depreciation and amortisation (39)(18)(120)(132)(43)(20)(32)(21)(9)(4)(36)(29)(279)(224)
Impairment losses excluding goodwill 11(1)(2)(1)(2)
Impairment of goodwill of subsidiaries and of disposal group (105)(105)

Geographical Information

Zoom table
  GermanyFranceUSAThe NetherlandsUKBelgiumOther regionsTotal
Note2019
€m
2018
€m
2019
€m
2018
€m
2019
€m
2018
€m
2019
€m
2018
€m
2019
€m
2018
€m
2019
€ m
2018
€m
2019
€m
2018
€m
2019
€m
2018
€m
Revenue from external customers2,1332,1681,4391,4601,1189725275492952452152119249006,6516,505
Non-current assets1,2651,0581,07688358257036932545640775492902634,1133,555
Assets classified as held for sale8.11.8271178882
Capital expenditure3826297136151542222312273833475240