SBS Broadcasting SA Reports Fourth Quarter Results

SBS Broadcasting SA Reports Fourth Quarter Results

LUXEMBOURG, March 8/PRNewswire/ --

FOURTH QUARTER Net Revenues increased by 8% Station Operating Cash Flow increased by 27% Adjusted EBITDA increased by 32% Net income of EUR37.6 million or EUR1.19 per share

YEAR Net Revenues increased by 17% Station Operating Cash Flow increased by 36% Adjusted EBITDA increased by 43% Net income of EUR49.8 million or EUR1.59 per share

SBS Broadcasting SA (NASDAQ: SBTV; Euronext Amsterdam N.V.: SBS) today reported financial results for the three months and year ended December 31, 2004.

Results, which are attached, are in thousands of euros (except per share data) converted from local currencies. The following report should be read in conjunction with the accompanying, unaudited financial statements. Financial highlights are as follows:

Three months ended December 31, Year ended December 31, ------------------------ ------------------------ % % 2003 2004 change 2003 2004 change ------- ------- ------ ------- ------- ------ EUR EUR EUR EUR Net revenue 195,881 211,227 7.8% 581,691 678,277 16.6% Station operating cash flow (1) 41,067 52,000 26.6% 88,160 119,589 35.6% Adjusted EBITDA (2) 36,271 47,763 31.7% 73,051 104,335 42.8% Operating income 23,592 39,182 66.1% 43,205 72,926 68.8% Net income (3) 2,637 37,566 30,270 49,784 Net income per EUR EUR EUR EUR common share 0.09 1.19 1.05 1.59 Weighted average common shares 29,158 31,542 28,754 31,268 Cash provided by operating activities(4) 51,684 51,427 78,880 57,325 Station operating cash flow margin(5) 21.0% 24.6% 15.2% 17.6% Adjusted EBITDA margin(5) 18.5% 22.6% 12.6% 15.4% ------------------------------------- (1) Station operating cash flow ("STOCF") is defined as operating income plus corporate expenses, non-cash compensation, depreciation and amortization expenses (see page 12).

(2) Adjusted EBITDA is defined as operating income plus non-cash compensation, depreciation and amortization (see page 13).

(3) The net income for the year ended December 31, 2003 includes a non-cash investment gain of EUR29.2 million realized on the Veronica transaction completed on September 1, 2003. The net income for the year ended December 31, 2004 includes non-recurring investment gains of EUR9.8 million and non-recurring tax benefits of EUR9.9 million.

(4) Cash provided by operating activities for the year ended December 31, 2003, includes a non-recurring cash benefit of EUR26 million from prepaid subscription fees in our print operations, which were consolidated from September 1, 2003.

(5) Station operating cash flow margin is STOCF expressed as a percentage of net revenue, and adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of net revenue.

Commenting on the results, Markus Tellenbach, SBS's Chief Executive Officer, said: "With more than EUR100 million of EBITDA in 2004 the Company's operating and financial performance exceeded our expectations and we are in a strong position to build on those gains this year. In 2004 we continued to improve our operating performance while also investing in complementary activities to drive growth. As a result our revenue growth continues to outpace the market with increased viewing shares in most of our markets as we develop new revenue streams by leveraging our broadcasting assets.

"Through the launch of new digital channels across our footprint and the acquisition of the C More Group we are strategically diversifying our revenue streams through the addition of subscription services that utilize our management and operating infrastructure. As we integrate these new assets and implement our business plan we will seek to continue to increase profitability. With a sound balance sheet, our pan-European footprint and improving cash flows, we are well-positioned to take advantage of the increasing adoption of digital technologies in our markets and to seek prudent expansion opportunities such as our recent investments in the fast-growing Romanian television and radio market."

Forward-Looking Statements

Some of the statements in this press release are forward-looking, including, without limitation: the statement that our revenue growth continues to outpace the market with increased viewing shares in most of our markets as we develop new revenue streams by leveraging our broadcasting assets; the statement that through the launch of new digital channels across our footprint and the acquisition of the C More Group we are strategically diversifying our revenue streams through the addition of subscription services utilizing our management and operating infrastructure; the statement that as we integrate these new assets and implement our business plan we will seek to continue to increase profitability; the statement that the C More Group AB acquisition is expected to close March 8, 2005; the statement that we are planning to finance the remainder of the purchase price for the C More Group AB acquisition from our cash balances; the statement that we intend to repay amounts borrowed under the ABN Amro Bank N.V. bridge facility through a syndicated bank loan or by issuing debt securities or both; the statement that SBS intends to supplement its December 2004 EC complaint to also include an objection to the January 2005 law on the same grounds; the statement that although Greek law is unclear, it appears that the affected radio stations, including Lampsi, will be able to continue their broadcasts until the Greek Ministry initiates a new radio license tender process (expected to occur in the second half of 2005), and provided they participate in the tender process, until the award of the new licenses; and the statement that because the Greek government is obliged to adhere to EU law, SBS believes that Lampsi should be able to participate in the upcoming tender process. These forward-looking statements include statements relating to our future performance, competition, trends and anticipated developments in the television and radio broadcasting industry. In addition, we may make forward-looking statements in future filings with the Securities and Exchange Commission, and in written material, press releases and oral statements issued by us or on our behalf. Forward-looking statements include statements regarding our intent, belief or current expectations or those of our directors or officers (including statements preceded by, followed by or that include forward-looking terminology such as "may", "will", "should", "believes", "expects", "anticipates", "estimates", "continues" or similar expressions or comparable terminology) with respect to various matters.

It is important to note that our actual results in the future could differ materially from those anticipated in these forward-looking statements depending on various important factors. Some of these factors include: the effects of, and changes in, regulation and government policy; the effects of changes in general economic environment; the effects of changes in foreign exchange rates; the effects of changes in the advertising spending growth; the effects of competition; our ability to reduce costs; the timely development and acceptance of our new channels, stations; the effects of technological changes in broadcasting; our ability to integrate recent acquisitions, and, our success at managing the risks that arise from these factors.

All forward-looking statements in this press release are based on information available to us on the date hereof. We do not undertake to update any forward-looking statements that may be made by us or on our behalf, in this press release or otherwise.

Teleconference

We will host a teleconference to discuss our fourth quarter and full year results on Tuesday, March 8, 2005 at 10:00 a.m. New York Time, which is 4:00 p.m. Luxembourg Time. To access the teleconference, please dial +1-973-321-1100 ten minutes prior to the start time. The teleconference will also be available via live web-cast on our website, located at www.sbsbroadcasting.com. If you cannot listen to the teleconference at its scheduled time, there will be a replay available through March 15, 2005 that can be accessed by dialing +1-877-519-4471 (U.S. callers) or +1-973-341-3080 (International callers), passcode 5578331. The web-cast will be archived on our website for two weeks.

SBS is a European commercial television and radio broadcasting company with operations in Western and Central Europe. Countries where SBS currently has broadcasting assets include: Belgium (Flanders), Denmark, Finland, Greece, Hungary, The Netherlands, Norway, Romania and Sweden. In addition, SBS has publishing operations in The Netherlands.

To view the full text of this release, please visit: www.sbsbroadcasting.com

Source: SBS Broadcasting

Investors: Jonathan Lesko/Michael Smargiassi, Brainerd Communicators, Inc., Tel: +1-212-986-6667; Press: Jeff Pryor, Pryor Associates, Tel: +1-818-338-3555; Catriona Cockburn, Citigate Dewe Rogerson, Tel: +44-(0)207-282-2924

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