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Friday, July 29, 2005

SBS Broadcasting SA Reports Second Quarter 2005 Results

SBS Broadcasting SA Reports Second Quarter 2005 Results

LUXEMBOURG, July 29/PRNewswire/ --

Second Quarter Net Revenue up by 30% Adjusted EBITDA improved by 33% Net income impacted by a non-recurring refinancing charge of EUR8.5 million Six Months Net Revenue up by 26% Adjusted EBITDA improved by 37%

SBS Broadcasting SA (NASDAQ: SBTV; Euronext Amsterdam N.V.: SBS) today reported financial results for the three and six months ended June 30, 2005.

Results, which are attached, are in thousands of euro (except share and 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 Six months ended June 30, June 30, % % 2004 2005 change 2004 2005 change In EUR

Net revenue(1) 187,207 243,554 30% 327,881 414,354 26% Adjusted EBITDA(1) (2) 41,897 55,670 33% 46,510 63,814 37% Operating income(1) 34,899 45,070 29% 32,377 45,258 40% Net income(3) 18,130 14,387 (21%) 14,224 11,296 (21%) Net income per common share - basic 0.58 0.44 0.46 0.35 Weighted average common shares 31,138 32,649 31,107 32,308 Cash provided by operating activities 15,764 37,966 4,353 49,678 Adjusted EBITDA margin(4) 22.3% 22.9% 14.2% 15.4%

(1) Excluding the impact of our newly acquired businesses, C More, Prima TV and the Romanian Radio operations, and the recently launched television stations, The Voice TV, VijfTV and Irisz, net revenue increased EUR32,025, or 10%, adjusted EBITDA increased EUR14,937, or 32%, and operating income increased EUR14,235, or 44%, in the six months ended June 30, 2005.

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

(3) The net income for the three and six months ended June 30, 2005 include a loss on the extinguishment of our 12% Senior Notes of EUR8,472 (which is described further on page 2), compared to a loss of EUR2,463 on the extinguishment of EUR14.5 million of our 12% Senior Notes in the three and six months ended June 30, 2004.

(4) Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of net revenue (see page 4).

Commenting on the results, Markus Tellenbach, Chief Executive Officer of SBS, said: "We continued to produce solid operating results and strong cash flow generation across our asset base. Our strong performance during the second quarter was highlighted by the improved operating results of our television stations in Hungary, Sweden and Norway as we benefited from new programming initiatives and improving advertising markets. We also benefited from recent strategic investments, including our C More and Romanian acquisitions and the launch of our new digital entertainment services.

"We remain focused on implementing our growth strategy and seek to expand the scope of our business, thereby further diversifying our revenue streams while creating additional cash flows. With a strong balance sheet, including a new bank facility that significantly lowers our cost of capital, we believe we are well positioned to grow our core operations and capitalise on new opportunities to increase shareholder value."

Forward-Looking Statements

Some of the statements in this press release are forward-looking, including, without limitation: the statement that we remain focused on implementing our growth strategy and seek to expand the scope of our business, thereby further diversifying our revenue streams while creating additional cash flows; the statement that with a strong balance sheet, including a new bank facility that significantly lowers our cost of capital, we believe we are well positioned to grow our core operations and capitalise on new opportunities to increase shareholder value; and the statement that we expect the final purchase price allocation in respect of the acquisitions completed during the first quarter of 2005 to be completed during the third quarter. These forward-looking statements include statements relating to our future performance, competition, trends and anticipated developments in the television and radio broadcasting, and publishing 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 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 the advertising and subscription spending growth; the effects of competition; our ability to reduce costs; the timely development and acceptance of our new channels, stations and/or services; the effects of technological changes in broadcasting technology; 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.

Conference Call

The Company will host a teleconference to discuss its results on Friday, July 29, 2005 at 10:00 am New York Time, which is 4:00 pm 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 web-site, located at www.sbsbroadcasting.com. If you cannot listen to the teleconference at its scheduled time, there will be a replay available through August 5, 2005 that can be accessed by dialing +1-877-519-4471 (U.S. callers) or +1-973-341-3080 (International callers), passcode 6234742. The web-cast will be archived on our web-site 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.

For further information visit: www.sbsbroadcasting.com

Source: SBS Broadcasting

For further information visit: www.sbsbroadcasting.com, or contact: Investors: 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: +44-207-282-2924

------- Profile: Ent

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