SBS Broadcasting Increases Ownership in Romanian Television Station Prima TV to 86% and Acquires a Leading Romanian Radio Group
02 3월 2005 - 6:29AM
PR Newswire (US)
SBS Broadcasting Increases Ownership in Romanian Television Station
Prima TV to 86% and Acquires a Leading Romanian Radio Group for a
Total of Euro 30.3 Million - Rapidly Growing Romanian Market Poised
to Benefit from European Union Entry expected in 2007 - LUXEMBOURG,
March 1 /PRNewswire-FirstCall/ -- SBS Broadcasting S.A. (NASDAQ:
SBTV; Euronext Amsterdam N.V.: SBS) announced today that it has
increased its equity stake in Prima TV to 86%, following the
purchase of an additional 48.8% indirect equity stake and Prima TV
debt for euro 7.8 million from Romanian Investment and Development
srl, which is owned by Cristian Burci, SBS's former Romanian
partner in Prima TV. SBS has held a minority ownership interest in
Prima TV since July 2001 and originally invested in Prima TV in
March 2000. SBS also announced today that it has acquired Romania's
leading FM radio station Kiss FM, and FM radio station Radio Star
for a total of euro 22.5 million from MG Media Group Holding S.A.
The radio acquisition is subject to the post-closing condition of
approval from competition authorities, which is expected. As part
of an overall reorganization of Prima TV and the acquisition of the
Romanian radio stations, SBS also announced: * The appointment of
Christoph Buerge, a former member of the management team of SBS's
station TV2 in Hungary, to Chief Operating Officer of the Company's
Romanian operations; * The appointment of Peter W. Thrane, formerly
chief financial officer of SBS's television operations in Denmark,
as Chief Financial Officer of the Company's Romanian operations;
and * The resignation (and buyout) of Cristian Burci, Chief
Executive Officer of Prima TV. Commenting on the announcement,
Markus Tellenbach, Chief Executive Officer of SBS Broadcasting,
said: "These strategic transactions give us a strong presence in
one of Europe's fastest growing markets. Control of Prima TV and
one of Romania's leading radio groups provides us with a Romanian
broadcast platform that will capitalize on the country's growing
economy and developing consumer market as Romania progresses
towards full European Union membership, which is expected in 2007.
We continue to seek additional opportunities to prudently expand
our asset base that allow us to leverage our content, operating
expertise and pan-European footprint." Tellenbach continued: "We
are pleased to appoint Christoph Buerge and Peter W. Thrane to lead
our Romanian media operations. These two experienced managers bring
years of industry knowledge to these operations and will be
instrumental in our efforts to increase our market share and
improve the profitability of our Romanian television operations, in
particular, which are expected to have positive operating income
this year. We want to thank Cristian Burci for his years of
leadership in launching and building Prima TV, Kiss FM and Radio
Star and wish him well in his future endeavors." Prima TV was
established in 1997 as one of the first commercial television
stations in Romania. Prima TV reaches 89% of the Romanian urban
population through terrestrial and satellite-to-cable distribution.
Prima TV targets the 15-44, educated, urban audience and has
launched a number of successful television shows in Romania,
including the Romanian versions of Who Wants to be a Millionaire,
Big Brother, Kids Say the Darndest Things and Cheaters. During
January 2004, Prima TV was the fourth most watched commercial
television station in Romania, with an average prime time viewing
share of 7.2%. During 2004, Prima TV had revenues of approximately
euro 9.8 million and an operating loss of approximately euro 2.4
million. Launched in November 2003 with a contemporary hits format,
Kiss FM has become the most popular commercial radio station in
Romania with a listener share of approximately 22% in the age 15-44
urban target group. Kiss FM reaches approximately 73% of Romania's
urban population through a network of 34 local radio licenses and
seven affiliates. Radio Star was launched in January 2003. With an
adult contemporary format, Radio Star has a listener share of
approximately 3% in the age 15-44 urban target group. Radio Star
reaches approximately 45% of Romania's urban population through a
network of 14 local radio license and eight affiliates. Kiss FM and
Radio Star had estimated combined revenues of approximately euro
5.5 million and operating income of approximately euro 2.5 million
in 2004. Christoph Buerge brings thirteen years of experience in
the entertainment and television industry to SBS. Mr. Buerge
rejoins SBS from Swiss National Television (SFDRS), where he served
as head of program development since May 2004. Prior to that, Mr.
Buerge served as creative director of SBS's television station TV2
in Hungary from 2002. From 1999 to 2001 he was head of program and
entertainment at TV3 in Switzerland. Previously, Mr. Buerge was an
executive producer of numerous variety and entertainment programs
on SFDRS and served as deputy manager of the entertainment
department. Peter W. Thrane brings extensive television finance
experience to SBS's Romanian operations. Mr. Thrane has served as
chief financial officer of SBS's Danish television operations since
1999. Mr. Thrane previously worked as a financial manager at Nordic
Film Group and held several other senior finance positions. Romania
is the second most populous country in Central Europe, with over 21
million people, and one of the Europe's fastest growing economies
with estimated real GDP growth of over 7% in 2004. Romania's
inflation rate has declined significantly in recent years to 9.3%
in 2004. Forward-Looking Statements Some of the statements in this
press release are forward-looking, including, without limitation:
the statement that control of Prima TV and one of Romania's leading
radio groups provides us with a Romanian broadcast platform that
will capitalize on the country's growing economy and developing
consumer market as Romania progresses towards full European Union
membership, which is expected in 2007; the statement that we
continue to seek additional opportunities to prudently expand our
asset base that allow us to leverage our content, operating
expertise and pan-European footprint; and the statement that these
two experienced managers bring years of industry knowledge to these
operations and will be instrumental in our efforts to increase our
market share and improve the profitability of our Romanian
television operations, in particular, which are expected to have
positive operating income this year. 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, government policy
and regulatory requirements; the effects of changes in general
economic environment; the effects of changes in the advertising
spending growth; the effects of competition; and our success at
managing the risks that arise from these factors. A more detailed
discussion of some of these risks is set forth in SBS's annual
report on Form 20-F for the year-ended December 31, 2003. 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. 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:
http://www.sbsbroadcasting.com/ . DATASOURCE: SBS Broadcasting S.A.
CONTACT: Investors: Michael Smargiassi or Jon Lesko, of Brainerd
Communicators, +1-212-986-6667; Jeff Pryor of Pryor Associates, +1
818-338-3555; or Catriona Cockburn of Citigate Dewe Rogerson,
+44-207-282-2924, all for SBS Broadcasting S.A. Web site:
http://www.sbsbroadcasting.com/
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