RNS Number:3205S
RTL Group
4 March 2002





RTL Group (RTL.L)


RTL Group, Europe's leading broadcaster and content provider, announces its
audited preliminary results for the year ended 31 December 2001




EUR, million                                       Year                             Year             Per cent
                                         to 31 Dec 2001                   to 31 Dec 2000               change
                                                                  (proforma, unaudited)                   (%)
Revenue                                          4,054                             4,044                 0.2

Adjusted EBITA                                     361                               555               (35.0)
  Restructuring costs(1)                            36                                 -                    -
  Non-recurring items(2)                            27                                 -                    -
  Start up losses(3)                                22                                 -                    -
Reported EBITA                                     276                               555               (50.3)

Adjusted EBITA margin (%)                          8.9%                            13.7%                    -

Reported EBITA margin (%)                          6.8%                            13.7%                    -
Profit for year pre goodwill
impairment                                          63                                67                (6.0)
Goodwill impairment                             (2,562)                                -
Profit/Loss for the year                        (2,499)                               67                 n.a.
Earnings per Share, EUR                         (16.27)                             0.43                 n.a.
Adjusted earnings per share, EUR                  0.90                              1.91               (52.9)
Dividend per Share, EUR                (proposed)(0.50)                             0.85               (41.2)



Business Headlines



Core business outperforming peers



•        Audience and advertising share up in Germany, France, UK and Hungary



•        Continued investment in content brings ratings and FremantleMedia sales
success e.g. - Pop Idol (under discussion for sales to several new
territories),Veto, and La Gym des Neurones



•        French radio business bounces back, gaining audience share and
consolidating market leading position



Portfolio enhanced



•        Creation of Sportfive, Europe's leading sports rights and marketing
business, through merger with Groupe Jean Claude Darmon and Sports +



•        Portfolio review leads to disposal of non core and underperforming
assets: RTL 7 Poland, Swedish and UK radio



•        Restructuring of North American production and syndication businesses
completed



Improved efficiency



•        Significant cost saving measures implemented



•        New management structure created



Robust financials



•        Proposed dividend EUR 0.5 per share (2000 : EUR 0.85 per share)
represents pay out ratio of 42%, sustainable dividend policy to pay out 35-50%
of earnings



•        Ratio of EBITA to operating cash flow conversion over 100%, working
capital management improved



•        2001 year end net debt EUR 645 million, down  from EUR 681 million year
end 2000





Didier Bellens, Chief Executive Officer (CEO) of RTL Group, said: "RTL Group has
continued to outperform. By investing in quality programming and format
development we have won both audience and advertising market share in our main
markets.



This growth is being achieved within our overall cost control policy. We have
implemented a series of cost control measures and are actively exploring further
saving opportunities.  The operating portfolio review undertaken by the Group in
2001 will be continued in 2002.



Whilst the outlook for advertising markets remains tough, we believe our
strategy of investment will bring enhanced revenues and margins when markets
stabilise.



The payment of a 2001 dividend of EUR 0.5 per share demonstrates the confidence
of the Board in the Group's future prospects."



A meeting will be held for analysts and investors at 09:30h London time on
Monday, March 04, 2002, at FremantleMedia (formerly Pearson Television), Stephen
Street, London W1. This meeting will be webcast live and can be accessed through
RTL Group's website, www.rtlgroup.com, and Finsbury's website, www.finsbury.com.




Enquiries:


Media:                                                Media and investors:
RTL Group                                             Finsbury  - Tel: +44 (0) 20 7251 3801
Roy Addison  - Tel: +44 (0) 20 7691 6830              Julius Duncan
Markus Payer - Tel: +352 421 425 020                  Katie Lang
Email :                                               Email :
roy.addison@rtlgroup.com markus.payer@rtlgroup.com    Julius.Duncan@finsbury.com
                                                      katie.lang@finsbury.com



Financial review


Revenue                                                 Year to                  Year to    Per cent change
EUR m                                               31 Dec 2001                   31 Dec                (%)
                                                                                    2000
                                                                              (proforma, 
                                                                              unaudited)
Television                                               2,866                    2,862                0.1
Content                                                  1,148                    1,090                5.3
Radio                                                      213                      244              (12.7)
New Media                                                   91                       38              139.5
Other                                                       64                      101              (36.6)
Eliminations                                              (328)                    (291)              12.7
Group Revenue                                            4,054                    4,044                0.2






EBITA                                                   Year to                  Year to    Per cent change
EUR m                                               31 Dec 2001                   31 Dec                (%)
                                                                                    2000
                                                                              (proforma, 
                                                                              unaudited)
Television                                                 297                      408              (27.2)
Content                                                     48                      126              (61.9)
Radio                                                       26                       75              (65.3)
New Media                                                  (55)                     (37)             (48.6)
Other                                                      (40)                      (9)               n.a.
Eliminations                                                  -                      (8)               n.a

Reported Group EBITA                                       276                      555              (50.3)
Adjustments for:
Restructuring costs                                         36                         -                  -
Non recurring items                                         27                         -                  -
Start up losses                                             22                         -                  -
Adjusted Group EBITA                                       361                      555              (35.0)





RTL Group's revenues held up well in a market that has recorded the steepest
declines in advertising revenue for ten years. The group's biggest division,
television, reported revenue of EUR 2,866 million compared to EUR 2,862 million
in 2000, reflecting RTL Group's success in winning advertising share from rivals
in its key markets.



RTL Group's content and new media divisions increased revenues over the full
year period by 5.3% and 139% respectively. This helped offset a decline in
revenue from the radio businesses of 12.7%.



Underlying revenue growth for RTL Group, stripping out the effects of portfolio
changes (mainly M6 and Talkback), was minus 2.3%.



Adjusted EBITA decreased to EUR 361 million from EUR 555 million resulting in a
fall in the EBITA margin to 8.9% from 13.7% in 2000. Reported EBITA was EUR 276
million compared to EUR 555 million in 2000.



RTL Group's operating costs, excluding goodwill amortisation and impairment,
increased 7.0% to EUR 3,878 million from EUR 3,623 million in 2000. This was due
to scope changes, increased investment in New Media and RTL Shop and
restructuring costs.  Stripping out these effects, costs increased by less than
1%.



RTL Group's television revenue remained relatively flat year on year at EUR
2,866 million in 2001 compared to EUR 2,862 million in 2000. This reflects the
strength of RTL Group's television stations, brands, and leading market
positions which enabled RTL Group's channels to gain audience and advertising
share across its key markets.



Television EBITA declined to EUR 297 million, from EUR 408 million in 2000
reflecting increased spending on programming at Channel 5 and M6, non-recurring
costs, and investment in RTL Shop.



Content revenues were up 5.3% over the year to EUR 1,148 million from EUR 1,090
million in 2000. Underlying revenue grew by 6.8%.  EBITA in the content division
fell to EUR 48 million, down from EUR 126 million in 2000, primarily due to
restructuring at FremantleMedia and the impact of the withdrawal and
cancellation of American TV movies and drama series.



Within the radio division RTL Radio remains France's number one station with an
audience share of 13.3%. This continued improvement in performance is thanks to
the new management team and the return to the station of popular formats and
presenters.



RTL Group's radio revenue declined by 12.7% to EUR 213 million in the course of
the year, down from EUR 244 million in 2000, and EBITA fell to EUR 26 from EUR
75 million. This fall was due primarily to a weaker advertising market in our
core market of France and lower audience shares at RTL Radio.



RTL Group continued to build on its strong position in European new media over
the year, establishing itself as one of the most successful online players in
European broadcasting.



Thanks to successful e-commerce driven merchandising, revenue increased to EUR
91 million up from EUR 38 million in 2000. The division reported limited
start-up losses of EUR 55 million, up from EUR 37 million the previous year.



The gain or loss from sale of subsidiaries, joint ventures and other investments
was EUR 228 million. This related primarily to the contribution from UFA Sports
to Sportfive, the sale of Premiere and the disposal of RTL 7.



RTL Group's tax expense decreased to EUR 67 million from EUR 218 million in
2000, due principally to lower corporate taxes in Germany. The effective tax
rate was 35% against 42% in 2000.



Net interest expense in 2001 was EUR 33 million.  The consolidated net debt
position at 31 December 2001 was EUR 645 million down from EUR 681 million at
the year-end 2000.



Net profit for the full year before goodwill impairment was EUR 63 million
compared to EUR 67 million in 2000. Net loss, after the goodwill impairment of
EUR 2,562 million relating to FremantleMedia and Antena 3, was EUR 2,499
million.



Earnings per share were EUR -16.3 (2000: EUR 0.43) and adjusted earnings per
share were EUR 0.90 (2000: EUR 1.91). The proposed final dividend is EUR 0.50
per share compared to EUR 0.85 in 2000.



RTL Group's review of its asset portfolio resulted in the disposal or closure of
several non-core or underperforming businesses. In January 2001 RTL Group
completed its exit from German Pay-TV platform Premiere with the sale of its
remaining 5% stake and in December RTL Group announced the disposal of its
Polish television operation RTL 7.



Another important portfolio changes during 2001 was the creation of Europe's
leading sports rights and marketing group, Sportfive. The deal brings together
the RTL Group's sports interests UFA Sports, Sports +, the sports rights trading
subsidiary of Canal+ Group, and Groupe Jean-Claude Darmon, in which RTL Group
already owned a 28% stake.



RTL Group announced at its interim results in September a one-off goodwill
impairment adjustment of EUR 2,276 million relating to the assets of
FremantleMedia.  Total goodwill impairment charges for the full year are EUR
2,562 million reflecting a review of the carrying value of RTL Group's stake in
Antena 3.




Television


Revenue                                          12 months to  31      12 months to 31    Per cent change
                                                   December  2001       December  2000
EUR million                                                                (pro forma,                (%)               
                                                                            unaudited)
Germany                                                    1,713                1,715               (0.1)

- RTL Television/VOX                                       1,592                1,650               (3.5)
- Others                                                     121                   65               86.2
France                                                       433                  370               17.0

- M6                                                         378                  320               18.1
- VCF                                                         55                   50               10.0
Benelux                                                      405                  436               (7.1)

- HMG                                                        303                  334               (9.3)
- RTL Tvi                                                    102                  102                0.0
United Kingdom                                               279                  307               (9.1)

- Channel 5                                                  213                  234               (9.0)
- LPC (formerly Pearson TV Broadcasting)                      66                   73               (9.6)
Others                                                        36                   34                5.9
                                                                                                     

Television revenue                                         2,866                2,862                0.1




EBITA                                                12 months to     12 months to 31    Per cent change
EUR million                                      31 December 2001      December  2000                 (%)
                                                                           (pro forma,
                                                                            unaudited)
Germany                                                      232                  285              (18.6)
- RTL Television/VOX                                         230                  251               (8.4)
- Others                                                       2                   34              (94.1)
France                                                        82                   83               (1.2)
- M6                                                          78                   81               (3.7)
- Others                                                       4                    2                 100
Benelux                                                       27                   46              (41.3)
- HMG                                                         11                   28              (60.7)
- RTL TVi                                                     16                   18              (11.1)
United Kingdom                                               (39)                   3                n.a
- Channel 5                                                  (49)                  (6)               n.a
- LPC                                                         10                    9                11.1
Others                                                        (5)                  (9)               44.4


Television EBITA                                             297                  408              (27.2)





RTL Group's television revenue remained relatively flat year on year at EUR
2,866 million in 2001 compared to EUR 2,862 million in 2000. This reflects the
strength of RTL Group's television stations, brands, and formats which enabled
RTL Group's channels to gain audience and advertising share across its key
markets.



Television EBITA declined to EUR 297 million, from EUR 408 million in 2000
reflecting increased spending on programming at Channel 5 and M6, non-recurring
costs, and investment in RTL Shop.



RTL Television, the flagship channel in Germany, was market leader for the ninth
consecutive year in the important 14-49 age category and increased its audience
share to 17.9% from 17.3% in 2000. RTL Television also dominated the top 100
list of the most widely viewed broadcasts of the year, with no fewer than 83
entries. In total, RTL Television crossed the 10 million-viewer threshold 80
times during the year - more than all the other channels put together. Formula
One attracted a peak audience of 14.6 million viewers for the Canadian GP in
June.



It is especially pleasing that RTL Television has recorded notable audience
successes with series produced by RTL Group companies. RTL Group produced "Gute
Zeiten, Schlechte Zeiten" is Germany's most successful soap with average
audiences over 4 million and a 26% share of the 14-49 age category. Other RTL
Group produced successes include "Alarm fur Cobra 11" which increased its
audience share to 26.5%, and "Hinter Gittern - Der Frauenknast" which increased
audience share to 22.3%.



As a result of these audience gains RTL Television increased its share of the
German advertising market to 28.5%, from 27.3% in 2000.



VOX had a successful year airing a number of winning formats such as "Ally
McBeal" and "C.S.I". and establishing a strong prime time presence with an
attractive demographic and audience profile. Vox's share of the 14-49 audience
increased to 4.3% from 3.9%, and advertising share increased to 4.1%.



RTL Television/VOX revenue decreased by only 3.5% to EUR 1,592 million (2000:
EUR 1,650 million) compared to an 8.3% decline in German television advertising.
EBITA fell to EUR 230 million (2000: EUR 251 million), down 8.4% from 2000.



M6 in France strengthened its position as the second most popular channel for
the 15-34 age category. M6's audience share increased to 21.3% from 20.0% in
2000, and advertising market share to 22.9% from 21.4% in 2000. Highlights of
the year included France's first reality TV show "Loft Story" and the highly
successful "Popstars".  "Loft Story" was an incredible ratings success achieving
audience share of up to 70% in the target group of 15-34.



M6's revenue was up 18.1% over the year to EUR 378 million (2000: EUR 320
million). RTL Group's share of M6 EBITA fell slightly to EUR 78 million (2000 :
EUR 81 million), reflecting the continued investment in programming.



Channel 5 continued its strategy of investing in programming and new formats to
build the channel's position in the UK market. As a result Channel 5 was the
only advertising funded UK channel to show growth in 2001. Audience share
increased to 5.8% from 5.7% in 2000, and advertising market share increased to
6.4% from 6.3%. The launch of "Home & Away" in July 2001 was a major success for
the channel with ratings exceeding expectations. The ratings for the 6-7 pm time
slot have increased by 145% as a result of the new schedule.



Channel 5 revenue fell to EUR 213 million (2000: EUR 234 million) and the EBITA
loss was EUR 49 million (2000: loss EUR 6 million) as a result of declining
television advertising markets in the UK and higher investment in programming.



HMG channels in the Netherlands lost 2.1% audience share and 2.9% share of
advertising spend. Since relaunch in August the Yorin channel has successfully
slowed the rate of decline in audience and advertising market share.



RTL-TVI maintained its position as the leading channel for French speaking
Belgians and alongside Club RTL offers a wide range of programming covering news
& information, entertainment, fiction and football.  The slight downturn in
results is explained by the increased investment in programming and the arrival
at the end of 2001 of a new competitor in the form of AB3.



RTL Klub in Hungary has continued to show impressive results and maintained its
position as market leader in Hungary. In prime time RTL Klub achieved a yearly
average of 40.8% partly as a result of in-house format development with
particular emphasis on the 18-49 audience.



Other markets including Luxembourg activities broadly maintained revenue and
EBITA performance compared to the same period last year.



Content


EUR million                                               Year to                Year to  Per cent change
                                                        31 December     31 December 2000              (%)
                                                               2001          (pro forma,
                                                                              unaudited)
Content revenue                                              1,148                1,090              5.3
Reported content EBITA                                          48                  126            (61.9)
Adjustments for:
Restructuring                                                   23                     -                -
Non-recurring items                                              9                     -                -
Adjusted content EBITA                                          80                   126           (36.5)



The underlying core content business achieved a stable performance in 2001.
Investment in new programming formats reached our stated target of EUR 15
million, a EUR 8 million increase on 2000, and had a notable successes with Pop
Idol.



Content revenues were up 5.3% over the year to EUR 1,148 million from EUR 1,090
million in 2000 with underlying revenue up by 6.8%.  EBITA in the content
division fell to EUR 48 million, down from EUR 126 million in 2000, primarily
due to restructuring at FremantleMedia and the impact of the withdrawal and
cancellation of American TV movies and drama series.



The restructuring of the US business, now substantially complete, has resulted
in a greater focus on the core production business of gameshows and
entertainment. RTL's concentration on these areas began to deliver success in
2001 with the launch of new formats such as "Pop Idol", the highest-rated live
entertainment show in the UK with 13.1 million viewers.



RTL Group's largest content company, FremantleMedia, saw continued success over
the year, producing more than 230 different shows over the year and licensing
over 10,000 hours of programming to broadcasters, including more than 8,000
hours of original production in 35 different countries.



The merger of UFA Sports with Sport +, the sports rights trading subsidiary of
Groupe Canal+, and Groupe Jean-Claude Darmon, in which RTL Group already holds a
28 % interest was completed in December creating a leading European TV and
marketing sports rights group under the brand "Sportfive". The new Group
combines annual revenues of over EUR 572 million and operating profit of EUR 40
million (based on pro forma figures for 2000) and will manage TV and marketing
contracts for over 320 football clubs worldwide. On a standalone basis, UFA
Sports had a very successful year in 2001, marketing 540 matches and secured a
market share of over 70%.



Radio


Revenue                                                     Year to              Year to  Per cent change
EUR million                                             31 December     31 December 2000              (%)
                                                               2001          (pro forma,
                                                                              unaudited)
France                                                         186                  219            (15.1)
- RTL                                                          133                  171            (22.2)
- RTL2                                                          27                   26              3.8
- Fun                                                           26                   22             18.2
Germany                                                         15                   13             15.4
Netherlands                                                     10                    8             25.0
United Kingdom                                                   2                    4            (50.0)
Total Radio                                                    213                  244            (12.7)






EBITA                                                       Year to              Year to  Per cent change
EUR million                                             31 December     31 December 2000              (%)
                                                               2001          (pro forma,
                                                                              unaudited)
France                                                          21                   71            (70.4)
- RTL                                                            8                   63            (87.3)
- RTL2                                                           8                    8                0
- Fun                                                            5                    0             n.a.
Germany                                                          3                    2             50.0
Netherlands                                                      4                    2            100.0
United Kingdom                                                  (2)                   0              n.a
Total Radio                                                     26                   75            (65.3)



RTL Group's radio revenue declined by 12.7% to EUR 213 million in the course of
the year, down from EUR 244 million in 2000, and EBITA fell to EUR 26 million
from EUR 75 million. This fall was due primarily to a weaker advertising market
in our core market of France, a lower audience share at RTL Radio and
restructuring costs of EUR 8 million.



RTL Radio remains France's number one station with an audience share of 13.3%.
This performance is thanks in part to the new management team and the return to
the station of Philippe Bouvard and his team of "Les Grosses Tetes" who have
worked together to build strong audience shares over the year. The recovery was
also helped by the launch of a major marketing campaign under the title "RTL
Vivre Ensemble". RTL Group's other French radio stations, RTL2 and Fun Radio,
both showed improvements in audience in the year with RTL2 building its share of
its key target group of 25-34 year olds to 6% off the back of the success of 
"Pop Rock Sound". Fun Radio, meanwhile, benefited from greater synergies with 
"Loft Story" and "Popstars" on M6 to drive up its share of younger listeners
(15+) to 4.5%.  The station enjoyed a 4.4% share of the radio advertising market
(up 52% compared to last year) and reported an EBITA of EUR 5 million up from
only a small positive EBITA in 2000.





New Media


EUR million                                                 Year to              Year to  Per cent change
                                                        31 December     31 December 2000              (%)
                                                               2001          (pro forma,
                                                                              unaudited)
New media revenue                                               91                   38            139.5

Reported new media EBITA                                       (55)                 (37)           (48.6)
Adjustments for:
Non-recurring items                                             10                     -                -
Adjusted new media EBITA                                       (45)                 (37)           (21.6)





RTL continued to build on its strong position in European new media over the
year, establishing itself as one of the most successful online players in
European broadcasting.

Thanks to successful merchandising, revenue increased to EUR 91 million up from
EUR 38 million in 2000. The division reported start-up losses of EUR 55 million,
up from EUR 37 million the previous year.  The EBITA loss on an adjusted basis
was EUR 45 million.



RTL World (rtl.de) operated by RTL NEWMEDIA, a subsidiary of RTL Television in
Germany, was the most successful destination in the portfolio, contributing 70%
of all page impressions for the Group.





Outlook



RTL Group has continued to outperform in its main markets, in respect of both
audience share and advertising market share.  This outperformance is largely due
to our continued investment in quality programming while carefully controlling
costs.   RTL Group will continue this approach in the belief that this brings
future success and long term benefits to the Group.



The review of the operating portfolio will continue into 2002 with the sale or
closure of non-core or under-performing assets.  RTL Group has implemented a
series of cost saving measures and is actively exploring further cost saving
opportunities that will help to offset what will be another difficult year for
advertising markets.  Visibility remains poor and it continues to be difficult
to predict the outlook with any certainty.   Based on our forward bookings to
date, we are seeing continued weakness in advertising markets which we expect
will continue for at least the first half of 2002.



Through the measures already taken, management is confident that the core
business is well positioned and will bring enhanced revenue and earnings.


CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2001
In EUR million                                   Note                             Pro forma
                                                                   2001                2000            2000
                                                                                  Unaudited           legal
Revenue                                            2             4,054               4,044           2,854
Other operating income                                              87                 110              73
Consumption of current programme rights                         (1,453)             (1,384)           (931)
Depreciation, amortisation and impairment                         (420)               (339)           (273)
Other operating expense                                         (2,005)             (1,900)         (1,382)
Amortisation and impairment of goodwill            4            (2,840)               (317)           (172)
Gain from sale of subsidiaries, joint ventures and other
investments                                                        228                  88              57
Profit / (loss) from operating activities                       (2,349)                302             226

Share of results of associates                                      13                  24              17
Earnings before interest and taxes ("EBIT")                     (2,336)                326             243

EBITA*                                             2               276                 555             358
Amortisation and impairment of goodwill                         (2,840)               (317)           (172)
Gain from sale of subsidiaries, joint ventures and other
investments                                                        228                  88              57
Earnings before interest and taxes ("EBIT")                     (2,336)                326             243

Net interest expense                                               (33)                (36)            (15)
Financial results other than interest                              (55)                  3              10
Profit / (loss) before taxes                       3            (2,424)                293             238

Income tax expense                                                 (67)               (218)           (142)
Profit / (loss) from ordinary activities                        (2,491)                 75              96

Minority interest                                                   (8)                 (8)            (19)
Profit / (loss) for the year                                    (2,499)                 67              77


Earnings per share (in Eur)
- Basic                                                         (16.27)               0.43            0.76

Adjusted earnings per share (in Eur)
- Basic                                                           0.90                1.91            1.89

* EBITA represents earnings before interest and taxes excluding amortisation and 
impairment of goodwill and gain from sale of subsidiaries, joint ventures and 
other investments.





For the purpose of the 2000 pro forma, the number of issued and fully paid
ordinary shares is 154,787,554.

The adjusted earnings per share represent net earnings adjusted for amortisation
and impairment of goodwill and gain or loss for sale of subsidiaries, joint
ventures and other investments, net of tax.




CONSOLIDATED BALANCE SHEET
as at 31 December 2001


In EUR million                                               Note                    2001                  2000

Non-current assets
Programme and sport rights                                                            365                   415
Goodwill                                                       4                    3,527                 5,730
Other intangible assets                                                                25                    27
Property, plant and equipment                                                         351                   382
Investments in associates                                                             121                    59
Loans and other financial assets                                                      483                 1,036
Deferred tax assets                                                                   112                   102
                                                                                    4,984                 7,751

Current assets
Programme rights                                                                    1,061                 1,087
Other inventories                                                                      11                     7
Income tax receivable                                                                 274                   182
Accounts receivable                                                                 1,343                 1,208
Marketable securities and other short-term
investments                                                                            78                    81
Cash and cash equivalents                                                             302                   218
                                                                                    3,069                 2,783

Current liabilities
Loans and bank overdrafts                                                             926                   755
Income tax payable                                                                    100                   104
Accounts payable                                                                    1,665                 1,576
                                                                                    2,691                 2,435

Net current assets                                                                    378                   348

Non-current liabilities
Loans                                                                                 286                   335
Accounts payable                                                                      205                   194
Provisions                                                                            223                   249
Deferred tax liabilities                                                               45                    53
                                                                                      759                   831

Net assets                                                                          4,603                 7,268

Shareholders' equity                                                                4,585                 7,254

Minority interest                                                                      18                    14

                                                                                    4,603                 7,268









CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2001                                            Pro forma
In EUR million                                                  2001                2000                  2000
                                                                               Unaudited                 legal
Cash flows from operating activities
Profit / (loss) from ordinary activities                      (2,491)                 75                    96
Adjustments for :
- Depreciation and amortisation                                  623                 610                   401
- Value adjustments, impairment and provisions                 2,738                 121                    94
- Gain on disposal of assets                                    (219)               (138)                  (99)
- Financial results including share of results of                                                          
associates                                                        68                  14                    (1)
Working capital changes                                           24                 (36)                 (154)
                                                                (172)               (246)                 (315)
Other movements                                                   -                    6                    (1)
                                                                                  

Net cash from operating activities                               571                 406                    21

Cash flows from investing activities
Acquisitions of :
- programme and sport rights                                    (275)               (348)                 (214)
- subsidiaries and joint ventures net of cash                                                            
acquired                                                         (45)               (789)                 (217)
- other intangible and tangible assets                           (76)               (113)                  (79)
- other investments & financial assets                          (227)               (517)                 (371)
                                                                                                         
                                                                (623)             (1,767)                 (881)

Proceeds from the sale of intangible and tangible                                                         
assets                                                             8                  68                    33
Disposal of subsidiaries and joint ventures net of                                                          
cash disposed of                                                   9                   6                     2
Proceeds from the sale of other investments &                                                             
financial assets                                                 192                 657                   569
Interest received                                                 41                  70                    58
                                                                                                          
                                                                 250                 801                   662

Net cash used in investing activities                           (373)               (966)                 (219)

Cash flows from financing activities
Interest paid                                                    (82)               (125)                  (75)
Proceeds from loans                                            1,355                 387                   156
(Acquisition)/Disposal of treasury shares                         (6)                 23                    11
Reimbursement of loans                                        (1,217)               (531)                 (411)
Net change in bank overdraft                                     (24)                 33                    94
Dividends paid                                                  (135)               (122)                 (109)

Net cash used in financing activities                           (109)               (335)                 (334)

Net increase / (decrease) in cash and cash
equivalents                                                       89                (895)                 (532)
Cash and cash equivalents at beginning of year                   218               1,106                   748
Effect of exchange rate fluctuation on cash held                  (5)                  7                     2
Cash and cash equivalents at end of year                         302                 218                   218










CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
In EUR million
                                                                 Non                                           Total
                                       Share    Share  distributable   Treasury     Other    Retained  shareholders'
                                     capital  premium       reserves     shares  reserves    earnings         equity

Balance at 31 December 1999              79    1,184             15        (56)      (12)        691          1,901

Capital increase of 24 July 2000         71      563              7          -         -           -            641
Capital increase of 25 July 2000         39    4,284              4          -         -           -          4,327
Capital increase of 4 September                                
2000                                      3      397              -          -         -           -            400
Disposal of treasury shares               -        -              -         22         -          21             43
                                                                        
Other movements on treasury shares                                          (5)                                  (5)
(change in consolidation scope:                                             
CLT-UFA)
Currency translation adjustment           -        -              -          -        10           -             10
Write-off of deferred tax asset           -        -              -          -         -         (40)           (40)
Dividends                                 -        -              -          -         -        (100)          (100)
Net profit for the year                   -        -              -          -         -          77             77

Balance at 31 December 2000             192    6,428             26        (39)       (2)        649          7,254

Changes in accounting policies                                                       125                        125
                                                                                     
Restated balance at 1 January 2001      192    6,428             26        (39)      123         649          7,379

Net acquisition of treasury shares        -        -              -         (5)        -           -             (5)
                                                                             
Currency translation adjustment           -        -              -          -       (39)          -            (39)
Net change on cash flow hedging           -        -              -          -       (35)          -            (35)
Net change on available-for sale          -        -              -          -       (85)          -            (85)
Dividends                                 -        -              -          -         -        (131)          (131)
Net loss for the year                     -        -              -          -         -      (2,499)        (2,499)
Balance at 31 December 2001             192    6,428             26        (44)      (36)     (1,981)         4,585




Notes to the Preliminary Results



1. Basis of preparation



RTL Group S.A., the parent company, is domiciled and incorporated in Luxembourg.
The results for the year ended 31 December 2001 have been prepared in accordance
with the accounting policies set out in the annual financial statements for the
year ended 31 December 2000, except that IAS 39 "Financial Instruments:
Recognition and Measurement" has been adopted with effect from 1 January 2001
(see below). The accounting policies of the group comply with the International
Accounting Standards (IAS) issued by the International Accounting Standards
Board ("IASB").



The preliminary results include pro forma financial information (income
statement and cash flow statement) for the year ended 31 December 2000, as in
the opinion of management the pro forma financial information provides a more
representative picture of the financial performance of the Group during that
period and as such a more appropriate benchmark for comparison against the 2001
performance. The pro forma financial information for the year ended 31 December
2000 was previously reported within the 2000 consolidated financial statements.



Application of IAS 39

With effect from 1 January 2001, the Group applied IAS 39 "Financial
Instruments: Recognition and Measurement". The application of IAS 39 has
resulted in the Group recognising available-for-sale assets at fair value,
changing its method of accounting for hedging transactions and recognising all
derivative financial instruments and assets or liabilities (including derivative
assets and liabilities that were previously held off-balance sheet) at fair
value.



The first time application of IAS 39 has been accounted for by adjusting the
opening retained earnings. Comparatives have not been restated.





The effect of adopting IAS 39 is summarised below:


In  EUR million                                             Hedging          Revaluation           Total


Adjustment to opening retained earnings                       55                 70                 125



The table above shows the impact on the opening balance sheet of EUR 125 million
relating to the fair value of cash flow hedges, largely in respect of
off-balance sheet commitments, and the revaluation of available-for-sale
securities.



Pro forma financial information

In July 2000, CLT-UFA and Pearson Television combined into Audiofina (re-named
RTL Group). Following the combination, RTL Group holds, inter alia, 100% of
CLT-UFA Holding (which in turn holds 99.3% of CLT-UFA), 100% of Pearson
Television companies and 28% of Groupe Jean-Claude Darmon.



As the combination was completed part way through the financial year ended 31
December 2000, the statutory consolidated results for the year ended 31 December
2000 only provide a partial picture of the financial performance of the Group
during that period. Accordingly the pro forma financial information for the year
ended 31 December 2000 has been prepared to illustrate the effects of the
combination as if it had occurred on 1 January 2000.

The pro forma financial information has been prepared using consistent
accounting policies to those of the group, to illustrate the effects on the
income statement and cash flow statement of RTL Group, of combining CLT-UFA and
Pearson Television into RTL Group. For the purpose of the pro forma financial
information the combination is assumed to have occurred on 1 January 2000.

The pro forma results for the year ended 31 December 2000 are based on a full
years trading for all those companies that became part of the RTL Group as at
the flotation in July 2000.

Due to its nature, pro forma financial information may not give a true
presentation of the profits and shareholders' equity that would have been
reported if the combination had occurred on 1 January 2000.



2.  Segmental information




Business Segments


in EUR million               Revenue from external       Inter-segment       Total Revenue          EBITA
                                         customers             revenue
Television

2001                                        2,815                  51               2,866            297
2000 Pro forma                                  -                   -               2,862            408
2000                                        2,037                  21               2,058            279

Content

2001                                          897                 251               1,148             48
2000 Pro forma                                  -                   -               1,090            126
2000                                          566                 164                 730             74


Radio

2001                                                                 -                213              26

2000 Pro forma                                   -                   -                244              75

2000                                           183                   -                183              54


New Media

2001                                           89                   2                  91            (55)
2000 Pro forma                                  -                   -                  38            (37)
2000                                           32                   -                  32            (31)

Other

2001                                           40                  24                  64            (40)
2000 Pro forma                                  -                   -                 101             (9)
2000                                           36                  42                  78            (12)

Eliminations

2001                                            -                (328)               (328)              -
2000 Pro forma                                  -                    -               (291)            (8)
2000                                            -                (227)               (227)            (6)

Total

2001                                        4,054                    -              4,054            276
2000 Pro forma                                  -                    -              4,044            555
2000                                        2,854                    -              2,854            358








Geographical Segments

in EUR million                                                                  Revenue

Germany

2001                                                                              2,146
2000                                                                              1,580

France

2001                                                                                619
2000                                                                                444

Netherlands

2001                                                                                317
2000                                                                                256

UK

2001                                                                                822
2000                                                                                438

Other regions

2001                                                                                150
2000                                                                                136

Total

2001                                                                              4,054
2000                                                                              2,854



3.   Loss before taxes



The following items of unusual nature have been incurred during the year.



-         Goodwill impairment of 2,562 million in respect of the FremantleMedia
acquisition in 2000 (EUR 2,276 million) and Antena 3 (EUR 286 million). See also
note 4.



-         Restructuring charges of EUR 36 million in respect of rationalising
FremantleMedia North America, the French Radio operations and the Luxembourg
corporate centre.  The costs for restructuring were recorded within operating
expenses.



-         Gain from the sale of subsidiaries, joint-ventures and other
investments of EUR 228 million mainly comprises the disposal of UFA Sport as
part of Sportfive merger (EUR 144 million) and disposal of the Group's remaining
5% share in Premiere (EUR 59 million).



-         EUR 55 million of impairment of financial assets, mainly in respect of
the portfolio of investments in dotcom companies acquired by RTL Group. These
costs were recorded under financial results other than interest.



4. Goodwill



Goodwill amortisation and impairment expense for the year ended 31 December 2001
amounts to EUR 2,840 million (31 December 2000 - pro forma EUR 317 million).
This includes a goodwill impairment for FremantleMedia of EUR 2,276 million and
Antena 3 of EUR 286 million.



FremantleMedia

The goodwill impairment in respect of FremantleMedia of EUR 2,276 million is
primarily due to a deterioration of the equity market valuations and the
restructuring of the US drama business, used as a basis for determining the 2000
purchase price, in the period post acquisition.

In addition, as permitted by IAS 22 ("Business Combinations"), a hindsight
adjustment amounting to EUR 31 million has been added to the goodwill arising on
the acquisition of FremantleMedia. This largely relates to the write down of
programme rights and advances amounting to EUR 46 million offset by liabilities
that have been waived following the acquisition amounting to EUR 11 million.



Antena 3

The Antena 3 goodwill impairment of EUR 286 million has resulted from the first
time equity consolidation of the Group's 17.2% share in Antena 3 with effect
from 31 December 2001 (prior to this time Antena 3 was treated as an
available-for- sale asset under IAS 39). Following the change in treatment a
goodwill impairment has been recorded reflecting the general deterioration of
the equity market valuations of broadcasting operations since the acquisition of
Antena 3 in 2000.





--------------------------


(1) Relating to the restructuring of FremantleMedia, French Radio and Corporate
Centre


(2) Relating to RTL 7 and other costs


(3) Relating to RTL Shop



                      This information is provided by RNS
            The company news service from the London Stock Exchange


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