TMG reaffirms 2008 outlook
The Executive Board of TMG (Telegraaf Media Groep) confirmed the 2008 projections concerning the achievement of a considerable increase in the operating result adjusted for amortisation (normalised EBITA) in relation to 2007, at today’s General Meeting of Shareholders. The most important prerequisite identified at the outset was the realisation of a limited increase in advertising and circulation revenue.
This condition was not met during the first quarter of 2008:advertising revenue derived from print products declined limited, while circulation revenue derived from print products and revenue from radio showed a limited increase.On balance, TMG’s revenue declined modestly.Nevertheless, TMG expects to realise an increase in normalised EBITA margin to 9 to 10% (2007: 7.2%) this year, in small measure on the basis of acquisitions and in large measure on the basis of accelerated and more intensive cost reductions, such as the disposal of less profitable operations and a personnel freeze.
The development of the net profit per share is furthermore also subject to decisions concerning the use of cash assets, including the consequences of the ProSiebenSat.1 option agreement (investment value of €0 to €428 million). The meeting discussed this point extensively.
If TMG wants to exercise the call option, the shareholders’ approval will be requested in a Extraordinary General Meeting of Shareholders.
The shareholders approved the proposed dividend in the amount of €1 per depositary receipt for shares. The dividend becomes payable on 24 April 2008.
Mr H.L. Weenen was reappointed as a member of the Supervisory Board.
The Executive Board also announced that a total of 2,250,000 shares were purchased between the end of November 2007 and mid-April 2008, comprising 4.5% of the issued capital.
For a complete report on TMG’s shareholders’ meeting we refer you to an audio webcast of the meeting.