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BERLIN -- ProSieben Media achieved its best-ever annual result last year, boasting a gross income of $182 million. Although the media group was left with a considerably diminished $88 million after taxes, it was still a 47% increase over 1997.

"For 1998, the ProSieben Group is able to present record results at a level never before achieved by any other television company in Germany," company chairman Georg Kofler said. "Our three business segments -- television, multimedia and merchandising -- are all achieving above- average profit performances compared to the rest of the industry."

The Munich-based ProSieben Group has been active in German television since 1989 when it launched its Pro7 channel, followed by Kabel 1 in 1992. Last year 95% of ProSieben's revenues came from its television operations. Pro7 alone generated $917 million in revenue, resulting in a pre-tax profit of $187 million. Meanwhile, Kabel 1 recorded its first profit in 1998, grossing $11 million on revenues of $177 million. It was a major improvement over 1997's loss of $5 million.

Expansion plans

The company, which acquired the German news agency ADN in December, recently announced the development of its 24-hour news channel N24. "The focus in 1999 will be on innovation and expansion," Kofler said. "In particular, we will focus on developing the information program field, which ... is the second mainstay of the ProSieben Group in addition to the entertainment sector."

ProSieben also saw a big leap in profits in its multimedia sector, including Internet services, teletext and digital foreign advertising windows on ProSieben and Kabel 1. Profits were $9 million in 1998 compared with a loss of $1.7 million in 1997.

ProSieben's merchandising business saw profits increase by nearly $2 million over 1997 to $2.3 million. The company's most valuable assets include its library of films and television series, valued at $800 million last year, and broadcasting rights, yet to be exercised, worth $663 million.