Real 'Deal' appeal
Gameshow boosts Endemol finances
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Netherlands-based Endemol saw its sales increase 22.6% to E516.6 million ($652.2 million) and net income climb 19.6% to $57.6 million. Almost all this growth was achieved by expansion of its business rather than acquisitions.
"Deal or No Deal" was launched in the U.S. and U.K. at the end of 2005; it's expected to air in more than 35 countries this year. Its success has sparked demand for other Endemol game formats, including "1 vs. 100," "Show Me the Money" and "For the Rest of Your Life."
"Deal or No Deal" is second on Endemol's global revenue chart, behind only flagship reality show "Big Brother," which will air in 20 countries this year and shows no sign of waning in popularity.
"Extreme Makeover: Home Edition" is Endemol's third most lucrative format despite airing in only one territory -- the U.S. -- during the first half of the year.
Starting to make an impact on Endemol's revenues is a new genre, "sports reality" programming. "Soccer Aid" and "The Games" are among the company's top 10 formats for the first time this year.
Overall, Endemol's revs from nonscripted programming rose 24.1% to $512.4 million, with the lion's share from the U.K., the U.S. and Italy.
Growth in North America is one of Endemol's primary strategic goals. In the first half of 2006, its U.S. business rose 34.6% to $100.1 million, leapfrogging the Netherlands to become Endemol's No. 2 territory after the U.K.
Scripted programming, mostly long-running daytime soaps, remains a minority of Endemol's business, growing just 3.7% to $74.1 million.
In digital media -- which includes methods of viewer participation such as phone and text-message voting as well as content created for mobile phones -- Endemol posted a 38.2% increase in sales to $65.6 million.
Endemol CEO Elias Rodriguez-Vina said, "We have enjoyed growth in the three genres we are involved in, as well as in almost every territory where we have a presence."
Given its strong performance in the first half of the year, Endemol has doubled its prediction for full-year sales growth to 11%-13%.
Endemol's Spanish owner, Telefonica, is mulling a sale of the TV giant.
On June 17, Telefonica chairman Cesar Alierta confirmed that Telefonica expected to sell off Endemol by the end of this year. He said Endemol had attracted interest from private equity funds, media companies and Endemol's own management, with a media company the most probable buyer.
(John Hopewell in Madrid contributed to this report.)
