EM.Sport boasts strong growth
DSF diversification boosts results
Company, which is owned in part by media mogul Leo Kirch, posted an 11% increase in sales to E63.2 million ($92.1 million) and a net profit of $7.6 million, compared with approximately $440,000 in the second quarter of 2007.
EM.Sport has agreed to sell its money losing children’s programming division EM.Entertainment to Belgian media company Studio 100 for some $60 million, with the deal to be finalized later this year.
EM.Entertainment suffered a $6 million second-quarter loss, squeezing EM.Sport’s bottom line. Not including EM.Entertainment, the group, which is now focusing on sports rights, production and TV broadcasting, saw a net profit of $13.3 million.
Company attributed the growth to seasonal sporting events and higher diversification proceeds from its free TV sports channel DSF.
EM.Sport saw its net profit shrink to just north of $1 million in the first six months of the year, however, down from $5 million in the same period last year. The drop off was due largely to losses incurred by the discontinued EM.Entertainment division.
Half-year revenue rose slightly to $168 million.
EM.Sport is in the process of consolidating Swiss entertainment group Highlight Communications, in which it has a 47.3% controlling stake. A major home entertainment operator, Highlight also owns Constantin Film, Germany’s biggest indie production and distribution company, and markets the lucrative UEFA Champions League soccer rights.
EM.Sport CEO Werner Klatten, who steps down next month to be replaced by Highlight topper Bernhard Burgener, said, “The course has been set for forming a new heavyweight on the German and European media landscape.
“The future group will stand on two strong pillars — sports as well as film and TV production. It has already proven to hold leading market positions in these sectors.”
EM.Sport’s biggest single shareholder is Kirch’s holding company KF 15, which owns 17%.
