Annual Report 2020

Financial
Statements

Consolidated Income statement

Notes2020
€m
20191
€m
Revenue6.1.6,0176,651
Other operating income 3748
Consumption of current programme rights (2,070)(2,266)
Depreciation, amortisation, impairment and valuation allowance (248)(245)
Other operating expenses6.2.(2,950)(3,112)
Impairment of goodwill and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries (25)(15)
Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree5.2.17286
Profit from operating activities 9331,147
  
Share of results of investments accounted for using the equity method7.5.3264
Impairment and reversals of investments accounted for using the equity method7.5.1.(62)(50)
Earnings before interest and taxes ("EBIT") 9031,161
  
Interest income6.3.45
Interest expense6.3.(33)(37)
Financial results other than interest6.4.127
Profit before tax 8751,156
  
Income tax expense6.5.(250)(292)
Profit for the year 625864
  
Attributable to: 
RTL Group shareholders 492754
Non-controlling interests 133110
Profit for the year 625864
  
Earnings per share (in €) 
Basic6.6.3.204.91
Diluted6.6.3.204.91

Consolidated statement of comprehensive Income


Notes
2020
€m
2019
€m
Profit for the year625864
  
Other comprehensive income ("OCI"):
Items that will not be reclassified to profit or loss:
Re-measurement of post-employment benefit obligations7.15.8(21)
Income tax7.7.4
 8(17)
 
Equity investments at fair value through OCI – change in fair value7.6.2(2)
Income tax7.7.(1)
 1(2)
 9(19)
 
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences(52)6
  
Effective portion of changes in fair value of cash flow hedges7.16.4.(20)12
Income tax7.7.6(4)
 (14)8
 
Recycling of cash flow hedge reserve7.16.4.(6)
Income tax7.7.2
  (4)
  (66)10
  
Other comprehensive income/(loss) for the year, net of income tax(57)(9)
  
Total comprehensive income for the year568855
  
Attributable to:   
RTL Group shareholders434748
Non-controlling interests134107
Total comprehensive income for the year568855

Consolidated statement of financial position



Notes
31 December
2020
€m
31 December
20191
€m
Non-current assets 
Programme and other rights7.1.5466
Goodwill7.1. 7.2.2,8713,026
Other intangible assets7.1.313323
Property, plant and equipment7.3.291315
Right-of-use assets7.4.329380
Investments accounted for using the equity method7.5.384352
Loans and other financial assets7.6. 7.9.139148
Deferred tax assets7.7.333332
 4,7144,942
 
Current assets
Programme rights7.8.1,2111,252
Other inventories813
Income tax receivable2433
Accounts receivable and other financial assets7.9.2,2482,275
Cash and cash equivalents7.10.436377
 3,9273,950
  
Assets held for sale7.11.42988
 
Current liabilities
Loans and bank overdrafts7.12.124157
Lease liabilities7.12.6059
Income tax payable2424
Accounts payable7.13.2,2012,778
Contract liabilities6.1.328299
Provisions7.14.14497
2,8813,414
  
Liabilities related to assets held for sale7.11.23443
 
Net current assets1,241581
 
Non-current liabilities 
Loans7.12.641631
Lease liabilities7.12.324373
Accounts payable7.13.347388
Contract liabilities6.1.46
Provisions7.14.238257
Deferred tax liabilities7.7.4843
 1,6021,698
 
Net assets4,3533,825
 
Equity attributable to RTL Group shareholders3,7063,292
 
Equity attributable to non-controlling interests7.16.8.647533
 
Equity7.16.4,3533,825

Consolidated statement of changes in equity







Notes





Share capital
€m





Treasury
shares
€m




Currency
translation
reserve
€m





Hedging
reserve
€m




Revaluation
reserve
€m



Reserves
and retained
earnings
€m



Equity
attributable
to RTL Group
shareholders
€m

Equity
attributable
to non-
controlling
interests
€m




Total
equity
€m
Balance at 1 January 2019 
192

(44)

(135)

3
682,9303,0145053,519
  
Total comprehensive income:
Profit for the year754754110864
Re-measurement of post-employment
benefit obligations, net of tax
7.7. 7.15.(14)(14)(3)(17)
Equity investments at fair value through OCI – change in fair value, net of tax7.16.5.(2)(2)(2)
Foreign currency translation differences7.16.3.666
Effective portion of changes in fair value of cash flow hedges, net of tax7.16.4.888
Recycling of cash flow hedge reserve, net of tax7.16.4.(4)(4)(4)
 64(2)740748107855
 
Capital transactions with owners:    
Dividends7.16.6.(461)(461)(75)(536)
Equity-settled transactions, net of tax7.16.7.4448
Changes in treasury shares7.16.2.3(1)22
Transactions on non-controlling interests without a change in control7.16.8.(14)(14)(7)(21)
Transactions on non-controlling interests with a change in control7.16.8.
Derivatives on equity instruments7.16.9.(1)(1)(1)(2)
3(473)(470)(79)(549)
Balance at 31 December 2019
192

(41)

(129)

7
663,1973,2925333,825
    
Balance at 1 January 2020
192

(41)

(129)

7
663,1973,2925333,825
       
Total comprehensive income:        
Profit for the year492492133625
Re-measurement of post-employment benefit obligations, net of tax7.7. 7.15.7718
Equity investments at fair value through OCI – change in fair value, net of tax7.16.5.111
Foreign currency translation differences7.16.3.(52)(52)(52)
Effective portion of changes in fair value of cash flow hedges, net of tax7.16.4.(14)(14)(14)
Recycling of cash flow hedge reserve, net of tax7.16.4.
(52)(14)1499434134568
 
Capital transactions with owners:       
Dividends7.16.6.(5)(5)
Equity-settled transactions, net of tax7.16.7.2235
Changes in treasury shares7.16.2.
Transactions on non-controlling interests without a change in control7.16.8.41(64)(23)(35)(58)
Transactions on non-controlling interests with a change in control7.16.8.1616
Derivatives on equity instruments7.16.9.1112
 41(61)(20)(20)(40)
Balance at 31 December 2020 
192


(181)

(7)
673,6353,7066474,353

Consolidated cash flow statement


Notes
2020
€m
20191
€m
Cash flows from operating activities
Profit before tax 8751,156
 
Adjustments for:
Depreciation and amortisation246256
Value adjustments and impairment1426
Share-based payments expenses 58
Re-measurement of earn-out arrangements 1(1)
Gain on disposal of assets(171)(84)
Financial results including net interest expense and share of results of investments accounted for using the equity method9362
Change of provisions7.14.38(20)
Working capital changes80(14)
Income tax paid(248)(334)
Net cash from operating activities9331,055
 
Cash flows from investing activities
Acquisitions of:
Programme and other rights(60)(87)
Subsidiaries, net of cash acquired5.1.(10)(235)
Other intangible and tangible assets(118)(107)
Other investments and financial assets(22)(23)
Current deposit with shareholder9.1.(536)(27)
(746)(479)
 
Proceeds from the sale of intangible and tangible assets7.1. 7.3.24
Disposal of other subsidiaries, net of cash disposed of5.2.120102
Proceeds from the sale of investments accounted for using the equity method, other investments and financial assets944
Interest received34
134154
 
Net cash used in investing activities(612)(325)
 
Cash flows from financing activities
Interest paid(28)(27)
Transactions on non-controlling interests7.16.8.(63)(44)
(Acquisition)/disposal of treasury shares2
Term loan facility due to shareholder9.1.(232)
Proceeds from loans7.12.251134
Repayment of loans7.12.(271)(7)
Payment of lease liabilities7.12.(59)(59)
Dividends paid(4)(538)
Net cash used in financing activities(174)(771)
 
Net increase/(decrease) in cash and cash equivalents147(41)
 
Cash and cash equivalents and bank overdrafts at beginning of year7.10.376422
Effect of exchange rate fluctuation on cash held(16)1
Effect of cash in disposal group held for sale7.11.(72)(6)
Cash and cash equivalents and bank overdrafts at end of year7.10.435376

Segment Information

Zoom table
 Mediengruppe
RTL Deutschland
Groupe
M61
FremantleRTL NederlandOther
segments1,2
EliminationsTotal Group
2020
€m
2019
€m
2020
€m
2019
€m
2020
€m
2019
€m
2020
€m
2019
€m
2020
€m
2019
€m
2020
€m
2019
€m
2020
€m
2019
€m
Revenue from external customers2,1242,2581,2631,4451,3461,5914734978118606,0176,651
Inter-segment revenue3410111912023(1)6249(269)(265)
Total revenue2,1272,2621,2731,4561,5371,793476496873909(269)(265)6,0176,651
 
Depreciation, amortisation and impairment3(38)(39)(100)(120)(43)(43)(10)(10)(61)(47)(252)(259)
 
Impairment and reversals of investments accounted for using the equity method(2)2(60)(52)(62)(50)
Share of results of investments accounted for using the equity method3542(5)2221(1)183264
 
Adjusted EBITA467663266287871425854(25)108531,156
 
Adjusted EBITA margin22.0%29.3%20.9%19.7%5.7%7.9%12.2%10.9%(2.9)%1.1%n/an/a14.2%17.4%
 
Invested capital9079101,4031,3591,4641,518203279450568(2)(4)4,4254,630

The following table shows the reconciliation of segment information to the consolidated financial statements.

2020
€m
2019
€m
Adjusted EBITA8531,156
Impairment of goodwill of subsidiaries(11)
Impairment and reversals of investments accounted for using the equity method(62)(50)
Amortisation and impairment of fair value adjustments on acquisitions of subsidiaries(14)(15)
Re-measurement of earn-out arrangements(1)1
Gain/(loss) from sale of subsidiaries, other investments
and re-measurement to fair value of pre-existing interest in acquiree
17286
Significant special items(34)(17)
Earnings before interest and taxes (“EBIT”)9031,161
Interest income45
Interest expense(33)(37)
Financial results other than interest127
Profit before tax8751,156
Income tax expense(250)(292)
Profit for the year625864

In 2020 “Special items” reflects the impact of a restructuring programme at Mediengruppe RTL Deutschland (€27.4 million) and onerous advertising sales contracts (€9.7 million) as well as reversal of a provision at the Corporate Centre in Luxembourg (€2.6 million; 2019: addition of €17 million).

Geographical Information

Geographical areas are based on where customers (revenue) and the Group’s non-current assets are located. Goodwill has been allocated to a geographical area based on whether the Group’s risks and returns are affected predominantly by the products and services it produces.

Zoom table
  GermanyFranceUSAThe NetherlandsUKBelgiumOther regionsTotal
2020
€m
2019
€m
2020
€m
2019
€m
2020
€m
2019
€m
2020
€m
2019
€m
2020
€m
2019
€m
2020
€ m
2019
€m
2020
€m
2019
€m
2020
€m
2019
€m
Revenue from external customers1,9582,1401,2421,4391,0371,1194975271972541872178999556,0176,651
Non-current assets11,2541,2651,0731,09943958233934343545675752432903,8584,110
Assets held for sale7142717242988
Capital expenditure152381043201715810182311223338243466

The revenue generated in Luxembourg amounts to €70 million (2019: €72 million). The total of non-current assets other than investments accounted for using the equity method, financial instruments, deferred tax assets and post-employment benefit assets located in Luxembourg amounts to €74 million (2019: €86 million).

FIVE-YEAR SUMMARY

Year to
December
2020
€m
Year to
December
2019
€m
Year to
December
2018
€m
Year to
December
2017
€m
Year to
December
2016
€m
Revenue6,0176,6516,5056,3736,237
of which net advertising sales3,3303,6593,6553,6573,594
Other operating income374874148111
Consumption of current programme rights(2,070)(2,266)(2,103)(2,036)2,070)
Depreciation, amortisation, impairment and valuation allowance(248)(245)(211)(223)(215)
Other operating expenses(2,950)(3,112)(3,150)(3,083)2,924)
Impairment of goodwill and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries(25)(15)(120)(17)(15)
Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree1728625216
Profit from operating activities9331,1471,0201,1831,130
  
Share of results of investments accounted for using the equity method3264586967
Impairment and reversals of investments accounted for using the equity method(62)(50)(2)(6)
Earnings before interest and taxes ("EBIT")9031,1611,0761,2461,197
 
Interest income45946
Interest expense(33)(37)(29)(26)(27)
Financial results other than interest1277(2)3
Profit before tax8751,1561,0631,2221,179
 
Income tax expense(250)(292)(278)(385)(363)
Profit for the year625864785837816
  
Attributable to: 
RTL Group shareholders492754668739720
Non-controlling interests1331101179896
Profit for the year625864785837816
 
Adjusted EBITA (€million)8531,1561,1711,2481,205
Basic earnings per share (in €)3.204.914.354.814.69
Final dividend per share (in €)3.003.003.00
Interim dividend per share (in €)1.001.001.00
Dividends paid (€million)461614614614
Average number of full-time equivalent employees10,59810,74710,80911,01110,699
Net assets (€million)4,3533,8253,5533,4323,552
Net (debt)/cash (€million)236(384)(470)(545)(576)