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Guillaume de Posch, CEO |
Dear Shareholders,
2007 was marked by a decisive strategic event for the Group: our acquisition of the SBS Broadcasting Group.
The transaction is a major step forward for a number of reasons:
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1. It has enhanced our overall growth potential. We expect revenue, cash flow and margins to benefit from our broader scope and ongoing integration efforts.
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2. We are now a truly multi-national broadcasting group, present in 13 European countries. Our broader reach will allow the Group to rollout winning ideas across our enhanced footprint and deliver new economies of scale.
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3. By harnessing the Group’s talent pool and creativity across markets, we will develop successful programs efficiently - and distribute these to multiple channels in multiple countries.
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4. The transaction makes it possible to realize our vision as a leading pan- European broadcasting Group: to offer our audiences best in class entertainment and information – whenever they need it, wherever they are.
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The world of media is changing at an unprecedented pace. The promises of “digitalization” and “new media” are quickly becoming realities that touch our viewers’ lives. Channel distribution is increasingly going digital. Whether via cable, satellite or antenna, digital distribution is creating new opportunities to launch channels and reach target audiences. Alongside this, online media are revolutionizing the way we process images and information. “On demand” and
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“interactive” are not trends, we are now experiencing a paradigm shift which will have a long-term effect on the way we think about content, audience and competition. Seizing these opportunities demands a clear strategy to achieve and expand a market leading position:
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| Stay focused on our core business. This means producing and broadcasting market-leading content. At the time of the SBS deal I said “distribution may be king, but content is King Kong.” This has not changed. Successful TV programs attract large enthusiastic audiences, and we believe our strong position in TV provides a launching pad for growth in the online and on-demand markets. Shows like “The Next Uri Geller” and “Germany’s Next Top Model” are two examples of shows that capture and retain an audience across the Group’s entire spectrum of traditional and new media outlets. |
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| Be a leader in the online world. We must make our content available to our viewers and advertising partners across all platforms – TV, online, mobile, video-on-demand. We recognize that the list of competitors is growing. Apple, Google, Yahoo!, and MySpace are a few of the new entrants. Waiting to see what happens is unacceptable. We need to aggressively build on our leadership role in TV and establish new platforms and services to reach our audience. Our investments in My Video, maxdome, lokalisten and others reflect the Group’s commitment to do just that. With 17 million unique users in Germany, we are a top 3 player in the online display market. We intend to strengthen that position, not just in Germany, but internationally as well. |
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| Embrace and leverage digital distribution. New forms of distribution provide opportunities to expand our brands and grow our portfolio of channels. We want to lead this change across the Group’s geographic footprint. With a core asset base of more than 50 channels, we believe the Group is uniquely positioned to flourish in a digital environment. |
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A strategy, however, is little more than words on a page without the tools to deliver. We have the resources to realise our strategy: a solid business model and healthy cash flow; strong and committed shareholders; and 6,000 talented and dedicated colleagues focused on creating, producing and airing the hits that keep our viewers coming back – to all of our platforms.
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Finally, allow me to share a personal belief with you: Europe‘s standing in the global media landscape is continuing to increase. Momentum is building in creative development, production, distribution, online media and interactivity. There are only two media groups with a strong multinational presence in Europe. We are one of the two. And we are the only one that owns and operates all of its channels. We have a unique opportunity to lead and to capitalize on the ongoing consolidation of the European media sector.
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V 14-49 : 29.2% |
09/01/2010 |
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Did you know ?
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