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Endemol 2006 core profit up 16 pct, in line

Thu Feb 22, 2007 2:30am EST

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AMSTERDAM, Feb 22 (Reuters) - Television production company Endemol EML.AS, which majority owner Telefonica (TEF.MC) plans to sell, said on Thursday core profit rose 16 percent in 2006, thanks to a spate of popular game shows.

Earnings before interest, tax, depreciation and amortisation

(EBITDA) increased to 177.1 million euros ($233 million) versus an average forecast of 180 million euros in a Reuters survey of eight analysts.

Sales were up 24 percent to 1.12 billion euros, with net profit up 17.2 percent to 96.8 million euros. Endemol is the creator of worldwide TV hits such as "Big Brother" and "Fear Factor".

"Including the reintegration of Endemol France turnover is expected to grow by more than 20 percent in total in 2007," the company said in a statement.

Endemol said its 2007 EBITDA margin is expected to be between 16.5 and 18.5 percent, including Endemol France. Last week, Endemol shareholders approved the company's plan to acquire the French firm, seen as paving the way for the sale of Endemol.

Last month, a source close to the negotiations told Reuters Telefonica expects to sell its 75 percent stake in Endemol in the first quarter of the year after listing the company in November 2005.

Analysts said Endemol's run of hit formats, global network, strong cash generation and underleveraged financial position are strong attractions for potential bidders, with private equity firms and Endemol co-founder John de Mol seen as interested buyers.

Italy's biggest listed broadcaster Mediaset (MS.MI) has said it could consider the prospect but that the price would be key.

Endemol shares ended at 21.77 euros on Wednesday, valuing the company at 2.72 billion euros. The company proposed a 2006 dividend of 0.45 euro per share, up from 0.08 euro for 2005.

((Reporting by Foo Yun Chee; Editing by Louise Ireland; Reuters Messaging: foo.yunchee.reuters.com@reuters.net; tel +31 20 504 5012)) Keywords: ENDEMOL RESULTS/

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