Interim Financial Report 2007

Transcription

1 Q2 Interim Financial Report 27

2 Content Key Figures from continuing operations 2 Highlights 3 Sports 4 The EM.Sport Media AG Share 9 Interim Management Report 12 Interim Financial Report 2 Notes on the Consolidated Financial Statements 25 Review Report 32 Finance Calendar 33 Imprint 33 Forward-looking statements This interim financial report contains statements relating to future events that are based on management s assessments of future developments. A series of factors beyond the control of the company, such as changes in the general economic and business environment and the incidence of individual risks or occurrence of uncertain events, can result in the actual results differing substantially from those forecast. EM.Sport Media AG does not intend to continually update the forward-looking statements contained in the interim financial report. Important notice In case of any differences the German version of the interim financial report prevails.

3 2 Key Figures Key figures from continuing operations In Euro million 6/3/27 6/3/26 Non current assets > thereof intangible assets Total assets Subscribed Capital Equity Equity ratio (in percent) Long-term financial liabilities Short-term financial liabilities % 78.3, % /1 to 6/3/27 1/1 to 6/3/26 Sales > Sports > Others Earnings before interest, taxes, depreciation and amortization (EBITDA) Depreciation and amortization Earnings before interest and taxes (EBIT) Earnings before taxes (EBT) Earnings from discontinued operations Shareholders interests Cash flow from operating activities Cash flow from investment activities Cash flow from financing activities /3/27 6/3/26 Outstanding shares in million Share price in Euro Market capitalization (based on outstanding shares) /1 to 6/3/27 1/1 to 6/3/26 Average number of outstanding shares (undiluted) in million Shareholders interest per share (undiluted) in Euro Shareholders interest per share (diluted) in Euro Employees (average for the period)

4 Highlights 3 Highlights EM.Sport Media with significant raise in earnings in the first half of 27 Significant increase in profitability, especially by DSF Consolidated sales plus 7,1 percent in the first half of 27 Consolidated EBIT improved above expectations by 11,5 million Euro Earning expectations for the full year 27 lifted

5 4 Sports TV DSF Deutsches SportFernsehen The advertising market in Germany continued the positive trend established in the first quarter. Gross turnover during the second quarter 27 grew by 2.4 percent. It was increased revenues within the TV sector, in particular, that contributed to this positive development. DSF participated in these improvements, returning a slight growth within the classic advertising and T-commerce unit, which includes call media activities. Efficient license management with cost-effective rights purchases led to a significant earnings growth of 7.6 percent for the second quarter against the previous year. Second quarter market share at seven-year best With a market share of 2.1 percent for the core target group of males aged 14 to 49, DSF achieved its best second quarter market share in seven years (Q2/2 2.2 percent). Among viewers overall, DSF s market shares for the reporting period was 1.1 percent. For the second quarter 26, DSF market share was significantly below that for this reporting period with.9 percent (viewers overall) and 1.6 percent (males aged 14 to 49). A half-year comparison also demonstrates positive developments in market shares. Thus, the figure for viewers overall increased by 1 percent from 1. percent to 1.1 percent, while market share for the 14 to 49 year old male target group enjoyed an increase of 18 percent from 1.7 percent (26) to 2. percent. Marketing success in the second quarter The Sponsoring and Special Advertising Formats unit succeeded in securing a significant new advertiser for the Motorvision format in the shape of Microsoft and its Xbox. Furthermore, an extensive co-operation was agreed with Audi for the 24 Hours of Le Mans, while retail chain Euronics has come on board with sweepstakes embedded in all Bundesliga formats. The second quarter also saw established customers such as Dunlop, Seat and Suzuki renew their existing involvement across a range of motorsport formats. In addition, Suzuki remains co-sponsor of Hattrick for the upcoming soccer season. The existing co-operation with Sony Computer Entertainment covering a variety of formats was also reconfirmed. DSF with greatest sports expertise and best sports portfolio behind ARD The new program structure with more sports content and sports-related subject matter during peak viewing has been well-received by viewers. This was confirmed by the study Sportsponsoring 27, published by market research agency SPORT + MARKT at the beginning of May. In both sports expertise and sports portfolio, DSF went up one place in the ratings tables against last year s study. Only ARD was rated better by viewers in both categories. For 27 as a whole, DSF is expecting to raise its proportion of live sport across its programming by 3 percent to 1,75 hours. Success with soccer Bundesliga, Handball Bundesliga and Formula 1 Within the core target group of males aged 14 to 49, April 27 saw DSF celebrate its best monthly market share for this target group (2.6 percent) since June 1999 (2.7 percent). A particularly decisive role in the achievement of these outstanding results for this target group was played by the Bundesliga formats at the end of the 26/27 season. These included Hattrick Die 2. Bundesliga LIVE, with 5.8 percent (up 29 percent) and Doppelpass Die Krombacher-Runde with

6 Sports Online percent (up 14 percent). Top figures for the second quarter were achieved by the Champions League final played between Liverpool FC and AC Milan on May 23, with an average of 3.63 million viewers (market share, males aged 14 to percent). Although the Champions TV show produced by Premiere will no longer be screened on DSF in the forthcoming season, this will not influence revenue and earnings at DSF. Aside from the soccer coverage, the Handball Bundesliga on DSF proved very successful during the second quarter. An average of 58, viewers peaking at up to 87, handball fans followed the top match from the Handball Bundesliga on DSF between HSV Hamburg and SC Magdeburg on April 11. This brought DSF a strong market share of 2. percent among viewers overall and 2.6 percent among males aged 14 to 49. Overall these figures represented the fourth best for a broadcast from the Handball Bundesliga for DSF in the history of the station. Formula 1 also began the new season with strong results. Within the reporting period, DSF achieved outstanding target group market shares. The Friday Practice was particularly popular reaching up to 7.2 percent among males aged 14 to 49. The Sunday race highlights were watched by an average of up to 48, viewers during the reporting period. Program highlights and extension of existing rights Alongside established Bundesliga formats, specific soccer highlights for the second quarter 27 included Champions TV and the English FA Cup. Other key elements of the line-up were the Handball Bundesliga, motor sports (Formula 1 and 24 hour races), the Ice Hockey World Championship, cycling (Tour de Romandie and Tour de Suisse), golf and, in particular, tennis with the successful German Davis Cup team and an array of other tournaments (including Wimbledon as the yearly highlight). Furthermore, DSF strengthened the booming poker sector with top formats such as the World Series of Poker. During the second quarter, DSF also succeeded in extending its broadcast rights to the DTM, Formula 3 and the other DTM partner series for a further season, as well as adding World Rally Championship magazine show All Access to its line-up. Sport1 Germany s online market continues to grow. The rankings based on IVW online usage figures show an increasing number of websites from the social community sector among the top ten. For example, the student network StudiVZ took the number one spot in June 27 with 2.8 billion page impressions, ahead of even T-Online. Significant growth is also being demonstrated by travel portals such as Holidaycheck.de and tui.com. The general growth experienced by the sector also benefited Sport1 GmbH, which maintained its position as the leading sports company within the new media market. The second quarter 27 saw the company continue the positive trend in respect of website usage, acquisition of new customers and expansion of video-based products.

7 6 Sports Online Ongoing marketing success brought a further increase in overall performance, to the extent that Sport1 GmbH succeeded in delivering a clearly positive contribution to earnings of EM.Sport Media AG during the reporting period. Stable website usage figures despite absence of major sporting events Despite the absence of major sporting events such as last year s FIFA World Cup, Sport1.de recorded increased usage during the second quarter 27 in comparison with the same quarter the previous year. A particular growth driver were the last match days of the 26/27 German soccer Bundesliga season, which helped keep Sport1.de among the top 15 in the IVW rankings, with of over 66 million visits and 437 million page impressions for the reporting period. wap.sport1.de gains importance Alongside its core product online portal Sport1 GmbH made progress in the expansion of its products for mobile devices. The increasing proliferation of technically advanced mobile devices as well as a reduction in connection costs resulted in a significant growth in page views via wap.sport1.de to over 1.8 million during the reporting period. This development also had a positive effect on marketing of the wap portal, which began in the first quarter. Successful marketing of Sport1.de The focus of activities for Sport1.de during the second quarter 27 was largely on online marketing of the 27/28 German soccer Bundesliga season, as well as on securing long-term cooperations. In this respect, Sport1 GmbH succeeded in expanding its existing co-operation with Jack Wolfskin for the winter sports sector to include the 1 st German soccer Bundesliga. Furthermore, the co-operation with Suzuki for its sponsorship of the 2 nd German soccer Bundesliga was extended to cover the 27/28 season. In addition, the second quarter 27 saw new big-name customers such as Pokerstars and sports eyewear manufacturer Rupp&Hubrach come on board as long-term advertising partners. Portfolio expansion with external partners Sport1 s strategy to work with external partners in operating sectors outside of its core business made good progress during the second quarter 27. An online ticket shop was created on in co-operation with ventic. Since April 15, 27, Sport1.de users have been able to use this service to purchase tickets for all top sporting events. Video-based products continue to gain internet appeal During the reporting period, Sport1 also pushed forward with its activities in video applications. In co-operation with Infront Sports & Media AG, Sport1 transmitted the 27 Ice Hockey World Championships in Moscow. For a small fee, users were able to enjoy all matches of the 27 Ice Hockey World Championships, live and in their entirety, on Furthermore, the daily video product offering on was expanded during the second quarter 27 beyond the existing Sport1 TV news channel with twice-daily updated sports news, to include the attractive AUTO TV channel featuring daily news on car-related issues. Further development of new business sectors On April 2, 27, Sport1 GmbH launched a new male-oriented online portal under the HOMBRE- RO.DE brand. This reconfirms Sport1 s expertise as a multimedia producer within the new media

8 Sports Production Services 7 sector and, in particular, for the male target group. Alongside its expert sports coverage on sport1.de, this new portal enables Sport1 to offer its users and advertising partners an entry point into a brand new and attractive world of subject matter packed with potential. Working in close partnership with its sister company DSF, Sport1 succeeded in transferring the popular DSF TV line-up into the internet and expanding it with high-quality content. The maleoriented content includes images, videos and information from the trend & style, auto & motor, technology & fun, body & fitness and erotic sectors. The business model is based on advertising income and subscriptions for paid video content. Within a few weeks, the new portal had achieved overall access figures of over 12.8 million page impressions (as of June 3, 27) thus matching the online offers of the male lifestyle print media in next to no time. Expansion of community activities As a leading online media house, Sport1 places emphasis on activities within the Web 2. sector and, in this regard too, is working on a number of innovations. Against this background, a small team has been working since June 1 to progress the expansion of community and interactive Web 2. applications. A launch of associated products is planned for Q3/27. PLAZAMEDIA The production market continues to experience considerable movement. On the one hand, this was characterized during the second quarter by increased demand for production services from digital special interest channels, as well as for innovative media products. The spectrum extended all the way from classic TV broadcast through to one-stop-shopping solutions for new media, such as mobile and web TV. However, on the other hand, consolidation within the pay-tv market heightened the pressure already experienced within the sector associated with a more intensive price competition. Under these conditions, it is becoming increasingly important to achieve added value for the customer through propositions such as exclusive technological innovations. The second quarter 27 proved satisfactory for PLAZAMEDIA in terms of both turnover and earnings. Revenues remained high and on a comparable level with the same period the previous year as the company successfully compensated for the one-off effect of the extensive services associated with the 26 FIFA World Cup which began June 9, 26. In terms of earnings, the performance achieved in 26 was exceeded in 27. A comparison of half year figures also demonstrates significant growth in turnover and EBIT against the previous year. Internationalization continues apace Important stimuli for the positive developments of the second quarter 27 came from the intensification of the co-operation between PLAZAMEDIA and Premiere and from further inroads made into international markets.

9 8 Sports Production Services PLAZAMEDIA secured extensive contracts with Premiere Austria and ORF for the production of all matches of the T-Mobile Bundesliga and the Red Zac Erste Liga for the next three years. In addition, PLAZAMEDIA will also realize the top matches from the Erste Bank Eishockey Liga (ice hockey) for the next three seasons, as well as the key games from the Austrian Basketball League during the coming season. During the reporting period, PLAZAMEDIA also produced an exclusive program signal for Premiere from the 27 IAAF Golden League the International Athletics Meetings in Oslo, Paris, Rome, Zurich, Brussels and Berlin. In Switzerland, the reporting period saw PLAZAMEDIA agree an exclusive partnership with tv productioncenter zürich (tpc). On behalf of tpc, PLAZAMEDIA will produce the league s match of the week and one Saturday match from the Swiss Axpo Super League (27/28 season), as well as other sporting events. The contracts were awarded by Teleclub, Cinetrade AG and Swiss public law radio and television company SRG (Schweizerische Radio- und Fernsehgesellschaft). Alongside top soccer, the co-operation also encompasses the production of winter sports, as well as cultural and event formats. In order to push forward business within these markets, PLAZAMEDIA is planning to follow its establishment of an Austrian subsidiary in 26 with a branch operation in Switzerland this year. Another positive contribution to quarterly earnings came from the production of nine matches from the 6th UEFA European Under-17 Championship 26/27 for Eurosport, which took place in Belgium from May 2 until May 13. PLAZAMEDIA generated the base signal as host broadcaster. Further highlights of the reporting period included the contract agreed with SpOrt Stuttgart for the technical production of the EnBW World Artistic Gymnastics Championships 27 in Stuttgart, which will take place September 1 through September 9. Furthermore, in co-operation with T-Com and an online service provider, the second quarter saw the launch of the first in-house soccer club video portal for FC Energie Cottbus. For this project, PLAZAMEDIA is handling image production, with the club providing the commentator. Within the scope of this partnership with T-Com, five further clubs will launch with images from PLAZAMEDIA in time for the beginning of the new soccer season. CREATION CLUB Expansion of new customer business and an overall positive business environment enabled CREATION CLUB to maintain turnover, EBIT and profitability on the same levels as the previous year. During the reporting period, the multiple award-winning creative agency was honored with further significant international awards, affording particular recognition to creative performance. Thus, CREATION CLUB was honored at the PROMAX/BDA International Awards in New York the world s most important event for on-air design and production with a total of 13 creative Oscars. The agency won two gold awards for the Red Bull Interface and the Red Bull-Bull s Eye Magazine, six silver and five bronze in 13 categories, winning through against established international competition. This means that CREATION CLUB is recognized as one of the 27 BDA Gold Winners. One further highlight of the reporting period was the production of an image film under contract to the German Federal Ministry of Education and Research (Bundesministerium für Bildung und Forschung BMBF), explaining Germany s high-tech strategy with its 17 areas of the future.

10 The EM.Sport Media AG Share 9 The EM.Sport Media AG Share Shareholders structure as at Juni 3, 27 Subscribed Capital Voting Rights 1) 7.9 Mio. Shares 64. Mio. Shares Treasury Shares 9.8% Highlight Communications AG 2) 5.2% Constant Ventures B.V. 2) 8.% Erwin Conradi 7.4% MarCap 3.2% Free Float 66.4% Highlight 14.7% Communications AG 2) 8.1% Erwin Conradi 3.6% MarCap 73.6% Free Float 1) Based on voting shares outstanding 2) On November 16, 26, Highlight Communications AG informed EM.Sport Media AG that the voting rights of Constant Ventures B.V. were attributable to it as of December 1, 26 based on the basis of an option agreement. Development of the EM.Sport Media AG share The market price of the EM.Sport Media AG share listed in the SDAX showed a volatile sideways movement during the whole second quarter of 27. The share reached a new 52 week high of Euro 4.78 in the middle of April. Following subsequent downward movements, the price quickly recovered in the middle of May. In addition to publications for the first quarter of 27, the communicated strategy change was positively received by the stock market. After a subsequent volatile development in June, the price closed at Euro 4.67 on balance sheet day, which is equivalent to a price increase of Euro.98 since the beginning of the year (+26.6 percent). The EM.Sport Media share therefore developed much better than its comparative indices SDAX (+16.4 percent) and Prime Media Index (+16.9 percent). In subsequent trading, the 52-week high increased to currently Euro 5.5 in July. In August, the share declined significantly in the pull of general market development with the rate being Euro 4.36 on August 15. In the second quarter of 27, approximately 16.1 million EM.Sport Media shares were traded on German stock exchanges (daily average of.26 million). Despite the lower volume in comparison with last year s period, the trading volumes of the shares outstanding therefore corresponded to a factor of approximately 1.12 over a period of 12 months, with this reflecting the comparatively high liquidity of the share in the SDAX. In the ranking of the German Stock Exchange ( Deutsche Börse ), the EM.Sport Media share reached position 82 (March 31, 27: 78) amongst all the MDAX and SDAX shares based on trading volumes and position 97 (March 31, 27: 96) on the basis of the stock exchange capitalization for free floating shares. Xetra closing rate of the EM.Sport Media AG share in comparison with SDAX and Prime Media Comparative indices indexed to EM.Sport Media s closing rate as at December 31, 26. 5,5 5.5 EM.Sport Media AG SDAX Prime Media 5, 5. 4, , 4. 3, , 3. 12/31/6 1/31/7 2/28/7 3/31/7 4/3/7 5/31/7 6/3/7

11 1 The EM.Sport Media AG Share Share capital and shareholder structure The share capital of EM.Sport Media AG amounted to approximately Euro 7.9 million at June 3, 27. On closing date, the holding of own non-voting shares was equivalent to 6.9 million (9.8 percent of share capital) which is completely reserved for servicing the Certificates Series 2. After deducting the number of treasury shares, there were 64. million shares outstanding on June 3, 27. On June 5 and 8, 27, MarCap and Mr. David Marcus notified the Company that they held more than 3 percent of the voting rights. The free float of the EM.Sport Media share fell to 66.4 percent of the share capital and 73.6 percent of the voting rights in the second quarter of 27 therefore. Investor relations activities The Company aims to justify the confidence and trust of investors and the public by means of timely and transparent publications of its financial figures, business transactions, corporate strategies and opportunities and risks and to maintain open and ongoing exchanges of information with capital market participants. Extensive information on EM.Sport Media AG is available on our homepage at As far as 27 is concerned, it is our objective to extend the analyst coverage further and to increase the number of long-term oriented institutional investors. The EM.Sport Media share is presently subject to regular coverage by the following institutes: > CA Cheuvreux > Commerzbank > Deutsche Bank > DZ Bank > Independent Research > Viscardi > WestLB Additional capital market securities of EM.Sport Media AG On the closing date of the second quarter of 27, the price at Euro 6.13 of the 5.25% convertible bond 26/213 was slightly lower than the closing rate at the end of the first quarter. In line with the share, the price reached a new 52-week high of Euro 6.28 in July; the bond is currently traded at Euro 6.22 (August 15, 27). The price of Certificates Series 2 closed on June 3, 27 unchanged from previous quarter at Euro.47. The Certificates Series 2 are currently traded at Euro.4 (August 15, 27). In the second quarter of 27, there were no major exercises or conversions with the Certificates Series 2 and the 5.25% convertible bond 26/213.

12 11 Information on the EM.Sport Media s share as of June 3, 26 ISIN/Exchange abbreviation > Ordinary share (Prime Standard Segment) DE / EV4 > Certificates Series 2 (Regulated unofficial market) DEAA7RR7 / ZET5 > Convertible bond 26/213 (Regulated market) DEAGQKR4 / VGQKR Indices SDAX, Prime Media Index Closing rate 6/3/27 / 52-week high / 52-week low > Ordinary share EUR 4.67 / 4.78 / 2.72 > Certificates Series 2 EUR.47 /.59 /.26 > Convertible bond 26/213 EUR 6.13 / 6.28 / 5. Subscribed capital (incl. conversion shares) 7.9 million shares Outstanding shares (6/3/27) 64. million shares Potential shares in connection with options/conversions > Certificates Series 2 (Subscribed price EUR 3.5 until 4/18/28) 7.7 million shares > Convertible bond 26/213 (Conversion price EUR 5.85 until 5/8/213) 15. million shares > Others (Employee participation programs).3 million shares Market capitalization (6/3/27) > Market capitalization (based on outstanding shares) EUR million > Certificates Series 2 EUR 9.2 million Convertible bond 26/213 EUR 91.8 million Shareholdings of Executives at June 3, 27 Apart from Dr. Erwin Conradi no further Member of an Executive Board had a direct or indirect holding in shares or share entitlements in excess of 1 percent of the share capital. The number of shares and share entitlements under option rights of the Executive Members were as follows as at June 3, 27: Shares from stock- options Number of shares Shares from stock- options Number of shares Management Board Werner E. Klatten 33, 27,397 Rainer Hüther 1, 27,397 Dr. Andreas Pres 4, 27,396 Supervisory Board Dr. Bernd Thiemann Dr. Hans-Holger Albrecht Dr. Erwin Conradi 5,214,5

13 12 Interim Managemant Report Interim Management Report General The Management Board and Supervisory Board of EM.Sport Media AG (formerly EM.TV AG) resolved on May 22, 27 that the Group will concentrate on the Sports Segment in future and that the previous Entertainment Segment (children and youth programs) would be sold as a result. For this purpose, a structured sale procedure has been started for the Entertainment Segment with its major companies EM.Entertainment GmbH and Junior.TV GmbH & Co. KG. Based on a careful analysis of the market perspectives of both operational sectors, the Management Board and Supervisory Board were convinced that focussing on the already successfully positioned and profitable Sports Segment with a strong upward growth promises a greater valueincrease for the Group. The necessary further development of the comprehensively reorganized Entertainment sector would commit a high level of financial and personnel resources within the Group. In accordance with IFRS 5 the decision to divest the Entertainment Segment necessitates a reclassification of the Entertainment Segment into a separate item in the consolidated profit and loss account, namely Earnings from discontinued operations. The assets and liabilities of the Segment are likewise shown separately in the consolidated balance sheet. There is also a separate disclosure in the consolidated cash flow statement. Unless specifically stated otherwise, the following detailed information relates to the continuing operations. In the segment reporting by the EM.Sport Media Group, the Others Segment is shown in addition to the Sports Segment, with the former mainly including the activities of EM.Sport Media AG as the holding company. The Sports Segment mainly includes investments in the TV station Deutsches SportFernsehen (DSF), the Online-Portal Sport1 and the production group PLAZAMEDIA (including the creative agency Creation Club). On June 27, 27, the Annual General Meeting of EM.TV AG resolved to rename the Company as EM.Sport Media AG. The terms Sport and Media indicate the environment in which the activities of the Group will concentrate in future. The change of the name was entered in the Commercial Register on July 4, 27. It was simultaneously resolved to increase the Supervisory Board from three to six members. Overall assessment of the report period The Group s sound business development in the first three months was continued in the second quarter of 27. Sales are in line with expectations after the first half year. Earnings before interest and taxes (EBIT) increased by approximately Euro 11 million on account of the growth in sales and substantial reductions in certain major expense items. Against this background, the Management Board of EM.Sport Media AG increased its earnings objectives for the financial year 27. Sales and earnings situation The EM.Sport Media Group is reporting sales of Euro million for the first six months of 27, with this representing an increase of 7.1 percent compared to the same period of the previous year (Euro 14.3 million). The sales growth was mainly attributable to the PLAZAMEDIA group, especially on account of production services for the Pay-TV supplier arena in connection with the 1 st German soccer Bundesliga. DSF s sales were maintained on a high level. Sport1 recorded a

14 13 slight increase in sales on a comparable basis and without the marketing highlights of the previous year as the FIFA World Cup and the Olympic Winter Games. In the second quarter of 27, Group sales of Euro 57. million were slightly below the level of last year s period (Euro 58.6 million; -2.7 percent). However, this was marked by significant additional sales as part of the 26 FIFA World Cup, especially by PLAZAMEDIA. Other operating income amounted to Euro 6.7 million in the first half year, thereby remaining below the level of the same period in the previous year (Euro 9.6 million). This downturn was mainly attributable to lower foreign exchange gains and the marketing income generated in connection with 26 FIFA World Cup. Material expenses, the largest expense item, were 4.3 percent lower at Euro 58.5 million. In the second quarter, there was a reduction of 5.3 percent from Euro 3.3 million to Euro 28.7 million in comparison with the corresponding quarter of the previous year. This reduction was mainly attributable to the savings in license expenses of DSF. Material expenses in the second quarter were also affected by high production expenses in the previous year for the 26 FIFA World Cup. Personnel expenses of Euro 26.2 million in the first half year were slightly below the level of the previous year (Euro 26.7 million). Other operating expenses receded by 23.8 percent in the first two quarters from Euro 23.1 million to Euro 17.6 million. The aforesaid reduction was attributable to numerous factors, inter alia to savings in advertising and travelling costs which were affected in the previous year by the FIFA World Cup. Legal and consultancy costs and administration costs were also lower than in the previous year. Furthermore there was also a reduced level of expenses attributable to lower bad debt provisions and exchange losses. In the second quarter, other operating expenses of Euro 1.3 million were 16.9 percent lower than in the same period of the previous year (Euro 12.4 million). The Group shows consolidated earnings of Euro 16.1 million before interest, taxes, depreciation and amortization (EBITDA) for the first half of the year. The corresponding amount in the previous year (Euro 3.6 million) was more than quadrupled therefore. EBITDA in the second quarter amounted to Euro 8. million (second quarter 26: Euro 6.9 million). Amortization and depreciation charges increased from Euro 3.8 million to Euro 4.8 million in the first six months of the year (+26.3 percent), mainly on account of PLAZAMEDIA s increased technical structure. Consolidated earnings before interest and taxes (EBIT) amounted to Euro 11.3 million, after a loss of Euro.2 million in the same period of the previous year. Concerning EBIT in the second quarter, there was an increase from Euro 4.9 million in the previous year to Euro 5.5 million. Financial results, including earnings from investments in associated companies, were adversely affected by a write-down of a non-strategic minority holding and a one-off expense in accordance with IFRS in relation to the premature repayment of the 8% bond with warrants attached of 24/29 in the first half of the previous year. As a result of its repayment, negative financial results decreased from Euro -6.1 million to Euro -1.7 million. Financial results in the first half of 27 were mainly marked by ongoing interest expenses for the 5.25% convertible bond 26/213 issued last year.

15 14 Interim Managemant Report At Euro 9.6 million, earnings before taxes (EBT) achieved a significant improvement in comparison with the corresponding amount of Euro -8.5 million in the previous year. Euro 4.6 million of the aforesaid amount were attributable to the second quarter (second quarter of 26: Euro -.3 million). The Group incurred a tax charge of Euro 4.9 million for the first six months compared to a positive tax effect of Euro 4. million in the previous year. The average tax ratio for the first half of 27 amounted to 51. percent therefore. The half year earnings after taxes of continuing operations amounted to Euro 4.7 million compared with a loss of Euro 4.5 million in the same period of the previous year. Euro 1.8 million thereof were attributable to the period from April to June 26 (second quarter of 26: Euro 3.8 million). Earnings from discontinued operations are shown at Euro -1.4 million after tax for the first six months of the year. The positive previous year s amount of Euro 4.6 million was marked by the substantial one-off effect in connection with the revenue recognition of an extensive program delivery contract with ZDF in the first quarter. For the first six months period in total, the Group shows earnings after taxes and minority interests of Euro 3.4 million (first half of 26: Euro.2 million). This corresponds to half year earnings per share of Euro.6 on an undiluted basis (i.e. based on an average of 6.6 million outstanding shares). In the comparable period of the previous year the earnings per share were at Euro. (based on an average of 56.8 million outstanding shares). The period earnings after taxes and minority interests for the second quarter amounted to Euro.3 million (Euro.7 million in the previous year s quarter). Development of the Segments As a result of the resolution to divest the Entertainment division, the EM.Sport Media Group is only showing the Sports and Others Segments in the segment reporting for the current year. Almost the whole of the consolidated sales of Euro million in the first quarter of 27 are attributable to the Sports Segment. This is equivalent to an increase of 7.1 percent in comparison with the corresponding period of the previous year (Euro 14.2 million). The sales growth was mainly generated by the PLAZAMEDIA group which succeeded in substituting the substantial contribution from the FIFA World Cup from previous year by new business, especially with the Pay-TV provider arena. DSF stabilized its revenues on a high level. Sport1 managed to increase its sales even further in comparison with the previous year not taking into account the subsidiary Sport1 Multimedia Ges.m.b.H. which was sold on May 31, 26. The results from the Sports Segment amounted to 15.9 million in the first half year, with this being equivalent to a return of 14.3 percent on sales. Partially on account of special effects, earnings only amounted to Euro 5.2 million in the previous year s period, with this being equivalent of a return on 5. percent. In addition to sales growth, the relevant earnings generators in the report period were significant cost savings and efficiency increases in every sector, above all with DSF. Segment earnings of Euro 8.6 million were attributable to the second quarter (previous year s quarter: Euro 7.8 million).

16 15 The segment earnings in the Others Segment amounted to Euro -4.8 million in the first six months compared with a Euro -5.3 million in the first half of 26. Net asset position The balance sheet total of the Group amounted to Euro million on the balance sheet date, of June 3, 27, with this corresponding to a reduction of Euro 29.3 million compared with the relevant amount at the end of 26 (Euro million). The reduction in the balance sheet total is mainly attributable to the repayment of the restructured 4% convertible bond 2/25 in the first quarter of the year, which amounted to Euro 27.7 million, including accumulated interest. Against this background, liquid funds (including other securities) receded by Euro 23.2 million to Euro 19.1 million from December 31, 26 to June 3, 27. The most marked change between the aforesaid dates related to assets and liabilities of the Entertainment Segment in separate items as a result of the divestment decision concerning this segment. The assets of this division amounted to Euro 15.9 million at the middle of the year. As a result of the reclassification of assets of the Entertainment Segment long-term assets decreased from Euro million to Euro 86.1 million. The downturn related to a very large extent to intangible assets (Euro 5.8 million compared with Euro 83. million) which previously was considerably dominated by the rights library for children and youth programs. There were just marginal changes in goodwill on a balance sheet comparison basis (Euro -1.8 million to Euro 5.7 million) in view of the fact that this is attributable almost exclusively to the sports subsidiaries. The reductions in investments in associated companies and long-term receivables were also caused by the changed information shown by the Entertainment business. Short-term assets fell by Euro 42.7 million from Euro 22.6 million as at December 31, 26 to Euro million at the end of June 27. Alongside the effect caused by the disposal of the Entertainment Segment s assets, the reduction was mainly caused by the lower level of liquid funds on account of the repayment of the 4% convertible bond 2/25. Financial position On the liabilities side of the consolidated balance sheet, shareholders equity amounted to Euro 193. million compared with Euro million at the end of 26. At 54.9 percent, the equity ratio was 5.1 percent higher than the relevant level as at December 31, 26 (49.8 percent), thereby attaining a sound level once again. Long-term liabilities fell from Euro million to Euro 83.5 million on a balance sheet comparison basis. The major influencing factor was the redemption of the 4% convertible bond 2/ 25. Long-term financial liabilities of Euro 78.3 million (December 31, 26: Euro 15.4 million) included the 5.25% convertible bond 26/213. Short-term liabilities fell by Euro 27. million from Euro 79.7 million to Euro 58.2 million on a balance sheet comparison basis. The reductions were mainly attributable to trade accounts payable (Euro -9.5 million to Euro 32.6 million) and to other liabilities (from Euro million to Euro 11.2 million) on account of the disposal of the Entertainment Segment.

17 16 Interim Managemant Report Liabilities of the Entertainment Segment as discontinued operations are shown separately at June 3, 27 in the amount of Euro 17.1 million. Cash flow The EM.Sport Media AG Group shows a positive operational cash flow in the amount of Euro 7.8 million in the first half of 27 (first half year 26: Euro 21. million). Investment activities gave rise to an outflow of funds in the amount of Euro 1.6 million (first half year in 26, Euro 16.7 million). The negative cash flow from financing activities in the amount of Euro 27.5 million (first half year 26: a positive cash flow of Euro 64.8 million) was caused by the redemption of the outstanding amount of the 4% convertible bond 2/25. The Entertainment Segment as discontinued operations gave rise to a negative cash flow of Euro 1.9 million (first half year 26: an inflow of funds in the amount of Euro 13. million). At June 3, 27, liquid funds in the net cash flow were therefore Euro 23.2 million lower than the level at the beginning of the financial year. Employees The EM.Sport Media Group had an average of 796 employees between January 1 and June 3, 27 compared with 84 employees in the same period of the previous year. Thereof, an average of 97 persons are attributable to the Entertainment Segment which is scheduled for divestment (same period in the previous year: 87 persons). The slight reduction was mainly due to the termination of limited contracts of employment in connection with the 26 FIFA World Cup project. Personnel expenses amounted to Euro 26.2 million in the period under review compared with Euro 26.7 million in the comparable period of the previous year. Financial position of the Group parent company EM.Sport Media AG EM.Sport Media AG which has to draw up financial statements in accordance with the German Commercial Code (HGB) showed a balance sheet total of Euro 39.4 million as at June 3, 27 (December 31, 26: Euro million). Liquid funds fell to Euro 34.9 million (December 31, 26: Euro 73.7 million). This reduction was attributable to the outstanding amount of the 4% convertible bond 2/25. The equity of the AG was equivalent to Euro million at midyear (December 31, 26: Euro 2.6 million). The slight reduction results from the fact that income from investments and participation through profit and loss transfer agreements of EM.Sport Media AG does not materialize until the end of the year. The equity ratio was equivalent to 63.6 percent after 57.4 percent at the end of 26. Addendum report EM.Sport Media AG announced on July 12, 27 that the Company name had been changed to EM.Sport Media AG with immediate effect. The Statute amendments passed by the General Meeting on June 27, 27 were entered in the Commercial Register (Munich District Court, HRB ) on July 4, 27. In conjunction with the name change the Registered Office of the Company was moved to Ismaning near Munich. At the end of July 27, T-Online International terminated the option agreement concluded with PLAZAMEDIA at the beginning of March 26 regarding a production framework contract for various external and internal production services.

18 17 The stock exchange listing of the EM.TV AG share on the regulated market (Prime Standard) of the Frankfurt Stock Exchange was changed to EM.Sport Media AG on July 16, 27. Major risks The risk profile of the EM.Sport Media Group for the forthcoming six months after the first half of 27 is to a very large extent in line with the estimates made in the consolidated financial statements at December 31, 26. A detailed presentation of the operational risks and the risk management system of the Group is to be found in the 26 annual report. Reference is also made to the following risks: As part of the structured sale procedure of the Entertainment Segment, it may be that the level of interest for the aforesaid activities are below the expectations of the Company or that the selling prices which can be achieved are lower than the expectations of the Company. In this case, this could be charges against the earnings position of the EM.Sport Media Group and EM.Sport Media AG. The move of the Company from Unterföhring to Ismaning still scheduled for 27 may give rise to additional rental expenses in view of the fact that the rental agreement for the present Company premises still runs until 21 and cannot be terminated in advance. The Company intends to sublet the premises but, based on the present position, it is not certain whether sub-letting will be possible on conditions which cover the expenses of EM.Sport Media AG. The Company made a adequate financial provision in the second quarter for any possible underfundings. On July 19, 27, the Pay-TV Station Premiere announced that the Federal Cartel Office tolerates the close cooperation with the present rights owner arena for the transmission of the German soccer Bundesliga, agreed in February. PLAZAMEDIA and Creation Club have long-term framework contracts with both Premiere and arena. The Management Board is assuming that the aforesaid contracts will be performed. However, it is anticipating a reduced contract volume from the co-operation between the two Pay-TV providers in view of the fact that previously duplicated services will lapse. The competitive situation for DSF has changed during the course of 27. General-audience programs such as Sat.1 and ProSieben in particular are trying to strengthen their profile in the sports sector. This could accelerate the already intense competition with other large Free-TV stations for attractive sports rights. EM.Sport Media AG is continuing to finance a sports betting supplier on Malta operating exclusively outside Germany with the aim of being operative with a subsidiary in Germany in the event of general conditions being liberalized. If this is not possible and if the business does not develop positively in other countries either, these would constitute negative effects on the earnings situation.

19 18 Interim Managemant Report Major opportunities The opportunity profile of the EM.Sport Media Group for the forthcoming six months after the first half of 27 is to a very large extent in line with the estimates made in the consolidated financial statements at December 31, 26. A detailed presentation of the opportunities is to be found in the 26 business report. Reference is also made to the following opportunities: The overall economic conditions in Germany are still robust in the middle of 27 and are more positive than predicted by experts at the beginning of the business year. The overall economic condition is important for the advertising industries concerning their advertising expenditures. The development of the advertising market is in turn of major importance for the income development of DSF and Sport1. Following the announcement of the intention to divest the Entertainment Segment, the Company has received a large number of interest notifications both by potential strategic buyers and also by financial investors even before the start of structured divestment process. The Management Board is therefore confident to achieve an attractive sales result which could have a positive effect on the net asset, financial and earnings position of EM.Sport Media AG.

20 19 Forecast and prospects for 27 The EM.Sport Media Group has had a successful first half year 27. Sales have been increased in comparison with the previous year and the earnings position has been materially improved. The EBIT reached in the first half of the year is nearly equivalent to the lower amount being aspired for the whole year (Euro 12 million). Based on these results well above expectations for the first half year 27, the EM.Sport Media Group is increasing its earnings objectives regarding continuing operations for the whole year with regard to EBITDA to Euro million (previously Euro million) and with regard to EBIT to Euro million (previously Euro million). The sales objective remains unchanged at a level of Euro 215 million. The sale procedure for the Entertainment Segment is progressing as plannend. At the beginning of August, an investment bank was appointed with structuring and accompanying the transaction. Without being under any time pressure, however, the Management Board is still assuming a speedy sale on the basis of the encouraging market resonance. Ismaning, August 2, 27 EM.Sport Media AG The Management Board

21 2 Interim Financial Report Balance Sheet Assets Balance sheet at June 3, 27 in EUR 6/3/27 12/31/26 Non-current assets Intangible assets Goodwill Land, property rights and buildings Technical equipment and machinery Other equipment, factory and office equipment Advance payments and assets under construction Investments in associated companies Other investments Long-term receivables Deferred tax assets 5,87 5,652 3,717 17,382 2, ,93 86,95 83,18 52,5 3,816 18,533 3, ,52 1,29 5,116 7,43 178,53 Current assets Inventories Trade receivables Receivables due from associated companies Receivables due from joint ventures Receivables due from income taxes Other assets Other securities Cash and cash equivalents 61 34,719 2,6 31 2,537 11,378 9,981 99, , ,66 2, ,98 13,87 132,313 22,637 Assets from discontinued operations 15,91 Assets 351,98 381,167

22 21 Passiva Balance sheet at June 3, 27 in EUR 6/3/27 12/31/26 Equity Subscribed capital Own shares Contributions made to execute the resolved capital increase Capital reserves Other reserves > thereof revaluation reserve* Accumulated losses carried forward Shareholders interests Minority interests 7,934-1, , ,934 3,437 5, ,42 7,97-1, , ,948 9,882 6, ,751 Long-term liabilities Long-term accruals Financial liabilities Pension accruals Deferred tax liabilities , ,479 83, , , ,667 Short-term liabilities Bonds Advance payments Trade accounts payable Liabilities due to associated companies Liabilities due to joint ventures Other liabilities Other accruals Tax accruals 3 5,212 32, ,24 6,37 2,686 58,29 3 5,18 42, ,552 22,86 6, ,749 Liabilities from discontinued operations 17,142 Equity/Liabilities *from discontinued operations due to IFRS 5 351,98 381,167

23 22 Interim Financial Report Consolidated Profit and Loss Account Consolidated Profit and Loss Account January 1 to June 3, 27 in EUR 1/1 to 6/3/27 4/1 to 6/3/27 1/1 to 6/3/26 4/1 to 6/3/26 Sales Own work capitalized Changes in inventories Total output 111, ,681 57,5 57,5 14, ,939 58, ,747 Other operating income Cost of materials Personnel expenses Amortization and depreciation Other operating expenses Earnings before interest and taxes from continuing operations 6,737-58,514-26,226-4,786-17,616 11,276 2,782-28,741-12,795-2,445-1,318 5,488 9,571-61,11-26,742-3,797-23, ,699-3,38-13,88-2,22-12,355 4,881 Earnings from investments in associated companies Financial results Earnings from continuing operations before taxes -1,657 9, ,627-2,156-6,92-8, ,181-3 Taxes Earnings from continuing operations after taxes -4,942 4,677-2,782 1,845 4,1-4,484 4,67 3,767 Earnings from discontinued operations Minority interests Shareholders interests -1, ,437-1, , , Total output EBITDA from continuing operations EBIT from continuing operations EBT from continuing operations 111,681 16,62 11,276 9,619 57,5 7,933 5,488 4,627 14,939 3, ,485 58,747 6,93 4,881-3 Earnings per share from continuing operations (undiluted), in Euro Earnings per share from continuing operations (diluted), in Euro Average number of outstanding shares (undiluted) Average number of outstanding shares (diluted) 6,66,641 68,36,755 56,786,957 69,12,574 *The consideration of the dilution may not reduce the loss per share according to IAS