During today’s Annual General Meeting of Shareholders, the Executive Board of Telegraaf Media Groep N.V. (TMG) reported a net profit for the group of € 65.4 million for 2005, a slight drop from the previous year (2004: € 67.7 million). Advertising turnover rose in 2005 to € 366.6 million (2004: € 351.6 million), while circulation turnover dropped to € 288.6 million (2004: € 291.0 million). Income from internet activities and telephone services came to € 36.3 million in 2005 versus € 23.9 million in 2004.
The dividend proposal of € 0.44 per share depositary receipt was approved by the shareholders.
TMG is engaged in the exploitation of media consumption. It focuses on expanding its market share in media consumption in the fast changing media environment, where income from print products is under pressure, both due to structural issues and the state of the economy. TMG’s strategy in this situation is to pursue cost savings, to invest in existing print products, to apply its expertise in other countries and to broaden its portfolio by investing in multimedia non-print products and companies.
It is still uncertain how the Dutch economy will develop in 2006. Factors specific to TMG are the unpredictability of the financial consequences of economic developments and the related effects on the advertising market, current and future cost savings (including provisions) and shifts in the product portfolio. As a result, a specific forecast of the profit level for 2006 is not possible at this time. Based on a comparison of the same activities and excluding provisions for reorganisation, we see roughly the same turnover and operating result for the first twelve weeks of 2006 compared to 2005.
An audio webcast has been made of the Annual General Meeting of Shareholders of Telegraaf Media Groep N.V., which has been conducted in the Dutch language.