RTL said the outlook for the advertising market continued to look difficult and new chief executive Gerhard Zeiler pointed to the contribution non-advertising business, especially in Germany and France, was continuing to make as the broadcaster attempts to reduce its exposure to the troubled ad market.
In relation to Five, in which it owns a 65% stake, Zeiler said that RTL had no plans to sell its stake in the UK commercial TV station, and that he expected Five to turn earnings before interest, taxes, depreciation and amortisation positive this year.
Losses at the Bertelsmann-owned company were down to €56m (£38.3m) compared with 2001's €2.5bn. The German media giant reported earnings before interest, taxes and amortisation up 54% to €424m from €276m last time on revenues of €4.4bn, up 7.6%.
Based on forward bookings to date, RTL said that "advertising market conditions continue to be difficult in 2003, with low visibility throughout RTL Group's operations". With reference to the approaching war in Iraq, it said that the "economic and political environment adds to the uncertainty".
Thomas Rabe, RTL Group chief financial officer, said: "The results demonstrate our ability to drive both top-line growth and operating profitability."
He added: "We have improved the efficiency of the business over the past year by identifying cost savings across the group and by successful restructuring. These savings have resulted in a reduction in the cost base of over 3%."
Zeiler was confirmed as RTL's new chief executive replacing Didier Bellens earlier this month.
As well as co-owning Five in the UK, the remainder of which is owned by United Business Media, RTL runs channels in France, Germany, Spain, Luxembourg, the Netherlands, Belgium and Hungary. It also owns production giant Fremantle Media, which makes programmes like 'The Bill', 'Neighbours' and 'Da Ali G Show'.
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