RTL scotched speculation that it is considering a bid for one of the ITV companies by announcing that it would realise its UK TV expansion plans through its stake in Channel 5.
Didier Bellens, the RTL CEO, said: "We think there is more value to be created by building audience and building Channel 5 than making corporate finance deals."
Before the goodwill charge, the company would have reported a net profit of €63m, down on last year's net profit of €67m.
Revenue grew 0.2% to €4bn, despite a 12.3% decline in radio revenues. RTL said this fall was offset by a strong performance from its content and new media divisions, which increased revenues by 5.3% and 139% - €1.1bn and €91m respectively.
At a press conference Didier told reporters that RTL did not expect a rebound before the second half of the year.
RTL said content revenues were boosted by the success of Pop Idol, which drew an average of 13m viewers. The company said that producer Fremantle was in discussions to licence the show in several new territories.
TV revenues were flat at €2.9bn after it sold its 5% stake in troubled German pay-TV platform Premier -- owned by Kirch Group. UK broadcaster Channel 5 saw revenues fall 9% to €213m as a result of the weak advertising market.
Channel 5 earnings before interest tax depreciation amortisation loss was €49m against a loss of €6m last year as a result of increased spending on programming against a weak advertising market. But the broadcaster has increased its audience share in recent months following programme acquisitions such as Home and Away.
The company has introduced a cost-cutting programme, which has helped it reduce its net debt from €681 to €645m, and says it will continue to make cuts in 2002.
Bellens said: "RLT Group has continued to outperform. By investing in quality programming and format development we have won both audience and advertising market share in our main markets.
"This growth is being achieved within our overall cost control policy. We have implemented a series of cost control measures and are actively exploring further saving opportunities. The operating portfolio review undertaken by the Group in 2001 will be continued in 2002."
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