SBS Broadcasting SA Reports First Quarter 2005 Results

SBS Broadcasting SA Reports First Quarter 2005 Results

LUXEMBOURG, May 23/PRNewswire/ --

- Net Revenue up by 24%

- Adjusted EBITDA improved by 77%

- Margin improvement of 42%

- Net loss decreased 21%

SBS Broadcasting SA (NASDAQ: SBTV; Euronext Amsterdam N.V.:
SBS) today reported financial results for the three months ended March 31,
2005.

Results, which are attached, are in thousands of euro (except
share and per share data) converted from local currencies. The following
report should be read in conjunction with the accompanying unaudited
financial statements. Financial highlights are as follows:

Three months ended March 31,
%
2004 2005 change
(unaudited) (unaudited)
Net revenue(1) EUR 140,674 EUR 175,067 24%
Adjusted EBITDA(1) (2) 4,613 8,144 77%
Operating income (loss) (1) (2,522) 188 -
Net loss (3,906) (3,091) 21%

Net loss per common share EUR (0.13) EUR (0.10) 23%

Weighted average common
shares (000) 31,075 31,963

Cash provided by (used in)
operating activities (11,411) 11,712

Adjusted EBITDA margin(3) 3.3% 4.7% 42%

(1) Excluding the impact of our newly acquired businesses, C
More, Prima TV and the Romanian Radio stations, and the recently launched
television stations, The Voice TV, VijfTV and Irisz, net revenue increased
EUR18,133, or 13%, adjusted EBITDA increased EUR5,592, or 121%, and operating
income (loss) improved EUR5,027.

(2) Adjusted EBITDA is defined as operating income (loss) plus
non-cash compensation, depreciation and amortization expenses (see page 9).

(3) Adjusted EBITDA margin is adjusted EBITDA expressed as a
percentage of net revenue (see page 5).

Commenting on the results, Markus Tellenbach, Chief Executive Officer of
SBS, said: "In the first quarter we continued to improve our operating
performance and our revenue growth outpaced the market in most of our
territories. We also continued to invest in popular programming, start-up
operations and complementary activities. Through the successful launch of new
digital channels and the acquisition of the C More Group we are rapidly
expanding and diversifying our revenue streams. Moreover, we are executing
this growth strategy in a manner that enables us to continue to expand our
cash generating ability.

With the successful conclusion of our recent EUR325 million bank
refinancing, we have repaid our C More acquisition debt and defeased and
called for redemption our 12% Senior Notes. We will benefit from the
significant reduction in interest rates compared to our 12% Senior Notes,
that was achieved based on our strengthened balance sheet and improving cash
flows. As we are not heavily leveraged based on our cash flows and total net
debt, we are in a strong position to capitalize on the rapidly developing
digital content market while continuing to seek prudent expansion
opportunities to drive growth."

Recent Developments

Romania

On March 1, 2005, we increased our equity stake in Prima TV to
86% following the purchase of an additional 48.8% indirect equity stake for
EUR7,800 from Romanian Investment and Development srl. SBS has held a
minority ownership interest in Prima TV since July 2001 and originally
invested in Prima TV in March 2000.

We also acquired Romania's leading FM radio network Kiss FM,
and FM radio network Radio Star from MG Media Group Holding S.A. for a total
of EUR22,500 on a debt-free basis.

Premium Pay

On March 8, 2005, we acquired all of the shares of C More
Group AB for EUR269,600 in cash. The acquired net assets of C More included
approximately EUR20,000 in cash at December 31, 2004. The sellers were
primarily private equity funds represented by Baker Capital and Nordic
Capital.

C More is the leading Nordic pay entertainment provider, with
over 770,000 subscribers in Sweden, Norway, Finland and Denmark. As a
provider of both premium sports and premium movies in the Nordic region,
which it provides under the Canal+ and C More brands, C More enjoys
market-leading positions in Sweden, Norway and Finland. The channels are
distributed primarily by direct-to-home satellite (DTH), cable, broadband
and, increasingly, by digital terrestrial transmission (DTT). In 2004, C More
Group had revenues of SEK 1,657,000 (EUR181,000) from channel subscriptions
and other sources. C More has had positive net income for the last three
years and has no debt.

Financing

On March 7, 2005, we entered into a EUR300,000 unsecured
bridge facility agreement with ABN AMRO Bank N.V. ("ABN AMRO") and then drew
down EUR210,000 in order to finance in part our acquisition of C More. We
financed the remainder of the purchase price from the Company's cash
balances. Amounts outstanding under the bridge facility bore interest at a
rate of EURIBOR plus 0.7% per annum. The bridge facility had a term of
six-months.

On May 12, 2005, we entered into a EUR325,000 secured
syndicated multicurrency revolving credit facility (the "Facility") with ABN
AMRO, Citigroup Global Markets Limited, Deutsche Bank AG London and The Royal
Bank of Scotland plc, as lead arrangers.

In connection with the Facility, we called for redemption all
of our 12% Senior Notes due 2008 (the "Senior Notes"), which had an
outstanding principal amount of EUR103,655. Holders of the Senior Notes will
receive a redemption price of 106% of the principal amount of the Senior
Notes plus accrued and unpaid interest on the Senior Notes on the redemption
date, which will be June 15, 2005. We deposited with the trustee for the
Senior Notes cash sufficient to fund the redemption and thereby defeased the
covenants contained in the indenture for the Senior Notes until their
redemption.

We funded the defeasance and redemption of the Senior Notes
with funds drawn under the Facility and we utilized the remaining amounts
under the Facility and a portion of our cash reserves to fully repay
EUR210,000 and accrued interest due under the EUR300,000 bridge facility with
ABN AMRO.

The Facility is a fully revolving facility with a term of five
years, although we have the right during the first twelve months to request a
one-year extension. Amounts borrowed under the Facility bear interest at a
rate of EURIBOR plus a margin based on our senior net debt leverage ratio.
The initial margin is 0.75%. To provide security, the Company and certain of
its subsidiaries have pledged shares of certain wholly owned group companies
in Belgium, The Netherlands, Norway, Sweden and the United Kingdom. Certain
wholly owned subsidiaries in these jurisdictions also guarantee the Facility.

Financial Statements

We prepare our financial statements in euro and in accordance
with accounting principles generally accepted in the United States ("U.S.
GAAP").

Our consolidated broadcasting operations generate revenues
primarily in euro, Hungarian forint, Swedish kronor, Norwegian kroner and
Danish kroner and incur substantial operating expenses in these currencies.
We also incur significant operating expenses for programming in U.S. dollars.
Balance sheet accounts are translated from foreign currencies into euro at
the period-end exchange rates and statement of operations accounts are
translated at the weighted average exchange rates for the period. Any
resulting balance sheet translation adjustments are recorded as accumulated
other comprehensive income (loss) within shareholders' equity. Currency
translation adjustments relating to transactions in currencies other than the
functional currency of the entity involved are reflected in the results of
operations as foreign exchange gain (loss).

In the discussions of the results for the three months ended
March 31, 2005 compared to the three months ended March 31, 2004, we divide
our operations into four segments:

(1) "Television operations", which include:

- SBS6, NET5 and Veronica (in The Netherlands) and jointly
referred to as "our Dutch Television operations";

- TV2 and, since September 2004, Irisz (in Hungary) and
jointly referred to as "our Hungarian Television operations";

- Kanal 5 (in Sweden);

- VT4 and, since October 2004, VijfTV (in Flemish Belgium) and
jointly referred to as "our Belgian Television operations";

- TVNorge (in Norway);

- TvDanmark and Kanal 5 (in Denmark) and jointly referred to
as "our Danish Television operations";

- since March 1, 2005, Prima TV (in Romania);

- since August 2004, The Voice TV (in Denmark, Norway, Sweden
and Finland); and

- other related operations that are not material.

(2) "Premium pay operations", which include C More Group AB in
Sweden, Norway, Finland and Denmark. We acquired C More on March 8, 2005 and,
accordingly, the results of operations have been reflected in our
consolidated financial statements since that date.

(3) "Radio operations", which include:

- Mix Megapol, The Voice, Radio City, 106.7 Rockklassiker,
Studio 107.5, Vinyl and Lugna Melodier (in Sweden) and jointly referred to as
"our Swedish Radio operations";

- KISS FM, Radio City, Radio Sata, Radio Mega, Radio 957,
Radio Jyväskylä and Iskelmäradio (in Finland) and jointly referred to as "our
Finnish Radio operations";

- The Voice and Radio 2 (in Denmark) and jointly referred to
as "our Danish Radio operations";

- Radio 1 and The Voice (in Norway) and jointly referred to as
"our Norwegian Radio operations";

- Since March 1, 2005, KISS FM and Radio STAR (in Romania) and
jointly referred to as "our Romanian Radio operations"; and

- Lampsi (in Greece).

(4) "Print operations", which include the Veronica Magazine
and the Satellite Magazine in The Netherlands.

Results from Prima TV in Romania, through February 28, 2005, are not
included in the operations referred to above, but are included in equity in
income (loss) from unconsolidated subsidiaries. From July 2001 until February
28, 2005, we held a minority interest in the station and were unable to
exercise control over the operations. Since March 1, 2005, we have
consolidated Prima TV's operations to reflect our 86% controlling interest.

When analyzing results within the different categories of operations for
any particular period, the sums of the individual items reported within each
category may differ from the total reported for such category. Differences
are primarily attributable to corporate charges, eliminations between
categories and items attributable to entities that are not separately
disclosed but are included within the totals for the different categories.

The consolidated statements of operations and balance sheet have been
prepared on the basis of a preliminary purchase price allocation of the
acquisitions completed during the first quarter of 2005. We expect the final
purchase price allocation to be completed during the second quarter.
Operating Expenses as a Percentage of Revenue

We monitor our operating expenses as a percentage of our net revenue as
part of our cost management efforts. We rely on this measurement, in
particular, to help plan and implement the expansion of our existing
businesses and the development of new revenue streams. The following table
shows our operating expenses as a percentage of net revenues for the periods
indicated.

Three months ended

March 31,

2004 2005
Net revenue 100.0% 100.0%
Operating expenses:
Station operating expenses 74.0% 70.1%
Selling, general and
administrative expenses 20.3% 22.7%
Corporate expenses 2.4% 2.5%
Adjusted EBITDA margin 3.3% 4.7%
Non-cash compensation 0.6% 0.2%
Depreciation and amortization 4.5% 4.3%
Operating income (loss) margin (1.8%) 0.2%

Three months ended March 31, 2005 compared to three months ended March
31, 2004

Net Revenue

Net revenue increased EUR34,393, or 24%, from EUR140,674 in 2004 to
EUR175,067 in 2005. Our newly acquired businesses, C More, Prima TV and the
Romanian Radio stations, and the recently launched television stations, The
Voice TV, VijfTV and Irisz, had combined net revenue of EUR16,260. Excluding
our new businesses, our net revenue increased EUR18,133, or 13%.

The net revenue increased EUR18,857, or 16%, at our Television operations
mainly due to increased net revenue of EUR3,697, or 22%, at our Hungarian
Television operations, due to an increased television advertising market and
increased viewing shares mainly driven by the introduction of a new daily
soap on TV2. TVNorge and Kanal 5 had increased revenue of EUR3,430, or 30%,
and EUR3,421, or 17%, respectively, mainly due to increased viewing shares
driven by new programming investments such as the Royal League (Scandinavian
football) and a co-produced version of Big Brother. Our Dutch Television
operations had increased net revenue of EUR2,178, or 5%, mainly due to an
increase in the television advertising market. Our Danish Television
operations had an increase in net revenue of EUR1,678, or 17%, mainly due to
increased viewing shares at Kanal 5 (Denmark) driven by the broadcast of the
Royal League and other sports programs. Our Belgian Television operations had
increased net revenue of EUR1,507, or 11%, approximately half of which came
from newly launched VijfTV. The increase in net revenue at VT4 was 6%, mainly
due to an increase in viewer-interactive TV programming revenues, which are
generated when viewers pay premium telephone rates to interact with programs.

Our Radio operations net revenue increased EUR1,219, or 10%,
mainly due to net revenue of EUR549 at the newly acquired Romanian Radio
operations, which we have consolidated from March 1, 2005. Excluding such
revenue, net revenue increased EUR670, or 6%, mainly due to increased net
revenue at our Norwegian Radio operations, arising from sales agreements with
other radio stations.

Our Print operations had increased net revenues of EUR1,146,
or 8%, mainly due to increased subscription income coming from a combination
of an increase in subscribers and an increase in magazine prices.

Station Operating Expenses

Station operating expenses increased EUR18,657, or 18%, from EUR104,135
in 2004 to EUR122,792 in 2005. Our newly acquired businesses, C More, Prima
TV and the Romanian Radio stations, and the recently launched television
stations, The Voice TV, VijfTV and Irisz, had station operating expenses of
EUR11,797. Excluding such expenses, our station operating expenses increased
EUR6,860, or 7%. Station operating expenses expressed as a percentage of net
revenues were 74.0% and 70.1% in 2004 and 2005, respectively.

The station operating expenses increased EUR12,598, or 14%, at our
Television operations, mainly due to programming expenses of EUR4,853 at our
recently launched television stations and Prima TV. Excluding such expenses,
our station operating expenses increased EUR7,745, or 9%, mainly due to our
programming investments in Royal League, the new daily soap at TV2 and a
co-produced Big Brother show in Norway and Sweden. Our Dutch Television
operations and VT4 had decreased station operating expenses of EUR871 and
EUR126, respectively.

Our Radio operations had decreased station operating expenses
of EUR299, or 5%, mainly due to cost savings of EUR716 at our Danish Radio
operations as a result of the closing of our news station and POP FM. Such
savings were partly offset by station operating expenses of EUR134 at the
newly acquired Romanian Radio operations.

Our Print operations had decreased expenses of EUR452, or 5%, mainly due
to reduced printing cost.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased EUR11,320, or 40%,
from EUR28,489 in 2004 to EUR39,809 in 2005. Our newly acquired businesses, C
More, Prima TV and the Romanian Radio stations, and the recently launched
television stations, The Voice TV, VijfTV and Irisz, had selling, general and
administrative expenses of EUR6,524. Excluding such expenses, our selling,
general and administrative operating expenses increased EUR4,796, or 17%.
Selling, general and administrative expenses expressed as a percentage of net
revenues were 20.3% and 22.7% in 2004 and 2005, respectively.

Our Television operations had increased selling, general and
administrative expenses of EUR4,321, or 22%, mainly due to increased
marketing expenses at Kanal 5, TVNorge and TV2 related to the promotion of
new programming initiatives.

Our Radio operations had increased selling, general and administrative
expenses of EUR120, or 2%, due to expenses of EUR157 at the newly acquired
Romanian Radio operations. Excluding such expenses selling, general and
administrative expenses decreased by EUR37.

Our Print operations had increased selling, general and administrative
expenses of EUR1,106, or 48%, mainly due to increased promotion activities to
increase the number of subscribers.

Corporate Expenses

Corporate expenses increased EUR885 from EUR3,437 in 2004 to EUR4,322 in
2005, mainly due to an increase in headcount and expenses related to
Sarbanes-Oxley compliance work. Corporate expenses expressed as a percentage
of net revenues were 2.4% and 2.5% in 2004 and 2005, respectively.

Non-cash Compensation

In 2004 we recorded non-cash compensation of EUR794, mainly
related to the impact of our increasing share price on options to purchase
466,667 shares of common stock previously granted to certain of our
employees. These options are subject to variable accounting treatment, unlike
the rest of our share incentives. In 2005 we recorded non-cash compensation
of EUR345, mainly related to options to purchase 66,667 of the options to
purchase shares of common stock still subject to variable accounting
treatment. Non-cash compensation expressed as a percentage of net revenues
was 0.6% and 0.2% in 2004 and 2005, respectively.

Depreciation and Amortization Expenses

Depreciation and amortization expenses increased EUR1,270, or 20%, from
EUR6,341 in 2004 to EUR7,611 in 2005, mainly due to increased amortization
expenses associated with our broadcasting licenses in Hungary and Radio
Sweden. Amortization also increased due to amortization of intangible assets
recorded on the acquisition of 49% of TVNorge in 2004. Depreciation and
amortization expenses expressed as a percentage of net revenues were 4.5% and
4.3% in 2004 and 2005, respectively.

Operating Income (Loss)

Operating income (loss) improved EUR2,710 from a loss of EUR2,522 in 2004
to an income of EUR188 in 2005.

Despite operating losses of EUR2,921 at our recently launched television
stations, The Voice TV, VijfTV and Irisz, our Television operations improved
operating income by EUR1,027 from EUR2,364 in 2004 to EUR3,391 in 2005. The
increase was mainly due to increased operating income of EUR2,353 at our
Dutch Television operations driven by the growth in the Dutch television
advertising market.

Our Premium pay operations, which were consolidated from March 8, 2005,
had operating income of EUR494.

Our Radio operations reduced operating losses by EUR1,096 from EUR3,223
in 2004 to EUR2,127 in 2005, mainly due to reduced losses of EUR675 at our
Danish Radio operations.

Our Print operations increased operating income by EUR529 from EUR2,568
in 2004 to EUR3,097 in 2005.

Equity in Income (Loss) from Unconsolidated Subsidiaries

Equity in loss from unconsolidated subsidiaries increased EUR21, from
EUR576 in 2004 to EUR597 in 2005. The majority of these losses relates to our
investment in Prima TV, which has been consolidated since March 1, 2005.

Net Interest Expense

Net interest expense increased EUR1,264, or 67%, from
EUR1,897 in 2004 to EUR3,161 in 2005. The increase was mainly due to the
absence of a EUR1,681 non-cash gain in 2004 on an interest rate swap related
to our 12% Senior Notes.

Foreign Exchange Gain

Foreign exchange gain decreased EUR461, from EUR775 in 2004 to EUR314 in
2005. The foreign exchange gain in both years relates mainly to our U.S.
dollar-denominated program liabilities.

Investment Gain

In 2005 we recorded a gain of EUR61 on the sale of our equity interest in
QXL.com. We recorded no investment gains in 2004.

Other Expenses, Net

Other expenses, net, increased EUR604, from EUR547 in 2004 to EUR1,151 in
2005, mainly due to written-off project costs in 2005.

Income Taxes

In 2005 we recorded an income tax benefit of EUR1,155 corresponding to a
27% effective tax rate applied to our pre-tax loss. In 2004 we recorded an
income tax expense of EUR251, mainly related to pre-tax income in VT4 and
Lampsi.

Net Loss

As a result of the foregoing, our net loss decreased EUR815, from a loss
of EUR3,906 in 2004 to a loss of EUR3,091 in 2005.

Adjusted EBITDA

We use the key indicator of operating income before depreciation,
amortization and non-cash compensation ("adjusted EBITDA"), along with
adjusted EBITDA margin, primarily to evaluate the group's and our individual
subsidiaries' operating performance, and for planning and forecasting future
business operations. These key indicators provide investors the opportunity
to evaluate the group's performance as it is viewed by management. Although
other companies in the broadcast industry may present other financial
measures, we believe that adjusted EBITDA and adjusted EBITDA margin provide
some comparability in analyzing the operating performance of companies in our
industry.

Adjusted EBITDA and adjusted EBITDA margin exclude depreciation and
amortization expenses in order to eliminate the impact of generally long-term
capital investments that cannot be significantly influenced by our management
on a short-term basis. The measures also exclude non-cash compensation
because it does not reflect the operating results that we achieve from
servicing our customers.

There are material limitations to using measures such as adjusted EBITDA
and adjusted EBITDA margin, including the aforementioned difficulties
associated with comparing these performance measures as we calculate them to
similar performance measures presented by other companies, and the fact that
these performance measures do not take into account significant items, such
as depreciation and amortization. Adjusted EBITDA should be considered in
addition to, but not as a substitute for, other measures of financial
performance reported in accordance with U.S. GAAP, such as operating income
and net income. Management believes that when used in this fashion adjusted
EBITDA and adjusted EBITDA margin can be useful tools despite their
limitations.

We provide below, on a consolidated basis, a reconciliation of
the non-GAAP term adjusted EBITDA to operating income (loss), which is the
most directly comparable U.S. GAAP financial measure, for the three months
ended March 31, 2004 and 2005.

Three months ended

March 31,

2004 2005

Operating income (loss) EUR (2,522) EUR 188

Add: Non-cash compensation 794 345
Depreciation 3,133 3,566
Amortization 3,208 4,045
Adjusted EBITDA EUR 4,613 EUR 8,144

Adjusted EBITDA increased EUR3,531, or 77%, from EUR4,613 in 2004 to
EUR8,144 in 2005. The following table shows the changes in the adjusted
EBITDA by segment:

Three months ended

March 31,

2004 2005

Television operations EUR 6,238 EUR 8,176
Premium pay operations --- 588
Radio operations (1,784) (386)
Print operations 3,596 4,088
Cash corporate expenses (3,437) (4,322)
Adjusted EBITDA EUR 4,613 EUR 8,144

Despite losses of EUR2,778 at our recently launched television stations,
The Voice TV, VijfTV and Irisz, our Television operations improved adjusted
EBITDA by EUR1,938 to EUR8,176. The improvement was mainly due to improved
results from our Dutch Television operations.

Our Premium pay operations, which were consolidated from March 8, 2005,
generated adjusted EBITDA of EUR588.

Our Radio operations improved adjusted EBITDA by EUR1,398, mainly due to
decreasing losses in our Danish and Norwegian Radio operations.

Our Print operations improved adjusted EBITDA by EUR492 to EUR4,088.

Cash Flow

Cash provided by operations was EUR11,712 in 2005, compared to cash used
in operations of EUR11,411 in 2004. The improvement, EUR23,123, was primarily
due to timing differences related to programming payments.

Cash used in investing activities was EUR296,536 in 2005, compared to
EUR2,645 in 2004. The increase was mainly due to our investments in C More,
Prima TV and the Romanian radio operations.

Cash provided by financing activities was EUR219,686 in 2005, compared to
EUR1,814 in 2004. The change mainly reflects the EUR210,000 drawn on the
bridge facility to fund the C More acquisition and the proceeds of EUR8,811
from stock options exercised in 2005.

Forward-Looking Statements

Some of the statements in this press release are forward-looking,
including, without limitation: the statement that our revenue growth outpaced
the market in most of our territories; the statement that through the
successful launch of new digital channels and the acquisition of the C More
Group we are rapidly expanding and diversifying our revenue streams; the
statement that we are executing this growth strategy in a manner that enables
us to continue to expand our cash generating ability; the statement that the
Company will benefit from the significant reduction in interest rates
compared to our 12% Senior Notes that was achieved based on our strengthened
balance sheet and improving cash flows; the statement that as we are not
heavily leveraged based on our cash flows and total net debt, we are in a
strong position to capitalize on the rapidly developing digital content
market while continuing to seek prudent expansion opportunities to drive
growth; and the statement that holders of the Senior Notes will receive a
redemption price of 106% of the principal amount of the Senior Notes plus
accrued and unpaid interest on the Senior Notes on the redemption date, which
will be June 15, 2005. These forward-looking statements include statements
relating to our future performance, competition, trends and anticipated
developments in the television and radio broadcasting, and publishing
industry. In addition, we may make forward-looking statements in future
filings with the Securities and Exchange Commission, and in written material,
press releases and oral statements issued by us or on our behalf.
Forward-looking statements include statements regarding our intent, belief or
current expectations or those of our officers (including statements preceded
by, followed by or that include forward-looking terminology such as "may",
"will", "should", "believes", "expects", "anticipates", "estimates",
"continues" or similar expressions or comparable terminology) with respect to
various matters.

It is important to note that our actual results in the future could
differ materially from those anticipated in these forward-looking statements
depending on various important factors. Some of these factors include: the
effects of, and changes in, regulation and government policy; the effects of
changes in general economic environment; the effects of changes in the
advertising and subscription spending growth; the effects of competition; our
ability to reduce costs; the timely development and acceptance of our new
channels, stations and/or services; the effects of technological changes in
broadcasting technology; and, our success at managing the risks that arise
from these factors.

All forward-looking statements in this press release are based on
information available to us on the date hereof. We do not undertake to update
any forward-looking statements that may be made by us or on our behalf, in
this press release or otherwise.

Conference Call

The Company will host a teleconference to discuss its results
on Monday, May 23, 2005 at 10:30 am New York Time, which is 4:30 pm
Luxembourg Time.

To access the teleconference, please dial +1-973-321-1100 ten
minutes prior to the start time. The teleconference will also be available
via live webcast on the Company's website. If you cannot listen to the
teleconference at its scheduled time, there will be a replay available
through May 30, 2005 that can be accessed by dialing +1-877-519-4471 (U.S.
callers) or +1-973-341-3080 (International callers), passcode 5989479. The
webcast will be archived on the Company's website for two weeks.

SBS is a European commercial television and radio broadcasting
company with operations in Western and Central Europe. Countries where SBS
currently has broadcasting assets include: Belgium (Flanders), Denmark,
Finland, Greece, Hungary, The Netherlands, Norway, Romania and Sweden.

For further information visit: www.sbsbroadcasting.com,

SBS BROADCASTING SA

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands of euro, except share and per share data)

Three months ended

March 31,

2004 2005

Net revenue EUR 140,674 EUR 175,067

Operating expenses:
Station operating expenses
(exclusive of depreciation and
amortization) 104,135 122,792
Selling, general and
administrative expenses
(exclusive of depreciation and
amortization) 28,489 39,809
Corporate expenses 3,437 4,322
Non-cash compensation 794 345
Depreciation 3,133 3,566
Amortization 3,208 4,045
Total operating expenses 143,196 174,879

Operating income (loss) (2,522) 188

Equity in loss from
unconsolidated subsidiaries (576) (597)
Interest income 1,072 933
Interest expense (2,969) (4,094)
Foreign exchange gain 775 314
Investment gain - 61
Other expense, net (547) (1,151)

Loss before income taxes and
minority interest (4,767) (4,346)

Income taxes (251) 1,155

Loss before minority interest (5,018) (3,191)

Minority interest in losses, net 1,112 100

Net loss EUR (3,906) EUR (3,091)

Net loss per common share (basic
and diluted) EUR (0.13) EUR (0.10)

Weighted average common shares
(thousands) 31,075 31,963

SBS BROADCASTING SA

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands of euro)

December 31, March 31,
ASSETS 2004 2005
Current assets:
EUR
Cash and cash equivalents EUR 196,033 129,666
Short-term investments 354 252
Trade accounts receivable, net of allowance for
doubtful accounts of EUR5,070 (EUR4,294 in 2004) 88,398 101,586
Accounts receivable, affiliates 1,475 1,583
Restricted cash and cash in escrow 2,451 1,636
Program rights inventory, current 117,544 144,431
Deferred tax assets, current 2,372 11,509
Other current assets 23,702 43,519


Total current assets 432,329 434,182

Buildings, improvements, technical and other
equipment, net of accumulated depreciation 41,256 43,519
Goodwill and other intangible assets, net of
accumulated amortization 245,274 499,809
Program rights inventory, non-current 62,928 73,940
Deferred financing cost, net of accumulated
amortization 2,600 3,290
Investments in and advances to unconsolidated
subsidiaries 5.972 3,299
Other assets 388 614
EUR
Total assets EUR 790,747 1,058,653

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
EUR EUR
Accounts payable 33,698 39,715
Accrued expenses 66,702 75,606
Program rights payable, current 46,674 73,774
Income taxes payable 3,763 3,068
Current portion of long-term debt 2,550 8,815
Deferred income, current 40,785 41,506
Deferred taxes, current 9,271 9,613
Other current liabilities 19,780 23,137
Total current liabilities 223,223 275,234

Program rights payable, non-current 22,651 32,103
Bridge facility --- 210,000
12% senior notes due 2008 103,655 103,655
Other long-term debt 6,784 153
Deferred tax, non-current 23,109 22,447
Other non-current liabilities 7,588 8,093
Minority interest 58,791 58,873
Shareholders' equity:
Common Shares (authorized 75,000,000 issued 32,241,729
(31,780,895 in 2004) at par value EUR2.00) 63,562 64,483
Additional paid-in capital 683,678 691,793
Accumulated deficit (394,965) (398,056)
Unearned compensation (1,376) (1,258)
Accumulated other comprehensive loss (5,953) (8,867)
Total shareholders' equity 344,946 348,095
Total liabilities and shareholders' equity EUR EUR
790,747 1,058,653

SBS BROADCASTING SA

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands of euro)

Three months ended March 31,
2004 2005
Cash flows from operating activities:
EUR EUR
Net loss (3,906) (3,091)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Revenue recorded in exchange for equity
investments (703) (1,241)
Non-cash compensation 794 345
Depreciation and amortization 6,341 7,611
Equity in loss from unconsolidated subsidiaries 576 597
Non-cash interest expense (income) (1,966) 350
Foreign exchange gain on long-term debt (183) (167)
Investment gain --- (61)
Deferred tax expense (benefit) 251 (1,155)
Minority interest in losses (1,112) (100)
Changes in operating assets and liabilities,
net of amounts acquired:
Accounts receivable 10,484 (1,619)
Program rights inventory, net (2,124) 18,799
Other current assets 826 2,033
Other non-current assets (43) (1,229)
Accounts payable and accrued expenses (17,117) (7,327)
Deferred income (3,055) (518)
Other liabilities (474) (1,515)
Cash provided by (used in) operating activities (11,411) 11,712

Cash flows from investing activities:
Proceeds from sale of short-term investments --- 163
Cash capital expenditures (2,645) (4,056)
Payments for purchase of acquired businesses,

net of cash acquired --- (292,643)
Cash used in investing activities (2,645) (296,536)

Cash flows from financing activities:
Proceeds from issuance of common shares 1,893 8,811
Proceeds from issuance of debt --- 210,000
Net change in restricted cash and cash in
escrow 56 1,026
Payment of long-term debt (135) (151)
Cash provided by financing activities 1,814 219,686

Effect of exchange rate changes on cash and
cash equivalents (433) (1,229)

Net change in cash and cash equivalents (12,675) (66,367)

Cash and cash equivalents, beginning of period 245,836 196,033
Cash and cash equivalents, end of period EUR EUR
233,161 129,666

SBS BROADCASTING SA

OPERATING RESULTS BY SEGMENT (UNAUDITED)

(in thousands of euro)

Three months ended March 31,
2004 2005
Television
Net revenue:
(in the
SBS6, NET5 and Veronica Netherlands) EUR 41,913 EUR 44,091
TV2 & Irisz (in Hungary) 16,559 20,256
Kanal 5 (in Sweden) 20,148 23,569
VT4 & VijfTV (in Belgium) 13,990 15,497
TV Norge (in Norway) 11,256 14,686
TV Danmark and Kanal 5 (in Denmark) 9,721 11,399
Prima TV (in Romania) --- 955
The Voice TV --- 790
Other 765 1,966
Total net revenue 114,352 133,209

Station operating expenses 88,779 101,377
Selling, general and administrative
expenses 19,335 23,656
Depreciation and amortization 3,874 4,785
Total operating expenses 111,988 129,818
Income from segment EUR 2,364 EUR 3,391

Premium pay
Net revenue: --- EUR 13,171
Station operating expenses --- 6,810
Selling, general and administrative
expenses --- 5,773
Depreciation and amortization --- 94
Total operating expenses --- 12,677
Income from segment --- EUR 494

Radio
Net revenue:
Sweden EUR 3,259 EUR 3,243
Finland 2,925 3,093
Denmark 2,658 2,724
Norway 1,806 2,332
Romania --- 549
Greece 1,033 959
Total net revenue 11,681 12,900

Station operating expenses 6,627 6,328
Selling, general and administrative
expenses 6,838 6,958
Depreciation and amortization 1,439 1,741
Total operating expenses 14,904 15,027
Loss from segment EUR (3,223) EUR (2,127)

Print
Net revenue: EUR 14,641 EUR 15,787
Station operating expenses 8,729 8,277
Selling, general and administrative
expenses 2,316 3,422
Depreciation and amortization 1,028 991
Total operating expenses 12,073 12,690
Income from segment EUR 2,568 EUR 3,097

Consolidated
Net revenue: EUR 140,674 EUR 175,067
Income from operating segments 1,709 4,855
Corporate expenses (3,437) (4,322)
Non-cash compensation (794) (345)
Operating income (loss) EUR (2,522) EUR 188

Source: SBS Broadcasting

Investors: Michael Smargiassi, Brainerd Communicators, Inc. Tel: +1-212-986-6667 Press: Jeff Pryor, Pryor Associates, Tel: +1-818-338-3555 Catriona Cockburn, Citigate Dewe Rogerson, Tel: +44-207-282-2924

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