RTL rules out 'X Factor' producer sale

RTL chief executive Gerhard Zeiler has dismissed speculation that The X Factor maker FremantleMedia could be sold.

RTL, Europe's largest broadcaster, reported an 8.7% increase in revenues to €5.6 billion (£4.82bn) in 2010, delivering a record £1.06bn in pre-tax profits, up 44% year-on-year.

However, the company incurred a loss of €57 million relating to the disposal of Channel 5, which was sold to Richard Desmond for £103.5m last summer.

FremantleMedia endured a mixed 2010, with revenues up 7.5% to €1.27bn, but earnings before interest, tax and amortisation down 9.7% to €140m.

In a conference call with journalists, Zeiler rejected the prospect of a sale of FremantleMedia or any of its subsidiaries, such as Talkback Thames.

"To squash every silly rumour we will not sell FremantleMedia, not 100% not 90% not 1%, and we also not sell Talkback Thames, not 100%, not 90%, not 1%. This is the core of our business," he said.

"We had a change in the chief executive position, Sara Geater took over [at Talkback Thames] and we are very...happy with what she has done...at the helm there and we are quite excited with the new development slate."

Zeiler noted that RTL had completed various acquisitions for FremantleMedia last year, including a 62.5% stake in Radical Media, the branded entertainment firm behind Metallica documentary Some Kind of Monster and Britney: For the Record.

FremantleMedia also became the majority shareholder in Ludia, the Canadian developer of video games based on TV shows, such as Hell's Kitchen and American Idol.

In a statement, Zeiler said that RTL would continue to pursue targeted acquisitions for FremantleMedia in 2011, while also investing in "new programmes, new channels and in our rapidly growing new media activities".