CARRERE GROUP

In 2006, Carrere Group’s total sales was € 141,4 million, current operating profit was € 15,3 million, consolidated net income was € 8,4 million and net income attributable to the group was € 7,3 million.

2006 constitute a year of preparation , creation and investment for the group. In an effort to develop a combine project, this period of transition has strongly accelerated the integration and the organization of all of its activities and all of its subsidiaries.

Carrere Group has primed for the future by diversifying not only its program offering, but also by allocating production to more than fifty subsidiaries.

A year of creation with « Du Côté de Chez Vous TV », the newly launched television channel, which is already among the top cable and satellite channels in terms of audience gathering. Other channels are already in development.

A year of investment: Despite the only disappointment of Riff’s inability to honor its commitments and failure to keep its budget, Carrere Group, after letting the president go, has decided to relocate on a single location and invest more than 8 million euros to develop a unique and state-of-the-art post-production studio. As a result of higher than expected construction costs, lack of activity during relocation, and financing disruption, these investments have impacted 2006 margins with non recurrent expenses.

After centralizing its program distribution department, Carrere Group is now having the post-production of all of its subsidiaries at the new site. These synergies generate recurring cost savings.

In this new environment, first quarter sales for 2007 amounted to € 36 944 K compare to € 29 980 K in 2006, an increase of 23.2 %.