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INTERIM – CONSOLIDATED FINANCIAL STATEMENTS

OF TELETYPOS TELEVISION PROGRAMMES S.A.

“MEGA CHANNEL - GREECE”

AND ITS SUBSIDIARY – TELETYPOS CYPRUS

30 SEPTEMBER, 2005

ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

I N D E X Page CERTIFIED AUDITOR’S REVIEW REPORT INTERIM CONSOLIDATED BALANCE SHEET 1 INTERIM CONSOLIDATED INCOME STATEMENT 2 INTERIM CONSOLIDATED CASH FLOW STATEMENT 3 INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY 4 NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS 5 – 29

TELETYPOS TELEVISION PROGRAMMES S.A. “MEGA CHANNEL - GREECE” AND ITS SUBSIDIARY

INTERIM CONSOLIDATED BALANCE SHEET 1 JANUARY – 30 SEPTEMBER, 2005

(Expressed in Euro)

Notes01.01/ 30.09.05 01.01/ 30.09.04 01.07/ 30.09.05 01.07/ 30.09.04

Revenue (sales) 5 95.302.577,50 87.245.046,62 21.396.632,61 19.190.833,61Cost of sales 6 (83.301.989,25) (80.315.151,89) (25.245.740,40) (23.851.977,55)Gross profit 12.000.588,25 6.929.894,73 (3.849.107,79) (4.661.143,94)

Other operating income 7 3.789.403,95 5.129.862,23 1.628.462,50 2.021.571,16Total gross operating profit 15.789.992,20 12.059.756,96 (2.220.645,29) (2.639.572,78)

Distribution costs 6 (2.772.561,01) (2.734.796,90) (1.007.003,29) (857.629,20)Administrative expenses 6 (4.968.634,33) (4.711.244,35) (1.437.430,10) (1.496.643,30)Operating profit 8.048.796,86 4.613.715,71 (4.665.078,68) (4.993.845,28)

Non operating income Interest received and receivable 5.912,08 863,01 321,67 380,24Profit on disposal of fixed assets 2.499,98 30.596,84 0,00 0,00Profit from sales of participations 0,00 5.854.800,00 0,00 5.854.800,00Prior years’ income 8 11.743,64 1.404.534,51 0,01 0,00Other income 147.664,76 121.584,06 23.937,97 24.464,03

167.820,46 7.412.378,42 24.259,65 5.879.644,27Non operating expensesInterest and similar charges 6 (3.430.330,99) (3.394.633,02) (996.329,16) (1.127.117,86)Prior year’s expenses 9 (617.256,70) (786.213,64) (92.745,98) (25.189,25)Other expenses (1.309.400,37) (1.183.265,22) 161.950,33 (174.404,60)

(5.356.988,06) (5.364.111,88) (927.124,81) (1.326.711,71)

Profit for the period before tax 2.859.629,26 6.661.982,25 (5.567.943,84) (440.912,72)

Income tax 10 (637.902,16) (2.064.162,11) 1.903.340,44 231.623,40Profit for the period/year after tax 2.221.727,10 4.597.820,14 (3.664.603,40) (209.289,32)

Notes forming an integral part of the interim financial statements on pages 5 to 29

TELETYPOS TELEVISION PROGRAMMES S.A.

“MEGA CHANNEL - GREECE” AND ITS SUBSIDIARY INTERIM CONSOLIDATED BALANCE SHEET

1 JANUARY – 30 SEPTEMBER, 2005 (Expressed in Euro)

Notes 30.09.2005 31.12.2004

FIXED ASSETS Intangible assets – Programme rights 11 122.471.667,44 120.512.552,02 Tangible assets 12 11.232.290,34 11.235.258,81 Investments in associates 13 33.699.096,49 33.699.096,49Other financial assets 14 442.098,38 425.304,75Total fixed assets 167.845.152,65 165.872.212,07

CURRENT ASSETSInventories 368.076,78 342.535,88Trade and other receivables 15 38.470.863,05 46.206.625,89Deferred taxes 16 1.298.337,37 1.177.421,66Prepayments of programme rights 17 32.526.462,81 39.484.841,08Cash and cash equivalents 18 2.553.955,43 2.670.819,10Total current assets 75.217.695,44 89.882.243,61Total assets 243.062.848,09 255.754.455,68

EQUITY AND LIABILITIESShare capital 19 31.237.500,00 31.237.500,00Share premium 19 35.031.121,94 35.031.121,94Reserves 20 40.936.628,46 40.742.985,28Profit for the period/year 2.221.727,11 -Retained earnings 4.241.140,75 7.989.640,75Translation difference 48.158,28 56.995,17Net position 113.716.276,54 115.058.243,14

Long term liabilities 21 36.362.106,05 48.657.802,05

CURRENT LIABILITIES Trade and other payables 22 61.625.562,77 80.097.787,59Short term borrowings 23 18.483.902,73 6.315.622,90Current portion of interest bearing borrowings 21.1 12.875.000,00 5.625.000,00Total equity and liabilities 243.062.848,09 255.754.455,68

Notes forming an integral part of the interim financial statements on pages 5 to 29

30.09.05

Page 3


INTERIM CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD 1 JANUARY – 3O SEPTEMBER , 2005

(Expressed in Euro)

30.09.04Cash flow from operating activitiesProfit before taxation 2.859.629,27 6.661.982,26

Adjustments for items not involving the movement of cash:Depreciation and amortisation 47.772.263,72 40.961.092,04Provisions 648.590,25 434.418,00(Profit) on disposal of fixed assets (2.499,98) (30.596,25)Operating profit befo working capita

(Increase)/Decrease in sDecrease in stock of pro(Increase) in debtors an(Decrease) in payablesIncome tax paid

re changes inl

tock of spares and consumables (25.540,90) (11.000,18)gramme rights 6.958.378,27 7.876.949,03d others 7.929.406,02 (5.721.134,93)

(17.163.011,93) (17.069.201,34)(2.159.708,96) 0,00

Total Cash Outflows fr

Cash flow from operati

om Operating Activities (4.460.477,50) (14.924.387,42)

ng activities 46.817.505,76 33.102.508,63

Cash flow from investinPurchase of tangible an(Increase) in long term r(Increase)/Decrease of i

g activities d intangible fixed assets (49.725.910,69) (47.760.011,43)eceivables (16.793,63) (40.311,95)nvestments and participations 0,00 (21.795,55)

Net cash flow from investing activities (49.742.704,32) (47.822.118,93)

Cash flows from financiLong term borrowingsShort term loanDividends paid

ng activities(12.875.000,00) 14.708.333,31

19.418.279,83 3.260.508,91(3.734.944,94) (3.771.486,04)

Net cash flow from financing activities 2.808.334,89 14.197.356,18

Increase in net liquid funds (116.863,67) (522.254,12)Cash and cash equivalents at beginning of period 2.670.819,10 4.004.518,07

Cash and cash equivalents at the end of the period 2.553.955,43 3.482.263,95

51.277.983,26 48.026.896,05

Notes forming an integral part of the interim financial statements on pages 5 to 29.

ShBa 80.642.793,43

Tra ,33

Tra -71.912,05

35.713.013,03

Ch -6.408.788,43

9.882.285,31

ShBa 9.882.285,31

Tra 71.912,05

Tra 56.995,17

Ad -7.258.108,58

Ad 6.408.788,43

Re -118.151,85

Re 489.534,26

5.193.647,64

Ch -668.659,29

5.058.243,14 ShBa 5.058.243,14

Tra -56.995,17

Tra 48.158,28

3.439.049,19

Ch -4.772.178,90

3.716.276,54

areholders equity 30.09.2004

lance 31st December, 2003 31.237.500,00 35.031.121,94 2.993.672,76 4.193.128,88 -7.179,33 0,00 7.194.549,18

nslation difference 2003 7.179,33 7.179

nslation difference 30.9.2004 -71.912,05

Net profit 28.454.904,45 7.258.108,58

anges in accounting policy (adoption of IFRS) -6.408.788,43

Balance 30.9.2004 31.237.500,00 35.031.121,94 2.993.672,76 4.193.128,88 -71.912,05 28.454.904,45 8.043.869,33 10

areholders equity 31.12.2004lance 30 September, 2004 31.237.500,00 35.031.121,94 2.993.672,76 4.193.128,88 -71.912,05 28.454.904,45 8.043.869,33 10

nslation difference 2003 71.912,05

nslation difference 2004 56.995,17

justment of net profit 30/09/2004 -7.258.108,58

justment for IFRS purposes 30/9/2004 6.408.788,43

valuation of participations -118.151,85

valuation of properties 1.489.534,26 1.

Profit for the period 357.858,64 3.468.611,09 1.367.177,91

anges in accounting policy (adoption of IFRS) -96.572,95 -572.086,34

Balance 31.12.2004 31.237.500,00 35.031.121,94 3.351.531,40 7.565.167,02 56.995,17 29.826.286,86 7.989.640,75 11

areholders equity 30.9.2005

lance 31 December, 2004 31.237.500,00 35.031.121,94 3.351.531,40 7.565.167,02 56.995,17 29.826.286,86 7.989.640,75 11

nslation difference 2004 -56.995,17

nslation difference 30.09.2005 48.158,28

Profit for the period 3.439.049,19

anges in accounting policy (adoption of IFRS) 193.643,18 -4.965.822,08

Balance 30.9.2005 31.237.500,00 35.031.121,94 3.351.531,40 7.758.810,20 48.158,28 29.826.286,86 6.462.867,86 11

Page 4

Share Share Statutory Other Translation Revaluation Retained Totalcapital premium reserve reserves difference reserve earnings (Deficit)


INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY 30 SEPTEMBER , 2005

(Expressed in Euro)


Notes to the interim consolidated financial statements in accordance with IFRS 30th SEPTEMBER , 2005

(Expressed in Euro)

1. General Information

The consolidated financial statements for the period 1/1/-30/9/2005 have been approved by the company’s Board of Directors.

2. Incorporation of parent company and its subsidiary

The parent company was incorporated in Athens, Greece on May 2, 1989, in accordance with Law 2190/1920. The parent company is listed in the Athens Stock Exchange.

The parent company operates the private broadcasting channel “MEGA” based on the 19229/1993 operating broadcasting licence. The duration of the broadcasting licence has been extended by Government law. The parent company has incorporated in 2002 Teletypos Cyprus Ltd. Its investment is stated at 100% of shareholding. The company’s main objective is the trading of television programmes in Cyprus and in the area of Middle East. Teletypos Cyprus Ltd is stated in Lefkosia (Cyprus), 8 Kennedi Street.



(Expressed in Euro)

3. Objectives

The parent company's and its subsidiary’s main objectives are by the parent company. - the origination and trading of television programmes - the installation and operating of television and radio stations throughout Greece

- the establishment, organisation and operation of studios for the production and

marketing of television programmes and advertising spots. The subsidiary’ main objective is: - the purchase and sale of television programmes and technical support services.

4. Summary of significant accounting policies

4.1. Accounting convention

The financial statements have been prepared under the historical cost convention, except for the revaluation of land and buildings, which has been done in 1992, 1996, 2000 and 2004 on the basis of relevant legislation.

The resulting overvalue is capitalised (except for the year 2004).


“MEGA CHANNEL - GREECE” AND ITS SUBSIDIARY Notes to the interim consolidated financial statements in accordance with IFRS

30th SEPTEMBER , 2005 (Expressed in Euro)

4. Summary of significant accounting policies (cont.)

4.2 Compliance with IFRS (International Financial Reporting Standards)

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) for the first time. The financial statements of last year had been prepared according to Greek Accounting Standards. These financial statements have been adjusted accordingly to IFRS (note 24).

4.3 Base of consolidation

The consolidated financial statements include the financial statements of the parent company and its subsidiary, which is controlled directly from the parent company. Control is achieved when the parent company has the power to govern the financial and operating policy an entity so as to obtain benefits from its activities. Consolidated financial statements are based on separate companies financial statements which have been prepared in accordance with certain accounting principals followed by the Group. All group’s companies have the same reporting date. All the intro company transactions and intro company balances have been eliminated on consolidation.

4.4 Investments in associates

Investments in associates are initially recognised at cost, and the accounting value is increased or decreased in order to recognize the group’s share, of its associates post-acquisition profits or losses.

4.5 Foreign currency transactions and balances Transactions in foreign currencies are reflected at the rate prevailing at the time the transactions are recorded. All assets and liabilities in foreign currencies are expressed in Euro at the rates ruling at the balance sheet date.

Realised and unrealised exchange gains and losses are transferred to profit and loss account.



(Expressed in Euro)


4.6. Programmes and film rights

Licensed third parties television programmes and film rights are valued at cost.

Cost is: - determined by the relevant agreement for the origination of the

programmes.

- the purchase cost of the film rights.

4.6.1 Origination T.V. programmes

The origination cost of own programmes is capitalised as intangible fixed assets (Programmes and film rights) and is amortised as described in note 4.7.

4.6.2 License third parties T.V. programmes in foreign currency

These are accounted for as follows: - the profit and loss account is charged with the cost of the

transmitted programmes plus or minus any exchange differences which arise upon settlement or translation of the corresponding liability at the end of the period.

- the balance sheet presents

- under liabilities, the amount due to the suppliers for the programmes invoiced.

- under prepayments the amounts invoiced for programmes not transmitted.

- in case a contract provides for more than one transmission the profit and loss account is charged in proportion to the number of transmissions allowed.

4.6.3 Liabilities that arise from contracts signed which correspond to

television programmes not yet transmitted are not recorded in the book until an invoice is issued by supplier.

.





4.7 Depreciation

Fixed Assets

The company's fixed assets, apart from programmes and film rights, are depreciated/amortised in accordance with the fiscal rates as follows:

%

Improvements on third party properties 8 - 20 Plant and machinery 5 - 15 Office equipment 5 - 30 Transportation means 15 – 30 Computer and software programmes 100

Land is stated at valuation as at 31.12.2004. This valuation is compulsory every 4 years and is done according to “adjustment rates” provided by the relevant legislation. The valuation is probably lower than the current value.

In accordance with IAS (16) Land and buildings are stated, in the balance sheet at their revalued amounts, being the fair value on the basis of their existing use at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment loss. Revaluation are performed with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair values at the balance sheet date. Programmes and film rights

These are amortised as follows according to the Greek legislation and subject to the management estimation about future benefits: Since this depreciation policy is follow for many years in consistency the management believes that is proved appropriated.

%

First year of transmission 20 Thereafter (whether transmitted or not) 20

Programmes and film rights include: - acquisition cost of tele-series

- rights for production and broadcast of T.V. games - cost of production of own programmes Programmes that , according to management forecasts cannot be broadcasted for more than 1 year, are 100% amortized within the year of their broadcast.





4.8. Taxation

Income tax is based on taxable profits for the period at the rate which is in forse of 32% for the year 2005, 35% for year 2004. Taxable profit differs from company’s profit as reported in the income statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. Deferred tax is recognised on differences between the carrying amount of assets and liabilities and taxable profit and is accounted for to the extent that it will be utilised. Deferred income tax assets, are recognised to the extent that it is probably that future taxable profit will be available, against which the temporary differences can be utilised.

The carrying amount of deferred tax assets and liabilities are reviewed at each Balance Sheet date and are reduced if it is necessary to the extent that it is no longer probable that taxable profits will be available to allow all or part of the asset or liability to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or assets realised.

Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity in which case the deferred tax is also accounted for against equity.





4.9 Inventories (Spare parts and Consumables)

Inventories are stated at the lower of cost and net realisable value. Cost is calculated using the weighted average cost of the successive balance. Net realisable value represents the estimated selling price less all estimated costs.

4.10 Revenue

Turnover is accounted for on the accrual basis and mainly consists of income from advertisements, less the trade commissions.

4.11 Impairment

At each balance sheet date, the company’s management review the carrying amounts of its tangible and intangible assets to determine whether there is indication that those assets have suffered any impairment loss. At 30.09.2005 there was no any such indication.

4.12 Trade receivables

Trade receivables are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts.

4.13 Bank borrowings

Interest – bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs.

4.14 Trade payables

The trade payables are stated at their nominal value.

TELETYPOS, TELEVISION PROGRAMMES S.A.

"MEGA CHANNEL - GREECE" Notes to the interim financial statements in accordance with IFRS

30th SEPTEMBER, 2005 (Expressed in Euro)

4. Summary of significant accounting policies (cont.) 4.15 Patents and trademarks

Trademark is measured initially at purchase cost and is amortised during the period of 5 years.

4.16 Retirement benefits

In accordance with the Greek labour legislation the company has to provide to all its retirees a specific financial benefit. The above financial benefit which is payable on the retirement day is percentage 40% to 70% on a specified amount based on:

a. years of service in the company b. monthly salary at the retirement year c. other factors in accordance with the existing legislation

The liability, is the present value of the defined benefit obligation determined on an actual basis at the balance sheet date. The defined obligation has been calculated by independent actuaries. The estimated liability on 30.09.2005 is recognised in the financial statements. The obligation of previous year has been separated and charged directly to equity, and the obligation relates to the period, charged to income statement. The company has not adopted, any retirement benefit plan, in order to secure the availability of the required funds, when obligation is arised.




5. Revenue

30/9/2005 % 30/9/2004 %Advertising 92.916.884,77 97,50 84.333.315,73 96,66Income from T.V. rights 654.114,73 0,69 694.248,79 0,80Income from T.V. rights (subsidiary company) 1.731.578,00 1,81 2.217.482,10 2,54

95.302.577,50 100,00 87.245.046,62 100,00

6. Operating expenses30/9/2005 30/9/2004

Staff wages and expenses 21.585.950,14 20.936.099,11Thrid parties fees and expenses 15.379.325,16 18.060.042,54Utilities 4.308.347,67 4.576.758,70Taxes and duties 1.339.130,22 1.731.242,41Sundry expenses 3.997.228,28 5.162.323,80Financial expenses 3.430.330,99 3.394.633,02Consumables - Spare parts 264.008,67 219.326,75Depreciation/Amortisation 47.772.263,72 40.961.092,04Less: Cost of origination of own production (3.603.069,27) (3.885.692,21)

94.473.515,58 91.155.826,16 The above amounts have been allocated as follows:

30/9/2005 30/9/2004Cost of sales 83.301.989,25 80.315.151,89Administration expenses 4.968.634,33 4.711.244,35Distribution expenses 2.772.561,01 2.734.796,90Financial expenses 3.430.330,99 3.394.633,02

94.473.515,58 91.155.826,16




7. Other operating income

30/9/2005 30/9/2004 Government grants 43.265,91 49.751,96

Computer and technical support to clients 2.829.086,00 4.336.485,10Income earned from co-operation with third parties 895.133,98 721.707,11Income from rentals 21.918,06 21.918,06

3.789.403,95 5.129.862,23

8. Prior years´ income30/9/2005 30/9/2004

Discounts 6.744,47 906,61Partial return of paidbroadcasting licence fees 0,00 1.399.627,90Sundry income 1.799,17 0,00Compensation 3.200,00 4.000,00

11.743,64 1.404.534,51

9. Prior years´ expenses 30/9/2005 30/9/2004

Techical support services 357.783,75 533.476,24Royalties paid to actors’ Union 160.821,85 109.739,26Compensation to third parties 58.434,32 80.000,00Sundry expenses 40.216,78 62.998,14

617.256,70 786.213,64

10. Taxation

The parent company’s profits are taxed at the rate of 32% for the year 2005 and 35% for the year 2004 after they have been adjusted for expenses not tax allowable and for any tax free reserves. The parent company’s tax liability is not finalised unless the books and records are examined by the Greek tax authorities. Such examination has been carried out up to 1998.

The subsidiary company’s profits are taxed and finalized at the rate of 10%.

11. Intangible assets – Programme rights

Programmes and License TotalFilm rights Trademark

Cost

Page 15 TELETYPOS TELEVISION PROGRAMMES S.A.



1.1.2005 495.767.484,83 379.491,66 496.146.976,4947.656.895,98 5.400,00 47.662.295,98

Disposals 0,00543.809.272,47

1.1.2005 375.634.424,47Charge for the year 45.703.180,56

0,00421.337.605,03122.471.667,44

120.512.552,02

Purchases

30.09.2005

Amortisation

Disposals30.09.2005N.B.V. 30.09.2005

N.B.V. 31.12.2004

0,00 0,00543.424.380,81 384.891,66

375.333.578,18 300.846,2945.754.459,55 (51.278,99)

0,00 0,00421.088.037,73 249.567,30122.336.343,08 135.324,36

120.433.906,65 78.645,37

12. Fixed assets – tangible assets Assets

Land (1) Buildings Plant and Transportation Furniture and Prelimiray machinery means equipment expenses Totals

Cost1.1.2005 4.799.610,35 2.531.878,20 16.043.481,86 707.709,71 12.294.850,47 0,00 36.377.530,59

-- -- 1.189.076,58 23.750,00 656.996,66 67.441,92 1.937.265,16 -- -- -- (16.740,27) -- -- (16.740,27)4.799.610,35 2.531.878,20 17.232.558,44 714.719,44 12.951.847,13 67.441,92 38.298.055,48

1.1.2005 1.285.604,26 12.693.589,13 551.943,90 10.611.134,49 0,00 25.142.271,78Additions -- 200.376,22 734.385,37 55.383,60 950.088,42 0,00 1.940.233,61Disposals -- -- -- (16.740,25) -- -- (16.740,25)

0,00 1.485.980,48 13.427.974,50 590.587,25 11.561.222,91 0,00 27.065.765,14

N.B.V. 4.799.610,35 1.045.897,72 3.804.583,94 124.132,19 1.390.624,22 67.441,92 11.232.290,34

N.B.V. 4.799.610,35 1.246.273,94 3.349.892,73 155.765,81 1.683.715,98 0,00 11.235.258,81

30.09.2005

31.12.2004

30.09.2005

PurchasesDisposals/Transfers

Depreciation

30.09.2005

Page 16






(Expressed in Euro) 12. Fixed assets – tangible assets (cont.)

(1) Land

Acquisition cost up to 30.09.2005 1.333.457,09 Revaluation (according to Greek Legislation, see note 4.1) - 1992 192.293,10 - 1996 838.589,88 - 2001 945.736,02 - 2004 1.489.534,26 3.466.153,26 Revaluated balance as at 30.09.2005 4.799.610,35

13. Ιnvestments – Shares in associated companies Investments are stated at cost as follows:

30/09/2005 Shareholding 31/12/2004 Shareholding % % NETMED N.V 33.260.500,00 12.5 33.260.500,00 12.5 (in subsidiary) Logos (Cyprus) 438.596,49 25 438.596,49 25 33.699.096,49 33.699.096,49




14. Other financial assets

30/9/2005 31/12/2004Guarantee given:Electricity Power 15.250,61 14.018,24

Associated Press 1.388,13 1.388,13 EBU (4 lines) 6.000,00 0,00

Rent 330.551,96 323.210,56Hertz (car rental) 31.429,14 29.209,28Unitel (telecommunications) 56.419,55 56.419,55Attiki Road 1.000,00 1.000,00Other 58,99 58,99

442.098,38 425.304,7515. Trade and other receivables

30/09/2005 31/12/2004

Clients (1) 30.065.683,79 35.186.133,64Post dated cheques 4.455.336,11 705.796,58Income tax 2003 1.657.424,21 1.657.424,21Provision for prepayment of income tax andother receivables from Greek Government

Shares of listed company * 29.145,63 69.251,83Dicomo Investments Sarl (2) -- 4.989.075,00Withholding taxes and duties -- 11.018,16V.A.T. -- 1.551.786,59Advances on account 124.602,78 59.715,97Other debtors 322.515,63 276.920,56 ____________ ____________

38.470.863,05 46.206.625,89

1.816.154,90 1.699.503,35




15. Trade and other receivables (cont.)

* Cost of shares of “GREEK STOCK EXCHANGE” a company listed in Stock Exchange of Athens which is stated at value cost 3,54 Euro per share. The Stock Exchange Value as at 30/9/2005 was Euro 7,76.

(1) Bank letter of guarantee of € 1.329.902,00 (30/09/2005) and € 4.805.131,14

(31/12/2004) were received as a security against receivables. (2) Receivable from disposal of participation in affiliated company “Multichoice Hellas

S.A.” collectable in 2005.



(Expressed in Euro)

16. Deferred taxes30/9/2005 31/12/2004

Deferred tax liabilities (190.247,48) (149.015,62)Reversal entries of deferred taxation 1.488.584,85 1.326.437,28 Closing balance 1.298.337,37 1.177.421,66

Deferred tax analysis:Περίοδος Χρήση 30/9/2005 31/12/2004

At 1st January 1.177.421,66 1.077.600,40Deferred tax for the period 120.915,71 99.821,26

Closing balance 1.298.337,37 1.177.421,66

Deferred tax assets/(liabilities):

Intagibleassets Unrealized

Preliminary exchange expenses Provisions differences Total

Balance at 1st January, 2004 60.005,84 1.069.600,00 (52.005,44) 1.077.600,40Plus: Charge to income statement for the year (9.598,44) 144.826,00 (35.406,30) 99.821,26Balance at 31st December, 2004 50.407,40 1.214.426,00 (87.411,74) 1.177.421,66

Plus: Charge to income statementduring the period (41.231,86) 162.147,57 0,00 120.915,71Balance at 30th September, 2005 9.175,54 1.376.573,57 (87.411,74) 1.298.337,37




17. Prepayment and accrued income

30/9/2005 31/12/2004

Film rights 32.183.825,39 39.338.168,44Sundry expenses 337.901,81 141.782,03Third parties’ fees 4.735,61 4.890,61

32.526.462,81 39.484.841,08

18. Cash and cash equivalent

30/9/2005 31/12/2004

Cash in hand 17.371,73 33.123,13Cash at banks 2.536.583,70 2.637.695,97

2.553.955,43 2.670.819,10

19. Share capital

000’ Drs. Euro Authorised share capital

Issued and fully paid € 31,237,500,00 nominal ordinary shares of G.Drs. 200 each 6,247,500

Increase of share capital through capitalisation: - Share premium 3,393,146 - Revaluation reserve 322,259 - Tax free reserves _681,273 Total share capital 31,237,500 nominal ordinary shares of Euro 1 (G.Drs. 340,75) each 10,644,178 31.237.500,00 Share premium is part of the difference between the nominal and issued value of ordinary shares sold to the public through the Athens Stock Exchange in 1994 and 1999.



30th SEPTEMBER, 2005 (Expressed in Euro)

20. Reserves

Statutory Revenue Revaluation reserves reserve reserve Total

Balance at 1 January, 2004 2.993.672,76 4.193.128,88 0,00 7.186.801,64Revaluation of property 0,00 0,00 1.489.534,26 1.489.534,26Out of book adjustments 0,00 0,00 28.336.752,60 28.336.752,60Change in period 0,00 (96.572,95) 0,00 (96.572,95)Distribution of the profits on 2004 357.858,64 3.468.611,09 0,00 3.826.469,73

Balance at 31 December, 2004 3.351.531,40 7.565.167,02 29.826.286,86 40.742.985,28Change in period 193.643,18 193.643,18Balance at 30 September, 2005 3.351.531,40 7.758.810,20 29.826.286,86 40.936.628,46

* The company is obliged by Greek company Law 2190/1920 to transfer to this reserve of its annual profits until these reserves are accumulated to one third (1/3) of its paid up share capital.



(Expressed in Euro) 21. Long term liabilities

30/9/2005 31/12/2004

Debenture loan (21.1) 31.500.000,00 39.375.000,00Guarantees 4.402,05 4.402,05

31.504.402,05 39.379.402,05

Provision for retirement benefits 4.857.704,00 4.278.400,00 Total long term liabilities 36.362.106,05 43.657.802,05



(Expressed in Euro)

21. Long term liabilities (cont.)

21.1 Debenture loans

Represent debenture loan of Euro 45.000.000 obtained by the company under a loan agreement dated 25.05.2004. The loan was undertaken in order to readjust the balance of short term loans. The loan is free from any of guarantees, the applicable interest rate is 1,55% per annum above 3 months Euribor. The loan is payable in five instalments as follows: Euro 5,6 mil. in 06.09.2005, Euro 7,9 mil. in 06.06.2006, Euro 9,0 mil. in 06.06.2007, Euro 9,0 mil. in 06.06.08 and Euro 13,5 mil. in 06.06.09. The component banks of the debenture loans are as follows. Alpha Bank is the administrative bank.

Short Term Long Term

Total Payments Portion PortionAlpha Bank 11.900.000,00 1.487.500,00 2.087.500,00 8.325.000,00Piraeus Bank 10.000.000,00 1.250.000,00 1.750.000,00 7.000.000,00Commercial Bank 7.000.000,00 875.000,00 1.225.000,00 4.900.000,00National Bank of Greece 3.000.000,00 375.000,00 525.000,00 2.100.000,00Egnatia Bank 3.000.000,00 375.000,00 525.000,00 2.100.000,00General Bank of Greece 2.300.000,00 287.500,00 400.000,00 1.612.500,00Aspis Bank 2.000.000,00 250.000,00 350.000,00 1.400.000,00Laiki Bank 2.000.000,00 250.000,00 350.000,00 1.400.000,00EFG Telesis Finance 2.000.000,00 250.000,00 350.000,00 1.400.000,00Attika Bank of Greece 1.800.000,00 225.000,00 312.500,00 1.262.500,00

Total of debenture Loan 45.000.000,00 5.625.000,00 7.875.000,00 31.500.000,00Piraeus Bank payable in 28.7.2006 5.000.000,00

Total Long term Loan 45.000.000,00 5.625.000,00 12.875.000,00 31.500.000,00



(Expressed in Euro)

22. Trade and other payable

30/9/2005 31/12/2004Payables trade 37.421.261,54 66.178.543,19Dividends payable 22.1 548.021,20 534.466,14Advances by customer 2.023.633,67 2.084.388,17Taxes and duties 22.2 3.792.887,22 4.533.522,87Social security funds 458.826,43 963.470,59Other creditors 22.3 666.809,93 1.487.179,84Accruals 22.4 16.065.532,53 3.736.912,79Provisions 22.5 648.590,25 579.304,00Balance as per books at 30th September 61.625.562,77 80.097.787,59

22.1. Dividends payable30/9/2005 31/12/2004

Balance at 1 January 534.466,14 574.116,10Plus: Approved dividends2003 0,00 3.748.500,00Plus: Approved dividends2004 3.748.500,00 0,00Less: Dividends paid during the period/year (3.734.944,94) (3.788.149,96)Dividends payable at 30 September, 2005 548.021,20 534.466,14

22.2. Taxes and duties 30/9/2005 31/12/2004 Income tax including provision for prepayments (note 4.8) 1.314.266,57 3.410.959,18Income tax (subsdiary company) 138.893,93 9.779,31Other witholding taxes 406.220,19 917.733,97V.A.T. 1.142.955,87 0,00Provision for income tax 677.331,35 0,00Accrued taxes 112.549,77 0,00Advertisement duty L 2328/1995 0,00 193.643,18Advertisement duty (current liability) 669,54 1.407,23Balance as per books at 30th September 3.792.887,22 4.533.522,87



(Expressed in Euro)

22 Trade and other payables (cont.)

22.3 Other creditors 30/09/2005 31/12/2004

Staff wages 19.424,82 40.230,76Third parties fees 145.057,83 554.468,74Sundry creditors 500.194,55 363.747,61

Profit sharing to employees 2.132,73 528.732,73

Balance as per books at 30th September 666.809,93 1.487.179,84

22.4 Accruals 30/09/2005 31/12/2004

Interest and similar charges 144.165,00 115.565,84Broadcasting license fees-Association of Blinds 3.544.229,21 2.588.644,87Contributions 15.175,66 0,00Staff wages and expenses 825.877,66 0,00Provision for sales commission 10.000.000,00 0,00Royalties to actors’ and originators’ Unions(AEPI, DIONYSOS, etc) 1.352.842,39 0,00Utilities 0,00 29.721,72

Third parties fees 0,00 936.672,86Sundry expenses 735,45 585,45Origination of own programmes cost 130.000,00 0,00Film rights 52.507,16 65.722,05

Balance as per books at 30th September 16.065.532,53 3.736.912,79

22.5 Out of books adjustments

30/09/2005 31/12/2004Provision for retirement benefits 648.590,25 579.304,00Balance as per books at 30th September 648.590,25 579.304,00

NATIONAL BANK OF GREECE 12.000.000,00 0,00 COMMERCIAL BANK 12.000.000,00 15.731,41

ALPHA BANK 16.000.000,00 1.055,84PIRAEUS BANK 10.000.000,00 4.934.517,84EGNATIA BANK 3.000.000,00 3.030.141,53BANK OF ATTICA 4.000.000,00 2.000.000,00ASPIS BANK 3.000.000,00 2.000.000,00

NOVA BANK 4.500.000,00 4.502.456,11 EFG EUROBANK-ERGASIAS 3.000.000,00

Page 27



(Expressed in Euro)

23. Short Term Loan

2.000.000,0067.500.000,00 18.483.902,73

INCOME STATEMENT INCOME STATEMENTEQUITY EQUITY EQUITY 01/01-30/9/2004 01/07-30/09/2004

E

Page 28



(Expressed in Euro)

y and income statement according to Greek Accounting 79.794.059,46 3.446.049,18 113.510.990,55 4.813.227,09 111.630.280,37 7.258.108,58 -312.

bts -2.477.665,33 -2.477.665,33 -317.770,10 -2.477.665,33 -225.280,00ong-term depreciation expenses -171.445,26 -171.445,26 27.424,12 -171.445,26

ments on account of tangible assets -644.483,41 -644.483,41 -644.483,41 staff indemnities -4.278.400,00 -4.278.400,00 -579.304,00 -4.278.400,00 -434.418,00 -144.change difference 148.578,39 0,00 249.747,82 148.578,39

1.077.600,40 1.129.605,84 47.815,82 1.077.600,40 108.604,50r proposed dividend 3.748.500,00 3.748.500,00

ot charged to the operating cost (Property tax) income tax -2.109.194,93

ents for adoption to IFRS -6.345.815,21 3.748.500,00 -6.442.388,16 3.176.413,66 -6.345.815,21 -2.660.288,43

ncome statement after adjustment for IFRS adoption 73.448.244,25 7.194.549,18 107.068.602,39 7.989.640,75 105.284.465,16 4.597.820,15 -209.

24. Equity and profit reconciliation between Greek (GAAP) and I.F.R.S.

ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS

INCOME STATEMENT

INCOME STATEMENT

31/12/2003 30/9/200431/12/2004

quitStandards 589,96

Write off of bad de 0,00Write off of lWrite off of payProvision for 766,00Unrealised exDeferred tax 36.191,50Adjustment foOther taxes nProvision for 211.868,22 Total adjustm 103.293,72

Equity and i 296,24



(Expressed in Euro) 25. Contingencies

25.1 Additional income tax may be assessed by the tax authorities in the case of a tax audit for the

unaudited accounting years 1999 to 2004 (note 10).

25.2 Various letters of guarantee issued by banks amounting to U.S.$ 3,89 mil. (Euro 2,93 mil.), CHF 6,375 mil. (Euro 4,13 mil.) and Euro 708.000 on behalf of National Football Federation (N.F.F.).

25.3 Various legal claims of Euro 16 millions have been filed against the company.

According to the company’s legal advisor, the possibility of material payments under the above legal claims is minimal.

26. Financial commitments

26.1 Commitments under agreements for production of Greek T.V. programme amounting to Euro 56,8 millions.

26.2 Commitments under agreement to hire foreign T.V. programme amounting to Euro 22,1 millions.

Athens, October 18 , 2005

The President of Board of Directors The Managing Director And member of Board of Directors Christos K. Tegopoulos Elias E. Tsigas A 102836 Ξ 414434 Financial Controller Chief Accountant Athanasios G. Andreoulis Vasilios A. Kritikos Φ 064116 Χ 575439

interim – consolidated financial statements of … · interim – consolidated financial...

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