Corona crisis slows RTL profits
The European television group RTL is facing a sharp drop in profits due to the coronavirus crisis. Operating profit (adjusted EBITA) fell by about 26 percent in 2020 to 853 million euros. RTL CEO Rabe sees good reasons for consolidation.
Revenues fell 9.5 percent to 6.02 billion euros, RTL Group reported on Friday. After the slump due to the lockdown in the spring, the Bertelsmann subsidiary benefited again from a better TV advertising market in the second half of the year and the final quarter.
RTL CEO Thomas Rabe reiterated that there were good reasons for "consolidation in the European TV business." "We are currently exploring such options for our controlling stake in the French Groupe M6 - with the aim of creating value for our shareholders." He added: "At this time, there can be no certainty that this will lead to an agreement or transaction."
Market value of 1.1 billion
The 48 percent stake in M6 has - according to the closing price of the share on Thursday - a market value of around 1.1 billion euros. According to insiders, French media group Vivendi, French conglomerate Bouygues, Czech billionaire Daniel Kretinsky and French telecom entrepreneur Xavier Niel have already expressed interest. Italy's Mediaset media company is also taking a close look at M6, a person familiar with the matter told the Reuters news agency.
RTL shareholders are to receive a dividend of 3.00 euros per share. For the current year, management expects an operating profit of around 975 million euros. This includes start-up losses of the streaming services of around 150 million euros. Sales are expected to climb to 6.2 billion euros in 2021.
Rabe has repeatedly pleaded for national champions and recently said in an interview that he could imagine taking over rival ProSiebenSat.1 if the regulators relented. However, the latter's boss Rainer Beaujean had largely given RTL the cold shoulder - despite cooperation on some projects. (SDA)
