German TV business boosts RTL Group's growth
Bubbling TV advertising revenues in Germany drove the European TV group RTL Group's revenues and operating profit to record highs. The digital business also supported growth.
Group revenues increased by 3.8 percent to more than 6 billion euros last year, as the Bertelsmann subsidiary announced on Thursday. The digital business and favorable exchange rate effects also supported growth. The production subsidiary FremantleMedia benefited from the strong dollar. Operating profit climbed 2 percent to 1.17 billion euros in 2015, slightly more than the Group's management had forecast and industry experts had expected. Net income, which had been burdened by special effects in the previous year, rose by as much as 21 percent to 789 million euros, significantly exceeding market forecasts.
"Despite a mixed picture in the global economy, 2015 was a record year for RTL Group," summed up Group CEOs Anke Schäferkordt and Guillaume de Posch. "Our largest unit, Mediengruppe RTL Deutschland, grew significantly and achieved another record profit - for the fourth year in a row."
The German TV business again delivered the lion's share of the profit, with earnings growth of 5.2 percent to 684 million euros. This corresponds to a return on sales of 32 percent.
Digital business with online videos grew by 72 percent to 508 million euros. That was around 8 percent of Group revenues. Only 54 percent of revenues still came from the traditional revenue source of television and radio advertising. At German rival ProSiebenSat.1, the figure is still 60 percent. RTL's content production business accounted for 22 percent of revenues.
In the current year, RTL Group expects revenues to rise again, with stable or slightly growing European TV advertising markets, and a stagnating operating result. (SDA)
