Advertising slump depresses RTL figures
The weakening German advertising market and a lack of revenue from the production of video content are depressing the mood at RTL Group.
The video group no longer expects revenue of 6.6 billion euros for the full year 2024, but now around 6.3 billion euros. In the previous year, RTL generated revenues of around 6.2 billion euros. RTL Group CEO Thomas Rabe also only considers earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects at the lower end of the range of 700 to 800 million euros to be realistic.
This means that operating profit is likely to fall in the current year. In 2023, the figure was 782 million euros. Revenue already slumped noticeably in the third quarter.
Group-wide sales from continuing operations fell by around 5.5% to 1.3 billion euros. In addition to lower advertising sales, there was a lack of revenue from the production subsidiary Fremantle - since the beginning of the year, the global market has grown significantly slower than previously expected.
The company produces content in the areas of entertainment, drama and film as well as documentaries. The MDax group traditionally does not communicate key earnings figures for the third quarter.
Significant increase in streaming subscriptions
Meanwhile, RTL Group continues to score with its streaming services. At the end of September, it had almost 6.5 million paying subscribers - 22.8% more than in the previous year.
RTL Group is part of the portfolio of the Bertelsmann Group in Gütersloh. Its total consolidated revenues amounted to 13.4 billion euros after nine months. In the same period last year, the figure was 14.6 billion euros.
Bertelsmann attributes the decline to the sale of the service provider Majorel. Organic growth improved by 3.1 percent. Bertelsmann highlighted its book publishing divisions Penguin Random House, the music business BMG, the services division Arvato Group, the education business and the investment business.
CFO Rolf Hellermann commented on the outlook for the year: "Due to the positive development in most of our businesses, we expect an improved earnings situation with slightly lower sales expectations." (SDA)
