As a long-time follower and admirer of RTL Group, I must say that Thomas Rabe’s leadership during these challenging times is nothing short of impressive. The resilience shown by the company amidst economic downturns and shifting market trends is truly commendable.
Due to lower-than-anticipated television advertising revenue in Germany during the third quarter and a slower pace at their Fremantle production division, RTL Group – Europe’s largest broadcaster – has revised its projected full-year 2024 income, taking into account the impact of the Summer Olympics in Paris.
Currently, RTL is forecasting a revenue of approximately €6.3 billion ($6.68 billion) for the year 2024, which is a decrease from the previously predicted €6.6 billion. This adjustment is attributed to a decline in the German TV advertising market and a slower growth rate in the content production market. In the third quarter, ad revenue experienced a dip of 2.3%. The firm attributes this decline primarily to the impact of the Olympic Games in August, which were broadcast by public broadcasters, as well as the economic conditions in Germany and France.
RTL affirmed their projected annual earnings before interest, taxes, and amortization (EBITA) to be approximately €750 million, with a possible deviation of up to €50 million. However, they highlighted that due to the ongoing sluggishness in the German economy and TV advertising market, they now anticipate their adjusted EBITA to fall towards the lower end of the projected range.
Revenue at RTL’s content production unit Fremantle dropped by 7.1 percent for the January-September period to €1.43 billion “as the growth of the content production market was lower than expected.”
RTL remains bullish on Fremantle though. “In the fourth quarter 2024, Fremantle will deliver major productions such as Battle Camp for Netflix, dramas including Costiera and The Listeners, and the documentary Vietnam: the War that Changed America,” it said.
The streaming business remained an area of strength, with revenue for the first three quarters of 2024 up 40.6 percent to €277 million, “driven by a significantly higher number of paying subscribers, increased subscription prices in Germany and rapidly growing advertising revenue on RTL+ in Germany and M6+ in France.”
Thomas Rabe, CEO of RTL, emphasized the positive developments. He stated that RTL Group is speeding up its transformation amidst a tough economic climate. The streaming services are expanding rapidly in crucial areas such as the number of subscribers, viewing time, and revenue from both subscriptions and ads. With this momentum, he expressed confidence that we will surpass seven million subscribers by year-end. Furthermore, they are on track to meet their long-term streaming goals and achieve profitability by 2026.
He mentioned that “The merger of Asacha Media Group and Beach House Pictures with the worldwide Fremantle network is going smoothly. In the final quarter, we anticipate a robust content schedule which will substantially boost our annual adjusted EBITA.
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2024-11-13 12:24