RTL Group Hails Best-Ever Half-Year Results

LUXEMBOURG: Strong gains in its ad revenues from Western Europe boosted RTL Group’s results for the first half of the year, with revenues up 7.5 percent to 2.7 billion euros and a net profit of 257 million euros, as compared with a year-ago loss of 105 million euros.

The company delivered gains across all of its profit centers. In Germany, Mediengruppe RTL Deutschland saw EBITA rise from 62.7 percent to 257 million euros. M6’s EBITA rise 20.7 percent to 134 million euros. FremantleMedia’s EBITA was 90 million euros, a 3.4-percent hike. And RTL Nederland reported an EBITA of 32 million euros, double its year-ago results.

Gerhard Zeiler, CEO of RTL Group, commented, “The stronger than expected rebound seen in the Western European TV advertising markets is the result of the overall economic recovery, but it also demonstrates the strength of television, as many advertisers have re-discovered its unique value for building brands and reaching mass audiences. I am delighted that all our units improved their operating results and that RTL Group achieved its best half-year EBITA ever. This is also a benefit from our significant cost reductions in 2009. We will achieve significantly better full-year results, though visibility for the important fourth quarter remains very low."

He continued, "RTL Group’s strategy will continue to pursue two main goals. First, to further optimize our core broadcasting business. This includes a variety of measures such as strengthening our family of channels and a cautious but flexible cost approach. The second main goal is to develop future growth by investing in content production, on-demand platforms and mobile services, leveraging our strong brands and creating a win/win-situation with platform operators. We will also continue to consider geographical expansion in high-growth regions. The digital world offers many business opportunities, and we have the creativity, flexibility and financial strength to take advantage of them.”