Revenue Up 3.3 Percent at RTL Group

LUXEMBOURG: RTL Group posted revenue of 2.81 billion euros ($3.5 billion) for the first half of the year, while net profit dipped 15 percent.

The company attributed the gain to higher revenue from Mediengruppe RTL Deutschland and FremantleMedia as well as effects from exchange rates.

Profit for the period attributable to RTL Group shareholders was 274 million euros, down from the 324 million from the same period a year prior.

At the Group level, first-half EBITA was 506 million euros. A higher profit from the German TV operations was offset by challenges in other areas, along with higher investment in programming. FremantleMedia’s EBITA fell slightly, to 40 million euros, due mainly to pressure from broadcasters on volumes and margins.

Anke Schaferkordt and Guillaume de Posch, the CEOs of RTL Group, said: "Following an overall stable first quarter, advertising market conditions across Europe became more challenging. Nevertheless, RTL Group has once again generated solid results, thanks to its international scope and diversified revenue streams. Our first-half EBITA has again exceeded 500 million euros, and we reported a healthy EBITA margin of 18 percent.

"Looking to the remainder of 2012, we maintain our cautious and flexible approach for the business, in particular as there is no visibility yet on the development of the TV advertising markets during the important fourth quarter. With the phasing of productions, we anticipate stronger second half earnings for our content business FremantleMedia. We again expect the Group to deliver a solid level of EBITA, although not at the record level of 2011.

"Since taking over as joint CEOs of RTL Group in mid-April, we have conducted a comprehensive review of our corporate strategy. RTL Group is a very profitable company, with many growth opportunities and a clear strategy to pursue them."