Bertelsmann Sets Price Range for RTL Shares

GÜTERSLOH: Bertelsmann is expecting to bring in as much as 1.6 billion euros ($2.1 billion) from selling off a stake in RTL, having set a price range of 54 to 62 euros per share for up to 25.5 million shares.

After the closing of the offering, Bertelsmann is still going to retain at least 75 percent of RTL Group’s share capital. The process is expected to start tomorrow and end on April 29.

Ahead of the listing, RTL Group has released a trading update. It said that its first quarter EBITA for the year is expected to gain by a mid-to-high single-digit percentage year-on-year. This will be primarily driven by Mediengruppe RTL Deutschland. Overall, RTL Group is forecasting that its first quarter revenue will be in line with the strong Q1 2012 figures.

The German TV ad market is estimated to grow by low single digits in the first quarter; Mediengruppe RTL Deutschland has lost some market share. The Dutch market, which is still in the negative territory, is estimated to be at a similar percentage of decline as the full-year 2012 outcome; RTL Nederland is expected to slightly outperform the market. In France, the conditions are relatively the same as what was seen in the second half of 2012; Groupe M6 is expected to outperform the overall negative market development though. The ad conditions in Belgium have had a difficult start to the year, down a little more than 10 percent. The TV ad markets in Spain and Hungary are also experiencing declines.

Anke Schäferkordt and Guillaume de Posch, co-CEOs of RTL Group, said: “We are pleased to announce that RTL Group’s first quarter EBITA will be up year-on-year. These good results show the resilience of our business despite the challenging macro-economic picture across Europe.

“RTL Group has repeatedly proven its ability to generate long-term growth and strong cash flows. With our management team’s wealth of industry knowledge, we are creating new growth opportunities around broadcast, content and digital. RTL Group is well positioned to continue to deliver future value for all our shareholders.”