RTL Group Sees Profits Rise

LUXEMBOURG: RTL Group’s operating profits (EBITA) grew 8.4 percent over Q1 2012, reaching 207 million euros ($267 million), on revenues that were relatively flat.

This 8.4-percent increase in profit led the group to post its best-ever Q1 result. Revenue for the same period rose just 0.5 percent at 1.33 billion euros ($1.7 billion).

While advertising conditions in the first quarter did remain challenged, the German TV ad market was strong, up 1.3 percent, while all other markets were down. Indeed, EBITA at the company’s German operations, Mediengruppe RTL Deutschland, were up 23 percent, at 134 million euros ($173 million), the division’s best-ever Q1 performance. Even though the French TV ad market is decreasing, Groupe M6’s EBITA was only down slightly, to 60 million euros ($77.4 million). Revenue at RTL Nederland was up year-on-year, though EBITA was down slightly, at 4 million euros ($5.2 million).

FremantleMedia, however, saw a drop in revenue to 303 million euros ($391 million). Operating profit was down to 10 million ($13 million). This was largely due to "phasing effects"—which is essentially programs that have been ordered but not aired yet—in Germany, the U.K. and Australia.

Anke Schäferkordt and Guillaume de Posch, co-CEOs of RTL Group, said in a joint statement: “We’ve had a solid start to the year, with our best ever first quarter EBITA and high levels of net profit and cash conversion. Performance in Germany has been particularly strong and our other businesses are resilient facing the current economic conditions.

“Given this environment, RTL Group has a clear focus on maintaining its leadership positions and delivering financially while pursuing opportunities in broadcasting, content and digital which will develop the business further in future years.”