RTL Group Sees Nice Lift in Q1 Revenue

LUXEMBOURG: RTL Group posted revenues of 1.43 billion euros ($1.63 billion), driven by strong contributions from FremantleMedia, Mediengruppe RTL Deutschland and the company’s digital businesses.

Quarterly earnings before interest, tax and amortization (EBITA) rose to 229 million euros ($260.65 million), again thanks to higher contributions from Mediengruppe RTL Deutschland and FremantleMedia.

Mediengruppe RTL Deutschland’s EBITA grew by 8.5 percent to 166 million euros ($189 million), driven by higher TV advertising revenue. At Groupe M6, EBITA increased to 48 million euros ($55 million), with higher EBITA contributions from the main channel M6, the rights business and the football club Girondins de Bordeaux. FremantleMedia’s EBITA increased to 13 million euros ($15 million), benefiting from higher revenue contribution from all major operations—in particular in the U.K., North America and Germany. RTL Nederland’s EBITA was up to 1 million euros ($1.14 million), mainly due to significantly higher TV advertising sales and the digital business. RTL Group’s digital revenue continued to show dynamic growth, up 36.4 percent to 120 million euros ($136 million).

Anke Schäferkordt and Guillaume de Posch, co-CEOs of RTL Group, commented: “RTL Group has recorded a very strong first quarter following the positive performance of our broadcasting business all over Europe. FremantleMedia also positively contributed to the extraordinary result, mainly due to last year’s acquisitions and improved results in all major markets.

“However, as stated in prior years, the first quarter is not necessarily an indicator for the full year, especially in heavy sports years such as 2016. We expect that TV advertising revenue will be geared towards the first half of year, as advertisers shift their spend due to big sporting events. Accordingly, RTL Group maintains its outlook for the full year 2016 and expects total revenue to increase moderately and EBITA to be broadly stable.

“With the acquisition of Smartclip, Mediengruppe RTL Deutschland will significantly expand its capabilities in digital advertising sales and thus complements our growth strategy: In Germany the reach of our portfolio, and thus our advertising inventory, will grow substantially. At the same time the transaction strengthens our technological capabilities in Europe and offers opportunities globally for innovation in cooperation with SpotX.

“Based on the strong first quarter results and our very healthy financial position, we have the capacity to explore further investment opportunities throughout the rest of 2016, and we will continue to focus on expanding and developing our digital businesses as well as growing content production. On average, we plan to invest around 250 million euros per year for acquisitions, applying our strict investment criteria to generate profitable growth.”