Higher Revenue, Lower Profit at RTL Group

LUXEMBOURG: The RTL Group posted record revenue of 6 billion euros ($7.96 billion) for 2012, a 4-percent gain, while profit for the year was down 14 percent.

The group attributed its revenue gain to higher contributions from the Mediengruppe RTL Deutschland operations and also to the strong performance at FremantleMedia. The company saw net profit drop 14.2 percent to 597 million euros ($792 million), due mainly to an impairment loss on RTL’s share in Spanish broadcaster Grupo Antena 3.

Mediengruppe RTL Deutschland achieved a combined audience share of 33.7 percent among viewers 14 to 49, and was 5.9 percentage points ahead of its main competitor. In France, M6 was the only major French channel to increase its total audience share year on year, leading the Groupe M6 total audience share to rise 15.5 percent. RTL Nederland garnered a combined prime-time audience share of 32.2 percent in the commercial target group, with a lead of 12.3 percent over its main commercial competitor.

FremantleMedia’s revenue grew by 19.7 percent, led by growth in the U.S., U.K., Germany and the Asia Pacific. American Idol continued to be the number one entertainment series in the U.S., a spot it has held for the past nine years. Britain’s Got Talent, which had an average total audience share of 40.8 percent, was the highest rated entertainment series in the U.K. last year. The Farmer Wants a Wife continued to score strong ratings with its local versions in France, the Netherlands and Germany.

Anke Schaferkordt and Guillaume de Posch, co-CEOs of RTL Group, said in a joint statement: “In 2012, RTL Group has once again demonstrated that it can operate successfully even in a very challenging economic environment. For the third consecutive year, our EBITA exceeded 1 billion euros. Our EBITA margin was very healthy at 18.0 percent and our largest profit center, Mediengruppe RTL Deutschland, achieved a new record EBITA of 581 million euros. This ongoing success is based on RTL Group’s unique setup: we are the only pan-European free-TV group with a worldwide content production powerhouse.

“Based on our strong financials, we also stepped up our investments and initiatives in our three strategic fields of broadcasting, content and digital. During 2012, RTL Group successfully launched five new TV channels. We are also building a strong and rapidly growing presence in non-linear TV and exploring the field of online video networks, with our first YouTube channels produced by FremantleMedia.

"Our expertise in content and creativity has already proven to be a competitive advantage for the non-linear TV world as audiences are attracted by hit formats and established brands, across all screens and devices. This is why RTL Group is well positioned to develop a leading position in high-growth markets such as online video advertising.

"Looking to 2013, economic conditions remain challenging, in line with local market conditions, and visibility continues to be limited. Facing this environment, we have a clear focus on maintaining our leadership positions and delivering financially while pursuing opportunities in broadcasting, content and digital which will develop the business further in future years.”