RTL lowers revenue forecast on German TV ad market, Fremantle unit

Bertelsmann SE & Co KGaA

13/11/2024 07:00

By Chiara Holzhaeuser and Elizaveta Gladun
       Nov 13 (Reuters) - RTL Group  AUDK.LU , Europe's largest
broadcaster, lowered its annual revenue forecast on Wednesday
after a soft third quarter, citing weakness in the German TV
advertising market and its Fremantle content production unit.
    The company, majority-owned by German media group
Bertelsmann  BTGGg.F , now expects 6.3 billion euros ($6.68
billion) in revenue for 2024, compared with 6.6 billion euros
previously forecast.
    Earnings before interest, taxes and amortization are now
seen at the lower end of the previous forecast of about 750
million euros, with a variance of 50 million on both ends.
    The company cited persistent weakness in the German economy
and TV advertising market for the downbeat forecast.
    RTL is currently exploring options including a merger for
Fremantle, given a broader cutback in TV commissioning. Revenue
at Fremantle fell about 5% in the first half of the year.
    The broadcaster noted a slowdown in the TV ad market in the
third quarter, particularly in Germany, with sales declining by
2.3% to 519 million euros.
    RTL said this was mainly because of the Olympic Games in
August, which were shown by public broadcasters.
    Sales from TV advertising accounted for more than a third of
the group's total revenue in 2023.
    RTL's streaming business remained a silver lining, growing
by 41% to 277 million euros in the first nine months of 2024,
helped by a higher number of paying subscribers and subscription
price increases in Germany.
    RTL's overall revenue, however, declined by 1.5% to 4.2
billion euros organically.
    ($1 = 0.9424 euros)
    

 (Reporting by Chiara Holzhaeuser and Elizaveta Gładun in
Gdansk; Editing by Subhranshu Sahu)
 ((Chiara.Holzhaeuser@thomsonreuters.com;))