Fremantle Owner RTL’s Quarterly Revenues Rise to $1.4 Billion, Driven by Buoyant Streaming and TV Advertising
Revenues at Bertelsmann’s Luxembourg-based RTL Group, a media giant which owns Fremantle, rose 2.6% to €1.3 billion ($1.4 billion), for the first quarter of 2024, driven by buoyant TV advertising and streaming.
However, this was offset by decreased revenues at the group’s global content business. Fremantle revenues were down 9.2% to €395 million (Q1/2023: €435 million), due to what RTL describes as “timing effects in the U.K., Italy and Germany.”
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“Revenue from Fremantle is recognized when a show or series is delivered to its clients, i.e. the broadcasters and streaming services. One example: The German version of ‘Idols’ (‘Deutschland Sucht den Superstar’) has been on air for many years in the first quarter of the year. In 2024, the show will be on air in autumn [fall] – thus the revenue will be recognized in the second half of 2024,” an RTL spokesperson told Variety.
Otherwise, it was a rosy picture for RTL, after a 2023 financial year where revenues dipped due to a weak advertising market. In the first quarter of 2024, the group’s total advertising revenue increased by 10.1% to €686 million (Q1/2023: €623 million), of which €528 million represented TV advertising revenue (Q1/2023: €480 million), €80 million digital advertising revenue (Q1/2023: €70 million) and €77 million radio, print and other advertising revenue (Q1/2023: €72 million).
The group’s streaming services continued displaying robust growth with paying subscribers up 24% year-on-year to six million, delivering streaming revenue up 41% to €86 million (Q1/2023: €61 million). Subscription prices also increased in Germany. Distribution revenue was up 8.6% to €88 million (Q1/2023: €81 million).
RTL’s TV channels in Germany made TV advertising market and audience share gains, extending their lead over ProSiebenSat1 to eight percentage points, the group said.
In terms of outlook for the year, RTL expects its revenue for 2024 to increase to €6.6 billion, based on higher revenue from RTL Deutschland, which is driven by strong growth in streaming revenue, and Fremantle, driven by a recovery in the U.S. market and acquisitions. It expects its adjusted EBITA (Earnings Before Interest, Taxes, Depreciation and Amortization) for 2024 to be around €750 million, with a variance of plus or minus €50 million, depending on the trends within the German and French TV advertising markets through the remainder of the year. This EBITA outlook includes higher content costs, primarily for the broadcast of Euro 2024 matches in France and Germany, and higher streaming start-up losses (2023: €176 million), primarily due to the investments in streamer M6+ in France.
“RTL Group has started strongly and in line with our expectations into 2024. We have strengthened our leading audience and advertising positions in Germany and continued the dynamic growth of our streaming business. Our first-quarter results confirm our strategy of investing through the cycle,” said RTL CEO Thomas Rabe.
“RTL Group is looking forward to an eventful second quarter, with RTL Deutschland and Groupe M6 broadcasting Uefa Euro 2024 matches. In addition, M6+ will launch in France next week and Fremantle will deliver season two of ‘The Responder,’ the new thriller series ‘Nightsleeper’ and Season 19 of ‘America’s Got Talent.’”
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