RTL Group, Europe’s largest broadcaster, reduced its full-year 2024 revenue forecast after a weaker-than-expected third quarter amid softer TV advertising trends in Germany, where the company was affected by the Summer Olympics in Paris. The company also noted slower momentum at its Fremantle production arm.
RTL now predicts €6.3 billion ($6.68 billion) in 2024 revenue, down from €6.6 billion previously, “due to the German TV advertising market and lower growth of the content production market.” Third-quarter ad revenue declined 2.3 percent. “This was mainly due to the effect of the Olympic Games in August that were shown by the public broadcasters, alongside the economic environment in Germany and France,” the firm said.
RTL confirmed its full-year adjusted earnings before interest, taxes and amortization (EBITA) outlook at around €750 million, with a variance of plus/minus €50 million. However, it emphasized: “Due to the persistent weakness of the German economy and TV advertising market, RTL Group now expects adjusted EBITA to come in at the lower end of the range.”
Revenue at RTL’s content production unit Fremantle dropped by 7.1 percent for the January-September period to €1.43 billion “as the growth of the content production market was lower than expected.”
RTL remains bullish on Fremantle though. “In the fourth quarter 2024, Fremantle will deliver major productions such as Battle Camp for Netflix, dramas including Costiera and The Listeners, and the documentary Vietnam: the War that Changed America,” it said.
The streaming business remained an area of strength, with revenue for the first three quarters of 2024 up 40.6 percent to €277 million, “driven by a significantly higher number of paying subscribers, increased subscription prices in Germany and rapidly growing advertising revenue on RTL+ in Germany and M6+ in France.”
RTL CEO Thomas Rabe focused on the positive trends. “We are accelerating RTL Group’s transformation in a challenging economic environment. Our streaming services continue to grow dynamically in all key dimensions: number of paying subscribers, viewing hours, subscription and advertising revenue,” he said. “At the current pace, we are confident to reach the seven million paying subscribers mark by the end of the year and remain on track to reach our long-term streaming targets and thus profitability by 2026.”
He added: “The integration of the newly acquired Asacha Media Group and Beach House Pictures into the global Fremantle network is progressing well. With a strong content lineup in the fourth quarter, Fremantle will significantly increase its full-year adjusted EBITA.”