RTL Group: stronger than expected results thanks to ads and cost discipline

Copyright: Tim Lecomte/SIP The European entertainment network posted its interim results to […]

August 26, 2010

Copyright: Tim Lecomte/SIP

The European entertainment network posted its interim results to 30 June 2010.

The reported EBITA jumped from 367 million to 537 million euro, whereas the broadcasting organization revenue rose 7,5 percent to 2.66 billion euro.

« With 537 million euro, RTL Group delivers best half-year result ever, up 46 per cent,» its press release announced.

Strong TV advertising rebound in Western Europe

These figures reflect RTL’s strategy to increase its revenue source from the advertising markets while following a disciplined approach to portfolio management. 

The group generated a broadly stable S1 2010 cost level at 2.16 billion euro vs. 2.14 billion euro in 2009 during the same period 2009.

“All profit centers improved their results,” RTL added: Germany’s Mediengruppe RTL Deutschland posted an 257 million euro-EBITA (up 62.7 per cent) and outperformed a significantly growing TV advertising market, according to the entertainment body.

In France, Groupe M6 published its activities result with an EBITA up 20.7 per cent to 134 million euro, whereas RTL Radio in France reported an EBITA growth of 87.5 per cent at 15 million euro.
In the Netherlands, RTL Nederland doubled its results on year on year to 32 million euro.
New media activities show strong growth

RTL’s new media activities show strong growth, the company detailed in its report: “RTL Group’s online platforms and on-demand offers across Europe collectively generated more than 715 million video views of professionally produced content, up 50 per cent year-on-year,“ it said.

The total online advertising revenue rose 55 per cent year-on-year, driven by video advertising. Also RTL Group entities launched 40 mobile applications registering 5.5 million downloads to date. Furthermore, RTL Television became the first German channel to offer a mobile live stream app for its linear TV schedule.

A two-step strategy

“RTL Group’s strategy will continue to pursue two main goals, Gerhard Zeiler, its CEO commented. First, to further optimize our core broadcasting business. This includes a variety of measures such as strengthening our family of channels and a cautious but flexible cost approach”. 

“The second main goal is to develop future growth by investing in content production, on-demand platforms and mobile services, leveraging our strong brands and creating a win-win-situation with platform operators, he added. We will also continue to consider geographical expansion in high-growth regions”. 

Based in Luxembourg, the entertainment network employees 9,900 persons and totalizes 43 television channels and 31 radio stations in 10 countries and content production throughout the world. 
His TV portfolio includes RTL Television (Germany), M6 (France), the RTL channels in the Netherlands, Belgium, Luxembourg, Croatia and Hungary, Alpha TV in Greece, Ren TV in Russia and Antena 3 in Spain.

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