RTL Group SA

Latest Results (28.12.2024):

CEO's Quote

Thomas Rabe, Chief Executive Officer of RTL Group, highlighted the company's ongoing transformation amidst challenging economic conditions during the third quarter of 2024. He emphasized the dynamic growth of RTL Group's streaming services across key metrics, including subscriber numbers and revenue. Rabe expressed confidence in reaching the target of seven million paying subscribers by year-end and achieving long-term streaming profitability by 2026. He also noted the successful integration of Asacha Media Group and Beach House Pictures into Fremantle, which is expected to boost full-year Adjusted EBITA.

Revenue Performance

RTL Group SA reported a decline in group revenue for the third quarter of 2024, with a 5.5% decrease to €1,338 million compared to €1,416 million in Q3/2023. This decline was primarily attributed to lower content revenue at Fremantle and reduced advertising revenue. Despite these challenges, the group's TV advertising revenue for the first nine months of 2024 increased by 2.3% to €1,612 million, although it saw a 2.3% decrease in Q3/2024 due to external factors like the Olympic Games and economic conditions in Germany and France.

Fremantle's Revenue

Fremantle, RTL Group's content business, experienced a 7.1% decrease in revenue to €1,425 million for the first nine months of 2024, compared to €1,534 million in the same period of 2023. The decline was attributed to slower-than-expected growth in the content production market and a high comparison base from the previous year. However, Fremantle is set to deliver major productions in Q4/2024, which are expected to positively impact its financial performance.

Streaming Revenue Growth

RTL Group SA's streaming revenue saw a significant increase of 40.6% to €277 million for the first nine months of 2024, driven by a higher number of paying subscribers and increased subscription prices in Germany. The growth was further supported by rising advertising revenue on RTL+ in Germany and M6+ in France. The company continues to focus on expanding its streaming services as a key growth area.

Net Debt and Dividends

As of 30 September 2024, RTL Group SA reported a net debt of €-936 million, a significant increase from €-291 million at the end of 2023. The increase in net debt was partly due to the dividend payout for 2023, amounting to €426 million. Additionally, RTL Group disposed of its remaining shares in Magnite, generating net proceeds of €135 million, which contributed to the financial adjustments during the period.