Revenues at Luxembourg-based Bertelsmann’s RTL Group, a large media company that owns Fremantle, fell 5.2% to €6.2 billion ($6.7 billion) in the 12 months of financial 2023.
The company attributed this to decreased TV advertising revenue and reduced revenue from Fremantle. The company’s EBITA (earnings before interest, taxes and amortization) fell to 782 million euros, down from 922 million euros in 2022.
Fremantle, the content arm of RTL, had a strong year from an awards perspective, with its Ingredient Footage producing the Golden Globe, BAFTA and Oscar winner “Poor Things.” However, revenue fell from 2.3 billion euros to 2.2 billion euros and EBITA from 162 million euros to 139 million euros. RTL is focusing on an annual revenue of €3 billion for Fremantle by 2025/2026.
There was excellent news on different fronts. RTL Group’s family of TV channels in Germany has increased its lead over main commercial competitor ProSiebenSat1 to 5.8 share points, the biggest lead in the last 10 years, the company said. Paying subscribers to RTL Group’s streaming providers in Germany, Hungary and France increased by 30.5% to five.6 million, and streaming revenues increased by 72.6% to €283 million. Distribution revenues were guaranteed at €331 million (2022: €332 million).
The company also stated that following the planned divestment of the Dutch streaming service Videoland and investments in M6+ in France, it updated the targets for its streaming services RTL+ in Germany, M6+ in France and RTL+ in Hungary. By 2026, RTL aims to have around 9 million paying subscribers and 750 million euros in streaming revenue. The group plans to extend its content spending to €500 million and become profitable by 2026.
Thomas Rabe, CEO of RTL Group, said: “In 2023, we demonstrated the resilience of our companies in a very difficult environment. As announced, we invest through the cycle. We grew our streaming services, expanded our market control positions, especially in Germany, and launched globally acclaimed content. The second half of 2023 was one of the profitable half-years in RTL Group’s history, despite weak promotional markets and significant investments, allowing us to pay an attractive dividend. Our shareholders will also profit in 2025 from the value crystallized by the anticipated sale of RTL Nederland for 1.1 billion euros. Our strategic framework remains unchanged. This would continue to guide us in 2024: to strengthen our core services, to develop our streaming and content services, and to build alliances and partnerships.”
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