German broadcaster RTL sees recovery in TV ad sales in Q1 (updated)

Bertelsmann SE & Co KGaA

08/05/2024 07:52

(Adds Bertelsmann results in paragraph 7-9)
    By Chiara Holzhaeuser
       May 8 (Reuters) - The German broadcaster RTL Group
 RRTL.DE  reported first quarter group revenue of 1.3 billion
euros ($1.40 billion) on Wednesday, up 2.6% year-over-year.
    TV advertising sales increased by 10% in the quarter, after
declining 8.2% in 2023. 
    The company confirmed its guidance for 2024, based on "a
slight recovery of the German TV advertising market and broadly
stable advertising markets in the Group’s other territories."
    Lower TV ad revenue has hampered the company in 2023, when
it twice cut its guidance due to a weaker-than-expected
advertising market in Europe, particularly in Germany.
    RTL's streaming business, which made up around 5% of the
group's revenue last year, stood at 86 million euros, up 41%
year-on-year, helped by a higher number of subscribers and
increased subscription prices in Germany.
    Overall sales of the broadcaster were negatively impacted by
Fremantle, RTL Group's global television content production
business. Fremantle reported a 9.2% decrease in revenue due to
timing effects in the UK, Italy and Germany.
    RTL group's parent company Bertelsmann  BTGGg.F  reported a
9% drop in first-quarter revenue to 4.3 billion euros on
Wednesday, due to the sale of staff outsourcing company Majorel.
    The German media, services, and education conglomerate cut
its 2026 outlook in March, also attributing the new guidance to
the sale of Majorel as well as the planned sales of RTL
Nederland and DDV Mediengruppe.
    Most of Bertelsmann's revenue in the first quarter came from
RTL Group's TV and streaming businesses, music company BMG,
Arvato Group's services businesses, Bertelsmann Education Group,
and Bertelsmann Investments. 
   
    ($1 = 0.9312 euros)

 (Reporting by Chiara Holzhaeuser; Editing by Shri Navaratnam
and Sonali Paul)
 ((Chiara.Holzhaeuser@thomsonreuters.com;))