RTL acquires Bertelsmann's Gruner + Jahr, raises guidance (updated)

RTL SA

06/08/2021 07:23

(Adds deal context, results detail)
    By Douglas Busvine
    BERLIN, Aug 6 (Reuters) - European broadcaster RTL  RRTL.DE 
said that its German unit would acquire publishing house Gruner
+ Jahr from its parent Bertelsmann  BTGGg.F  for 230 million
euros ($272 million), as it published strong results and raised
its guidance.
    The agreed deal will "create Germany's first cross-media
champion", RTL said, after CEO Thomas Rabe launched a series of
deals this year to merge or sell its TV operations in France and
the Benelux countries.
    Rabe, who also heads Bertelsmann, has embarked on a strategy
of consolidating Europe's national TV markets in the face of
competition from U.S. streaming giants led by Netflix  NFLX.O 
and Amazon Prime  AMZN.O .
    His biggest move to date has been the merger of RTL's French
unit M6 with TF1  TFFP.PA . The deal has been widely interpreted
as a prelude to a German-centric TV merger although that would
probably meet antitrust concerns.  urn:newsml:reuters.com:*:nL2N2N42DK
    "We have made significant progress in the execution of our
national champions strategy," Rabe said in a statement. 
    "Major moves in Germany, France, the Netherlands and Belgium
will create significant value for RTL Group’s shareholders and
put us in a strong position to compete with the global tech
platforms."
    RTL also reported a strong recovery in its business in the
second quarter, with revenue up 36% from the same period a year
earlier, when the coronavirus pandemic led European governments
to lock down their economies.
    TV advertising revenue surged by 65% in the quarter, echoing
similar strength at German rival ProSiebenSat.1 Media  PSMGn.DE 
in results on Thursday that showed a sevenfold rise in profits.
 urn:newsml:reuters.com:*:nL8N2PC0LA
    RTL raised its revenue outlook for the year to 6.5 billion
euros from 6.2 billion and lifted its forecast for adjusted
earnings before interest, taxation and amortization (EBITA) to
1.05 billion euros from 975 million.
    RTL also set a long-term goal for its Fremantle global
content business to achieve annual revenue of 3 billion euros by
2025 through organic growth and acquisitions.
 ($1 = 0.8457 euros)

 (Reporting by Douglas Busvine; Editing by Maria Sheahan)
 ((douglas.busvine@tr.com; +49 30 220 133 562;))