RTL says coronavirus already hitting ad bookings, productions (updated)

RTL SA

13/03/2020 07:27

(Adds detail, context)
    BERLIN, March 13 (Reuters) - European broadcaster RTL Group
 RRTL.DE  said it was seeing the first cancellations of
advertising bookings and an impact on productions from
coronavirus, and forecast a decline in profits this year as it
invests in its streaming business.
    RTL, controlled by German publisher Bertelsmann  BTGGg.F ,
predicted a decline of 7% in core earnings before interest and
amortization (EBITA), after turning in a solid set of 2019
results and proposing a dividend of 4 euros ($4.48) per share.
    With the flu-like coronavirus described as a pandemic and
European countries facing travel restrictions and imposing
lockdowns, media companies face a major hit as companies cut
discretionary marketing spending.
    Production risks have been highlighted by Oscar-winning U.S.
actor Tom Hanks' announcement that he and his wife, actress Rita
Wilson, tested positive for coronavirus while working on a film
in Australia.  urn:newsml:reuters.com:*:nL1N2B5036
    UK broadcaster ITV  ITV.L  has warned of a 10% drop in ad
spending in April, while shares in German competitor
ProSiebenSat.1  PSMGn.DE  have collapsed as a profits squeeze
and acquisitions strain its balance sheet.
    RTL forecast an increase of 2%-3% in revenue this year - in
line with last year's gain of 2.2%. The outlook did not reflect
the coronavirus epidemic as it is too early to quantify its
impact on the RTL Group's results, the company said.
    Adjusted EBITA fell last year by 1.3% to 1.16 billion euros
while profit for the year was up 10.1% to 864 million euros.
    Reported earnings per share gained 12.9% to 4.91 euros.
 ($1 = 0.8925 euros)

 (Reporting by Douglas Busvine; editing by Thomas Seythal and
Thomas Escritt)
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