RTL Group has raised its full-year revenue guidance, bossted by the positive impact of exchange rates, its digital business and a growing German television ads market.
The Europeanbroadcaster, which is controlled by German media conglomerate Bertelsmann, expects annual revenue to rise by between 2.5 and 5 per cent, compared with a previous forecast for an increase by as much as 2.5 per cent.
RTL’s finance chief Elmar Heggen said foreign exchange rates accounted for almost two thirds of sales growth in the first nine months of the year, which were up €195 million or 5 per cent, at €4.1 billion.
As advertising spending rapidly migrates online from television – still the most popular medium – RTL has begun to buy digital properties including an online video advertising platform and a clutch of YouTube channel networks. Revenues from digital activities account for 8 per cent of total group revenues.
“In digital we grew by more than 30 per cent organically so far this year and we expect double-digit growth to continue in 2016, 2017 and 2018,” Heggen said. “By the end of this year, RTL’s digital units will make annual sales of €500 million. “In the near term we should be able to reach 10 per cent of total sales from digital.”