RTL Group has published results for its first six months ending June  30th 2018.

In the first half of 2018, the digital media group said it continued its successful business development and Total Video strategy. First-half revenue was up for the fourth consecutive year – despite significant negative exchange rate effects and major sporting events such as the Winter Olympics and the FIFA Football World Cup 2018. RTL Group’s business model stands for resilient top-line growth, a highly diversified revenue mix and high-quality earnings. RTL Group will foster more organic growth initiatives in two main areas: building video-on-demand services that attract mass audiences across all content genres and continuing FremantleMedia’s push into scripted drama.

H1/2018: record first-half revenue, exceeding €3 billion

• Group revenue was up 2.3 per cent to a record level of €3,046 million (H1/2017: €2,978 million), driven by digital (+€35 million), FremantleMedia (+€33 million) and RTL Nederland (+€13 million). On a like-for-like basis (adjusted for portfolio changes and at constant exchange rates) revenue was up 3.7 per cent – the highest organic revenue growth rate since 2010
• Platform revenue grew by 5.0 per cent to €167 million (H1/2017: €159 million), mainly driven by Groupe M6’s renewed distribution agreements signed during the first half of 2018
• RTL Group’s digital revenue¹ continued to show dynamic growth, up 9.0 per cent to €424 million (H1/2017: €389 million). This was mainly driven by organic growth at BroadbandTV, Ludia and Videoland, as well as portfolio effects such as the first-time consolidation of United Screens
• RTL Group’s revenue is highly diversified, with 47.7 per cent from TV advertising, 18.7 per cent from content, 13.9 per cent from digital activities, 5.5 per cent from platform revenue, 4.2 per cent from radio advertising and 10.0 per cent other revenue

Q2/2018: FremantleMedia drives strong revenue growth

• In the second quarter of 2018, RTL Group’s revenue was up by 3.6 per cent to €1,630 million (Q2/2017: €1,573 million), mainly driven by digital and FremantleMedia. The successful return of American Idol on the US network ABC more than compensated for negative exchange rate effects

Outlook

RTL Group confirms its outlook for the full-year 2018, as most recently communicated at the Q1/2018 results presentation on May 17th 2018:

• RTL Group expects its total revenue for the fiscal year 2018 to continue to grow moderately (+2.5 per cent to +5 per cent), driven by the Group’s digital businesses and FremantleMedia (excluding exchange rate effects)

Bert Habets, Chief Executive Officer of RTL Group, commented: “The good results for the first half of 2018 highlight once again the key strengths of RTL Group: with our broad international footprint across broadcast, content, digital, and an ever-more diversified revenue mix, we continue to grow organically, even in challenging market environments. Our high levels of profit margins and cash generation allow us to combine attractive dividends with significant organic growth initiatives. In our rapidly changing Total Video industry, growth mainly comes from non-linear or streaming services. We will further increase investments in our video-on-demand services, with a clear focus on local, exclusive content, and gradually adopt a hybrid model – combining a free, advertising-financed service with a premium pay product. First examples of our building strong local streaming champions are the upcoming massive expansion of TV Now in Germany and Videoland in the Netherlands.”

“Every investment in local, exclusive content strengthens both our linear TV channels and our non-linear on demand services. This local, exclusive content focus is the power engine for our Total Video offers. Especially with FremantleMedia’s push into scripted drama, we are fuelling our content pipeline. Currently, FremantleMedia is seeking funding for at least 35 scripted series ideas that we want to realise. As a consequence, international drama productions will already generate more than 20 per cent of FremantleMedia’s total revenue in 2019,” he concluded.

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