Bertelsmann resilient despite financial challenges at RTL

RTL-owner Bertelsmann has reported group revenues of €9.7 billion, for H1 2023, up 4.5% on H1 2022.  However operating EBITDA and group profit were both down year on year, by 11% and 47% respectively – due in part to RTL’s performance.

In a statement, Bertelsmann said: “RTL Group in particular recorded a decline in its operating result due to weak TV advertising markets and higher streaming investments”. However, chairman & CEO Thomas Rabe remains upbeat and expects “a good overall business performance for the year as a whole”.

Thomas Rabe

Commenting on the results, Rabe said: “We look back on a good first half of 2023 and are happy with Bertelsmann’s business performance. The Group’s transformation, with the establishment of new businesses and, above all, our Boost strategy, is increasingly making itself felt. And so, despite a difficult macroeconomic environment, our company posted record revenues and a high operating result.”

Focusing on positives in RTL’s performance, Bertelsmann said the Group achieved significant growth in its streaming business. “The number of paying subscribers to the streaming services RTL+ in Germany and Hungary and Videoland in the Netherlands rose by 34% to more than six million. RTL Deutschland’s channels grew in the audience market, further extending their market leadership.”

The company also noted that RTL Deutschland secured attractive sports rights until 2027 by extending broadcasting and streaming rights for the UEFA Europa League and the UEFA Europa Conference League. RTL Hungary acquired broadcasting rights for the UEFA Champions League for the first time, starting with the 2024/25 season. In addition, preparations for the NFL game season on RTL Deutschland and the launch of the multimedia app RTL+ were underway in the first half of 2023.

On the global stage, Bertelsmann said it had invested in the further expansion of its global content businesses. “The video production company Fremantle was very successful in the entertainment sector with leading entertainment shows in the UK and the US, as well as with films, series, and documentaries. It also signed first-look deals with Oscar-nominated producers Edward Berger and Amy Berg.”