RTL looks to streaming growth after tough year

Source: RTL

Broadcaster RTL Group saw strong growth in streaming last year but its top line was hit by lower TV advertising sales and the performance of production arm Fremantle in 2023.

Reporting its full year results, RTL said that paying subscribers for its streaming services in Germany, Hungary and France were up 30.5% to 5.6 million last year, while streaming revenue was up 72.6% to €283 million.

On the strength of its growth last year, and following the sale of Dutch streamer Videoland (which is expected to close in mid-2024) and the group’s launch of M6+ in France RTL now expects to have nine million paying streaming subscribers by 2026, with around €750 million of streaming revenue.

The group also plans to increase its  content spend to around €500 million and to become profitable by 2026.

However, overall group revenue for the full year was down 5.4% to €6.234 billion. TV advertising revenue was down 8.2% despite a market share gain in Germany.

The number of paying subscribers for the German streamer RTL+ increased by 23% to 4.941 million, compared to 4.016 million at the end of December 2022.

The growth was boosted by RTL’s partnership with Deutsche Telekom to bundle RTL+ Premium in Magenta TV, as well as by its coverage of the UEFA Europa League and originals such as Sisi and Pumuckl’s New Adventures.

RTL Deutschland rolled out a new multimedia RTL+ app in August, including video, music, podcasts, audiobooks and magazine content in one single app.

New French streamer

Growth is also expected from the revamped French streamer M6+, replacing 6play, in which the group is investing an additional €100 million in content, technology and marketing over time.

Thomas Rabe (Source: RTL)

The French streamer, set to launch in May with technology from Bedrock, will be financed mostly by AVOD, with a limited revenue stream from SVOD.

Facing challenges from the dip in advertising last year, RTL benefited from a stronger second half, enabling it to land in line with guidance. Full year adjusted EBITA was €782 million, down 15.2%.

”In 2023, we demonstrated the resilience of our businesses in a particularly challenging environment. As announced, we invested through the cycle. We grew our streaming services, extended our market leadership positions, in particular in Germany, and released globally acclaimed content. The second half of 2023 was one of the most profitable half-years in the history of RTL Group despite weak advertising markets and significant investments, enabling us to pay an attractive dividend. Our shareholders will also benefit in 2025 from the value crystallised by the expected sale of RTL Nederland for €1.1 billion,” said CEO Thomas Rabe.

“Our strategic framework remains unchanged. It will continue to guide us in 2024: to strengthen our core businesses, to grow our streaming and content businesses, and to build alliances and partnerships.”