Advertising and streaming power RTL to strong Q1

Source: Alamy.com

RTL Group’s first quarter was turbocharged by advertising and streaming growth, partially offset by a decline in revenues at its production arm.

Group revenue was up 2.6% to €1.3 billion, but advertising revenue jumped by 10.1% to €1.285 billion and streaming revenue soared by 41% to €86 million. The overall impact was muted by a 9.2% decline to €395 million at production outfit Fremantle, which the company blamed on timing effects in the UK, Italy and Germany.

RTL continued to see growth in streaming numbers. Paying subscribers for RTL+ in Germany increased by 6 per cent year on year to 5.3 million (end of March 2023: 4.4 million). The partnership with Deutsche Telekom to bundle RTL+ Premium in Magenta TV continued to contribute significantly to the growth.

Of the group’s ad revenue, some €528 million was TV ad revenue, up from €480 million last year.

The growth in streaming revenue was attributed to a higher number of paying subs and increased subscription prices in Germany.

“RTL Group has started strongly and in line with our expectations into 2024. We have strengthened our leading audience and advertising positions in Germany and continued the dynamic growth of our streaming business. Our first-quarter results confirm our strategy of investing through the cycle,” said CEO Thomas Rabe.

“RTL Group is looking forward to an eventful second quarter, with RTL Deutschland and Groupe M6 broadcasting Uefa Euro 2024 matches. In addition, M6+ will launch in France next week and Fremantle will deliver season two of The Responder, the new thriller series Nightsleeper and season 19 of America’s Got Talent.”