RTL revenues, EBITDA reach record levels in 2017

Wednesday 7 March 2018 | 11:22 CET | News
RTL Group reported full year results, with EBITDA rising ahead of expectations on the back of higher contributions from Mediengruppe RTL Deutschland and its production arm FrementleMedia, plus a one-off gain of EUR 94 million for the sale of property in Paris. With revenues also reaching record levels, the company said it will propose a final dividend of EUR 3 per share, on top of the interim dividend of EUR 1 per share it already paid out in September. As a strategic priority, RTL Group said it will now put its focus on expanding its direct-to-consumer on-demand services, driven by investments in local and exclusive content. 

Revenues for the year lifted 2.2 percent from the year before to EUR 6.373 billion, helped by activities in Germany, France and the rapidly growing digital businesses, offsetting a difficult European TV advertising market in RTL territories. 

EBITDA reached a new record level of EUR 1.464 billion, up 3.8 percent, with the EBITDA margin going up to 23 percent from 22.6 percent. At Mediengruppe RTL, EBITDA grew by 3.5 percent to EUR 743, driven mainly by higher TV and digital advertising, as well as platform revenue. At France’s Groupe M6, EBITDA slid to EUR 389 million, mainly due to a positive one-off effect last year from the gradual phase-out of the M6 Mobile contract. At FremantleMedia, EBITDA increased to EUR 1.40 million from 129 million, with higher profit contributions from the company’s operations in North America and Europe. 

The net profit meanwhile increased 2.6 percent to EUR 739 million. 

For the fourth quarter, revenues lifted 0.8 percent to EUR 2.023 million, while EBITDA jumped to EUR 575 million from 508 million. 

For fiscal 2018, RTL Group is guiding for revenues rising 2.5-5 percent, driven by digital business and FremantleMedia. EBITDA will broadly stable, normalised for the effect of the Paris building sales. The dividend policy will also be unchanged: the group plans to pay out 50-752 of the adjusted net result. 

RTL said it will be increasing investment in on-demand services  in the countries where it has strong families of channels. It will be launching new services in Belgium, Hungary and Croatia over the next few months, based on the French 6play platform. It will also continue to build and develop its multi-platform networks and investments in ad-tech. FremantleMedia will meanwhile continue its push into high-end drama productions, in all key countries.

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