RTL Group (RRTL) Q2 2024 earnings summary

Executive summary

• Revenue grew 2% to EUR 2.9–3.17 billion in H1 2024, driven by streaming and TV advertising gains, with streaming subscribers up 25% to 6.3 million and streaming revenue up 42%.

• TV advertising markets in Germany and France recovered, with RTL Deutschland outperforming and a record audience lead in Germany.

• Major acquisitions included Asacha Media Group and Beach House Pictures, expanding Fremantle's global content portfolio with EUR 200 million invested.

• Confirmed full-year 2024 outlook and long-term streaming targets, including profitability by 2026.

• Successful launch of M6+ in France and partnership with ProSiebenSat.1 for unified TV ad tech.

Financial highlights

• Adjusted EBITDA/EBITA declined to EUR 172 million (margin 6.0%) due to higher sports programming costs, while adjusted EBITA margin improved to 6.4% in some reports.

• Group profit rose 31% to EUR 173 million, with profit from continuing operations at EUR 110 million.

• Net cash from operating activities increased to EUR 72 million, reversing a negative position last year.

• Net debt rose to EUR 1.1 billion at June-end, up from EUR 291 million at end-2023, due to dividends and acquisitions.

• Dividend payout was EUR 2.75 per share, totaling EUR 426 million, with a payout ratio of 94%.

Outlook and guidance

• Full-year 2024 revenue expected to reach around EUR 6.6 billion.

• Adjusted EBITDA/EBITA guidance for 2024 is EUR 750 million, with a ±50 million range depending on ad markets.

• 2024 expected to be backloaded, with most EBITDA generated in H2, especially Q4.

• Streaming targets: ~9 million paying subscribers and ~EUR 750 million streaming revenue by 2026, with profitability expected that year.

• Dividend policy unchanged: at least 80% of adjusted full-year net result to be paid out.