RTL Group (RRTL) Q2 2024 earnings summary

Executive summary

• Revenue grew 2% to EUR 2.9 billion in H1 2024, driven by strong streaming and TV advertising performance, 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 the market and a record audience lead in Germany.

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

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

• Full-year 2024 outlook and long-term streaming targets confirmed, with strategic investments in content and technology.

Financial highlights

• Adjusted EBITDA/EBITA declined to EUR 172 million due to higher sports programming costs, with a margin of 6.0%.

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

• Operating cash conversion rate improved to 42% for continuing operations.

• Net cash from operating activities was EUR 72 million, reversing a negative EUR 24 million in H1 2023.

• Special items of EUR 33 million reflect cost efficiency measures.

Outlook and guidance

• Full-year 2024 revenue expected to reach around EUR 6.6 billion, driven by streaming and Fremantle recovery.

• Adjusted EBITDA/EBITA guidance reaffirmed at around EUR 750 million, with a ±50 million range.

• Streaming start-up losses projected to increase to ~EUR 200 million in 2024.

• Long-term streaming targets: ~9 million paying subscribers and ~EUR 750 million streaming revenue by 2026.

• Sale of RTL Nederland expected to close by year-end, with a largely tax-exempt capital gain of ~EUR 800 million.