RTL Group (RRTL) Q3 2024 earnings summary

Executive summary

• Group revenue stable at €4.2 billion for January–September 2024, with higher TV advertising and streaming revenue offset by lower Fremantle content revenue; organic revenue down 1.5% year-over-year.

• Streaming business saw dynamic growth: paying subscribers up 22.8% to 6.5 million, streaming revenue up 41% year-over-year.

• RTL Deutschland expanded its TV advertising market share and increased its audience lead over ProSiebenSat1 to 7.0 percentage points in the key target group.

• Integration of Asacha Media Group and Beach House Pictures into Fremantle progressing well, with strong Q4 content lineup expected to boost Adjusted EBITA.

Financial highlights

• Group revenue for the first nine months: €4,209 million (2023: €4,236 million); Q3 revenue down 5.5% to €1,338 million.

• TV advertising revenue up 2.3% to €1,612 million year-over-year; Q3 TV ad revenue down 2.3% due to Olympic Games and economic factors.

• Fremantle content revenue down 7.1% to €1,425 million, impacted by lower market growth and a high 2023 comparison base.

• Streaming revenue up 40.6% to €277 million, driven by subscriber growth and higher prices.

• Net debt increased to €-936 million as of 30 September 2024, mainly due to dividend payout and Magnite share disposal.

Outlook and guidance

• Full-year Adjusted EBITA outlook for 2024 confirmed at around €750 million (+/- €50 million), now expected at the lower end due to German economic and ad market weakness.

• Full-year revenue guidance revised to ~€6.3 billion (previous: €6.6 billion) due to lower ad and content production revenue.

• Adjusted EBITA outlook includes higher content costs for Uefa Euro 2024 and increased streaming start-up losses (~€200 million) from M6+ investments.

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