RTL Group (RRTL) Q4 2024 earnings summary

Executive summary

• 2024 results met guidance, with stable revenue of €6.25 billion and dynamic streaming growth offsetting weak TV ad markets; start-up streaming losses reduced and profitability targeted for 2026.

• Strong operating performance in Germany, with increased TV ad market share and audience lead.

• Fremantle delivered record results and margin improvement, supported by the Asacha Media Group acquisition.

• Attractive dividend of €2.50 per share proposed, with an 83% payout ratio and 8.3% yield.

• Sale of RTL Nederland to DPG Media expected to close in Q2 2025, with potential extraordinary dividend.

Financial highlights

• Group revenue stable at €6.25 billion in 2024; organic revenue down 1.5% at constant exchange rates.

• Adjusted EBITA/EBITDA declined to €721–722 million, margin at 11.5%, mainly due to lower profit contributions from group entities.

• Total group profit was €555 million, with €428 million from continuing operations; EPS stable at €2.97.

• Streaming revenue up 42% to €403 million; streaming now 6.4% of total revenue.

• Operating cash conversion rate at 102%; net cash from operating activities rose to €761 million; net debt at €-492 million (0.4–0.5x Adjusted EBITDA).

Outlook and guidance

• 2025 revenue expected to rise to ~€6.45 billion, driven by streaming and portfolio effects.

• Adjusted EBITA/EBITDA forecasted to increase to ~€780 million in 2025, with further growth toward €1 billion beyond 2025.

• Streaming start-up losses to fall from €137 million in 2024 to ~€80 million in 2025; profitability targeted for 2026 with ~9 million subscribers and ~€750 million revenue.

• Dividend policy remains at 80%+ payout of adjusted net result.

• Fremantle targets Adjusted EBITA margin of 9% by 2026 and mid-term revenue of €3 billion.