Q3/2014: Solid results driven by slight improvement in advertising revenue in key markets

13.11.2014, Luxembourg, RTL Group

RTL Group announces its results for the nine months ending 30 September 2014.

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Q3/2014: continued improvement of TV advertising market conditions

• TV advertising markets across Europe were up in the third quarter – with the exception of Belgium

• However, the third quarter, with the summer holiday season, is a traditionally weaker quarter in terms of advertising revenue (seasonality)

• In the third quarter of 2014, reported Group revenue was stable at €1,259 million (Q3/2013: €1,257 million), while reported EBITA was €160 million (Q3/2013: €161 million)


January to September 2014: exchange rate effects and new advertising tax in Hungary weigh on RTL Group results

• TV advertising markets across Europe continued to show signs of improvement over the first nine months of 2014. With the exception of France – which was stable – and Belgium – which was down 0.7 per cent – all European net TV advertising markets in RTL Group’s territories were up year-on-year

• Reported Group revenue decreased slightly to €3,946 million (January to September 2013: €4,012 million), mainly due to negative exchange rate effects, lower advertising sales in France along with lower revenue from FremantleMedia and UFA Sports

• RTL Group’s digital revenue1 continued to show dynamic growth, up 16 per cent to €180 million benefitting from organic growth and new acquisitions

• Reported EBITA was €679 million compared to €713 million in the first nine months of 2013. The decrease is mainly due to lower profit contributions from FremantleMedia and RTL Group’s broadcasting operations in France, which offset growth from Germany and the Netherlands

• EBITA margin at 17.2 per cent (January to September 2013: 17.8 per cent)

• Net profit attributable to RTL Group shareholders decreased by 42.8 per cent to €306 million (January to September 2013: €535 million). As described at the half year, this was principally due to movements in impairment charges. In the first nine months of 2014, RTL Group recorded a goodwill impairment on RTL Hungary amounting to €77 million. Conversely, the net profit for the first nine months of 2013 included a significant positive one-off effect of €72 million, resulting from the reversal of an impairment on RTL Group’s holding in the Spanish broadcasting company Atresmedia

• Net cash from operating activities was €586 million, resulting in an operating cash conversion of 86.0 per cent

• Following the payment of an extraordinary interim dividend of €307 million on 4 September 2014, RTL Group had net financial debt of €926 million as of 30 September 2014 (30 June 2014: €475 million)



“A global force in online video”
 
Joint statement from Anke Schäferkordt and Guillaume de Posch, Co-Chief Executive Officers of RTL Group:

“After nine months, we see a similar picture as at our half-year results in August. While Mediengruppe RTL Deutschland and RTL Nederland report significant profit growth, the economic situation in France and for FremantleMedia remain challenging. In the third quarter, significant revenue and EBITA growth in Germany led to stable Group results, and we had a good start into the important fourth quarter.

Given our high cash flows and strong financial position, we won’t wait for the economic condition to improve, but invest today in new growth drivers for RTL Group. This year, we will invest more than €240 million in rapidly growing digital businesses – while also launching new channels and further diversifying our content production arm. This is the highest investment level for acquisitions since 2005. With the recent acquisitions of SpotXchange and Style Haul, we have made strategically important progress to make RTL Group a global force in online video and online video advertising.”

For more information, please see RTLGroup.com

1 Excluding e-commerce, home shopping and distribution revenue for digital TV

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