12 March 2021, Luxembourg
Luxembourg, 12 March 2021 − RTL Group announces its audited results for the year ended 31 December 2020.
Strong rebound of TV advertising in the second half of 2020
“A year of unprecedented challenge and major achievements”
Thomas Rabe, Chief Executive Officer of RTL Group, says:
“2020 was a year of both unprecedented challenge and major achievements for RTL Group. We managed to strike the right balance between implementing cost and cash flow countermeasures, maintaining our market positions and investing in the future of our businesses, in particular in streaming and advertising technology. This is reflected in a net profit of €625 million, an operating cash conversion rate of more than 100 per cent, audience outperformance of our commercial competitors and rapid growth in numbers of paying subscribers for our streaming services.
Over the past six months, we sold non-core businesses, unlocking significant shareholder value. We continue to strengthen our portfolio with the full acquisitions of Super RTL in Germany and RTL Belgium. And we entered into new partnerships, for example with Deutsche Telekom to grow our streaming business in Germany and to cooperate in advertising technology, advertising sales and content. As stated on 29 January 2021, there is a strong case for consolidation in the European broadcasting industry. We are currently reviewing such options for our controlling stake in the French broadcaster Groupe M6, with a view to creating value for our shareholders. There can be no certainty that this may lead to any type of agreement or transaction.”
Strengthening RTL Group’s core
Boosting growth businesses
Fostering alliances and partnerships
Outlook
The following outlook assumes that the economic recovery continues in 2021, in particular in Q2/2021, as current lockdown measures are gradually eased and vaccination programmes against Covid-19 progress.
|
2020 |
2021e |
Revenue |
€6,017m |
~€6,200m |
Adjusted EBITA |
€853m |
~€975m |
Streaming start-up losses |
€55m |
~€150m |
“Adjusted EBITA before streaming start-up losses” |
€908m |
~€1,125m |
RTL Group: strategic targets for the streaming services TV Now and Videoland
|
2020 |
2025e |
Paying subscribers |
2.19m |
5m to 7m |
Streaming revenue |
€170m |
>€500m |
Content spend per annum |
€117m |
~€350m |
Adjusted EBITA break-even expected by 2025.
Financial review |
2020 |
2019 |
Per cent change |
|
|
|
|
Revenue |
6,017 |
6,651 |
(9.5) |
Adjusted EBITA |
853 |
1,156 |
(26.2) |
Adjusted EBITA margin (%) |
14.2 |
17.4 |
|
|
|
|
|
Adjusted EBITA |
853 |
1,156 |
(26.2) |
Significant special items |
(34) |
(17) |
|
Impairment and reversals of investments accounted for using the equity method |
(62) |
(50) |
|
Impairment of goodwill and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries |
(25) |
(15) |
|
Re-measurement of earn-out arrangements and gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree |
171 |
87 |
|
|
|
|
|
EBIT |
903 |
1,161 |
(22.2) |
Net financial expense |
(28) |
(5) |
|
Income tax expense |
(250) |
(292) |
|
Profit for the year |
625 |
864 |
(27.7) |
Attributable to: |
|
|
|
– RTL Group shareholders |
492 |
754 |
(34.8) |
– Non-controlling interests |
133 |
110 |
|
|
|
|
|
Reported EPS (in €) |
3.20 |
4.91 |
(34.8) |
The documents with the more detailed full-year results 2020 will be available to download at www.rtlgroup.com/results_fy2020.
1 The compensation rate is defined as total cost reduction as percentage of total revenue decline in a defined period. The compensation rate on a comparable basis excludes streaming revenue and streaming start-up losses and significant effects from provisions in the defined period and the prior year baseline.
2 Adjusted for portfolio changes, the wind-down of StyleHaul in 2019 and at constant exchange rates. Further details can be found in the chapter on “Key performance indicators” here www.rtlgroup.com/fy2020_pdf
3 Streaming revenue includes SVOD, TVOD and in-stream revenue from TV Now and Videoland/RTL XL; prior year restated to reflect in-stream revenue from RTL XL
4 Adjusted EBITA represents a recurring operating result and excludes significant special items. Further details can be found in the chapter on “Key performance indicators” here www.rtlgroup.com/fy2020_pdf
5 Operating cash conversion rate reflects the level of operating profits converted into cash. Further details can be found in the chapter on “Key performance indicators” here www.rtlgroup.com/fy2020_pdf
6 The net cash/(debt) excludes current and non-current lease liabilities. Including these, net debt as of 31 December 2020 was €(148) million (31 December 2019: €(816) million). Further details can be found in the chapter on “Key performance indicators” here www.rtlgroup.com/fy2020_pdf
7 Frankfurt Stock Exchange
Communications & Investor Relations
Oliver Fahlbusch
Executive Vice President
Communications & Investor Relations
RTL Group
T.: +352 / 24 86 5200
Communications & Investor Relations
Irina Mettner-Isfort
Senior Director
Media & Investor Relations
T.: +49 221 456-56410
E: irina.mettner.isfort@rtlgroup.com
About RTL Group
RTL Group is a leader across broadcast, content and digital, with interests in 67 television channels, ten streaming platforms and 38 radio stations. RTL Group also produces content throughout the world and owns digital video networks. The television portfolio of Europe’s largest broadcaster includes RTL Television in Germany, M6 in France, the RTL channels in the Netherlands, Belgium, Luxembourg, Croatia, Hungary and Antena 3 in Spain. RTL Group’s families of TV channels are either the number one or number two in eight European countries. The Group’s flagship radio station is RTL in France, and it also owns or has interests in other stations in France, Germany, Belgium, Spain and Luxembourg. RTL Group’s content business, Fremantle, is one of the world’s largest creators, producers and distributors of scripted and unscripted content. Fremantle has an international network of production teams, companies and labels in over 30 countries, producing over 12,000 hours of original programming and distributing over 30,000 hours of content worldwide. Combining the streaming-services of its broadcasters (such as TV Now, 6play, Salto, Videoland), the digital video network Divimove, and Fremantle’s more than 360 YouTube channels, RTL Group has become the leading European media company in digital video. RTL Group also owns the ad-tech businesses Smartclip and Yospace, as well as the streaming-tech company Bedrock. RTL AdConnect is RTL Group’s international advertising sales house. Bertelsmann is the majority shareholder of RTL Group, which is listed on the Luxembourg and Frankfurt stock exchanges and in the SDAX stock index.
RTL Group – Entertain. Inform. Engage.