RTL cuts revenue forecast on weak German TV ad market, Fremantle unit
Adds Bertelsmann results in paragraphs 10-12
By Chiara Holzhaeuser and Elizaveta Gladun
Nov 13 (Reuters) -RTL Group AUDK.LU, Europe's largest broadcaster, lowered its annual revenue forecast on Wednesday after a soft third quarter, citing weakness in the German TV advertising market and its Fremantle content production unit.
RTL Group, which has interests in 60 television channels, now expects 6.3 billion euros ($6.68 billion) in revenue for 2024, compared with 6.6 billion euros previously forecast.
Earnings before interest, taxes and amortization are now seen at the lower end of the previous forecast of about 750 million euros, with a variance of 50 million on both ends.
The company cited persistent weakness in the German economy and TV advertising market for the downbeat forecasts.
RTL is currently exploring options including a merger for Fremantle, given a broader cutback in TV commissioning. Revenue at Fremantle fell about 5% in the first half of the year.
The broadcaster noted a slowdown in the TV advertisement market in the third quarter, particularly in Germany, with sales declining by 2.3% to 519 million euros.
RTL said this was mainly because of the Olympic Games in August, which were aired by public broadcasters.
Its streaming business remained a silver lining, growing by 41% to 277 million euros in the first nine months of 2024, helped by a higher number of paying subscribers and subscription price increases in Germany.
The media firm's overall revenue, however, declined by 1.5% to 4.2 billion euros organically.
Separately, RTL's parent, Bertelsmann BTGGg.F, reported 13.4 billion euros in revenue for the first nine months, down 8.4% from a year earlier.
However, revenue was up 3.1% on an organic basis, which leaves out the already completed sale of call centre firm Majorel.
"Due to the good performance of most of our businesses, we expect an improved earnings situation, coupled with slightly lower revenue expectations," Bertelsmann CFO Rolf Hellermann said, referring to the full year 2024.
($1 = 0.9424 euros)
Reporting by Chiara Holzhaeuser and Elizaveta Gładun in Gdansk; Editing by Subhranshu Sahu
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