Variety: Fremantle Revenue Dips, RTL Group Streaming Subs Surge 25% in H1 2024

Story from Variety:

European media powerhouse RTL Group released its first half 2024 results on Friday, revealing a mixed performance across its divisions. The report highlighted a revenue decline at content arm Fremantle, contrasted by strong growth in streaming subscriptions.

Fremantle, RTL’s global content production business, saw revenue fall to €957 million ($1.04 billion) in the first half of 2024, down from just above €1 billion ($1.09 billion) in the same period last year. The company attributed the decrease to market developments and phasing effects, partially offset by the first-time full consolidation of recently acquired Asacha Media Group.

Despite the revenue dip, Fremantle achieved significant creative success in the first half of the year. Notably, its film “Poor Things” from Element Pictures won 34 awards, including four Academy Awards, two Golden Globes and five BAFTA Awards.

RTL Group’s overall revenue rose 1.8% to €2.9 billion, buoyed by gains in TV advertising and streaming income. The group’s streaming services showed particular strength, with paying subscribers growing 24.8% to 6.3 million across RTL+ and M6+. Streaming revenue surged 41.9% to €185 million.

However, the increased investments in content and streaming led to a slight decline in adjusted EBITA (Earnings Before Interest, Taxes, Depreciation and Amortization), which fell to €172 million from €181 million a year earlier.

In its core TV business, RTL Deutschland widened its audience lead over competitor ProSiebenSat1 to 7.6 percentage points, while the group’s French channels held steady in market share.

Looking ahead, RTL confirmed its full-year 2024 outlook, projecting revenue of around €6.6 billion and adjusted EBITA of approximately €750 million. The company anticipates streaming losses to increase to about €200 million this year due to continued investments.

By 2026, RTL aims to reach nine million paying streaming subscribers and €750 million in streaming revenue. Fremantle is targeting €3 billion in revenue by the same year, with plans to improve its adjusted EBITA margin to 9% following integration of acquisitions and overhead reductions.

RTL Group CEO Thomas Rabe remained optimistic, stating: “We have made significant progress in executing our strategy and transforming our businesses.” He added that the company is “on track” to reach its long-term streaming targets and profitability by 2026.

The group acknowledged ongoing economic uncertainty, noting that the advertising market outlook remains challenging to predict. RTL plans to continue investing in content and technology while pursuing strategic partnerships to bolster its competitive position across its diverse media portfolio.