RTL Group records loss in revenue due to falling advertising income

Media company RTL Group suffered a decline in sales last year due to lower TV advertising income. Due to the poorer economic outlook, many companies are more cautious in their marketing expenditure and spend less on TV commercials. In addition to the ailing advertising market, RTL had to contend with lower sales of TV programs by its own production company Fremantle.

Revenue fell 5.4 percent to 6.2 billion euros in 2023, while TV advertising revenue fell by over 8 percent. Adjusted earnings before interest expenses and taxes fell to 782 million euros, compared to 922 million euros in the previous year. This is primarily due to a lower contribution from RTL Germany, caused by the sharp slump in the German TV advertising market.

However, the figures do not include RTL Nederland's activities. In December, RTL Group announced that it would sell RTL Nederland to the media company DPG Media. RTL Nederland consists of the channels RTL 4, RTL 5, RTL 7, RTL 8, RTLZ and the streaming service Videoland. Including RTL Nederland, the Group's annual turnover amounted to 6.9 billion euros. This was in line with the company's expectations.

At the end of 2023, RTL Group (excluding Videoland) had around 5.6 million paying subscribers for its streaming services RTL+ in Germany and Hungary and for 6play in France. That is more than 30 percent more than a year earlier. The company is aiming for around 9 million subscribers and revenue of around 750 million euros for its streaming services by 2026. This year, the media company anticipates further growth in Group revenue to 6.6 billion euros, thanks to the expected strong growth of RTL+ in Germany and the production house Fremantle.