RTL Group, Europe’s largest television conglomerate, is going full in on streaming.
First half figures at RTL, released Tuesday, showed sharp growth in revenues — up 27.2 percent to was up 27.2 per cent to $345 million (€299 million) — in the company’s streaming platforms, including RTL+ in Germany and M6+ in France.
The boost made up for declines in RTL’s traditional TV business, where TV advertising revenue fell 4 percent and its production operations, at subsidiary Fremantle, were down 7.7 percent year on year at $964 million (€835 million). (RTL said business at Fremantle would pick up by year end with the roll out of new productions, including its Baywatch reboot).
“Our streaming businesses deliver strong profitability,” said RTL Group CEO Clément Schwebig in a statement. “Sreaming revenue and paid subscriptions continue to grow dynamically. As a result, streaming is now expected to contribute around €100 million ($115 million) to our full-year operating profit.”
RTL’s results are the first since it’s acquisition of pay-TV group Sky Deutschland from Comcast closed June 1. The deal will see Sky Deutschland merge with RTL+, creating a streaming operating with 12.4 million paid subscriptions across Germany, Austria and Switzerland,
“We are now the clear number three in the German-speaking streaming market,” said Schwebig, who called the Sky Deutschland deal “transformational” for RTL.
“We confirm our target to deliver € 250 million ($289 million) in annual synergies within three years. Our transformation strategy is delivering tangible results, and we are executing it with speed and discipline. Including the effects from the Sky Deutschland acquisition, we expect to grow to between €7.1 billion and €7.2 billion ($8.2 billion – $8.3 billion) in full-year revenue with an adjusted EBITA of €725 million ($837 million).”
