H1/2023: RTL Group continues to invest in business transformation despite challenging market conditions and pressure on results – Number of paying streaming subscribers passes 6 million mark

Luxembourg, 8 August 2023 − RTL Group announces its reviewed results for the six months ending 30 June 2023.

H1/2023: Challenging TV advertising markets, continued dynamic streaming growth


CEO Statement

We are investing into business transformation through the cycle.

Statement from Thomas Rabe, Chief Executive Officer of RTL Group:

“The market environment in the first half of 2023 was particularly challenging, with geopolitical and macroeconomic uncertainties in addition to the long-term structural shifts in video viewing.

The RTL Group team remains focused on bringing our strategy to life: strengthening our core business, growing our streaming and content businesses, and building alliances and partnerships. Based on our strong balance sheet, we are investing into business transformation through the cycle – in premium content, leading national streaming services and in advertising technology.

Technology plays a key role in our transformation, and we see great opportunities from Artificial Intelligence (AI), in particular to increase efficiency and generate content. Today, we already apply AI at scale in advertising planning and have started to support content creation with generative AI.

We are convinced that investing through the cycle will put us in a strong competitive position when the advertising markets recover. The half-year results came in broadly in line with our expectations. Although we are seeing first signs of market stabilisation in Germany in particular, we have adjusted our outlook for the full year 2023. RTL Group now expects an Adjusted EBITA of around €950 million after streaming start-up losses of around €200 million.”


Strategy

Strengthening RTL Group’s core

 
Boosting growth businesses – Streaming


Boosting growth businesses – Fremantle

 
Fostering alliances and partnerships


Outlook

 
Outlook for the full year 2023

 

2022

2023e old

2023e new

Revenue

€7,224m

€7.3bn to €7.4bn

~€7.0bn

Adjusted EBITA

€1,083m

€1.0bn to €1.05bn

~€950m

Streaming start-up losses

€233m

Just below €0.2bn

~€200m

Adjusted EBITA before
streaming start-up losses

€1,316m

€1.2bn to €1.25bn

~€1.15bn


Strategic targets for RTL Group’s streaming services8

 

2022

2026e

Paying subscribers

5.5m

10m

Streaming revenue

€267m

€1bn

Content spend per annum

€304m

~€600m


Profitability is expected by 20269.

 
Key financials

 

H1/2023
€ m

H1/2022
€ m

Per cent
change 

Revenue

3,109

3,276

(5.1)

Adjusted EBITA

250

501

(50.1)

Adjusted EBITA margin (%)

8.0

15.3

 

Adjusted EBITA

250

501

(50.1)

Significant special items

(78)

(23)

 

Impairment and reversals of investments accounted for using the equity method

– 

– 

 

Impairment of goodwill and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries

(23)

(18)

 

Impairment and reversals on other financial assets at amortised cost

(1)

– 

 

Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree

16

111

 

Fair value measurement of investments and re-measurement of earn-out arrangements

14

(84)

 

EBIT

178

487

(63.4)

Financial result

11

(49)

 

Income tax expense

(57)

(134)

 

Group profit

132

304

(56.6)

Attributable to:

 

 

 

– RTL Group shareholders

75

245

(69.4)

– Non-controlling interests

57

59

 

Basic and diluted EPS (in €)

0.48

1.58

(69.4)

Download

The full report for the interim results 2023 is available to download at https://company.rtl.com/en/RTL-Group-interim-results-2023.

Join the conversation on social media using #RTLresults.


1 Adjusted for portfolio changes and at constant exchange rates. Further details can be found in Key performance indicators on page 13 of RTL Group’s interim report 2023
2 Streaming revenue includes SVOD, TVOD, in-stream and distribution revenue from RTL+ in Germany, RTL+ in Hungary (including RTL+/RTL+ Active/RTL+ Light) and Videoland/RTL XL in the Netherlands
3 Revenue generated across all distribution platforms (cable, satellite, internet TV) including subscription and re-transmission fees
4 See Key performance indicators on page 14 of RTL Group’s interim report 2023
5 See Key performance indicators on page 15 of RTL Group’s interim report 2023
6 Net cash/(debt) excludes current and non-current lease liabilities. Including these, net debt as of 30 June 2022 was €- 1,076 million (31 December 2022: net debt of €-205 million). See Key performance indicators on page 16 of RTL Group’s interim report 2023
7 The previous services, RTL Most and RTL Most+, were integrated into RTL+ under the packages RTL+ Light and RTL+ Active. Therefore, RTL+ in Hungary has three models: a direct-to-consumer subscription model without advertising, a TV subscription model (for example via an IPTV subscription), and a registration-based advertising-funded model
8 RTL+ in Germany and Hungary and Videoland in the Netherlands
9 Total of Adjusted EBITA from RTL+, Videoland/RTL XL and Bedrock as consolidated on RTL Group level. The Adjusted EBITA of RTL+ in Germany and Hungary and Videoland/RTL XL in the Netherlands includes synergies with TV channels at business unit level. For the definition of Adjusted EBITA please see Key performance indicators on page 14 of RTL Group’s interim report 2023