Fremantle turnover drops, RTL Group streaming subscriptions increase by 25% in H1 2024

European media giant RTL Group announced its first-half 2024 results on Friday, showing mixed performance across its divisions. The report highlighted a decline in revenue at content division Fremantle, in contrast to 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, compared to just over €1 billion (€1.09 billion) in the same period last year . The company attributed the decline to market developments and phasing effects, partially offset by the first full consolidation of the recently acquired Asacha Media Group.

Despite the decline in sales, Fremantle achieved significant creative success in the first half of the year. It is notable that Element Pictures’ film “Poor Things” won 34 awards, including four Academy Awards, two Golden Globes and five BAFTA Awards.

RTL Group’s total revenue rose 1.8% to €2.9 billion, supported by gains from TV advertising and streaming revenue. The group’s streaming services in particular showed strong growth: the number of paying subscribers grew by 24.8% to 6.3 million at RTL+ and M6+. Streaming revenues increased by 41.9% to €185 million.

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

In its core television activities, RTL Deutschland increased its audience lead over competitor ProSiebenSat1 to 7.6 percentage points, while the group’s French channels kept their market share stable.

Looking ahead, RTL confirmed its full-year 2024 guidance, with revenues of approximately €6.6 billion and adjusted EBITA of approximately €750 million. The company expects streaming losses to increase to approximately €200 million this year due to continued investments.

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

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

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