Pan-European broadcaster, RTL Group, has this morning become the latest in a growing series of media companies to indicate that advertising market conditions will continue to be tough for at least the next six months.
Earnings at the group fell by 35% to Eur361 million before restructuring costs are accounted for and by 50.3% to Eur276 million after the inclusion of these costs. Loss for the year to 31 December 2001 was Eur2.5 billion, a hefty decline on the Eur67 million profit of the previous year.
A better than expected performance in television divisions offset weaker than expected results from the content and radio businesses, according to analysts at ABN Amro. RTL says that audiences and advertising share were up in Germany, France, the UK and Hungary.
In the UK, RTL holds a 65% share in Channel 5. Revenues at the station declined by 9.0% to Eur213 million year on year.
UK moves? There have been press reports that Bertelsmann, the parent of RTL, may be interested in becoming involved with ITV, namely Carlton Communications (see WSJ Reports Bertelsmann Interest In ITV Companies). There is now talk of Carlton and Granada – the other major ITV group – looking at a possible merger. This could be the catalyst to Bertelsmann/RTL making a move on ITV.
However, the Financial Times today reports that RTL is keen instead to use Channel 5 to further its interests in the UK television market. The paper says that RTL would “rather push a young brand than try to revive a couple of old ones.”
