Pan-European broadcaster, RTL Group, has reduced its losses from €2.5 billion in 2001, to just €56 million last year, according to the company’s year-end financial results released today.
The results were ahead of expectations from analysts at Merrill Lynch, due to a significant outperformance in television and radio. The broker says that losses at the UK’s Five station were lower than predicted at just €2 million (analysts forecast a €10 million loss). A higher than forecast earnings contribution from Germany also boosted the TV division’s figures.
In terms of advertising, the UK television market was weak in Q1 2003 and RTL is expecting a 2-3% growth for the full year. The German TV sector remains weak, with Merrill forecasting a 3-4% drop in ad revenues for FY 2003.
Overall revenues at the group were up 7.6% to €4.4 billion, whilst earnings rose by 32.1% to €477 million.
Outlook RTL says that advertising conditions remain tough, with low visibility, and so advertisers are looking to prime time leadership to deliver mass audiences.
“RTL Group continues to develop non-advertising related revenue streams and can already say, after the first two months of 2003, that it is having some worthwhile success. However, the economic and political environment adds to the uncertainty,” says the statement.
