RTL enjoys profit boost
RTL has reported a 4.6% increase in pre-tax profits to €1.19 billion (£0.99 billion) for 2011 – mainly based on higher revenues from FremantleMedia.
The European broadcaster reported total revenues of €5,765 million (up 4.2%) as earnings before interest, tax and amortisation rose 0.2% to €1.1 billion. Net profit was also up 13.9% to €696 million.
Following a positive 2010, RTL Group’s profitability remained high: reported EBITA was €1,134 million, while return on sales decreased slightly to 19.7%.
Gerhard Zeiler, chief executive officer of RTL Group, said: “2011 was marked by three main developments. First, all of our families of channels maintained or increased their strong audience shares. This was the foundation to outperform the increasingly challenging TV advertising markets in almost every country we operate in.
“Secondly, RTL Group succeeded in maintaining its profitability at the very high level achieved in 2010: EBITA of over €1.1 billion, EBITA margin of almost 20%, and net profit of €696 million – all these key indicators were either stable or even up year-on-year. Based on these results and a net cash position of €1.2 billion, the board of directors has decided to recommend a gross dividend payout of €5.10 per share.
“Thirdly, RTL Group developed its international portfolio during 2011, to safeguard our leading market positions and to develop new businesses. We regained full control of our highly profitable Dutch TV operations, and bought out minority shareholders in Hungary and Croatia to build strong families of channels. Targeted online acquisitions in Germany and the Netherlands significantly strengthened our new media activities in these countries. Finally, we signed an agreement to exit the declining Greek broadcasting market.
“We see different developments in the various countries we operate in. Looking at January and February 2012 we can say that the negative development many had feared did not happen. Given the high volatility of the various TV advertising markets throughout Europe, and the very short-term bookings cycle, it is not possible to give full-year guidance at the moment. However, RTL Group has repeatedly demonstrated that it can operate successfully in very difficult economic environments.”
Read the full results statement here.