RTL Says 2001 Earnings Will Be Flat In Current Ad Climate

European free-to-air broadcaster RTL this morning said that it feels “better placed than most … to withstand the current uncertainties in advertising markets around Europe.” Nevertheless, the company warned that earnings were likely to be flat in 2001 due to the effects of restructuring Pearson Television North America and a decrease in the audience of RTL Radio in France, along with general market conditions.

RTL Group was created a year ago when Pearson, Bertelsmann AG and Audiofina SA merged their Pearson TV and CLT-ufa television businesses (see Pearson In Merger Deal To Create European TV Giant). The group operates 17 radio stations and 24 TV channels in 10 countries across the continent.

Earnings last year grew by 29.4% to €555 million, whilst revenues were up 14.3% to €4.04 billion. Television earnings before interest, tax and amortisation were up 14.3%; radio earnings rose 30.7%. RTL owns a 64.6% stake in the UK’s Channel 5 and says that losses at the station were reduced over the year.

RTL stock was down 23½p at 62p by midday today as the figures were at the low end of expectations.

RTL Group: 020 7691 6000