In its pre-close trading statement, released this morning, European TV group RTL announced that full year earnings were expected to be some 35-40% lower than 2000 totals, due to the increasing deterioration in the European advertising market.
Since the group announced interim results in September (see
RTL Postpones Float As Results Are Hit By Ad Slowdown), the market has deteriorated further leading RTL Group CEO Didier Bellens to comment: “We now expect that the television advertising market as a whole in Germany, France and the UK will be down, year on year, by up to 10% in the respective markets.”
RTL expects 2001 earnings before interest, tax and amortisation to fall by 35-40% on last year’s total of E555 million, before restructuring and new investments. Restructuring costs are estimated at E40 million and investment in new businesses will be E28 million.
Although the group says that visibility remains poor, it said this morning that “based on our forward bookings thus far, we expect that advertising in the first half of 2002 will show continued weakness. This will partially be offset by the beneficial impact of the restructuring and portfolio review at RTL Group.”
RTL will release full year results on 4 March 2002.
