MUMBAI: European media company RTL Group has reported net profit of €106 million for the quarter ended 31 March 2015. This was a 16.5 per cent increase year-on-year.
Revenue was stable at €1.3 billion. Lower revenue at Groupe M6 and FremantleMedia was offset by significantly higher revenue from Mediengruppe RTL Deutschland. Meanwhile, reported EBITA was slightly up to €194 million compared to €191 million in the same quarter last year. Accordingly, the EBITA margin increased to 14.8 per cent.
RTL Group’s digital revenue continued to show dynamic growth, up by 66 per cent to €88 million benefitting from organic growth and new acquisitions. Net cash from operating activities was €208 million, resulting in an operating cash conversion of 110 per cent. As of 31 March 2015, RTL Group had a net debt position of €452 million.
Segment Performance: Mediengruppe RTL Deutschland achieves new record Ebita
Mediengruppe RTL Deutschland’s Ebita reached a new record high for a first quarter at €153 million, up from €134 million in the same quarter last year, driven by significantly higher TV ad revenue
At Groupe M6, Ebita was slightly up to €41 million, reflecting higher Ebita contributions from 6ter, M6 and Paris Première which were partly offset by lower contributions from diversification activities
RTL Nederland’s Ebita was down to minus €3 million from (Q1/2014: profit of €6 million), mainly due a weak TV ad market, lower margins of the diversification business and higher programming costs
FremantleMedia’s EBITA decreased to €3 million (Q1/2014: €9 million), mainly due to lower revenue caused by phasing effects on the delivery of programmes at FremantleMedia North America and in Europe
RTL Group co-CEOs Anke Schäferkordt. Guillaume de Posch said, “Overall, we had a successful start into the year and slightly increased our operating profit Ebita, mainly driven by another strong performance from Mediengruppe RTL Deutschland.
“During the first months of the year we have been further reinforcing our three strategic pillars: broadcast, content and digital. With Oxygem in France, we boost the digital development of Groupe M6. As digital video monetisation becomes more automated, we have extended our presence in April with a minority investment in the start-up Clypd in the US. Clypd complements the rapidly growing business of SpotXchange by adding cutting-edge sales capabilities to place spots into linear TV programmatically. Additionally, FremantleMedia invested in the newly launched Corona TV to strengthen its scripted pipeline with projects that will have cinematic feel. BroadbandTV used funding provided by RTL Group to acquire the leading kids content producer and publisher on Youtube, YoBoHo.
“We still have the capacity to explore more investment opportunities in the rest of the year based on our very healthy financial position. We will continue to do so throughout 2015, applying our strict investment criteria to generate profitable growth. We confirm our outlook for the full year 2015 and expect our total revenue and EBITA to be broadly stable.”
RTL Group continues to invest in its strategic pillars
Broadcast:
In March, RTL Hrvatska launched three new basic pay-TV channels: RTL Passion, RTL Crime and RTL Living. The company now operates three free-to-air and three pay-TV channels, more than any competitor in the Croatian market
In April, RTL Group led the most recent financing round for Clypd, a US-based platform for programmatic advertising sales on linear TV, and now holds a 17.4 per cent minority stake in the company (on a fully diluted basis)
In April, NBC Universal International Television Production, Mediengruppe RTL Deutschland and TF1 announced that they have entered into an international co-production agreement to produce original US-style TV procedural dramas. It is the first time that European broadcasters have partnered with a major US media company for a deal of this nature.
Content:
In February, FremantleMedia acquired a 25 per cent stake in newly started Corona TV. The deal, which gives FremantleMedia a first look option on all Corona TV output, furthers FremantleMedia’s ambition to build its scripted pipeline with projects that will have a cinematic feel and attract international co-production funding
In March, FremantleMedia International and Netflix signed a global licensing deal for ‘The Returned’, the new suspenseful drama co-produced by FremantleMedia North America and A+E Studios. Episodes have been available on Netflix in all regions outside the US and Canada, within 24 hours of the US broadcast on A+E Network
In April, FremantleMedia, Shanghai Media Group’s BesTV and China Media Capital announced an exclusive agreement that will create and develop entertainment formats for the Chinese market.
Digital:
RTL Group has a strong and rapidly growing presence across all digital platforms.
In the first quarter of 2015:
o RTL Group’s catch-up TV services, websites and MCNs attracted a total 18.7 billion online video views, up 160 per cent year-on-year (Q1/2014: 7.2 billion) thereof: FremantleMedia’s more than 220 Youtube channels attracted 2.7 billion views, up 69 per cent year-on-year
Following the most recent acquisitions of Divimove and YoBoHo, RTL Group now generates 6.4 billion online video views per month
In January, Groupe M6 strengthened its presence in the digital space with the acquisition of 100 per cent of the capital of French media group Oxygem, which provides website editing and e-marketing services
In April, BroadbandTV announced the acquisition of the leading kids content producer and publisher on Youtube, YoBoHo, which owns and operates more than 25 channels. YoBoHo’s library comprises of over 8,000 videos in the kids vertical, mainly produced by the company. It generates a total of three billion views per year. RTL Group provided funding for BroadbandTV’s acquisition of YoBoHo
RTL Group’s recently acquired digital businesses – BroadbandTV, StyleHaul and SpotXchange – continued to show strong revenue growth, comparing Q1/2015 with Q1/2014: BroadbandTV was up 67 per cent, StyleHaul was up 60 per cent, SpotXchange was up 86 per cent.