VOD drives RTL to strong Q1 as revenues break €1.5BN mark | Major Businesses | Business
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A 59% year-on-year leap in paying subscribers for video-on-demand platforms in Germany and the Netherlands, in addition to by content and digital activities, has been the bedrock for a good start to 2019 for RTL Group.
rtlspotx 30aug2017
For the quarter ended 31 March 2019, the media group reported that total revenues amounted to €1.518 billion, a 7.2% annual rise.
Revenue from RTL Group’s broadcasting operations slipped 2% on an annual basis to €1.084 billion due to what the company described as soft TV advertising markets in Germany, partly due to the Easter effect, the Netherlands and Belgium.

Content revenue, which represents Fremantle, soared 41.3% annually to €383 million, propelled mainly by the delivery of American Gods and America’s Got Talent: The Champions. For the full year 2019, RTL Group still expects Fremantle’s organic revenue to grow between 4–7% per cent, excluding any impact from foreign exchange movements.

Digital revenue generated by RTL Group’s MPN activities and SpotX increased 25.0% to €105 million thanks to growth at both BroadbandTV and SpotX. Total VOD revenue, generated by the group’s broadcasting operations, was up 10.9% compared with the same quarter in the previous year to €51 million. As a result, RTL Group’s total digital revenue was up 15.8% to €220 million.

Commenting on the results, RTL Group chief executive officer Thomas Rabe said: “Our Total Video 2.0 strategy focuses on two priorities: building local streaming champions in the European countries where we have strong families of channels and strengthening our global content arm Fremantle. We continue to make good progress on both priorities.”

Going forward, RTL Group expects its total revenue for the fiscal year 2019 to grow moderately from 2.5–5.0 excluding foreign exchange rate effects, driven by the Group’s digital businesses and Fremantle. Howver, the company also expects the same degree of fall in reported EBITA reflecting investments by its broadcasters and VOD services.