Advertising Recovery Boosts Third-Quarter Results at Broadcasters RTL and ProSiebensat.1
Strength in Germany, France, Spain and the Netherlands shows breadth of Europe's rebound
COLOGNE, Germany - A Europe-wide recovery in advertising sales has lifted all broadcast boats, with RTL Group and ProSiebenSat.1, Europe’s leading TV conglomerates, showing strong growth in the third quarter.
RTL posted an 8.8% revenue boost to €1.16 billion ($1.39 billion) in the quarter, with operating profits up 47.8% to €133 million ($184 million). For the first nine months of the year, RTL Group saw a 7.9% jump in revenue to €3.82 billion ($5.3 billion) and a 46.6% operating profit increase to €670 million ($928 million).
RTL’s core markets - Germany, France, Spain and the Netherlands - all saw strong ad growth, an indication that Europe’s recovery may be here to stay.
ProSiebenSat.1, RTL’s main competitor in Germany-speaking Europe, saw revenue jump 12% to €626.9 million ($870 million) in the third quarter.
RTL’s production subsidiary FremantleMedia – makers of X Factor and American Idol – have also been expanding: taking a 60% stake in branded entertainment company Radical Media to take advantage of new regulations allowing product placement on European television and upping its share in interactive games group Ludia to 80%.