European television force station RTL Group experienced double-digit drops in revenue and operating profits in the first part of 2020, and the company that controls the production giant Fremantle (American Idol) and networks such as RTL TV in Germany and M6 in France, were badly affected. through COVID -19-Decrease in the sale of television ads.
Group revenue at RTL fell 16.4 percent to $3.13 billion (€2.652 billion) in the first half, with second quarter revenue slumping a massive 28.3 percent to $1.4 billion (€1.186 billion). The group reported operating profits (EBITA) of $284 million (€241 million),for the half, a 55.2 percent drop on the same period last year. Net profit, at $184 million (€156 million) was down 64.8 percent on this time last year.
Of course, RTL attributed the decline to the COVID-19 crisis, which led economies across Europe into recession and had an impact on advertising markets.
One of the few positive aspects of the lock came with RTL’s streaming activities, which have accumulated new subscribers. At the end of June 2020, RTL Group registered 1.77 million paid subscribers for its TV Now and Videoland broadcast in Germany in the Netherlands, an increase of 45.2% year-on-year.
Salto, the joint subscription streaming service running through RTL’s M6, GROUPE TF1 and France Télévisions, aims to launch in the fall of 2020.
RTL forecasts a slowdown in the decline of net television advertising markets in the third quarter, but still expects a 10% year-on-year decline, assuming the slight recovery that continues.
But the organization refused to provide benefit and cash forecasts for the entire year.
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