Pan-European free-to-air broadcaster, RTL, has this morning released interim financial results in line with expectations, saying that core businesses are ‘performing strongly in difficult advertising market conditions’. Nevertheless, analysts at ABN Amro are expecting to downgraded their full-year 2001 forecasts for the group, given the poor advertising visibility in the European broadcasting sub-sector.
Pre-tax loss at RTL was E2.2 billion for the six months to 30 June, well down from the E158 million profit for the same period last year. EBITA (earnings before interest, tax and amortisation) at the group came in at E235 million, down 27% year on year, but in line with expectations. The decline was exaggerated by restructuring costs; underlying EBITDA was down 15% at E273 million.
RTL’s TV and radio businesses have been hit by the slowdown in the advertising market, although the group did make share gains in the French and German TV markets. Poor market conditions in the UK and Netherlands knocked back earnings for the TV divisions by 6%.
The UK’s Channel 5, which is 65% owned by RTL, managed to hold its advertising market share of 6.1% in a market that was down by 9.6% year on year. Despite this C5 revenues were down 7% to E105 million. In the Netherlands, HMG saw revenues fall by 15% to E149 million.
As expected, RTL has postponed its equity float – planned to increase the free-float from the current 11% to 15% – due to the poor market conditions.
