Equities Media

RTL shares rise as revenues rise, full-year guidance remains intact

RTL shares are higher Wednesday, after the German broadcaster reported upbeat second quarter and first half earnings. The company also reaffirmed its full-year guidance, despite a slight decline in its first-half net profits.

In addition, RTL said it plans to focus on developing its own content and expanding it’s on-demand platforms.

By 1135 BST, RTL shares were 4.50% higher at €65.00. The stock has been moving broadly lower in recent weeks.

RTL earnings details

Earlier Wednesday, reported its latest earnings details. The media group said its Q2 group revenue rose 3.6%, while Q2 EBITDA increased 4.7%. Meanwhile, in the first six months of the year, RTL said its group revenue climbed 2.3%, while EBITDA gained 1.9%.

“The good results for the first half of 2018 highlight once again the key strengths of RTL Group: with our broad international footprint across broadcast, content, digital, and an ever-more diversified revenue mix, we continue to grow organically, even in challenging market environments,” said RTL CEO, Bert Habets.

“Our high levels of profit margins and cash generation allow us to combine attractive dividends with significant organic growth initiatives,” he added.

However, the group also reported that its net profit totalled €318 million, a little lower than the €320 million achieved in the same period a year earlier.

Outlook confirmed

Despite that minor net profit disappointment, RTL Group maintained its full-year outlook for 2018. The media company continues to expect:

  • Total full year revenue to grow between 2.5-5%, “driven by the Group’s digital businesses and FremantleMedia (excluding exchange rate effects)”, RTL said.
  • It also expects 2018 EBITDA to be “broadly stable” at between -1 to +1%.

Looking ahead, RTL said it is no longer interested in purchasing Endemol Shine. Instead it plans to focus on developing its own scripted content through Freemantle. In addition, it will “further increase investments in our video-on-demand services.”

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