Economy & Politics

RTL Group sees its advertising revenues fall by 40%

The international broadcaster suffered a significant drop in profit in the first half of the year as advertising revenues fell. But subscribers to its streaming activities, on the other hand, experienced an explosion of 45%.

The international broadcaster suffered a significant drop in profit in the first half of the year as advertising revenues fell. But subscribers to its streaming activities, on the other hand, experienced an explosion of 45%.

(ASdN) – No doubt, RTL Group has also suffered from the coronavirus. The Luxembourg-based media group released its half-year results on Thursday. In a statement, he announced a division by three of its net profit from 443 million last year to some 156 million for the first six months of this year. In particular, the melting of advertising revenues throughout Europe.

The audience could not be monetized although people “watched more television during the confinement”, underlines the CEO of the group, Thomas Rabe. Because during this period, advertisers had reduced their budgets. “It is a phenomenon that is repeated in all crises,” he explains before adding that the one at the start of the year remains “by far the worst”. “There has been a whole tsunami of reserved advertising cancellations.”


Lokales, Coronavirus, Covid-19, RTL Group, Foto: Chris Karaba / Luxemburger Wort

Should the state, yes or no, hand over to MP Sven Clement the agreement made in 2017 between the government and the media group which wishes to relocate part of its activity to Germany and carry out a vast social plan. The case was pleaded on Monday at the administrative court


While advertising revenue fell 40% in the second quarter, RTL on the other hand saw an increase in the number of subscribers to its streaming platforms in Germany and the Netherlands with an increase of 45%. Although that wasn’t enough to make up for the drop in ads.

The Bertelsmann subsidiary is therefore looking towards drastic cost reductions to do the big thing. “50% of the decline in turnover in the second quarter was offset by cost reductions,” the group communicates. While RTL has set up a social plan for 69 employees in Europe, the new financial situation would not, however, lead to new measures in Luxembourg.


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