Fremantle Income Surges By 27.8%, Helps Drive Up Q3 Revenue At Parent Group RTL To $5 Billion
Luxembourg-based RTL Group saw a 12% jump in revenue to $5 billion (€5 billion) for the first nine months of 2022, according to its third-quarter statement which was released on Friday.
UK-based international film and TV production and distribution company Fremantle had played a significant role in the jump in revenue, said RTL Group CEO Thomas Rabe
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From January to September, Fremantle revenue rose 27.8 per cent and streaming revenue jumped 20.4 per cent, but TV advertising revenue eased down by 1.3%.
“RTL Group had a solid first nine months of the year 2022, in the face of a challenging macroeconomic environment and its impact on advertising markets,” said Rabe.
“The high revenue growth in the third quarter was primarily driven by Fremantle, which continues to deliver on its boost plan and is on track to reach a new record revenue in 2022. Organically, Fremantle grew 10 per cent from January to September 2022.”
RTL Group’s streaming services also played their part with paying streaming subscribers growing to 4.8 million at the end of September.
Breaking down the figures, Fremantle revenue was up 27.8 per cent to $1.6 billion (€1.6 billion), against $1.26 billion (€1.29 billion) in the same period in 2021.
This rise was driven by the impact of acquisitions in 2021 and 2022 and positive foreign exchange rate effects. Fremantle’s revenue was up 9.8 per cent organically compared to the first nine months of 2021.
The company’s success rested on all three of its “pillars of entertainment, drama & film, and documentaries”, read the statement, highlighting productions such as America’s Got Talent, the quiz show Password and various adaptations of Farmer Wants a Wife as well as the second season of The Mosquito Coast for Apple TV+.
Streaming revenue at RTL+ and Videoland was up 20.4 per cent to $190 million (€195 million), against $158m (€162 million) in 2021.
“Looking at the fourth quarter, we expect the challenging advertising market environment to continue, especially in Germany. Despite this and numerous external factors, in particular the war in Ukraine, inflation, energy supply and supply chain issues, RTL Group expects to perform in line with the Adjusted EBITA guidance provided in August,” said Rabe.
The statement forecast adjusted EBITA of $1.02 to $1.15 billion (€1.05 to €1.15 billion), taking into account streaming start-up losses of up to $243 million (€250 million). The final figure is expected to come in at the lower end of the range due to weaker-than-expected TV advertising revenue, in particular in Germany.
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