Bertelsmann stands by financial forecast despite TV ad slump in Germany

Germany’s Bertelsmann Group is sticking to its financial forecast for the full year despite the advertising slump in the TV business and a drop in profits.

Thomas Rabe

Thomas Rabe, CEO of pan-European broadcast giant RTL Group and chairman and CEO of RTL’s parent Bertelsmann, says he expects full-year revenues of about €21bn (US$22bn), with EBITDA at the previous year’s level.

Portfolio effects will compensate for the temporary weakness at RTL, primarily caused by Germany’s weak ad market, he said.

Bertelsmann attributes the poorer operating result partly to the realignment of the magazine division (Gruner+Jahr) at RTL Germany, the shake-up of US book business Penguin Random House and site closures at Liverpool and Ahrensburg, near Hamburg.

Bertelsmann generated revenues of €9.7bn in the first six months of the year. Operating earnings before EBITDA were almost €1.3bn, below the half-year 2022 figure of €1.4bn.

RTL’s year began with around 1,000 job cuts and later financial projections were revised downwards amidst an ad market slump.