RTL Group bullish despite Fremantle Q1 revenue fall of 5.6% hitting performance
European media giant RTL has hailed a “solid start to 2025,” despite its quarterly financial results showing that group revenue was down 2%, with its content business Fremantle also continuing to struggle.
The group’s first-quarter statement showed that revenue had slipped to €1.29bn (US$1.44bn), a fall from 2024 Q1’s figure of €1.31bn. That decline was “mainly due to lower content revenue from Fremantle and lower TV advertising revenue,” the report said.
Fremantle – maker of the Got Talent franchise, The Piano and scripted hit The Responder – saw year-on-year revenues slide by 5.6% to €373m (2024: €395m). RTL attributed that to budget cuts from broadcasters and streamers, partly offset by the acquisition of pan-European production group Asacha Media Group in March of last year.
Fremantle continues to target full-year revenue of €3bn “in the mid-term.” Fremantle had previously stated its ambition to reach that level of income by this year – a deadline that RTL pushed back last year due to “increased headwinds” in the global TV sector.
RTL expects things to improve at Fremantle in Q2 this year, with the outfit due to deliver projects such as the 20th season of America’s Got Talent, the 18th of Britain’s Got Talent and the 15th of hit detective drama Death in Paradise.
In January, Fremantle announced a three-year deal with new label Eureka Studios to focus on developing new IP, then secured a first-look TV deal in March with Fruit Tree, the production label run by actress Emma Stone and Dave McCary.
The following month, Fremantle launched sports content unit Fremantle Sports, as well as rolling out Imaginae Studios, a production subsidiary dedicated to exploring the creative potential of AI across media and entertainment.
Thomas Rabe, CEO of RTL Group, said: “Fremantle is making good progress on boosting IP development and rapidly deploying AI, as evidenced by the launch of a new AI-focused label, Imaginae Studios.”
Headquartered in Luxembourg, RTL Group is owned by Bertelsmann and operates over 50 European TV channels, including France’s M6 and RTL Deutschland.
The Q1 financials showed that paid subscriptions to the group’s streaming services had increased by 18.5% year-on-year to 7.1 million, with streaming revenue up 29%.
Total advertising revenue was described as “stable,” with digital ad earnings up 28.8%. The group expects to obtain regulatory approvals for the sale of RTL Nederland to DPG Media in Q2.
RTL Group confirmed its outlook for 2025, with adjusted EBITA expected to increase to “around €780m.”
Rabe said: “RTL Group had a solid start into 2025. Paying streaming subscribers were up 18%, exceeding the seven million mark.
“Streaming and digital advertising revenue each grew by 29%, offsetting lower TV advertising revenue. We are firmly on track for streaming profitability in 2026.”
