European broadcaster RTL has reported increased third-quarter earnings and revenue, as speculation over the group’s reported interest in Endemol continues.
RTL posted earnings before interest, taxes and amortisation of €144m (US$199m) for the three months to September 30, up 8.3% on last year’s figure. Revenue also climbed 6.6% to €1.24bn.
Improved advertising sales in Germany, France and the Netherlands and better revenue at production arm FremantleMedia contributed to the results, said RTL. Mediengruppe RTL Deutschland and RTL Nederland were also cited as growth drivers.
The broadcaster pointed to strong primetime ratings for Fremantle formats The X Factor and Got Talent. This quarter, Fremantle launched The X Factor in the US on Fox and a new season in the UK on ITV1.
Meanwhile, industry speculation that RTL is in the bidding to buy debt-laden producer Endemol has seemingly been knocked back. An Endemol spokesman said the firm was “unaware” of any outside bids besides Time Warner’s reported €1bn offer, confirmed last Friday.
RTL couldn’t be contacted before press time but the Endemol spokesman noted there were “other interested parties” in the process.
Today, the Financial Times reported that buyers would be rejected in favour of a debt-for-equity deal, which would wipe €2.3bn from Endemol’s €2.8bn debt and give lenders a major stake in the firm.
This is separate to a potential bid Endemol shareholder Mediaset and Italian investment firm Clessidra are said to be working on.
That would see the former taking 49% of the company and the latter the rest and would involve a major debt restructure, according to Italian newspaper La Repubblica.
“Conversations with lenders are continuing and we are making good progress,” the Endemol spokesman said.
.jpg)
