Fremantle shifts €3bn revenue target but profits rise

RTL Group is pushing Fremantle’s €3bn (£2.51bn) revenue target into the “mid-term” after posting a 2024 decline, but profits at the production group were up while the German parent’s European streaming operations posted strong growth. 

Fremantle’s revenue fell from €2.27bn in 2023 to €2.25bn in 2024, despite a boost from the acquisition of Asacha Media Group in March last year. 

The group said that Fremantle’s revenue had decreased 8% organically, with the decline blamed on the ongoing impact from the 2023 US strikes, as well as budget cuts from streamers and ad-supported broadcasters.  

RTL had previously set Fremantle a revenue target of $3bn for 2024 that was then pushed to 2025/2026, a date that has now been changed to simply the “mid-term”. 

The production-distribution giant did, however, post a 23% rise in adjusted EBITA to €171m, which it put down to “significantly lower overhead costs” and the first-time profit contribution from Asacha, which owns Return to Paradise producer Red Planet among others. 

RTL said that Fremantle, which laid off all staff at Nightsleeper firm Euston Films and fledgling factual outfit Undeniable last year, remained in the market for “small and medium-sized production companies and partnerships with creative talent.”  

While the company’s M&A activity has cooled over recent years, last year’s activity saw it taking an 80% stake in Beach House Pictures from Blue Ant Studios, in addition to Asacha. 

The German parent added that it expected Fremantle’s adjusted EBITA margin to rise from 7.6% this year to 9% in 2026 and would “continue to focus on entertainment, drama and film, and documentaries”.  

Shows including Got Talent, Prime Video’s Maxton Hall and doc Elizabeth Taylor: Rebel Superstar were picked out as highlights, alongside movie Poor Things. 

The company added that its three-pronged strategy included: focusing on “nurturing” brands such as Idols and investing in new formats; expanding its drama, film and docs business; and “exploiting new monetisation models” such as branded entertainment, direct-to-consumer and FAST channels.  

RTL Group added that streaming revenue soared 42% from €283m to €403m, with paying subscribers in Germany, Hungary and France rising by 21%. 

The group added that it saw a “clear path to profitability” after cutting losses from €176m in 2023 to €137m last year at its streaming operations, which include M6+ in France and RTL+ in Germany. 

RTL added that the €1.1bn deal to sell RTL Nederland is expected in Q2, while overall group profit stood at €555m in 2024. Revenue was stable at €6.25bn in 2024 versus €6.23bn a year earlier, with a target of around €6.45bn expected in 2025. 

RTL Group chief exec Thomas Rabe, said: “RTL Group once again demonstrated resilience in 2024. Despite challenging market conditions in the second half of the year, our results were in line with the guidance we provided at the beginning of 2024. 

“More importantly, we reached turning points in our streaming services and content production business. As a result, we expect to significantly increase our operating profits in the coming years. Our streaming services continued to grow dynamically and significantly reduced their startup losses in 2024. We are firmly on track to reach profitability by 2026. 

“We have continued to strengthen our global content business, Fremantle. Thanks to a significant reduction of overheads and the contribution from Asacha Media Group – acquired in 2024 – Fremantle reached a record result and significantly improved its Adjusted EBITA margin.”