Fremantle content slump puts dent in RTL Group revenues

A significant dip in production at Fremantle saw RTL Group’s revenue fall by 5.5% to €1.34bn (£1.1bn) in the third quarter of 2024.

The group, which generated revenues of €1.41bn (£1.2bn) in the same period last year, blamed the drop on “lower content revenue at Fremantle and lower advertising revenue”.

Revenues at the super-indie, which produces shows such as Got Talent and Too Hot To Handle, fell over 7.1% to €1.42bn (£1.2bn), from €1.53bn (£1.3bn) in the first three quarters of 2023.

The company said “growth of the content production market was lower than expected” this year. Fremantle consolidated Asacha Media Group and Beach House Pictures in 2024.

RTL’s Q3 results also noted 2023’s figure was comparatively high due to the delivery of Showtime drama Fellow Travellers in the third quarter.

The group said it anticipates a boost in Q4 when it will deliver major titles such as Battle Camp for Netflix and BBC1 drama The Listeners.

“With a strong content lineup in the fourth quarter, Fremantle will significantly increase its full-year Adjusted EBITA,” said RTL chief executive Thomas Rabe.

Fremantle is aiming to achieve revenues of €3bn by 2026, with RTL Group continuing to invest in the outfit “organically and via acquisitions”.

RTL’s year-to-date revenues were €4.21bn (£3.5bn), to remain stable year-on-year, as higher TV advertising and streaming revenue at RTL Deutschland offset Fremantle’s performance.

Streaming revenue increased 40.6% to €277m (£230m), up from €197m (£164m) in the same period last year.

It said the rise was driven by a “significantly higher” number of paying subscribers, higher subscription prices in Germany and rapidly growing advertising revenue on RTL+ in Germany and M6+ in France.

Rabe added: “Our streaming services continue to grow dynamically in all key dimensions: number of paying subscribers, viewing hours, subscription and advertising revenue. At the current pace, we are confident to reach the 7m paying subscribers mark by the end of the year and remain on track to reach our long-term streaming targets and thus profitability by 2026.”