RTL Group Bulls Step in As Rally Reaches 30%

The RTL Group share price (ETR: RRTL) has added ~30% year-to-date, with the latest pullback on earnings being bought today, with shares up 1.74%.

The company reported solid financial results for the full fiscal year of 2024, but markets clearly expected more, with a 10% decline in the stock on the numbers not lasting long. RRTL has recaptured all but 1.5% off the pullback, as the bulls step back in.

Looking closer at the numbers, the company posted a group revenue of €6.3 billion ($6.8 billion), marking a slight decrease of 1.5% compared to the previous year.

Despite this slight decline, the company anticipates a rebound with projected revenue of approximately €6.45 billion ($7.03 billion) for 2025.

In terms of profitability, RTL achieved a total group profit of €555 million ($603 million) for 2024. A significant factor contributing to RTL’s resilience is the substantial growth in its streaming segment, which saw an impressive 42% increase in revenue, totaling €403 million ($437 million). This growth was largely driven by a 21% increase in paying subscribers in key markets including Germany, Hungary, and France.

Advertising revenue also saw a noteworthy uptick, with double-digit growth reported from RTL+ in Germany and M6+ in France. CEO Thomas Rabe highlighted that RTL has reached key turning points in both its streaming services and content production business, which he believes will lead to significant profit increases moving forward.

Fremantle, a subsidiary of RTL Group, experienced a slight dip in revenue from €2.266 billion in 2023 to €2.254 billion ($2.449 billion) in 2024. However, Fremantle achieved record results due to reduced overheads and contributions from recently acquired Asacha Media Group. The company is targeting a substantial margin increase to 9% by 2026 and aims for full-year revenue of €3 billion in the mid-term.