In a recent announcement, RTL has decided to delay Fremantle’s ambitious €3B revenue target by up to a year. This decision comes as a result of various challenges within the global TV sector, including budget cuts to streaming services, a tough TV advertising environment, and strikes in the U.S. These factors have created what an RTL spokesman referred to as “increasing headwinds” for the industry in 2023.
The initial revenue target of €3B was set around five years ago with the intention of doubling Fremantle’s revenue. This move was seen as a strategic growth driver for RTL, which operates channel groups in Germany, Holland, and France. While there is still a possibility of hitting the target by 2025, RTL has introduced some flexibility and is now officially aiming for either 2025 or 2026.
In the latest annual results from Bertelsmann-owned RTL, it was revealed that Fremantle’s yearly performance saw a slight decline. Turnover fell by 3.5% to €2.26B, which is still a significant amount away from the €3B target. Adjusted EBITA also experienced a more significant drop of 14.2% to €139M. Overall, RTL’s revenues decreased by 5.4% to €6.2B, with adjusted EBITA down by 15.2% to €782M.
Despite the challenges faced, RTL remains committed to reaching the revenue target by investing in various areas such as entertainment, drama, film, and documentaries. This investment is planned to occur both organically and through acquisitions. In 2024, Fremantle made significant investments, including the acquisition of Death in Paradise group Asacha Media Group and 80% of Singapore’s Beach House Pictures.
The road to achieving Fremantle’s revenue target of €3B is proving to be more challenging than initially anticipated. With external factors impacting the global TV sector and a shift in consumer behaviors, RTL has been forced to reassess its timeline for hitting the target. Nevertheless, the company remains focused on investing in key areas to drive growth and ultimately double Fremantle’s business in the coming years.