Brussels (AFP)
RTL Group, the leading European audiovisual group, recorded a 3.4% drop in its quarterly turnover, weighed down, like the whole sector, by the fall in advertising revenue resulting from the consequences of the coronavirus pandemic.
"At the beginning of March, we recorded the first cancellations of advertising spots, as well as postponements of productions. Later in the month, this trend accelerated with the implementation of extensive containment measures throughout Europe", said Thomas Rabe, boss of the company majority owned by the German group Bertelsmann.
"We are making good progress in implementing countermeasures to cut costs and preserve liquidity," he added in a statement.
RTL Group, whose turnover stood at 1.466 billion euros in the first quarter, is facing the same problems as its competitors, such as TF1 for example: the containment of the population has certainly led to a sharp increase in television viewing time, but these good audiences are not doing their business because they depend on advertising revenue and advertisers have quickly cut their investments.
"Faced with current economic uncertainties", the group now gives up making forecasts for the whole year.
"Our television channels, radio stations, streaming services and websites have seen significant growth in reach and use," said Rabe. Audience shares are increasing in Germany, France and the Netherlands, and RTL Group's comprehensive news reports are generating record audiences, the group said.
At the end of March 2020, RTL Group had 1.53 million paid subscribers to its TV Now streaming services in Germany and Videoland in the Netherlands, up 34% compared to the previous year. Since the introduction of containment measures in mid-March 2020, these two services have experienced a higher growth rate.
In France, the M6 Group's 6play streaming service recorded an additional million registered users and a 45% increase in videos watched between March 16 and April 16, 2020.
© 2020 AFP