European broadcaster RTL has seen profits rise by nearly 6% in the third quarter compared with the same period last year.
The company’s revenues before interest, tax and amortization (EBITA) were up 5.8% year-on-year to €165 million (US$210 million) thanks largely to production company FremantleMedia, which produces The X Factor USA, The Apprentice and the Got Talent format; and the one-off sale of a building in London (RTL did not reveal what building it sold or for how much).
An upswing in TV advertising sales from Germany’s Mediengruppe RTL Deutschland, despite a slump in the rest of Europe, also partially accounted for the boost. “In an increasingly tough economic environment, almost all TV advertising markets across Europe decreased during the third quarter, while the German TV advertising market was estimated to be slightly up,” the company said in a statement.
Overall, RTL’s total revenue rose 5.5% year-on-year to €1.27 billion (US$1.64 billion). The company reported that it is on track for a “solid” year but with lower earnings than last year.
Reported EBITA decreased by 9.8% to €671 million(US$853 million), as the boost in German ad sales was offset by “challenging market conditions in other countries, higher investment in programming and portfolio effects such as the disposal of the Dutch radio stations.”