RTL Group lowers annual targets - impact on financial markets foreseeable

RTL Group lowers annual targets - impact on financial markets foreseeable

According to a report by www.finanzen.net,
The RTL Group has reduced its targets in view of the weak advertising markets at the beginning of the second half of the year. Although September was strong, European advertising markets proved weaker than expected in the fourth quarter, leading to an adjustment to the full-year outlook. The group management now only expects sales of 6.9 billion euros and an Ebita of 900 million euros.

In the third quarter, group sales fell by around a tenth to just under 1.6 billion euros, and the forecast for the television advertising business in the second half of the year is declining. RTL shares temporarily lost almost 4 percent in XETRA trading.

Bertelsmann, the parent company of RTL, was able to compensate for the declining development, especially through the publishing business and the music division. The BMG music division, Arvato's service businesses and the Bertelsmann Education Group education division contributed to the growth.

This development could have an impact on the market, especially on the shares of RTL and ProSiebenSat1 Media SE, which also lost value in the wake of RTL. The uncertainty regarding the advertising markets and sales for the fourth quarter could lead to a cautious attitude among investors and further weigh on prices.

It remains to be seen whether RTL's countermeasures will be enough to compensate for the loss in sales and stimulate the advertising markets again. Overall, the reduction in RTL's targets reflects the ongoing challenges in the advertising market, which may continue to cause some volatility in the industry in the future.