European broadcasters RTL Group and ProSiebenSat.1 both reported their Q1 earnings this morning, giving a window into the state of the continental European TV advertising market.
The two had mixed fortunes in terms of revenue growth — while RTL’s total revenues grew 2.5 percent on an organic basis, ProSieben saw a three percent drop. But there were some shared themes across the two sets of results too. While both reported continued declines in linear TV ad sales, there was good news on the profitability front for both businesses.
Streaming growth and cost management
For RTL, the headline news was that its streaming division had its first profitable quarter, and is on track to reach profitability across the year as a whole. Streaming revenues were up 27 percent year-on-year, thanks to a mix of subscriber growth (up 18.8 percent to 8.4 million) and increased digital ad sales. Digital ad revenues for the group as a whole were up 14.6 percent, to €118 million.
Clément Schwebig, who has taken the reins at RTL as Thomas Rabe’s successor, said he’s confident in the group’s streaming strategy. “With all streaming performance indicators growing – from revenue to paying subscribers and viewing time – we are confident that our streaming services will generate an operating profit of €25 million to €50 million for the full year,” said the new CEO. “At the same time, we continue the expansion of our streaming footprint through partnerships with HBO Max in Germany and Amazon Prime Video in France, a compelling pipeline of local and international content and, above all, with the combination of RTL and Sky in the DACH region.”
For ProSiebenSat.1, while total revenues were down on both a reported and organic basis, EBITDA was up by €50 million in the first quarter. The company attributed this positive movement to its focus on cost management. “We are driving the shift toward more agile structures and further cost efficiency, and we are consistently pursuing our portfolio strategy with a clear focus on value creation,” said CEO Marco Giordani. “Since the beginning of the year, we have divested companies that are not part of our strategic focus. These measures are taking effect and will further strengthen our profitability.”
Like RTL, ProSieben continues to see revenue growth on the digital side of its business. ‘Digital & smart’ advertising revenues increased by ten percent year-on-year, thanks to growth in its Joyn streaming service. Joyn’s ad revenues grew by 14 percent year-on-year, while subscription earnings increased by 19 percent.
Total ad revenues continue to drag
Despite the positive momentum in streaming, total ad revenues were down from Q1 2025. Linear losses continue to outweigh growth elsewhere.
For ProSieben, ad revenues in its entertainment segment decreased by ten percent. The company said this reflects “the industry-wide decline in TV advertising investment in Germany driven by a combination of cyclical and structural factors.” For RTL, meanwhile, total ad revenues fell 3.2 percent, with linear TV ad revenues down by 6.5 percent.
ProSieben signalled some positive movement in the overall TV ad market, as CFO Bob Rajan said April performed better than the first quarter. But the long-term trend continues to be one of streaming rises and linear declines.
Of course, if this trend continues for long enough, eventually digital ad earnings will overtake linear, and total advertising will return to long-term growth. But RTL’s results suggest that could be a way off: digital ad revenues (€118 million) are still significantly below linear TV (€474 million).
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