RTL and ProSieben Focus on Profitability as TV Ad Revenues Fall

Why It Matters

The earnings underscore a structural pivot from declining linear TV to profitable streaming, reshaping revenue models for European broadcasters and signaling where advertisers will allocate spend.

Key Takeaways

• RTL's streaming unit posted first profitable quarter, profit $27‑55 million.
• Digital ad revenue rose 14.6% to $130 million, offsetting linear decline.
• ProSieben cut costs, boosting Q1 EBITDA by $55 million.
• Linear TV ad sales fell 6.5% for RTL, 10% for ProSieben.
• Both groups rely on streaming growth to reverse ad market slump.

Pulse Analysis

The first‑quarter results from Germany’s two largest commercial broadcasters underline a structural shift in Europe’s advertising landscape. While RTL Group managed a modest 2.5 % organic revenue increase, ProSiebenSat.1 saw a 3 % decline, reflecting the continued erosion of linear TV ad spend. Both companies reported that total advertising revenue fell—RTL’s linear TV sales dropped 6.5 % and ProSieben’s entertainment‑segment ads fell 10 %—yet digital ad revenues grew double‑digit. The data signal that advertisers are reallocating budgets toward streaming platforms, even as the overall market contracts.

RTL’s streaming arm delivered its first profitable quarter, posting an operating profit in the $27‑$55 million range for the full year. Subscriber numbers climbed 18.8 % to 8.4 million, and digital ad sales surged 14.6 % to $130 million, driven by new deals with HBO Max in Germany and Amazon Prime Video in France. CEO Clément Schwebig emphasized that the combined RTL‑Sky footprint in the DACH region will deepen content offerings and improve monetisation. The profitability milestone validates the group’s pivot from legacy broadcast to a hybrid, ad‑supported streaming model.

ProSiebenSat.1’s strategy focused on cost discipline, lifting Q1 EBITDA by $55 million despite a revenue dip. The broadcaster trimmed non‑core assets and accelerated its ‘Joyn’ streaming service, which posted a 14 % rise in ad revenue and a 19 % jump in subscriptions. Digital‑and‑smart advertising now accounts for a growing share of the group’s income, offsetting linear weakness. Industry analysts expect the trend to continue, with digital ad spend eventually surpassing traditional TV as audiences migrate to on‑demand platforms, reshaping revenue models across Europe.