rtl group posted a small revenue decline even as streaming surged and digital advertising grew, with Fremantle experiencing a setback and major deals aimed at boosting scale
The European broadcaster and production group reported revenues of €6.018 billion, a 3.8% decrease year-on-year, reflecting pressure on traditional advertising and changing viewer habits. At the same time the company highlighted strong momentum in its streaming and digital businesses, reporting an adjusted EBITDA of €661 million and total group profit of about €1.03 billion, a result the company said was helped by the sale of its Dutch operations.
That contrast — declining legacy income alongside fast-growing subscription and ad-supported digital revenue — shapes the group’s public narrative. Executives pointed to a clear strategic shift: reinvest resources into streaming, expand distribution partnerships, and pursue M&A to build scale while trimming costs in legacy divisions.
Overall revenue softened by 3.8% to €6.018 billion, while the company’s adjusted EBITDA came in at €661 million. Total group profit rose to roughly €1.03 billion, a number the group attributes in large part to a non-operational gain from disposing of RTL Nederland. The numbers reflect offsetting forces: declines in linear advertising and entertainment sales, counterbalanced by growth in subscriptions and digital ad sales.
Linear TV advertising continues to decline, but digital channels are picking up the slack. The group reported a meaningful increase in digital advertising, and executives described an ongoing reallocation of commercial focus toward programmatic and cross-platform campaigns. Those shifts are integral to the company’s plan to rebuild margins while transitioning from traditional broadcast economics to a more subscription- and data-driven model.
Streaming revenue was a standout: it rose by about 26.3% to €509 million as paying customers increased by 19% to 8.1 million. The company cited higher subscription prices in Germany, growth in ad revenue on local services such as RTL+ and M6+, and improved distribution partnerships as the primary growth levers. Management also reported narrowing losses in the streaming unit, saying the operation “approached break-even” late in the reported period.
To accelerate scale, the group is moving to acquire Sky Germany from Comcast — a deal expected to close in the first half of 2026, pending approval from the European Commission. The combination is positioned to create a larger subscription base across the DACH region and to strengthen bargaining power with distributors. Alongside M&A, RTL has deepened ties with partners such as Deutsche Telekom, Amazon and Warner Bros. Discovery to bundle services and extend distribution for its streaming offering.
The group’s production arm, Fremantle, saw revenue decline by 9.4% to €2,043 million, driven chiefly by weaker entertainment sales in key markets such as the U.S. and the U.K. Management noted some of the prior period’s outperformance was linked to a temporary spike from special-format series in North America. Still, Fremantle delivered high-profile creative successes that boosted its profile with global streamers.
Recent content highlights include a multi-nomination feature from one of Fremantle’s labels and several commissioned series for major platforms — titles produced for Prime Video and Netflix as well as a straight-to-series greenlight for a 12-episode reboot ordered by a U.S. network. Those wins underline Fremantle’s continued creative value, even as commercial timing and market dynamics weighed on short-term revenue.
CEO Thomas Rabe summarized the backdrop bluntly: “The market environment in 2026 remained challenging, with a significant decline of TV advertising and an even faster shift from linear TV to streaming. Against this backdrop, RTL Group further accelerated its transformation by reallocating resources to streaming, combined with comprehensive cost reductions across our main businesses.” The company expects continued improvement in streaming profitability and sees the Sky Germany deal and distribution partnerships as key levers to reach higher adjusted profitability in the coming periods.
In short, the group is navigating a classic media transition: short-term revenue pressure in legacy channels offset by investment and scaling of subscription and digital advertising businesses, supported by targeted content production and strategic deals intended to accelerate future growth.