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RTL to Pay Interim Dividend, Raises Outlook

RTL to Pay Interim Dividend, Raises OutlookRTL to Pay Interim Dividend, Raises Outlook

(Adds details on forecast, second quarter, shares)


* To pay interim dividend of 1 eur/shr in September 2016

* Full-year EBITA now seen growing by 1-2.5 pct

* Shares up 0.8 pct in early trading

FRANKFURT, Aug 25 European broadcast group RTL said it would pay an interim dividend of 1 euro per
share and raised its full-year earnings guidance despite
quarterly results that missed consensus due partly to the UEFA
European soccer championship.

RTL, a subsidiary of German media conglomerate Bertelsmann
, said on Thursday it had decided to pay an interim
dividend because of its strong cash flows and confidence in
meeting its full-year net debt to core profit ratio target.

It said it now expected slight growth of 1 to 2.5 percent in
2016 earnings before interest, tax and amortisation (EBITA),
versus a previous forecast for broadly stable EBITA, and
confirmed it expected moderate revenue growth of 2.5 to 5

RTL shares were 0.8 percent higher in early
Frankfurt trading.

The Luxembourg-based group said advertising revenue fell in
June because of UEFA 2016, which took audiences away from its
entertainment and drama channels, except in France, where its M6
unit broadcast 11 live games including the final.

Second-quarter sales fell 2 percent to 1.45 billion euros ($1.63 billion), also due to lower revenue from production and
distribution unit FremantleMedia, maker of programmes including
Pop Idol, which RTL said was mainly due to phasing effects.

EBITA grew 3 percent in the quarter to 351 million euros,
driven by M6 and RTL Germany. Both sales and EBITA missed
analysts’ expectations, according to a Reuters poll.

“Excluding the month of June 2016 with the European football
championship, our families of channels in the main markets of
Germany, France, the Netherlands and Belgium scored higher or at
least stable audience shares in ever more competitive
environments,” RTL said in a statement.

($1 = 0.8872 euros) (Reporting by Georgina Prodhan; Editing by Maria Sheahan)

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