Latest news with #SkyDeutschland
Time of India
09-08-2025
- Business
- Time of India
Broadcaster RTL bets on streaming shift as M&A activity picks up in Europe
European broadcaster RTL Group plans to speed up its business transformation, betting on the planned Sky Deutschland acquisition to drive streaming growth and offset declines in TV advertising and demand for traditional media, it said on Friday. RTL has been expanding its streaming platforms and strengthening its content production in response to evolving consumer habits and competition from digital rivals, including Netflix and Amazon's Prime Video. Over the past five years, it has generated more than 2.7 billion euros ($3.1 billion) by disposing assets not aligned with this strategy. "I believe there will inevitably be further handovers and licensing in Europe," CEO Thomas Rabe told reporters in a call after RTL published its half-year results. "We are no longer competing nationally or locally, but rather with global platforms." During the first half of 2025, RTL renewed its distribution partnership with Deutsche Telekom until 2030 and agreed to buy Sky Deutschland. Rabe said RTL was in talks with the European Commission, which is responsible for reviewing the proposed merger that would combine Sky's sports and streaming offerings with RTL's news and entertainment brands. The deal is part of an increasingly active M&A landscape in European media. RTL's German rival ProSiebenSat.1 on Wednesday abandoned its resistance and recommended its shareholders accept the latest public takeover offer from Italy's MFE-MediaForEurope . "We have submitted initial documents to the Commission and have also received initial questions," he said. The regulatory approval and closing of the transaction are expected in 2026. Takeovers in the TV industry have repeatedly failed in Germany and other European countries due to objections from regulators who fear the dominance of individual broadcasting groups. RTL's half-year revenue fell 3.2% to 2.78 billion euros ($3.24 billion), missing analysts' consensus, weighed down by lower revenue from ads and content production. That decline was partly offset by 27% growth in streaming revenue that reached 235 million euros.
Yahoo
08-08-2025
- Business
- Yahoo
Fremantle Revenue Slips in H1 as RTL Group Ramps Up Streaming, Seals Sky Deutschland Deal
Fremantle's revenue fell 5.4% in the first half of 2025 to €905 million ($1.053 billion), largely due to lower U.S. sales and phasing effects, as parent RTL Group accelerated its shift toward streaming and confirmed its acquisition of Sky Deutschland. The decline was partly linked to the first half of 2024 benefiting from a spin-off of 'America's Got Talent.' On Friday, Luxembourg-based RTL Group reported group revenue of €2.781 billion ($3.236 billion) for the six months ended June 30, down 3.2% from €2.872 billion ($3.343 billion) a year earlier. Adjusted EBITA (Earnings Before Interest, Taxes, and Amortization) dropped 7% to €160 million ($186 million), with lower TV advertising revenue partly offset by sharply reduced streaming start-up losses, down 59.5% to €34 million ($39.6 million). More from Variety Fawad Khan Among Celebrity Judges as 'Pakistan Idol' Returns After Decade-Long Hiatus (EXCLUSIVE) Luca Bernabei Steps Down as Lux Vide Chief Amid Full Fremantle Acquisition of Italian TV Production Powerhouse Asacha Media Group CEO Steps Down Following Company's Integration Into Fremantle Fremantle's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin increased to 7.2% in H1/2025 from 6.6% a year earlier, even as revenue declined. Under its 'boost plan,' the global production giant is targeting €3 billion ($3.493 billion) in annual revenue in the mid-term, supported by significant investment in IP development, acquisitions and the deployment of artificial intelligence across its value chain. In March, Fremantle struck a first-look and development deal with Emma Stone and Dave McCary's Fruit Tree, following a three-year agreement with newly established Eureka Studios to develop new IP for global sale and production. April saw the launch of Fremantle Sports, a global unit working across entertainment, drama and film, and documentaries to create cross-platform sports formats for worldwide distribution. That month also brought the launch of Imaginae Studios, a stand-alone label dedicated to leveraging AI solutions, technologies and tools for the creative community. In June, Fremantle unveiled Fremantle Global Originals, a new stand-alone creative hub focused on creating original unscripted formats. RTL's streaming revenue surged 27% to €235 million ($273.6 million) as paying subscribers rose 15.3% year-on-year to 7.23 million. Growth was driven by higher subscription prices in Germany and rising ad revenue on RTL+ in Germany and M6+ in France. The group renewed its distribution partnership with Deutsche Telekom until at least 2030 and, in June, announced a definitive agreement to acquire Sky Deutschland's operations in Germany, Austria and Switzerland — including customer bases in Luxembourg, Liechtenstein and South Tyrol — for €150 million ($174.6 million) in cash plus a variable consideration tied to RTL's share price. The deal, subject to regulatory approval, would combine Sky's premium sports rights portfolio, including Bundesliga, DFB Cup, Premier League and Formula 1, with RTL's entertainment and news brands. Other moves included the March sale of magazine titles 'Brigitte,' 'Gala' and 'Eltern' to Funke Mediengruppe, and the July closing of the €1.1 billion ($1.280 billion) sale of RTL Nederland to DPG Media, with an expected €5 ($5.82) per share dividend to follow in 2026. RTL Group confirmed its 2025 outlook, forecasting revenue of about €6.45 billion ($7.509 billion) and Adjusted EBITA of around €780 million ($907.1 million), assuming TV ad sales grow 2-3% in the second half. Streaming profitability is targeted for 2026. 'Our shareholders will benefit from the sale [of RTL Nederland] via an expected dividend of €5 per share, payable in 2026,' CEO Thomas Rabe said. 'We are confident to significantly increase our operating profits in the coming years, driven by improved macroeconomic conditions in Germany, streaming profitability and synergies from the Sky Deutschland acquisition.' Best of Variety New Movies Out Now in Theaters: What to See This Week What's Coming to Disney+ in August 2025 What's Coming to Netflix in August 2025 Sign in to access your portfolio
Times
05-07-2025
- Business
- Times
Call centre closures rack up costs for Sky
Sky's plans to axe three customer call centres will cost the broadcaster as much as £35 million, accounts filed by the broadcast giant show. The former FTSE 100 company, owned by US conglomerate Comcast since 2018, has also registered a new impairment charges in UK filings on its interest in on SkyShowtime, a lossmaking European streaming service that is a joint venture with America's Paramount. Led by chief executive Dana Strong, Sky's financial performance has become harder to gauge since it was swallowed up into Comcast. Its revenues and profits are reported through numerous companies in the UK. Accounts for six of them, filed last month, show a drop in operating profits of 20 per cent to £352 million, in part because of falling advertising revenues and investments in building Sky's mobile and broadband products. Sky said that revenues at its main businesses grew from £11.1 billion to £11.2 billion, although this does not account for all of its group turnover. It said that its earnings before interest, tax, depreciation and amortisation (Ebitda) were broadly flat at £1.2 billion. Comcast acquired Sky for $39 billion in 2018. Four years later, Comcast had to write down Sky's value by $8.6 billion. Further, smaller writedowns have been made since then. Last year's accounts showed that Sky had written down the value of its international operations, which include Sky Deutschland and Sky Italia, by £1.2 billion; while a £327 million impairment charge was registered against Showtime. In 2024, a further £245 million was written off the value of Showtime. Last month the company announced the sale of its German arm to RTL Group for an initial €150 million. And the accounts showed a further estimated cost of £30 million-£35 million for closing three of its ten customer service centres. This move, announced in March, put 2,000 jobs at risk. Sky Group's chief financial officer Simon Robson said the company had 'delivered strong financial results during a year of meaningful strategic progress', which included on-screen success for Sky Originals and the launch of the Sky Mobile network in Ireland and Italy.
Yahoo
27-06-2025
- Business
- Yahoo
Sky retreats from Germany after losing billions
Sky has made a costly retreat from Germany 15 years after Rupert Murdoch broke into the market with hopes of building a pan-European pay-TV empire. The German broadcaster RTL has acquired Sky Deutschland for just €150m (£128m). The figure represents a collapse in the value assigned to the business in 2018 when Sky was acquired for £30bn by the US cable giant Comcast in a blockbuster auction. At that time Brian Roberts, Comcast's executive chairman and controlling shareholder, said Sky's continental footprint would provide crucial scale. The takeover of Sky would help Comcast compete in the increasingly global entertainment business against the likes of Netflix and Amazon, investors were told. However, it quickly proved that Mr Murdoch had sold up at the peak of pay-TV in Europe, as streaming began to make growth much more challenging. The difficulties that Sky had experienced in making Sky Deutschland profitable would not be easily solved under new ownership. The decision to sell Sky Deutschland at a heavy loss will be received as further recognition by Comcast that it overpaid for Sky. Sky acquired full control of Sky Deutschland in 2014 in a deal that valued the German operation at more than £4.4bn. It said on Friday that if RTL is able to hit profit targets it is in line to receive an additional €377m on top of the €150m cash up front. Sky Deutschland has never made a profit, operating in a market of famously thrifty consumers. However, following determined cost-cutting under Comcast it is expected to break even this year. The sale comes after repeated attempts by Comcast to exit Germany, which never achieved the scale of even Sky's tricky Italian business. Talks last year were overshadowed by uncertainty over Sky Deutschland's crucial top-flight football rights. They were secured in December, giving new impetus to the discussions. The agreement marks Mr Roberts' most drastic move yet in its battle to make his takeover of Sky more palatable for Wall Street, which has never shown enthusiasm for his European empire-building. Comcast already reduced the value of Sky by $8.6bn (£6.3bn) in 2022 and stopped breaking out its performance in financial reports. Last year, it also reported a £1.2bn write-down on loans to its German and Italian operations, which were bought by Sky in a £7bn deal in 2014. Struggles in Europe have prompted further cost-cutting efforts at Sky, which recorded a pre-tax loss of £773m in 2023, according to its latest accounts. Plans to cut 2,000 customer service roles were announced in March. However, as well as securing the sale of Germany, Sky has delivered apparent progress in Italy. Revenues there were up 8.2pc last year to €2.4bn and it swung from a loss to underlying earnings of €177m. Thomas Rabe, the chief executive of RTL, said the deal would 'bring together two of the most powerful entertainment and sports brands in Europe, and create a unique video proposition across free TV, pay-TV and streaming'. The German division, which operates in Germany, Austria, Switzerland and parts of Italy, holds the rights to broadcast the Bundesliga, the German football league, until 2029. Francois Godard, an analyst at Enders Analysis, said Sky had struggled in Germany with market share languishing around 10pc. Mr Godard said that earlier valuations of Sky Deutschland had been based on 'magic growth ... Of course, that did not happen'. He added: 'Germany has always been different from the UK. They never reached the kind of penetration they had in the UK.' Meanwhile, Sky's attempted overhaul was dealt a blow last year after bosses discovered an embarrassing advertising blunder. This stemmed from Sky uncovering miscalculations in its ad sales that meant its partners did not receive the correct revenues from their deals dating back years. Like other broadcasters, Sky has also been navigating a shift from linear TV to streaming, as customers switch from expensive satellite TV packages to on-demand streaming apps. Next year, it will face further competition as HBO launches its Max streaming service. In December, Sky secured a deal to keep HBO's shows, such as a new Harry Potter series, bundled with its service, but they will no longer be exclusive to the UK broadcaster. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
RTL to buy Sky Deutschland for €150mn in TV consolidation effort
RTL has agreed to buy Comcast's Sky Deutschland for €150 million as the media conglomerate seeks to stave off competition from US streaming platforms. On top of the €150mn upfront cost, the group may pay a further €377mn if RTL's share price rises above €41 apiece five years after the deal's close. RTL said that the acquisition, if approved by regulators, would allow it to become the third-biggest provider of streaming services in Germany after Netflix and Amazon Prime. The deal is expected to close next year. Comcast, Sky's parent firm since 2018, has been looking to sell Sky Deutschland for several years. The German subsidiary has never made a profit but it is expected to break even this year. The firm has notably been struggling as competition from streaming services heats up. However, Sky won a significant deal to exclusively show most Bundesliga football matches last year, through to the end of the 2028-29 season, boosting its attractiveness. 'The business is on track to achieve EBITDA break-even, reflecting the success of our turnaround plan. Combining the strength of our brand with RTL builds on that momentum and opens up even greater opportunities,' Dana Strong, Group CEO at Sky, said in a statement. Related Warner Bros. Discovery to split, dividing TV and streaming services Netflix and France's TF1 join forces as traditional TV struggles Thomas Rabe, CEO of RTL, noted: 'the synergies are estimated to be around €250mn per annum within three years after closing, creating significant shareholder value'. Combined, the groups will have around 11.5mn subscribers. Under the terms of the deal, RTL will have the right to use the Sky brand in Germany, Austria, Switzerland, Luxembourg, Liechtenstein and South Tyrol. RTL has been looking to secure new revenue streams through premium subscriptions, as it operates several television and radio stations that are free to air. The decision to buy Sky Deutschland is the biggest deal it has struck since it was formed in 2000. In 2023, RTL had its eyes on another consolidation project, bidding to acquire Dutch media conglomerate Talpa Network. Competition authorities said the merged group would be too dominant in the Netherlands. RTL then proposed to sell its Dutch subsidiary RTL Nederland to Belgium-based DPG Media, although regulators have yet to give the green light. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
