According to ceo
Gerhad Zeiler: “In the future, advertising will not pay all the bills.”
Mr Zeiler said it was impossible to see more than a few weeks ahead in any of the markets where RTL Group trades. Pre-tax profits fell by 72 per cent year-on-year in the first six months to €74m ($106m).
Mr Zeiler said he was taking a very cautious view about what effect a recovery would have on the industry.
“I’m not sure that merely a slight macroeconomic recovery will bring us back to previous levels of television advertising revenue,” he said. Sir Martin Sorrell, chief executive of WPP, the world’s largest marketing and communications group, on Wednesday forecast only limited growth in advertising even in 2010.
RTL includes M6 in France, Mediengruppe RTL in Germany, and the global production company Fremantle.
The group’s most recent large acquisitions, its buy-out of co-owners of the UK’s Five and its two-thirds stake in Alpha Media, the Greek television company, were its worst performing assets in the first half of the year. Mr Zeiler said he believed free-to-air television was still a great market to be in.
“In even the worst advertising market in history as we have now, we still had a double-digit return on sales. Television will be the leading media when it comes to advertising efficiency.
“Maybe there will be a different size to the market and every free-to-air group will have to think about, for example, pay-TV, about online services, about video-on-demand.”
Mr Zeiler explained that free-to-air companies would need to think about how they could market channels for pay-TV platforms such as satellite and cable.
RTL Group, which is 90 per cent owned by Bertelsmann, Europe’s largest media company, saw the smallest contraction in advertising revenues in Belgium and the Netherlands, where sales fell 10-12 per cent in the first half of 2009, compared with 14-15 per cent in Germany and up to 18 per cent in France.
Five, in which RTL wrote off all its remaining goodwill at a cost of €140m, saw revenues fall 34.4 per cent in euro terms, although only 25 per cent in local currency.
RTL’s worst markets were in eastern Europe, where between 18 and 25 per cent reductions were the norm, and Spain, where revenues fell 31 per cent.
“In the future, advertising will not pay all the bills,” said Gerhard Zeiler .
Mr Zeiler said it was impossible to see more than a few weeks ahead in any of the markets where RTL Group trades. Pre-tax profits fell by 72 per cent year-on-year in the first six months to €74m ($106m).
Mr Zeiler said he was taking a very cautious view about what effect a recovery would have on the industry.
“I’m not sure that merely a slight macroeconomic recovery will bring us back to previous levels of television advertising revenue,” he said. Sir Martin Sorrell, chief executive of WPP, the world’s largest marketing and communications group, on Wednesday forecast only limited growth in advertising even in 2010.
RTL includes M6 in France, Mediengruppe RTL in Germany, and the global production company Fremantle.
The group’s most recent large acquisitions, its buy-out of co-owners of the UK’s Five and its two-thirds stake in Alpha Media, the Greek television company, were its worst performing assets in the first half of the year. Mr Zeiler said he believed free-to-air television was still a great market to be in.
“In even the worst advertising market in history as we have now, we still had a double-digit return on sales. Television will be the leading media when it comes to advertising efficiency.
“Maybe there will be a different size to the market and every free-to-air group will have to think about, for example, pay-TV, about online services, about video-on-demand.”
Mr Zeiler explained that free-to-air companies would need to think about how they could market channels for pay-TV platforms such as satellite and cable.
RTL Group, which is 90 per cent owned by Bertelsmann, Europe’s largest media company, saw the smallest contraction in advertising revenues in Belgium and the Netherlands, where sales fell 10-12 per cent in the first half of 2009, compared with 14-15 per cent in Germany and up to 18 per cent in France.
Five, in which RTL wrote off all its remaining goodwill at a cost of €140m, saw revenues fall 34.4 per cent in euro terms, although only 25 per cent in local currency.
RTL’s worst markets were in eastern Europe, where between 18 and 25 per cent reductions were the norm, and Spain, where revenues fell 31 per cent.