Five owner RTL reports Q3 revenue drop

The RTL Group, which owns Five and FremantleMedia, has revealed that its like-for-like revenue dropped 6.4% to €1.097 billion (£983m) over the past quarter.

According to the firm's financial results for three months up to September 30, overall revenues declined 5% to €1.129m. The group's adjusted earnings before interest, tax and amortisation (EBITA) actually increased 7.4% over Q3 to €101m, but the figure was down 22.7% at €474m during the nine months to the end of September.

Despite the TV advertising market in Europe "decreasing significantly year-on-year", RTL suggested that the outlook is now improving.

"Since September 2009 advertising bookings have been better in almost all of RTL Group's markets, compared to the first eight months of the year," said the firm in a statement.

"However, as there is no visibility for the rest of the year, the Group remains cautious. Based on the ongoing cost-saving efforts, which are still unfolding their full impact, RTL Group is confident that it can continue to mitigate the EBITA decrease."

To further improve results, RTL has implemented a cost cutting programme across its TV operation, which continues to "yield positive results". Operating costs dropped by €289m year on year during the period from January to September.

The success of FremantleMedia's The X Factor remains a boon to the group's TV performance, after the current series peaked at nearly 14 million viewers, or 48% of total UK audience share.

Five is also diversifying its portfolio of services to increase profits, including the recent launch of an online bingo show designed to increase awareness of the firm's growing gaming operation.